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NGOs send a letter to Asia Pulp & Paper: urgent a reform of APP structures and practices

A group of NGOs sent a letter to APP director, Linda Wijaya, after a stakeholder engagement forum in Jakarta on October 5th. At the forum, APP presented information on how it is attempting to implement its Forest Conservation Policy and associated plans, and NGO’s raised the issues contained in this letter and sought assurances from APP that it will increase its efforts to quickly reform its structures and practices. The signatories made clear to APP that their re-engagement is not an endorsement of the company’s policies and practices and should not be used by the company to promote its products in the market place or seek additional finance.
Download the letter here.

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APRIL announcing a new forest conservation

Indonesia second biggest pulp and paper company announced today an immediate moratorium on logging in natural forests. After many years of environmental and social conflicts, Asia Pacific Resources International Limited (APRIL) announced the end of deforestation, together with a number of measures that will improve its previous forest policy.
Environmental organizations, with different tones, welcome the move but remain cautious, waiting to look how the policy will be implemented on the ground. They also suggested some issues that need to be addressed during the implementation, and Environmental Paper Network will facilitate this process.

According to Riau network Jikalahari, the new commitment seems to be stronger that the previous policy, but it still remains weak on transparency. In fact, it is still not clear wether HCV assessments, environmental impact assessments and supplier list will be shared with stakeholders, as required by the national scheme GN PSDA. Furthermore, a major effort is needed in social conflicts resolution Also peat restoration requires further steps: APRIL should comply with the new regulation on peatlands protection and best management, and i can even be pioneer in its implementation. Given past experience, an extra effort to ensure its full implementation and prevent breaches are needed.

Greenpeace highlighted the progresses, stressing that APRIL has agreed to a number of new conservation measures, including using the High Carbon Stock Approach to identify and protect forest areas remaining in their concessions. The company has also agreed to protect forested peatlands and has established a Peat Expert Working Group to help its develop international best practice for managing peatlands to reduce greenhouse gas emissions.
“We commend APRIL for agreeing to end its deforestation, although we will be watching closely to make sure that today’s announcement leads to real change on the ground,” said Bustar Maitar, Head of Greenpeace’s Forest Campaign in Indonesia. Greenpeace added that now the government must now act to reform the forest sector so it works for people and the environment.
see: http://www.greenpeace.org.uk/media/press-releases/new-forest-conservation-policy-pulp-and-paper-giant-april-shows-forest-protection-becoming-way-forward-indo

While also optimistic, WWF is still cautious on APRIL’s full and strict implementation of its policy and intends to closely monitor progress in partnership with stakeholders such as NGO coalition Eyes on the Forest. “This strengthened commitment by APRIL is an encouraging step along the pathway towards responsible and sustainable production,” said WWF Indonesia’s Aditya Bayunanda. “The enhanced Sustainable Forest Management Policy announced today is APRIL’s response to longstanding calls to quit deforestation by civil society groups. WWF hopes APRIL can fully implement this commitment considering its potentially positive environment and social impacts,” added Efransjah, CEO of WWF-Indonesia.
see: http://wwf.panda.org/wwf_news/press_releases/?247651/WWF-welcomes-APRILs-new-deforestation-moratorium-careful-scrutiny-required-on-implementation

The Rainforest Action Network welcomed APRIL announcement to transform its business model by eliminating deforestation, expansion into peatlands and human rights violations from its operations and supply chains, as well as action to address and remedy its legacy of adverse social and environmental impacts. “In moving forward, APRIL must also address its legacy of land conflict, deforestation of critical species habitat and peatland conversion. We will be watching APRIL to see whether the company can transform its corporate culture and demonstrate transparency including independent monitoring and verification of its performance on key issues. In its operations and before any expansion, APRIL must go beyond paper promises to proven outcomes, demonstrating to its customers, investors and to the communities and landscapes that have been harmed by its operations that it is accountable for and will remedy past and prevent future adverse impacts.” said Lafcadio Cortesi “RAN urges customers and investors to assess their business relationships with APRIL based on demonstrated and independently verified outcomes on the ground. Paper policies must be translated into action and improved results for communities and forests on the ground”

APRIL press release
http://www.aprilasia.com/images/pdf_files/20150603-sfmp-2-0-media-release.pdf

Royal Golden Eagle (RGE) Forestry, Fibre, Pulp & Paper Sustainability Framework
http://www.rgei.com/sustainability/sustainability-framework

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deforestation indonesia

Financing APRIL in Indonesia is not acceptable

As we have highlighted in recent posts, Asia Pacific Resources International Limited (APRIL) is responsible for substantial deforestation in Indonesia, causing social conflict and greenhouse gas emissions. In partnership with BankTrack, our pulp finance working group has researched the main banks involved with APRIL and then systematically contacted them asking them to divest. You can read our research results on BankTrack’s blog here: http://blog.banktrack.org/?p=522. 

