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  • Overall approach
    4/12
    • Overarching commitment on deforestation
      0/4
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Commodities (if applicable): Palm oil; Pulp & Paper
      "Since the 2011 adoption of our Forest Conservation Policy, we have prioritised decoupling palm oil production from deforestation."; "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP)."
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      "New York, 23 September, 2014 - Mr. Teguh Ganda Wijaya, Chairman of Asia Pulp and Paper Group (APP), today joined a number of companies, governments and NGOs to sign the New York Declaration on Forests at an event at the UN Climate Summit 2014"; "memberships [...] Global Agribusiness Alliance"; "GAR, through its subsidiary SMART has subscribed to the UN Global Compact principles since 2006. In 2018, GAR became a signatory, signifying our continuing commitment."
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "We carry out High Conservation Value (HCV) and High Carbon Stock (HCS) assessments as part of our standard procedures before embarking on new development. We have currently identified around 8,100 hectares15 of HCV and HCS areas for conservation across our concessions"
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational
      "Negative perceptions and public campaigns against palm oil based on concerns surrounding deforestation can result reputational damage and lead to potential boycotts/loss of markets. We assess this risk through various ways including monitoring of media reports, social campaigns and market intelligence gathering. "
    • High-level management of deforestion
      1/1
      Yes
      1/1
      !A Sustainability Committee (SC) which is chaired by the Corporate Strategy and Business Development Director, oversees all matters related to responsible palm oil. [...] Zero gross deforestation/ no deforestation"
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
      Yes
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 72,700ha
      "Currently we have set aside 72,000 ha as conservation area. We are also working inpartnership with local communities on conservation – to date, some 13 villages have agreed to set aside another 7,700 hectares of forests for conservation. [...]We are engaged in jurisdictional approaches to forest conservation in Siak, Aceh Tamiang, Kapuas Hulu; and supporting conservation commitments of 65,000 ha by our suppliers."
    • Disclosure of reforestation activity
      Yes
      0/0
      "Restoration and rehabilitation of a conservation peat ecosystem in West Kaliamantan, Indonesia. This involves the revegetation/replanting of native species of 979 hectares by 2020. [...] As of end of 2019, 95% of the target had been achieved - continued revegetation is scheduled for 2020 but may be subject to delays due to Covid19 pandemic"
    • Target to reduce emissions in scope 1/2
  • Commodity score
    33/88
    • Palm oil
      60/88
      • Commitment Strength
        14/20
        • Commitment to protect priority forests
          5/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO

            Does the company have a commitment to the protection of other specific named ecosystems?: Peat
            "In February 2011, we issued our Forest Conservation Policy (FCP), which committed us to de-linking palm oil production from deforestation [...] Furthermore, we are fully committed to following the Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria for the production of sustainable palm oil."; "We are currently focused on managing and mitigating risks related to our most material (environmentally-related) issues which include: no deforestation, forest conservation, no development on peat and conservation of biodiversity."
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Subsidary
            "In February 2011, we issued our Forest Conservation Policy (FCP), which committed us to de-linking palm oil production from deforestation [...] Furthermore, we are fully committed to following the Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria for the production of sustainable palm oil."; "We are currently focused on managing and mitigating risks related to our most material (environmentally-related) issues which include: no deforestation, forest conservation, no development on peat and conservation of biodiversity."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "In February 2011, we issued our Forest Conservation Policy (FCP), which committed us to de-linking palm oil production from deforestation [...] Furthermore, we are fully committed to following the Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria for the production of sustainable palm oil."; "We are currently focused on managing and mitigating risks related to our most material (environmentally-related) issues which include: no deforestation, forest conservation, no development on peat and conservation of biodiversity."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "In February 2011, we issued our Forest Conservation Policy (FCP), which committed us to de-linking palm oil production from deforestation [...] Furthermore, we are fully committed to following the Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria for the production of sustainable palm oil."; "We are currently focused on managing and mitigating risks related to our most material (environmentally-related) issues which include: no deforestation, forest conservation, no development on peat and conservation of biodiversity."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Subsidary
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
        • Commitment to a traceable supply chain
          5/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "As of end 2015, GAR achieved and continues to maintain full Traceability to the Mill (TTM). Currently, GAR is working towards full Traceability to the Plantation (TTP)."
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Subsidary
            "As of end 2015, GAR achieved and continues to maintain full Traceability to the Mill (TTM). Currently, GAR is working towards full Traceability to the Plantation (TTP)."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "As of end 2015, GAR achieved and continues to maintain full Traceability to the Mill (TTM). Currently, GAR is working towards full Traceability to the Plantation (TTP)."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "As of end 2015, GAR achieved and continues to maintain full Traceability to the Mill (TTM). Currently, GAR is working towards full Traceability to the Plantation (TTP)."
      • Social Considerations
        16/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "All Suppliers are expected to respect human rights and practice the labour standards as set forth in the GAR Social and Environmental Policy."; "Respecting human rights We commit to upholding and promoting the United Nations Universal Declaration of Human Rights5 for all workers, contractors, indigenous peoples and local communities in all company operations. [...] Prohibit the use of forced or bonded labour [...] Prohibit the use of child labour [...] Respect workers’ freedom of association and the right to collective bargaining [...] Discrimination"   
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Technical assistance/support; Economic
          "We support the inclusion of smallholders and local businesses into our sustainable supply chain and aim to help them comply with our sustainability policy in fair, transparent and accountable partnerships. We continue to fully support the development of plasma smallholders and are committed to improving the productivity of plasma smallholders. We provide them with high yielding seeds, transfer of knowledge and capacity building through training on best agricultural practices."
        • Gender equality in the supply chain
          Commitment to ensure equality of women in the supply chain
          2/4
          Gender equality in the supply chain
          Commitment to ensure equality of women in the supply chain
          2/4
          "All Suppliers are expected to respect human rights and practice the labour standards as set forth in the GAR Social and Environmental Policy."; "We recognise, respect and strengthen the rights of all our workers including contract, temporary, casual and migrant workers of all genders.. We provide equal opportunities for all workers, and embrace diversity regardless of ethnicity, religion, disability,gender, political affiliation, sexual orientation or union membership. We shall ensure that workers are protected from any discrimination in all stages of the employment relationship. Practice zero tolerance of sexual and all other forms of harassment and abuse."
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "We will review our business dealings with all suppliers who are found to be in breach of our policy. We recognise that suppliers may need time to comply with our policy requirements. We will work with them through direct engagement to encourage and support them in taking remedial time-bound actions to correct any violations"
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "GAR respects and recognises the long-term customary rights of the indigenous peoples, local and forest-dwelling communities to their traditional and community land and commits to ensuring FPIC from these communities prior to commencing any development and conservation of land." 
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "We commit to actively promoting and supporting the responsible resolution of any conflicts involving GAR operations with legitimate parties concerned at the time the underlying events occurred. This will include working with relevant stakeholders to ensure that a balanced, accountable, mutually agreed and documented conflict resolution system is accessible to smallholders, indigenous peoples, rural communities and other affected parties in order to deal with complaints, grievances and resolve conflicts to the mutual satisfaction of the parties based on respect for their legal and customary rights, including to lands and resources and their right to give or withhold their free, prior and informed consent to operations planned on their lands. The system will include the mapping of all conflicts in GAR’s operations; the development of action plans to address identified conflicts; transparent monitoring and reporting; the option for local community and or customary groups for accessing independent legal and technical advice; the ability for complainants to choose individuals or groups to support them and/or act as observers as well as the option of a third party mediator. We categorically reject the use of violence in any dispute by any parties"
      • Reporting and Implementation
        30/50
        • Reporting against commitments
          1/2
          • Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to protect priority forests
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "To date, 257,621 hectares of plantations including smallholders plantation 51,128 hectares, 29 mills, 9 kernel crushing plants, 6 refineries, 7 bulking stations and 1 oleochemical plant have received RSPO certification."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "To date, 257,621 hectares of plantations including smallholders plantation 51,128 hectares, 29 mills, 9 kernel crushing plants, 6 refineries, 7 bulking stations and 1 oleochemical plant have received RSPO certification."
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "GAR-owned mills achieved 100 percent TTP at end 2017, and we are working closely with our third-party supplier mills to achieve the same result. As of end 2020, GAR has achieved 90 percent full TTP for our palm supply chain."
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            "We have strong commitments under the GSEP to no deforestation, no development on peat, no burning etc and we report on these through our sustainability report, dashboard and website. We also participate in sustainable palm oil certification schemes including RSPO, ISCC and ISPO. We submit Annual Communications of Progress to RSPO.[...] Under the current regulatory conditions, we expect to complete the RSPO certification process by 2020."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            "To date, 257,621 hectares of plantations including smallholders plantation 51,128 hectares, 29 mills, 9 kernel crushing plants, 6 refineries, 7 bulking stations and 1 oleochemical plant have received RSPO certification."
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          "We adopted the Forest Conservation Policy applicable to our primary operations in 2011. Subsequently this was included in our updated sustainability policy, the GSEP Golden Agri-Resources (GAR Social and Environmental Policy) in 2015. The cutoff date for our palm suppliers is therefore 2015"
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: Peat Ecosystem Rehabilitation in West Kalimantan; Riparian Ecosystem Restoration in Tropical Agriculture (RERTA) Project; Orangutan Foundation International (OFI)

