Climate Change Data

Asia Pulp & Paper (APP) Sinar Mas

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Water Consumption:[object Object]

ESG Focus Areas

  • Water Management
  • Climate Change
  • Emissions
  • Fibre Sourcing
  • Reforestation
  • Conservation & Biodiversity
  • Human Rights & Indigenous People
  • Community Empowerment
  • Solid Waste
  • Employee Welfare

Environmental Achievements

  • Achieved an 8% reduction in water intensity by 2020 compared to a 2018 baseline.
  • Maintained commitment to ensure all water returned to source was 26% below national and regional limits for COD and BOD in 2020.

Social Achievements

  • Providing clean water supplies and services for schools; installed nine new handwashing facilities in three schools and new toilets.
  • Constructed 125 toilets in Kutanegara village through community-led initiatives, recognized as a pioneer in the Government’s Open Defecation-Free Programme.

Governance Achievements

  • Established a Sustainability Committee Board headed by the CEO, meeting monthly to review performance and strategy.

Climate Goals & Targets

Medium-term Goals:
  • Achieve 8% reduction in water intensity by 2020, based on 2018 baseline (Target year 2030)

Environmental Challenges

  • Declining water quality in rivers impacting process-water production.
  • Increased water scarcity due to drought and potential risks of sea water and peat water intrusion.
  • Seasonal supply variability/inter-annual variability in pulpwood supply due to flooding and drought.
Mitigation Strategies
  • Adopt water efficiency, water reuse, recycling and conservation practices; investment in water and wastewater facilities.
  • Develop drought emergency plans; gap assessment/study, initial mitigation plans, construction of physical mitigation facilities.
  • Supplier engagement; promote investment in infrastructure and technologies for water saving, reuse and recycling among suppliers; research on drought and flood resistant trees.

Supply Chain Management

Supplier Audits: 51-75% of suppliers

Responsible Procurement
  • Comprehensive scorecard system to measure social and environmental performance of suppliers.
  • High Conservation Value (HCV) assessment.
  • Best Practice for Peat Management & Monitoring Plan (PMMP).

Climate-Related Risks & Opportunities

Physical Risks
  • Increased water scarcity
  • Declining water quality
Opportunities
  • Improved water efficiency in operations

Reporting Standards

Frameworks Used: GRI Standard, AA1000AS

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

  • SDG 6: Clean Water and Sanitation

Vision 2030 aligns with the UN Sustainable Development Goals, including SDG 6 through various initiatives such as WASH programs.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:11,774,627 tCO2e/year
Scope 1 Emissions:10,980,146 tCO2e/year
Scope 2 Emissions:794,481 tCO2e/year
Scope 3 Emissions:9,336,018 tCO2e/year
Renewable Energy Share:56%
Total Energy Consumption:283,507,759 GJ/year
Water Consumption:345,906,000 m3/year
Waste Generated:1,212,613 tons/year (hazardous) + 270,746 tons/year (non-hazardous)
Carbon Intensity:1.01 tCO2e/tonne in 2021

ESG Focus Areas

  • Climate change
  • Forest protection and conservation
  • Peatland management
  • Human rights
  • Community empowerment
  • Sustainable forest management
  • Product sustainability
  • Circular bioeconomy
  • Workforce diversity
  • Health and safety
  • Business ethics
  • Governance

Environmental Achievements

  • Reduced Scope 1 carbon emissions to 10,980,146 tCO2e
  • Reduced carbon intensity to 1.01 tCO2e/tonne from 1.164 tCO2e/tonne in baseline 2018
  • 56% of total energy mix utilised renewable fuel
  • Reduced energy intensity by 8% compared to 2018 baseline
  • Reduced water consumption intensity by 10% from baseline in 2018
  • 37% of solid waste reused, recycled, or recovered
  • Zero natural forest conversion by APP Pulpwood suppliers since 2013
  • Areas affected by fire were 0.025% of the total pulpwood suppliers’ concessions areas
  • Maintained 82% of natural forests in good condition
  • Achieved 21,970 ha in total restoration efforts
  • Launched a forest cover change dashboard to make data available for the public

