Asia Pulp and Paper Group (APP), which has facilities throughout Indonesia and China and is one of the world’s largest paper manufacturers, has come under fire over the years from environmental groups, as well as publishers, for its business practices in the Indonesian rain forest. In the last several years, however, the company has announced a number of initiatives to improve its environmental policies. As part of that effort, the company invites journalists to visit some of its major Indonesian facilities and corporate offices; PW contributor Andrew Pate spent four days in early November with representatives from the company in Indonesia. The following report is based on his on-site observations, as well as discussions with APP officials.

In June 2012, APP launched its Sustainability Roadmap Vision 2020, a comprehensive plan that the company calls its “guide for achieving a ‘whole business’ sustainability operating model.” Among the highlights of the plan is its Forest Conservation Policy, which calls for the elimination of all natural forest–derived products throughout its supply chain and moves sourcing to plantation resources. This plan was evident at Indah Kiat Perawang—one of APP’s 15 production companies and a huge integrated pulp and paper mill located in a rural area of Riau province on Sumatra. Like all of APP’s mills, the Indah Kiat Perawang plant ceased accepting wood from natural forests in August 2013. All pulp wood is now grown on APP’s own plantation or on the plantations of its suppliers. Chain-of-custody procedures begin at the plantation and continue on the receiving docks, to ensure compliance throughout the sourcing and manufacturing process.Tjiwi Kimia in East Java is the site of a major paper mill and converting facility that is used for books, packaging, and many other paper products. Responding to customers’ global concerns regarding responsible sourcing, APP is making sure that its paper and packaging products are sourced sustainably. In addition to using only sustainably sourced pulp, the plant recycles all the effluent water for reuse in the mill, as do other APP facilities.

One of the major drivers of APP’s environmental policy is Aida Greenbury, the managing director of sustainability and stakeholder engagement. Based in APP’s corporate offices in Jakarta, Greenbury is the company’s primary point of contact with a diverse range of stakeholders, including leading industry players, financial institutions, inter-governmental organizations, media, and civil and academic societies. One of Greenbury’s most significant accomplishments has been reaching a cooperative relationship with Greenpeace’s Indonesian office. As part of the agreement, Greenpeace helped APP establish a grievance procedure to monitor and implement APP’s goals: namely zero deforestation and the elimination of all natural-forest degradation and destruction, for those forests in APP’s control.

Both Greenbury and APP know there is lots of work to be done. For instance, since 1985—which is close to when APP began operations in Riau—over 40% of the rain forest on Sumatra has been destroyed or degraded. While harvesting palm oil has also been a major cause of depletion, pulp-wood harvesting has significantly contributed to deforestation. Since APP serves some of the fastest-growing economies in the world, the company expects that the demand for paper products will continue to increase even with conservation measures in place. To mitigate damage to the environment, APP is working on the supply side to preserve the rain forest and habitats that are under its control.

In April 2014, APP, in coordination with the Indonesian government and NGOs, initiated a plan designed to restore and support the conservation of nearly 2.5 million acres of rain forest across Indonesia. A team of researchers is looking into ways to reforest the native hardwood species, in large set-aside areas and wherever else the species has been depleted. The action is expected to have a significant positive impact on the landscape in and around the plantations in APP’s supply chain.

APP operates on a very large scale—their land-concession areas alone total more than 2.6 million hectares—and executives acknowledge that there will be complications in reaching their environmental objectives. As for APP’s commitment to improving its wood-harvesting practices, the company recognizes it will take time to establish or regain confidence among some customers and industry groups. That is one reason APP is committed to addressing issues through their grievance process. The company hopes that by working with the Indonesian government and NGOs to meet the expectations of customers and consumers, it can set a new standard for sustainability practices in the rain forest.

The Rainforest Action Network (RAN) has been one of APP’s most vocal critics. Lafcadio Cortesi, of RAN, said that though APP has made important improvements in its environmental and social commitments, “It still has a long way to go.” He noted that APP has stopped clearing and using natural rain forests for pulp and paper, even putting additional staff and systems in place to implement reforms, but it has yet to address ongoing land conflicts and the harmful legacy of past operations. “The willingness to undertake reform that senior management has displayed has, in many cases, yet to be reflected in the field,” Cortesi said. “Given APP’s history of broken commitments and the enormity of the challenges that still remain, the company must verify that substantial changes have indeed taken place on the ground in order to avoid its products being considered controversial and high risk in the marketplace.”

APP invites anyone looking for more information on its sustainability practices to visit its website, www.asiapulppaper.com/sustainability/vision-2020, or contact its U.S.-based coordinator Daniel Strechay, at daniel.strechay@appcanada.com.