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise
          "We engage with the Indonesian government in various initiatives including: 1. boosting smallholder productivity through supporting national replanting schemes 2. collaborating with the Peat Restoration Agency to implement best practices in Riau and Jambi 3. working with authorities on long-term management of fire and haze"
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: annually
          "We have rolled out the HCS approach in all our concessions. This includes HCS assessments by third parties to identify conservation areas. We also conduct HCV assessments. These are carried out by third-party assessors and HCV reports after 2015 are submitted for HCV Resource Network approval. We monitor our HCS/HCV areas continuously through satelite/radar and drone technology. We also conduct annual internal and external audits and reporting on this area."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We want to ensure that GAR upstream and downstream palm oil operations are deforestation free, traceable and bring benefits to the people and communities where we operate. Core to this are: [...] 4. Marketplace and Supply Chain; Traceable and transparent supply chain, support to suppliers, due diligence and grievance procedures, compliance with all relevant national laws and international certifications principles and criteria [...] The supply chain is checked for compliance with our NDPE commitments and we are able to better monitor and take action if any of our suppliers are non-compliant in areas such as deforestation."
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Which issues does the grievance mechanism cover?: Social; Environmental
          " GAR is responsive to grievances from external parties. This includes any individuals, government organisations, NGOs or media outlets with concerns related to the implementation of GAR’s sustainability policies. GAR values the input of stakeholders in helping to achieve the aims of the policies and in enhancing transparency throughout its supply chain." [...] "For further information, please contact:Lim Shu LingHead, Sustainability CommunicationsTel: (65) 6590 0800Email: shuling.lim@goldenagri.com.sg"
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 2,306,000 tons
          In the 2020 CDP Forest report, GAR reported their total usage of palm oil as 2,306,000 tons, of which 1,320,328.67 tons were RSPO certified.
        • Report verified volumes of commodity
          50-79%
          3/6
          Report verified volumes of commodity
          50-79%
          3/6
          What third-party verification is used?: RSPO certification

          What is the compliant volume?: 1,320,328.67 tons

          What is the certified volume?: 1,320,328.67 tons

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 57%
          In the 2020 CDP Forest report, GAR reported their total usage of palm oil as 2,306,000 tons, of which 1,320,328.67 tons were RSPO certified.
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
        • Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          What is the total area in production (in ha)?: NA

          In what country(ies) does the company operate and/or source material?:  Indonesia

          What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: NA
          GAR report their processing operations on a map.
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          From what country(ies) does the company source material?: Indonesia

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes

          For what percent of suppliers' production areas are point locations disclosed?: 100%
          "Below is a map of our downstream facilities (refineries, kernel crushing plants, bulking stations) and GAR-owned mills in Indonesia."
        • Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes

          How frequently is compliance assessed?: Not disclosed

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Internal checks, audits, certification, satellite monitoring
          "Regular internal checks and audits are conducted to ensure proper implementation of these environmental management commitments. External checks/audits for annual certification process for sustainable palm oil. Continuous physical monitoring of conservation areas using satellite, drones and radar is carried out."
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: annually

          Details of monitoring: Using certification
          "We assess our entire supply chain annually for compliance with our sustainability/NDPE policy through desk research and spatial analysis. This allows us to monitor implementation of our sustainability commitments such as no deforestation. We are also able to use the data to identify the high-risk suppliers and target them for further intervention and support towards responsible production including site visits, targeted training and sharing of best practices in areas like no-deforestation."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "Non-compliance is judged on severity of case and willingness of supplier to engage/change. Suppliers who do not change/engage after several outreach attempts by GAR for eg continued incidents of deforestation; no response to contact attempts are deemed non-compliant. For suppliers engage, we help them achieve and maintain compliance with time-bound action plans including targeted training; strengthening processes and procedures; implementing traceability; and formalization of NDPE policies. Since deep engagement efforts began in 2015, about 10 suppliers have also undertaken HCS/HCV assessments. Former suppliers who can demonstrate substantive change can reengage with GAR - timeframe depends on complexity of case."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: no individual list but names are listed
          GAR have a full interactive list of both their own operations and third party suppliers with live statuses
    • Pulp & Paper
      39/88
      • Commitment Strength
        8/20
        • Commitment to protect priority forests
          5/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            "Our firm commitment to reducing our carbon footprint is illustrated through our policies on zero deforestation, sustainable forest management, forest protection, and environmental stewardship. [...] APP requires all of its pulpwood suppliers to comply with the Forest Conservation Policy (FCP) and Responsible Fiber Procurement and Processing Policy (RFPPP). These policies provide a framework for the processes and criteria used to evaluate suppliers’ compliance to our approach to forestry. These initiatives are enacted to ensure our operations are free from deforestation"
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Subsidary
            APP subsidiary: "Our firm commitment to reducing our carbon footprint is illustrated through our policies on zero deforestation, sustainable forest management, forest protection, and environmental stewardship. [...] APP requires all of its pulpwood suppliers to comply with the Forest Conservation Policy (FCP) and Responsible Fiber Procurement and Processing Policy (RFPPP). These policies provide a framework for the processes and criteria used to evaluate suppliers’ compliance to our approach to forestry. These initiatives are enacted to ensure our operations are free from deforestation"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Our firm commitment to reducing our carbon footprint is illustrated through our policies on zero deforestation, sustainable forest management, forest protection, and environmental stewardship. [...] APP requires all of its pulpwood suppliers to comply with the Forest Conservation Policy (FCP) and Responsible Fiber Procurement and Processing Policy (RFPPP). These policies provide a framework for the processes and criteria used to evaluate suppliers’ compliance to our approach to forestry. These initiatives are enacted to ensure our operations are free from deforestation"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "Our firm commitment to reducing our carbon footprint is illustrated through our policies on zero deforestation, sustainable forest management, forest protection, and environmental stewardship. [...] APP requires all of its pulpwood suppliers to comply with the Forest Conservation Policy (FCP) and Responsible Fiber Procurement and Processing Policy (RFPPP). These policies provide a framework for the processes and criteria used to evaluate suppliers’ compliance to our approach to forestry. These initiatives are enacted to ensure our operations are free from deforestation"
        • Commitment to reduce use of virgin wood fibre
          3/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Recycled content
            2030 target: "Minimum 30% recycle fibre composition [...] achieved [...] 2020 progress [...] 40% of our fibre composition were recycled fibre"
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            Commitment applies to all regions, suppliers and operation
            No
            0/1.3
            If no, what is excluded?: Subsidary
            APP subsidiary: 2030 target: "Minimum 30% recycle fibre composition [...] achieved [...] 2020 progress [...] 40% of our fibre composition were recycled fibre"
          • Target date
            2028-2030
            0/0.7
            Target date
            2028-2030
            0/0.7
            2030 target: "Minimum 30% recycle fibre composition [...] achieved [...] 2020 progress [...] 40% of our fibre composition were recycled fibre"
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            What date is given for the interim milestone(s)?: 2020
            2030 target: "Minimum 30% recycle fibre composition [...] achieved [...] 2020 progress [...] 40% of our fibre composition were recycled fibre"
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        4/18
        • Labour rights in the supply chain
          No
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "In order to avoid and resolve social conflicts across its supply chain APP will actively seek and incorporate input and feedback from a wide range of stakeholders, including civil society, as it implements the following set of principles: • Free, Prior and Informed Consent of indigenous people and local communities [...] Where new plantations are proposed, APP will respect the rights of indigenous peoples and local communities, including recognition of customary land rights. APP has committed to independent HCVF assessments as part of this commitment and will, in consultation with stakeholders, develop further measures to implement FPIC. APP will consult with NGOs and other stakeholders to ensure that its protocols and procedures for FPIC and conflict resolution are in accordance with international best practice."
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        27/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "100% Pulpwood supply from plantation [...] Achievements in 2020 [...] Zero natural forest conversion by APP Pulpwood supplier since 2013 [...] • Increased the area certified under the PEFC SFM scheme to 95% of APP’s total pulpwood suppliers’ concession areas in Indonesia"
          • Commitment to reduce use of virgin wood fibre
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to reduce use of virgin wood fibre
            Yes, for all commodity exposure
            1.7/1.7
            2030 target: "Minimum 30% recycle fibre composition [...] achieved [...] 2020 progress [...] 40% of our fibre composition were recycled fibre"
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: PEFC