Social Achievements

  • Partnership with 2,880 community groups as of end of 2021, an increase of 9% compared to the 2019 baseline
  • 24.5% of senior management positions in APP headquarter are held by female
  • Resolved 61% of conflicts this year
  • Delivering long-term sustainable livelihood improvement to the community and fostering good relations between the Company and the community
  • No confirmed cases of discrimination was reported in 2021
  • 81% of all employees trained passed the training evaluation
  • Growing the number of employees below thirty years of age from 22% to 24% of the workforce

Governance Achievements

  • Updated Business Code of Conduct (BCoC) to ensure compliance with global standards
  • PT. Eka Mas Fortuna successfully certified to ISO 37001:2016 (Anti-Bribery Management System)
  • Implemented ISO 37001 – Anti-Bribery Management System (ABMS) into its day-to-day operations

Climate Goals & Targets

Long-term Goals:
  • Net Zero Carbon by 2030
Medium-term Goals:
  • Reduce 30% GHG from 2018 baseline by 2030 (Scope 1 & 2)
  • Increase the share of renewables in the energy mix to 50% by 2030
  • Reduce energy consumption by 25% by 2030
  • Reduce water consumption by 30% by 2030
  • Achieve zero waste to landfill by 2030
  • Increase recycled fibre composition to 30% by 2030
  • Maintain 100% of operating units achieving voluntary certification by 2030
  • 30% of senior management positions in APP headquarter held by female by 2030
Short-term Goals:
  • Increase capacity of Foopak Bio Natura to nearly 28 times the volume in 2021 by 2022
  • Complete all technical competencies in headquarters and mills by the second quarter of 2022
  • Complete PEFC certification for two new pulpwood suppliers by 2022 and 2023 respectively

Environmental Challenges

  • COVID-19 pandemic impacting programmes and initiatives
  • Logistical supply challenges resulting from the pandemic
  • Declining demand for paper and graphic products
  • Gender diversity in the workforce
  • Land disputes across suppliers’ concession areas
  • Forest cover loss due to illegal mining
  • Human-wildlife conflicts
  • Unreliable concession-level weather forecasting
Mitigation Strategies
  • Swift response of management, steadfast coordination with employees, and communication with partners and stakeholders
  • Innovation and alternative ways to maintain economic performance
  • Developing more environmentally friendly products (e.g., Foopak Bio Natura)
  • Implementing gender equality policies and setting targets for female representation in senior management
  • Developing procedures for responsible resolution of land disputes
  • Advocacy and law enforcement activities to mitigate forest cover loss
  • Implementing standardised procedures for addressing human-wildlife conflict risks
  • Piloting concession-level weather forecasting using real-time data

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Suppliers’ Evaluation and Risk Assessment (SERA)
  • Responsible Fiber Procurement and Purchasing Policy (RFPPP)
  • Chemical Substances and Articles Procurement Policy
  • Forest Conservation Policy (FCP)

Climate-Related Risks & Opportunities

Physical Risks
  • Water scarcity
  • Forest fires
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts in demand for paper products
Opportunities
  • Development of energy-efficient products
  • Increased use of renewable energy
  • Growth of circular bioeconomy

Reporting Standards

Frameworks Used: GRI Standards: Core option, AA1000AS, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, PEFC, SMK3, ISO 37001

Third-party Assurance: SGS Indonesia

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 4
  • SDG 5
  • SDG 6
  • SDG 8
  • SDG 12
  • SDG 13
  • SDG 15

The report details how various initiatives contribute to these goals through community empowerment, sustainable resource management, and environmental protection.

Sustainable Products & Innovation

  • Foopak Bio Natura
  • Unbleached paper grade
  • Uncoated products with higher recycled content

Awards & Recognition

  • Public Relations Indonesia Award (PRIA) 2021 Gold Winner (Sustainability Report)
  • Indonesia Green Awards (IGA) 2021 (various awards for mills)
  • Bisnis Indonesia Social Responsibility Award (BISRA) 2021 (various awards)
  • Primaniyarta 2021 (Sustainability Product)
  • Berita Satu ESG Disclosure Award
  • Penghargaan Industri Hijau (various awards for mills)
  • CDP Global ratings (Forest: A-; Climate Change: B; Water: B)