April-Banks(Note: values for ABN Amro, China Development, CITC, Santander and West LB are estimated based on the assumption that banks took an equal share in one loan, for which individual bank contributions are not known. Also, note that West LB has been succeeded by Portigon Financial Services AG as of June 2012.)

This work has recently achieved good coverage by the media, see for example, here: http://news.mongabay.com/2015/0218-banks-financing-april-indonesia.html

Some of the banks have assured us that they will have nothing to do with APRIL, and today we are very pleased by the announcement by Santander (see http://news.mongabay.com/2015/0224-banco-santander-april.html)  that they will make a withdrawal from their association with APRIL unless the company stops deforesting. Santander has recently been the target of a Greenpeace campaign. This video shows why.

We will continue to support our member organisations in their campaigning to ensure that banks have policies to avoid financing forest destruction, and to divest from the worst perpetrators, such as APRIL. Watch this space.

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huiying in indo deforestation

New factsheet shows forest destruction and social conflict caused by APRIL in Indonesia

A new factsheet summarising the impacts of Indonesia’s second biggest pulp and paper company, APRIL, is now available here: APRIL monitoring factsheet Feb 2015

The factsheet draws together evidence from NGOs in Indonesia who have been monitoring APRIL’s activities, and it reveals significant problems linked to the company including deforestation, release of carbon from deep peat soils, social conflict and corruption. Many of our member organisations are calling on APRIL to cease deforestation, immediately, and to strengthen its currently weak forest and social policies.

Research carried out jointly with BankTrack has identified several banks that provide financial services to APRIL, including Santander, ABN Amro, Credit Suisse and a number of Chinese and other East Asian banks. Our member organisations continue to put pressure on these banks to divest from the company and its affiliates in the Royal Eagle Group. Read more on Mongabay.

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Joint letter to banks about APRIL

APRIL is the second largest Indonesian pulp and paper company and its impacts on forests and local communities is devastating. The negative impacts of their logging to source fibre for paper include social conflicts, destruction of the habitat of rare species like Sumatran rhinos, elephants, tigers and orangutans, and damage to peatlands which causes huge emissions of greenhouse gases. We have therefore asked banks around the world to give an assurance that they have no financial involvement with APRIL, or any of its sister companies within the Royal Golden Eagle group.

A letter has been sent jointly by the BankTrack network and the Environmental Paper Network, pointing out that APRIL is logging high conservation forest in Sumatra, Indonesia, in breach even of its own weak policies, and that it has a bad record on a range of issues, including human rights and respect for local communities. It asks banks known to finance the company to divest, and warns banks in general that they should avoid involvement with the whole associated group of companies or face significant reputational risks.

The letter, which was modified for specific recipients, is here.

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Paper making in China, the traditional way

Helping China Achieve Sustainable Paper Production and Use

What is China’s impact on forests and communities, given that it is the world’s biggest paper consumer and the fastest-growing investor in the pulp and paper industry? Activists from Indonesia and from the Chinese Environmental Paper Network are working together to increase understanding of this question. To assist this learning process, we are organising an exchange between environmental activists from China and Indonesia, together with European and North American campaigners.

During September and October 2014, Chinese activists will travel to Indonesia, and Indonesians will travel to China. The Indonesian visit will involve meetings in Jakarta and travel into forest lands in Sumatra, to observe the impacts on the ground of pulp and paper production, and to meet representatives of affected communities. The participants will learn about the impact of the policies and practices of the pulp and paper industry, governments and finance in Indonesia, and consider the role that China is and should be playing.

