Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced average area burned in concessions to less than 5 hectares
• Implemented Acacia Chain of Custody System to ensure sustainable sourcing
• Installed continuous emission monitoring equipment (partially operational)

Social Achievements

• Opened a fourth training center for local farmers
• Implemented Integrated Farming System (IFS) program benefiting 2,055 farmers
• Launched Small and Medium-sized Enterprise (SME) program creating 740 jobs

Governance Achievements

• Commissioned independent audits of fiber plantation management, wood tracking, and land dispute resolution processes
• Fulfilled SUPER 2003 commitments required by BAPEDAL
• Achieved ISO 14001 certification for pulp and paper mills

Climate Goals & Targets

Environmental Challenges

• Land disputes with local communities
• Illegal logging in surrounding areas
• High number of accidents in fiber plantation operations
• Forest fires and haze

Mitigation Strategies

• Established a clearly defined land dispute resolution process, independently audited
• Implemented Wood Purchase Policy and Wood Tracking System to prevent illegal logging
• Developed Riaufiber Health and Safety Code of Practice
• Implemented fire management system and invested in firefighting equipment

Supply Chain Management

Supplier Audits: Multiple audits conducted by SGS

Responsible Procurement

• Wood Purchase Policy
• Acacia Chain of Custody System

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires and haze

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001-2000, ISO 14001

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ministry of Forestry’s Community Development Award

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management
• Social Investment
• Good Governance
• Climate Change Mitigation
• Community Development

Environmental Achievements

• Planted over 150 million trees in Indonesia and 12 million in China, sequestering around 17 million tonnes of carbon dioxide.
• Reduced plantation drainage depth from 1.2 meters to 0.6-0.8 meters, potentially halving CO2 emissions.
• Achieved Green PROPER Rating from Indonesian Government for mill environmental performance.
• Reduced waste water emissions meeting Indonesian Government regulations.
• Reduced landfill volumes by incinerating bio-sludge.
• Implemented a “No Burn” policy in land preparation for tree plantations.

Social Achievements

• Community Tree Farm partnerships with close to 10,000 families on 26,500 hectares.
• Provided livelihoods for over 250,000 people in Indonesia and China.
• Established a Land Dispute Resolution Protocol based on Free, Prior and Informed Consent.
• Built and renovated 186 schools in Riau, Indonesia and 23 primary schools in China.
• Implemented Integrated Farming System training for over 4,305 farmers.

Governance Achievements

• Became Indonesia’s only member of the World Business Council for Sustainable Development (WBCSD).
• Became a signatory to the UN Global Compact.
• Implemented an Integrated Management System (IMS) covering ISO 9001, ISO 14001, and OHSAS 18001.
• Established a strict code of corporate governance and business ethics.

Climate Goals & Targets

Environmental Challenges

• Illegal logging, forest fires, and uncontrolled encroachment.
• Land disputes with communities.
• Human-elephant conflict in Tesso Nilo area.
• Maintaining high conservation values while developing plantations.
• Reducing carbon emissions from peatlands.

Mitigation Strategies

• Implemented pulpwood tracking and Acacia Chain-of-Custody System.
• Established Land Dispute Resolution Protocol based on FPIC.
• Established an Elephant Flying Squad.
• Implemented Mosaic Plantation Concept to protect natural forests.
• Initiated Science Based Management Support Project for responsible peatland management.

Supply Chain Management

Supplier Audits: Routine and random audits; all contractors and suppliers expected to comply with business ethics.

Responsible Procurement

• Pulpwood Tracking and Acacia Chain-of-Custody System.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires

Transition Risks

• Regulatory changes related to carbon emissions.

Opportunities

• Carbon credits from avoided emissions.

Reporting Standards

Frameworks Used: GRI G3, UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001, Indonesian Ecolabelling Institute (LEI)

Third-party Assurance: SGS International Certification Services

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PaperOneTM paper made from 100% certified Acacia plantation fibre.