            Which tools, approaches, third-party verification, including certification, schemes are used?: PEFC 
            "100% Pulpwood supply from plantation [...] Achievements in 2020 [...] Zero natural forest conversion by APP Pulpwood supplier since 2013 [...] • Increased the area certified under the PEFC SFM scheme to 95% of APP’s total pulpwood suppliers’ concession areas in Indonesia"
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          "Policy commitment 1: APP and its suppliers will only develop areas that are not forested, as identified through independent HCVF and HCS assessments: From 1st February 2013 all natural forest clearance has been suspended whilst HCV and HCS assessments are completed. No further clearance of areas identified as forest will take place."  
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: We work together with Natural Resources Conservation Agency – East Kalimantan, Kutai National Park, and the Orangutan Foundation International."

          What is the nature of that participation?: Providing support/advice/experience/expertise
          "We support measures to reduce human-orangutan conflicts and continue to raise awareness to help enforce our zero-tolerance policy on harming endangered species. We work together with Natural Resources Conservation Agency – East Kalimantan, Kutai National Park, and the Orangutan Foundation International."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: not specified
          "APP has conducted an initial assessment of all of its supply chain. It has prioritised HCV and HCS assessments in those concessions that up to now have been supplying the company with natural forest fibre. HCV and HCS areas will be protected. On HCS work has started to identify the area and quality of forest cover. Satellite analysis, backed up by field work, will identify areas that will be protected as well as low carbon areas that can be developed as plantations."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "In 2017 we further improved our approach to supplier due diligence. We began by assessing the legal status of supplier companies, through document checks, to ensure that the appropriate and correct permits are in place. Like many robust procurement practices, we also consider the financial stability of a company before conducting business with them. Depending on the output of the assessment, further due diligence is carried out, with site assessments if required."
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Which issues does the grievance mechanism cover?: Social; Environmental
          "APP’s grievance mechanism is available to all stakeholders, although some cases are not processed through it. Ultimately, the grievance process is used to manage recurring, less significant issues that no longer warrant an MoU. And since the grievance process was launched in 2013, new conflicts have not been significant"
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 6,674,000 tonnes
          6,674 thousand tonnes of pulp, 5,868 tonnes of Paper, Packaging, and Stationery kertas stationary and 978 thousand tonnes of tissue produced is reported in their 2020 sustainability report. 
        • Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          Report verified volumes of commodity
          Some disclosure of compliant commodity/unclear % of volume/no verification of reporting
          1/6
          What third-party verification is used?: PEFC