The return visit will involve a public event on 15 October exploring China’s role in the global publishing paper trail, looking at how printers and publishers can make sustainable paper choices, to supply books to Chinese and international markets with the miminum environmental and social harm. This visit will also include learning about the methods of paper production that have been carried out sustainably for thousands of years since paper was invented there, and it will be a chance for international campaigners to learn about Chinese culture and the potential and challenges for environmental advocacy.

Following the launch of our Global Paper Vision earlier this summer, this project demonstrates that the Environmental Paper Network is a truly global coalition, working together to find international solutions to the environmental and social problems caused by the pulp and paper industry in Indonesia and other producer countries.

 

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EPN welcomes Asia Pulp and Paper’s commitment on forest restoration and conservation

Media release, 28 April 2014

The Environmental Paper Networks (EPN) of Europe and North America cautiously welcome today’s announcement by Asia Pulp and Paper (APP) of a plan to work with global and local non-governmental organisations (NGOs) to restore and support the conservation of one million hectares of rainforest across Indonesia.

With its announcement, APP commits to all elements of “The First Test”, a set of Performance Milestones developed by the EPN in September last year (1), to guide the company towards ending its controversial practices. The Milestones’ scope is not intended as a standard for responsible paper production, but rather as a first step towards activity consistent with the EPN and EEPN Common Vision for sustainable paper production, trade and use (2).

“APP’s announcement is a significant step forward towards addressing the legacy of its extensive negative impact on forests, peatlands and communities in Indonesia,” said Sergio Baffoni, of the European Environmental Paper Network.

“Resolving and compensating for the company’s past legacy of environmental and social impacts will require a number of years. Independent third party auditing to verify the implementation of these commitments by APP will help customers and investors to determine the actual progress towards the Performance Milestones in due course. We hope that these milestones can also help to guide action by other pulp and paper companies in Indonesia and elsewhere to address their controversial heritage,” said Joshua Martin, Director of the Environmental Paper Network in North America.

The forest conservation and restoration commitment is equivalent to the approximate area of plantations operated by APP suppliers in 2013 and thus represents a 1 for 1 approach to addressing the company’s legacy (3). Indonesia’s rainforests are some of the most biologically diverse forests on the planet. They provide livelihoods to millions of people, they sustain the last habitats of Sumatran elephant, tiger, rhino and orang-utan, and their peat bogs sequester a massive amount of carbon. These forests however have been experiencing one of the world’s highest rates of deforestation due to development of industrial plantations for commodities such as palm oil and pulp and paper.

For many years, APP has been criticised for its extensive clearance of tropical forests in Sumatra and Borneo, many of which were located on deep peat bogs and/or were the habitat of critically endangered elephants, tigers, rhinos and orang-utans. The deforestation has led to numerous conflicts with local and indigenous communities whose tenure rights were ignored.

After 30 years of operation, in February 2013 APP announced a new “Forest Conservation Policy”. The EPN’s “The First Test” was a collective response to this policy by many NGOs, articulating a set of Performance Milestones that APP needed to achieve to address the gaps and weaknesses of their policy. These included the need for due process in ensuring local communities give full and prior-informed consent to use of their land, the need for forest restoration or compensation, closing of loop-holes in the policy regarding forest acquisitions, addressing damage to peat land, and ensuring independent third-party monitoring of progress in implementing the plan.

NGOs are now urging Indonesia’s second-largest pulp and paper producer APRIL (Asia Pacific Resources International), part of the large conglomerate Royal Golden Eagle Group (RGE), to also comply with the EPN Milestones.

The Environmental Paper Network is a coalition of 122 NGOs from 26 countries including Indonesia who share a Common Vision for a future where paper is produced and used sustainably.

FOR MORE INFORMATION, CONTACT: Sergio Baffoni, +49 162 3812 528
Email: [email protected]

NOTES:
(1) EPN Performance Milestones: The First Test: http://environmentalpaper.org/milestones/
(2) EPN Common Vision:
http://environmentalpaper.org/our-vision/
http://environmentalpaper.eu/our-common-vision/
(3) EPN expects that the commitment to restore and conserve 1m ha of natural ecosystems will be in addition to the approximately 260,000 ha of natural forests the company is required by law to protect in its 2.6m ha of plantations anyway.