Awards & Recognition

• Indonesian and Asia CSR Awards for Community Development
• Green PROPER Rating
• OHSAS 18001 certification
• Indonesian Ecolabelling Institute (LEI) certification
• UNEP Champions of the Earth Corporate Partner
• Most Socially Responsible Enterprise Award in China
• Excellence Award for Poverty Alleviation
• Best Social Environment Reporting and Best Website Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 64% per tonne of pulp and paper produced from 2008 to 2010.
• Generated 87% of energy from renewable biomass sources in 2010.
• Reduced water consumption by 11.5% per tonne of production from 2008 to 2010.
• Improved water levels in peatland plantations to between 40 cm to 90 cm below the peat surface.
• Reduced AOX emissions by 50% from 2008 to 2010.

Social Achievements

• Increased number of training participants by 109% from 2008 to 2010.
• Increased number of training programs by 44% from 2008 to 2010.
• Improved Lost Time Injury (LTI) cases for forestry operations by 56% from 2008 to 2010.
• Invested approximately USD 5.9 million in various social empowerment programs over three years.
• Created 5,041 jobs in local communities through SME programs.

Governance Achievements

• Achieved Sustainable Production Forest Management and Timber Legality Verification Certification from the Indonesian Ministry of Forestry in 2010.
• Received PEFC Chain-of-Custody Certification for pulp and paper production, stores, and sales in 2010.
• Became a founding member of the Indonesia Business Council for Sustainable Development (IBCSD) in 2011.
• Implemented the APRIL Improvement Management System (AIMS) in 2005.

Climate Goals & Targets

Environmental Challenges

• Conflicts with indigenous/customary land use rights.
• Sustainability practices of joint-venture supply partners.
• Greenhouse gas emissions from peatland development.
• Clearing of natural forest for plantation development.
• Maintaining various forest certifications.
• High number of fatalities in forestry and mill operations (11 fatalities in 3 years).

Mitigation Strategies

• Improved processes for engaging and managing partnerships with communities.
• Assessment of joint-venture partners' sustainability practices and development of improvement plans.
• Utilization of “eco-hydro” management in all peatland concessions.
• Assessment of wood supply needs and responsible approach to meeting demand.
• Development of standards, people, and management system controls to ensure full compliance with certifications.
• Implementation of a series of measures to reduce the risk of recurring fatalities, including mechanization of harvesting, improved safety training, and stricter enforcement of safety standards.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All contractors and suppliers expected to comply with APRIL Indonesia’s business ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires

Transition Risks

• Regulatory changes related to forestry and environmental management.

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI G3 Guidelines, UN Global Compact Principles

Certifications: ISO 9001, ISO 14001, OHSAS 18001, LEI for Sustainable Forest Plantation Management, PEFC Chain of Custody, Ministry of Forestry’s Sustainable Production Forest Management and Timber Legality Verification

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PaperOneTM paper made from renewable plantation fibre.

Awards & Recognition

• Green Industry Award
• CSR Recognition Award
• Ecolabel certificate

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management (SFM)
• Health and Safety
• Plantation Establishment
• Supply Partners
• Conservation Programs
• Peatland Management and MRV
• Carbon Emissions
• Land Tenure and Community Entitlements
• Stakeholder Engagement and Partnerships
• Compliance and Certification

Environmental Achievements

• Reduced energy and materials required to produce one tonne of mill output (mj/adt)
• 85% of total energy consumed comes from biofuel
• Increased methanol capture from 4,000 to 15,000 tonnes per year
• Around 40% of calcium carbonate filler in paper originates as waste CO2
• Reduction in imported BSWK pulp by around 25,000 tonnes
• Significant amount of biomass left on forest floor to protect soil and prevent erosion
• Reduced wood moisture by 3%, equating to 300,000 tonnes less wood per year
• Reduced minerals, pigments and chemicals required per tonne of pulp
• Increased use of biomass for energy generation, reducing reliance on coal to 7.4%
• Implementation of water management practices to maintain or improve water levels in conservation areas
• Protection of critical headwater peat areas

Social Achievements

• Direct employment for around 5,400 workers and consequential employment for around 90,000 people
• Investment of approximately USD4.6 million in various community programs
• Increased union membership from 67.8% in 2010 to 74.8% in 2012
• Improved employee satisfaction scores from 63.4 in 2009 to 69.4 in 2012
• Implementation of Integrated Farming System (IFS) benefiting 3387 farmers
• Support for SMEs securing over IDR 9 billion in bank funding in 2011 and over IDR 7 billion in 2012
• Provision of scholarships to 765 high-achieving students
• Support for renovation and development of 25 schools
• Sponsorship of training for 451 teachers
• Implementation of health programs serving 9,965 people
• Sponsorship of professional coaching for 142 youth in four sports