          What is the certified volume?: NA
          Not clear what % of volume if compliant - "Increased the area certified under the PEFC SFM scheme to 95% of APP’s total pulpwood suppliers’ concession areas in Indonesia (the maximum area eligible) with the remaining 5% certified under the Government of Indonesia’s mandatory SFM scheme (Pengelolaan Hutan Produksi Lestari or “PHPL”) and Verifikasi Legalitas Kayu (“VLK”)"
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: not disclosed
          "APP defines a significant investment as one that requires the mill to update their Environmental Impact Assessment (AMDAL)." "A Social Impact Assessment (SIA) guides APP’s response to the need on the ground, and if relevant, proposes a five-year CSR plan. Each mill has an annual programme of work plan adjusted to their respective needs and developed in consultation with local communities and other beneficiaries"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          Does the company disclose location of suppliers' production areas or primary processing sites?: No

          From what country(ies) does the company source material?: Indonesia
          APP report their supplier list, broken down by category and region.
        • Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Forest Monitoring System

          Does the company use a certification system?: No

          How frequently is compliance assessed?: not specified

          Does the company use a jurisdictional monitoring mechanism?: No
          As one of the monitoring and prevention measures, we implement forest patrol across our and our suppliers concession areas, whether it is by our own resources or collaborating with relevant external stakeholders. Since 2017, we have also put in place a Forest Monitoring System as a alert service, using data from RADARSAT-2 satellite to identify forest cover change that takes place in our protected areas, enabling our team to respond quicker to events on the ground."
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: not specified
          "To ensure that our supply chain is free from deforestation, APP Sinar Mas requires all pulpwood suppliers--both current and potential to comply with our Forest Conservation Policy (FCP) as well as our Responsible Fiber Procurement and Purchasing Policy (RFPPP). It provides an overarching framework for the specific processes and criteria that we use in evaluating their compliance with our FCP. [...] We have developed a robust tool to facilitate the implementation of the RFPPP across our fiber supply chain, called the Supplier Evaluation and Risk Assessment (SERA). For new suppliers, SERA acts as an initial screening to evaluate the level of risk within a supplier’s operations. Developed based on global standards for Sustainable Forest Management, SERA evaluates suppliers against 12 indicators. [....] To ensure that our suppliers manage their concession areas in accordance to the FCP commitments, we have developed and continue to implement the Integrated Sustainable Forest Management Plan (ISFMP)."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "APP will withdraw from all purchase and other agreements with any supplier who is found not to be in compliance with these commitments. [...] These commitments are being monitored by The Forest Trust. APP will welcome independent 3rd party observers to verify the implementation."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: no
          "A summary of all the grievances that we have received and dealt with to date, as well as their corresponding verification report, can be found on the Grievance List."
    • Soy
      0/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/11
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        0/18
        • Labour rights in the supply chain
          No
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        0/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Upstream: Impact assessments for land development/acquisition
          No
          0/4
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Upstream: Monitor compliance of production/processing
          No
          0/4
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • Commitment strength
    7/20
    Avg. score
  • Reporting and Implementation
    19/50
    Avg. score
  • Social considerations
    7/18
    Avg. score

Profile

Sinar Mas is an Indonesian conglomerate active in diverse industries, including pulp and paper, agriculture and food, energy, financial services, and real estate. The group’s agricultural business has one of the largest landbanks globally among palm oil producers. It is also one of the largest importers and exporters of palm oil in Indonesia. Its products include cooking oil and margarine. Additionally, the group crushes soy, with an annual capacity of 2.3 million metric tons. Sinar Mas is also a major pulp and paper producer with its company Asia Pulp and Paper, having an annual capacity of more than 20 million metric tons across its mills in Indonesia and China. Sinar Mas is selected as a powerbroker for palm oil, soy and pulp & paper and is also assessed for its exposure to pulp & paper.

Sector
Industry sector 
Agri commodities, Agriculture, Forestry
Segments
Producer, Trader, Processor, Manufacturer
HQ
HQ 
Indonesia
Company Type
Company type 
Private
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.