LINKS:
140428 MEDIA RELEASE EPN welcomes APP announcement
APP’s announcement
WWF’s response
Greenpeace’s response
Greenpeace blog
Another Greenpeace blog
Mongabay article

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Cautious reactions to APRIL’s new commitment

Asia Pacific Resources International Ltd (APRIL) has released a new Sustainable Forest Management Policy (SFMP). The company will establish a moratorium on clearing in concessions where there has not been independent assessment of conservation values. APRIL also promised that it will complete plantation establishment by the end of 2014.

APRIL is one of the most controversial paper companies, having cleared tropical rain forests of Sumatra, violating local community’s rights, threatening endangered species such as Sumatran Tiger, and releasing huge amounts of carbon into the atmosphere by converting peatlands into pulpwood plantations.

WWF cautiously welcomed the announcement, noting that the policy still “allows for APRIL to utilize wood from tropical forests in its mill until the end of 2019.” WWF is urging APRIL to stop using fibre from natural forests by 2014.

Woro, of Jikalahari, the environmental network of Riau, Indonesia, expressed more skepticism: “There is strong evidence that APRIL broke its own previous commitment regarding sustainable forest management. In the past this company announced an HCVF assessment in the Kampar Peninsula, but afterwards APRIL continued to convert these forests. Until now, APRIL has been involved in forest crimes and unsustainable forest practices, and we don’t have good reason to look at this new policy as a promising development.”

Lafcadio Cortesi, of Rainforest Action Network, responded to the policy by saying, “This new commitment is a missed opportunity which raises as many questions as it answers. The policy is limited in scope and has large loopholes and major gaps. It sends a clear signal to customers, investors as well as the companies colleagues in the World Business Council on Sustainable Development that APRIL and all of Sukanto Tanoto’s holdings should remain no go, no buy.”

Zulfahmi of Greenpeace Southeast Asia states that, “APRIL’s carefully orchestrated policy announcement is essentially a licensce to continue forest clearance. A glaring weakness is that it would allow its current suppliers to continue to destroy forest and peatlands for nearly a year, and give it another six more years until it would stop using rainforest fibre at its mill.”

“Before being accepted as a non controversial business partner, APRIL should also take its responsibility for the precious habitat destroyed in the past years, and commit to restore devastated habitats and return land to local communities” concluded Sergio Baffoni, of the European Environmental Paper Network. “Our member NGOs advise companies to continue avoiding any business with this company until a credible policy is adopted and implemented on the ground.”

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tiger wide

Webinar to launch Performance Milestones for Asia Pulp and Paper

Today the Environmental Paper Networks in Europe and North America release seven “Performance Milestones” necessary to verify the implementation of commitments made by Asia Pulp and Paper (APP) under the company’s Sustainability Roadmap – Vision 2020 and latest Forest Conservation Policy. The Performance Milestones and their auditing will help customers and investors determine whether APP effectively implements its policy commitments and can help guide action by other pulp/paper companies in Indonesia and elsewhere. The Environmental Paper Network is urging customers to insist on independent third party auditing to verify the implementation of APP commitments and the performance milestones released today.

An online event to introduce the Performance Milestones will be held today, Thursday, September 19th. This webinar will broadcast at 11:00 AM in New York, 17:00 in Central Europe and 10:00 PM in Jakarta and include speakers from Wahana Bumi Hijau, Rainforest Action Network, WWF and Greenpeace. Space is limited.

To download the Performance Milestones and register for the webinar go to http://environmentalpaper.org/milestones/

Full press release here: Performance-Milestones-PressRelease-FINAL

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tiger wide

Is Asia Pulp and Paper sticking to its promises to end forest destruction?

In February this year, Asia Pulp and Paper announced a new forest policy containing assurances that it would no longer make paper from rainforest destruction in Indonesia. Are they sticking to these promises? We invite paper buyers, merchants, retailers, investors, sustainable brand managers, CSR Executives, social and environmental NGOs and interested media to join in the launch of an important tool to help answer this question.

The EEPN and EPN are hosting a webinar on 19 September, to launch a document containing performance milestones for Asia Pulp and Paper’s Forest Conservation Policy. This document will help in the ongoing assessment of the implementation of commitments made under Asia Pulp and Paper’s ‘Sustainability Roadmap Vision 2020’ and Forest Conservation Policy.

To register for the webinar, please follow this link. Attendance at the webinar is limited.

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