Governance Achievements

• Establishment of an External Affairs Council to oversee sustainability strategy and performance
• Upholding a strict code of corporate governance and business ethics
• Achieved Origins and Legality of Timber (OLB) certification
• Re-certified under Sustainable Plantation Forest Management (SPFM) by LEI
• Attained Timber Legality Verification (SVLK) certification
• Implementation of a risk management program
• Regular review of authority levels and modifications to improve the operation of the Delegation of Authority Policy

Climate Goals & Targets

Environmental Challenges

• Challenges in operating sustainably in a rapidly changing country
• Deforestation in Indonesia
• Employee and contractor safety (22 fatalities in 2011-2012)
• Community disputes on Pulau Padang
• Complex land tenure system in Indonesia
• Ensuring compliance with all applicable certification requirements
• Minimising peatland carbon emissions
• Determining APRIL’s carbon footprint
• Managing the sourcing of mixed hardwood feedstock
• Improving relationships with international NGOs
• Ensuring alignment and compliance with sustainability commitments by all fibre supply partners
• Addressing stakeholder concerns about carbon emissions from peatlands
• Challenges in logistics, lack of power grid connection, and absence of state-owned infrastructure in Riau province
• Impact of mill operations on surrounding populations
• Solid waste disposal
• Maintaining high operating standards and benchmarking against EU BAT

Mitigation Strategies

• Overhauling occupational health and safety systems, particularly those related to contractor safety management
• Improved contractor safety management systems and increased mechanisation of harvesting activities
• Development of major, long-term eco-restoration programmes
• Dispute resolution process and agreement with community groups to settle Pulau Padang community disputes
• Implementation of community development programs
• Successful audits for certifications under Bureau Veritas’ standards for Origins and Legality of Timber
• Re-certification under SPFM-LEI
• Government approval for MRV processes applying to three newest peatland concessions
• Participation in scientific research to further improve peatland management
• Employment of outside experts to assess total carbon emissions
• Implementation of a range of initiatives to minimise carbon emissions from operations
• Increased use of biomass for energy generation
• Methanol capture and reuse
• Capture and use of waste CO2 from lime kilns
• Reduced import and use of bleached softwood kraft
• Protection of critical headwater peat areas
• Water management practices
• Plantations configured as a ring around conservation areas
• Maintenance of tree canopied buffer zones
• Application of best practice water management
• Periodic review and adjustment of plantation rotation cycles
• Implementation of a Contractor Safety Management System (CSMS)
• Improved OHS Management system for fibre operations
• Upgraded training programs for chainsaw operators
• Introduction of new First Aid protocols
• Rewards and incentives to encourage better safety behaviour
• Full-day safety induction for new employees
• Extensive coaching and training of employees and contractors
• Regular monthly meetings with trade union leaders and members
• Significant capital investment in new safety equipment
• Enhanced focus on training and educating workers about safe work practices
• Expanded measures such as routine safety observations and inspections
• Implementation of an ongoing programme of medical check-ups and evaluations for employees
• Introduction of on-site emergency ambulances
• Campaign to promote better hygiene practices
• Improved systems to pinpoint causes of work-related illness
• Measures to reduce incidence of malaria and upper respiratory tract infections

Supply Chain Management

Responsible Procurement

• Wood Purchase Policy ensuring legal and sustainable sourcing
• Chain of Custody system to track wood from source to mill
• Advisory support and services to supply partners and community fibre farms
• Encouragement of adoption of advanced forestry practices by supply partners

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires

Reporting Standards

Frameworks Used: GRI 3.1

Certifications: ISO 9001, ISO 14001, OHSAS 18001, Sustainable Plantation Forest Management (SPFM) by LEI, PEFC Chain of Custody, Bureau Veritas’ Origins and Legality of Timber (OLB), Timber Legality Verification (SVLK), Hong Kong Green Label Scheme (HKGLS)

Third-party Assurance: Ernst & Young, Singapore

Sustainable Products & Innovation

• PaperOne™ made from renewable plantation fibre
• Use of PCC to reduce need for wood fibre

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management
• Community Development
• Employee Well-being
• Environmental Protection
• Greenhouse Gas Emission Reduction

Environmental Achievements

• Decreased energy consumption per air dry ton (ADT)
• Increased biomass usage to 82% of total energy
• Reduced imported bleached softwood kraft (BSWK) pulp usage from 46,000 tonnes in 2011 to 34,000 tonnes in 2014
• Reduced water consumption by 15 million m3
• Reduced sulfur emissions
• Achieved a blue rating from Indonesia’s PROPER program for mill environmental performance

Social Achievements

• Generated 90,000 employment opportunities, with more than 5,400 directly employed
• Implemented Integrated Farming System (IFS) covering 2,357 hectares of village farmland, supporting 3,236 households
• Supported Small and Medium Enterprises (SMEs), creating over 2,528 consequential jobs
• Provided scholarships and training programs for community members
• Built and maintained 2,600 kilometers of roads for public use

Governance Achievements

• Established a Sustainable Forest Management Policy (SFMP) with independent oversight from a Stakeholder Advisory Committee (SAC)
• Implemented a robust Chain of Custody (CoC) tracking system
• Achieved various national and international certifications (e.g., PEFC, OLB, SVLK, ISO 14001, OHSAS 18001)

Climate Goals & Targets

Environmental Challenges

• Land disputes and community conflicts
• Forest degradation from human encroachment and illegal logging
• Land and forest fires
• Occupational health and safety incidents resulting in fatalities

Mitigation Strategies

• Implemented conflict resolution processes, including suspending operations in disputed areas
• Voluntarily identified and protected 250,000 hectares of High Conservation Value (HCV) forest
• Implemented fire prevention and suppression programs, including community-based incentive programs
• Strengthened inspection programs and implemented measures to address the causes of occupational fatalities

Supply Chain Management

Responsible Procurement

• SFMP applies to APRIL and its long-term suppliers
• Requirement for supplier compliance with all prevailing laws and regulations

Climate-Related Risks & Opportunities

Physical Risks

• Land and forest fires

Reporting Standards

Frameworks Used: GRI G4

Certifications: SPFM (LEI), PHPL, SVLK, SMK3, SNI, Indonesia Eco Label, Blue PROPER, OHSAS 18001, ISO 9001, ISO 14001, PEFC-CoC, OLB

Third-party Assurance: Ernst & Young

Awards & Recognition

• Golden Flag and Golden Certificate under SMK3

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management
• Community Development
• Fire Management
• People (Employee well-being, safety)
• Pulp and Paper Mill Operations (Environmental performance)

Environmental Achievements

• Launched Sustainable Forest Management Policy (SFMP) 2.0, committing to eliminate deforestation from the supply chain and only developing non-forested areas.
• Committed US$100 million to landscape management, conservation, and restoration.
• Expanded Restorasi Ekosistem Riau (RER) program to 150,000 hectares.
• Established a network of monitoring towers to measure GHG flux.
• Launched Fire Free Village Programme (FFVP), reducing burned land by 90% in its first year.
• Achieved 83% of the One for One goal (conserving one hectare for every hectare planted).

Social Achievements

• Launched Fire Free Village Programme (FFVP) to reduce fire incidents and improve community livelihoods.
• Ongoing community development programs for livelihood creation, economic development, and infrastructure improvements.
• Implemented an enhanced grievance resolution mechanism.
• Provided 60,840 hours of training to employees.

Governance Achievements

• Established the Stakeholder Advisory Committee (SAC) for independent oversight of SFMP 2.0 implementation.
• Established the Independent Peat Expert Working Group (IPEWG) to advise on responsible peatland management.
• Implemented a broad-based monitoring system to assess supplier compliance with SFMP 2.0.

Climate Goals & Targets

Environmental Challenges

• Land disputes and encroachment.
• Forest fires.
• Changes in peatland regulations leading to operational suspensions.
• Misunderstandings with stakeholders regarding peatland management (Pulau Padang incident).
• Occupational safety incidents resulting in fatalities among contractors.

Mitigation Strategies

• Improved data collection and recording of land disputes.
• Implementation of the FFVP and FFA to prevent fires.
• Working with the MoEF to resolve issues related to peatland regulations.
• Addressing the Pulau Padang incident through apology, improved communication, and cooperation with stakeholders.
• Strengthening OHS training, inspection programs, and safety measures to reduce workplace accidents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All suppliers are subject to SFMP 2.0.
• Monitoring system to assess compliance with SFMP 2.0.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires
• Peatland degradation

Transition Risks

• Changes in peatland regulations

Opportunities

• Improved peatland management practices
• Development of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standard (Core framework)

Certifications: PEFC Sustainable Forest Management, PEFC Chain of Custody (CoC), OHSAS 18001, ISO 9001, ISO 14001, SMK3, SVLK, Indonesia Eco Label, Singapore Green Label

Third-party Assurance: KPMG Performance Registrar Inc. (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 13 (Climate action)
• Goal 15 (Life on land)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)

APRIL's initiatives contribute to these goals through sustainable forest management, responsible peatland management, renewable energy use, community development, and improved occupational health and safety.

Sustainable Products & Innovation

• PaperOneTM office paper made from 100% renewable and globally certified fibre plantations.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable land use
• Responsible peatland management
• Forest protection, conservation and restoration
• Strategic fire management
• Supply chain transparency
• Supporting local livelihoods and respecting the rights of local communities
• Biodiversity and habitat conservation
• Resource efficiency
• Renewable energy
• Emissions to air and water
• Professional development

Environmental Achievements

• Reduced electricity consumption over the past two years by optimising processes and finding innovative ways to improve efficiency
• Increased fiber productivity by approximately 24 percent over the past three years
• 80.7% of the pulp and paper mill’s energy demands now met by renewable energy resources
• Another fire free year for RER (Restorasi Ekosistem Riau)
• Net increase of 42 plants and animals in RER's biodiversity list

Social Achievements

• Increased spending on social infrastructure projects to USD288,450
• Number of social infrastructure projects for which materials and/or equipment were provided rose to 616
• Number of SMEs contracted by APRIL and its supply partners rose to 333
• Number of farmers trained to cultivate farmland rose to 202
• Provided 417 scholarships

Governance Achievements

• Implementation of SFMP 2.0 overseen by an independent Stakeholder Advisory Committee (SAC)
• Established an Independent Peat Expert Working Group (IPEWG) to provide science-based recommendations on responsible peatland management
• Completed the first phase of a pivotal project with PwC involving an in-depth assessment of its baseline impact in Riau Province, using the SDGs as a framework

Climate Goals & Targets

Environmental Challenges

• Land disputes
• Fire incidents on supplier concessions
• Illegal logging and bird poaching in RER area
• One Open Market Supplier undertook new development in the absence of an HCV and HCS assessment
• 14ha of non-compliant development identified at one Supply Partner

Mitigation Strategies

• Formal resolution processes applied to land disputes
• Improved monitoring and continued community engagement to reduce fire incidents
• Cooperation with local conservation agency to control illegal activities
• Supply contract with non-compliant Open Market Supplier terminated
• Maintenance of the non-forested area deemed appropriate instead of rehabilitation

Supply Chain Management

Supplier Audits: Annual self-assessment by suppliers, annual internal audits by APRIL, bi-weekly land cover change (LCC) monitoring, annual external audit

Responsible Procurement

• Compliance with SFMP 2.0
• Due diligence prior to contract signing
• Legality certification (PHPL, SVLK)

Climate-Related Risks & Opportunities

Physical Risks

• Fire

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: OHSAS 18001, ISO 9001, ISO 14001, PEFC-CoC, PEFC-SFM, ISEGA Germany, Certificate of Compliance, Singapore Green Label

Third-party Assurance: KPMG PRI (limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Wellbeing)
• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 12 (Responsible Production and Consumption)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

PwC assessment identified areas where APRIL can have the greatest impact based on the assessed needs in Riau Province.

Awards & Recognition

• Best Sustainability in the Community Award (Sustainable Business Awards)
• Special Recognition Best Flagship Initiative (Sustainable Business Awards)

Environmental Metrics

ESG Focus Areas

• Sustainable Forest Management
• Community Development
• Employee Well-being
• Climate Change
• Biodiversity

Environmental Achievements

• Completed GHG emission inventory.
• Reduced fire incidents (PT RAPP: 2 in 2019 vs 4 in 2018; Supply Partners: 8 in 2019 vs 33 in 2018).
• 79% of total energy consumption sourced from renewable energy.
• Conserves, restores and protects 365,733 hectares of forest (including 150,693 hectares of peatland).

Social Achievements

• APRIL’s contribution to national GDP doubled to Rp40.64 trillion in 2018.
• Created 89,646 new job opportunities a year on average (1999-2018).
• Completed social infrastructure projects with an estimated USD280,000 investment.
• Funded 430 secondary school scholarships.
• Estimated 190,823 people treated over the last two decades through healthcare programs.

Governance Achievements

• Established an Independent Peat Expert Working Group (IPEWG) to provide science-based recommendations.
• SFMP 2.0 policy commitments overseen by a Stakeholder Advisory Committee (SAC).
• Received several awards at the 2019 Sustainable Business Awards Indonesia, including Overall Winner.

Climate Goals & Targets

Environmental Challenges

• Land encroachment and unresolved land disputes (28,249 hectares inactive for PT RAPP; 74,704 hectares inactive for supply partners).
• Fires and floods.
• Pest and disease control.
• Global climate change risks (sea level rise, extreme weather, reduced productivity).

Mitigation Strategies

• Strict ‘no-burn’ policy and fire prevention programs (Fire Free Village Program covering 753,604 hectares).
• Investment in fire suppression resources (US$9 million).
• Land dispute resolution mechanism following FPIC principles.
• Science-based peatland management strategy guided by IPEWG.
• Continuous monitoring of pest and diseases, using biological control agents.

Supply Chain Management

Supplier Audits: Due diligence audits and SFMP 2.0 compliance monitoring.

Responsible Procurement

• SFMP 2.0 compliance requirements for all fiber suppliers.
• Due diligence process for new suppliers.
• Regular compliance monitoring and corrective action plans.

Climate-Related Risks & Opportunities

Physical Risks

• Fires
• Floods

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy generation

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, ISO 9001, PEFC, SVLK, PHPL, SMK3, ISO 50001

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 7
• Goal 12
• Goal 15

APRIL’s activities contribute to 41 SDG targets across 15 goals, with eight targets selected for pilot impact quantification.

Sustainable Products & Innovation

• Dissolving pulp

Awards & Recognition

• Overall Winner, Best in Strategy and Sustainability Management, Best Stakeholder Engagement and Materiality, Best in UN SDGs, Special Award for contribution to UN SDG 4 at 2019 Sustainable Business Awards Indonesia.

Environmental Metrics

ESG Focus Areas

• Climate Positive
• Thriving Landscapes
• Inclusive Progress
• Sustainable Growth

Environmental Achievements

• Reduced product emissions intensity by 14% since 2019
• Achieved 88.6% renewable and cleaner energy in overall energy balance for our mill (1.8% increase from 2021)
• Achieved 28% renewable and cleaner energy use in fibre operations (9% increase from 2021)
• Reduced solid waste sent to landfill by 49% through waste-to-value transformation
• 502.87 hectares of areas restored
• 96.3% chemical recovery of lime and soda

Social Achievements

• Launched APRIL human rights policy in January 2022
• Completed a human rights impact assessment
• Conducted social impact assessments
• Reduced the rate of children with stunting to 17% in 2022 from 22.3% in 2021 within the Riau Province
• 29% increased representation of women participating in our Community Development program

Governance Achievements

• Improved disclosure and rating scores (SPOTT and CDP)
• Winner in the Sustainable Business category at Singapore Apex Corporate Sustainability Awards 2022

Climate Goals & Targets

Environmental Challenges

• Illegal logging, encroachment, fire, and wildlife poaching
• Land use change
• Climate change impacts on forestry assets
• Learning loss in students due to COVID-19
• Stunting prevalence among children

Mitigation Strategies

• Production-protection approach to forest management
• Investing in landscape conservation
• Implementing a climate scenario analysis process
• School Improvement Program
• Stunting Reduction Program

Supply Chain Management

Supplier Audits: 75% SMK3 Certification coverage for open market suppliers in 2022

Responsible Procurement

• Sustainable Forest Management Policy (SFMP) 2.0
• Code of Procurement Ethics
• Due diligence process on all wood suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Certifications: ISO 9001:2000, ISO 14001, OHSAS 18001, PEFC Chain of Custody, Singapore Environmental Council’s Green Label, EU Ecolabel, PHPL, SVLK, ISO 45001

Third-party Assurance: KPMG LLP (Canada)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 6
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 17

APRIL’s initiatives contribute to these goals through various programs and commitments detailed in the report.

Sustainable Products & Innovation

• Paperboard packaging solutions
• Viscose staple fibre (VSF)

Awards & Recognition

• Singapore Apex Corporate Sustainability Awards 2022 (Sustainable Business category)

Environmental Metrics

ESG Focus Areas

• Climate Mitigation
• Climate Adaptation
• Forest Management
• Wood Fibre Sourcing
• Water Use
• Resource Efficiency (Circularity)
• Occupational Health and Safety
• Biodiversity and Ecosystem Conservation
• Community Livelihoods
• Human Rights

Environmental Achievements

• Reduced product emission intensity by 20% since 2019
• Increased installed solar capacity to 13.5 MW, contributing to our commitment to renewable energy
• 88.24% of mill energy from clean and renewable sources
• Achieved 47% reduction of solid waste to landfill against 2019 baseline
• Zero fires detected within our concessions

Social Achievements

• Launched 2023–2030 Gender Action Plan to support and increase the number of women leaders
• Launched Integrity and Ethics Policy
• 49 villages intervened with poverty eradication programs
• Signed a first public-private partnership MOU with Ministry of Health to improve primary healthcare services
• Launched the Children’s Welfare Code of Practice

Governance Achievements

• Strengthened our ERM system in 2023, integrating ESG and sustainability risks for a more strategic approach
• Completed year two audit of sustainability-linked loans, meeting all three KPIs
• Published a standalone Integrity and Ethics Policy

Climate Goals & Targets

Environmental Challenges

• Slow global economic growth and increasingly complex geopolitical risks
• Increased flood risk
• Impact on worker health and productivity
• Supply chain disruptions
• Potential increases in operating costs from carbon taxes, rising raw material costs, and increased demand for renewable energy
• Stricter land use and carbon regulations
• Land use change emissions from de facto unmanageable areas

Mitigation Strategies

• Implementing science-based solutions to drastically reduce carbon emissions
• Investing in landscape conservation
• Implementing sustainable forest management practices
• Conducting climate scenario analysis
• Improving energy efficiency measures
• Investing in solar energy
• Increasing biomass-based renewable energy use and optimizing power boilers
• Conducting land cover change satellite monitoring
• Adhering to Conservation Forest Management Framework (CFMF)
• Implementing land conflict resolution mechanism
• Implementing chemical recovery and reduction measures
• Waste-to-energy optimization
• Waste-to-value projects
• Partnerships with value-added industries
• Mill-wide assessment to identify water savings and circularity opportunities
• Water reduction and efficiency measures
• Obtained patent for textile technology
• Trialled a recycling demo plant with Finnish specialists

Supply Chain Management

Supplier Audits: 20 suppliers assessed in 2023

Responsible Procurement

• Code of Procurement Ethics
• SFMP 2.0 Compliance Self-Assessment Form
• Commitment to comply with APRIL SFMP 2.0 and the RGE Code of Procurement Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Plantation yield loss
• Increased flood risk
• Impact on worker health and productivity
• Supply chain disruptions

Transition Risks

• Energy supply, carbon, and wood costs
• Stricter land use and carbon regulations

Opportunities

• Changing customer/consumer preferences
• Reduced operating costs through increased energy efficiency
• Nature-based solutions and carbon market opportunity

Reporting Standards

Frameworks Used: GRI Standards, TCFD, World Business Council for Sustainable Development Reporting Matters evaluation framework, Zoological Society of London’s Sustainability Policy Transparency Toolkit (ZSL SPOTT)

Certifications: PEFC Chain of Custody (CoC), ISO standards, OHSAS standards (now integrated into ISO standards), Singapore Environmental Council’s (SEC) Green Label, EU Ecolabel, Indonesian Ministry of Industry (TKDN) local content standard, Standar Nasional Indonesia (SNI), Cradle to Cradle (C2C) Certified Material Health Certificate™, OEKO-TEX®, FKT and OK biodegradability labels, ISO 45001, ISO 50001

Third-party Assurance: KPMG LLP (Canada)

UN Sustainable Development Goals

• Not disclosed

APRIL2030 targets contribute to the UN SDGs

Sustainable Products & Innovation

• Viscose staple fibre using a blend of recycled textile pulp and regular dissolving wood pulp
• Paperboard products

Awards & Recognition

• Not disclosed