Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Papermaking
• Environmental Protection
• Employee Well-being
• Community Engagement

Environmental Achievements

• Continued promotion of desulphurisation and denitrification, upgrading technology in sewage treatment plants, using more clean energy such as photovoltaic power.
• 100% certification rate of APP-China Forest’s self-managed forests (223,057.5 hectares)
• Significant reductions in SO2 and NOx emissions (19.4% and 6.5% reduction respectively)

Social Achievements

• Strengthened communication with employees, widened channels to collect complaints and feedback, and gradually improved the employee performance review.
• Increased community investment through volunteer services and deepening communication with neighboring communities and local governments.
• Recognized as a “Pioneering Enterprise for SDGs” and “2016 Responsible Company”

Governance Achievements

• Established a supreme decision-making body composed of management and control committees for safety, environmental protection, employees’ rights and interests, product liability, etc.
• Implemented seven legal risk management and control measures at the mill level.
• Improved internal compliance management, provided rules and regulations training, created an anti-corruption reporting mailbox.

Climate Goals & Targets

Environmental Challenges

• Changes in the sustainable development landscape, including new policies and standards related to energy saving, emission reduction, and supply-side reform.
• Increased demands for sustainable development from stakeholders.
• Complex organizational structure and widespread locations of business units.

Mitigation Strategies

• Adjusted management structure to meet the needs of its development in line with new trends in the industry.
• Established a longitudinal sustainable development management system.
• Improved HQ’s management and control of different spheres of sustainable development.

Supply Chain Management

Supplier Audits: Regular audits on the quality and social responsibilities of suppliers and contractors.

Responsible Procurement

• Responsible procurement practices, including requirements for environmental and social responsibility.
• Priority given to suppliers that have already implemented the concept of sustainable development.
• All new suppliers required to sign the Statement and Agreement on Corporate Social Responsibility since 2015.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, UN Global Compact Ten Principles

Certifications: ISO 9001, ISO 14001, OHSAS 18001, PEFC-CoC

Third-party Assurance: SGS-CSTC Standards Technical Services Co., Ltd. (SGS)

Sustainable Products & Innovation

• Antimicrobial and bacteriostatic paper products
• High-grade blister paper (“Blister King”)
• Lottery paper

Awards & Recognition

• Water-Saving Enterprise (Hainan)
• International Carbon Gold Reward
• Top 100 Enterprise with Fastest Growth in Zhejiang
• Benchmark of the Jiangsu Paper Industry
• Certificate for China Environmental Labelling
• Top 500 Enterprise for Foreign Trade of China
• Top 10 Enterprise for Papermaking of Light Industry in China
• Top 100 Enterprise of Light Industry in China
• 434th on the list of Top 500 Enterprises of China
• 216th on the list of Top 500 Manufacturers of China
• Responsible Enterprise of 2016
• Pioneer for Sustainable Development
• Provincial Exemplary Enterprise for Intellectual Property Management
• Award for Extraordinary Contributor of the Third China Forestry Conference
• Pilot for System Integration, Industrialisation and Information
• Demonstration project for the Internet+ Manufacturing Industry
• Guangxi Famous Brand for Export
• Deputy Director of the Guangxi Association for Paper Industry
• Top 10 Best Manufacturer of Guangxi
• Benchmark of the Jiangsu Paper Industry
• Excellent Foreign Investor in Zhejiang
• Outstanding Enterprise for Green Raw & Auxiliary Materials
• Excellent Enterprise of Environmental Labelling in China
• Top 100 Enterprise of Hainan
• Loving Care Company (Jiangsu)
• Charity Volunteer Team (Zhenjiang)
• Organising and Supporting Charity Volunteer Service (Zhenjiang)
• Commemorative Medal on Emotional Ties to Our Homeland, Benefiting the People

Environmental Metrics

ESG Focus Areas

• Sustainable forest management
• Responsible supply chain
• Responsible manufacturing
• Sustainable consumption
• Employee development
• Community engagement

Environmental Achievements

• Reduced raw material use through R&D innovations (e.g., filler pretreatment technology, high-bulk coated paper)
• 90.93% of plantations certified by CFCC/PEFC
• 100% of plantations supplied to pulp mills certified by CFCC/PEFC
• Water reuse rate of 95.96%
• COD emissions well below national standard limits
• Reduced energy consumption through various initiatives (e.g., biomass fuel use, energy-saving technological modifications)
• Launched waste paper recycling program "Paperback"

Social Achievements

• 717,135 hours of employee training
• RMB 5.23 million invested in employee training
• Launched "Dream Plan" educational assistance program
• Organized various community outreach events (e.g., tree planting, volunteer teaching)
• RMB 26.1 million in total external donations
• 31,018 hours of employee volunteer time

Governance Achievements

• Introduced APP China Integrity Management Framework
• Provided anti-corruption training for all employees
• Optimized supplier and customer risk evaluation and compliance procedures

Climate Goals & Targets

Environmental Challenges

• Reducing plastic production and consumption
• Illegal logging and forest fires
• Occupational safety hazards (noise, dust, high temperature)
• Meeting increasingly heightened regulatory requirements on environmental protection
• Ensuring compliance of raw materials from suppliers

Mitigation Strategies

• Developed Foopak Bio Natura™ Cup as a biodegradable alternative to plastic cups
• Strengthened forest patrol management, formed alliances with law enforcement agencies, intensified emergency drills
• Established a comprehensive occupational health and safety management system, provided health and safety training
• Continuously improved waste water treatment technologies, reduced water usage
• Embedded a supplier risk evaluation mechanism, required suppliers to sign statements committing to non-controversial sourcing, conducted metal content testing of pulp

Supply Chain Management

Responsible Procurement

• Supplier code of conduct and responsibility requirements
• CSR Statement and Commitment Form
• Encouraging suppliers to obtain ISO 9001, ISO 14001, OHSAS 18001, SA8000 certifications

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Global Compact Ten Principles, International Integrated Reporting Framework

Certifications: CFCC/PEFC, ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: SGS-CSTC Standards Technical Service Co., Ltd. (SGS)

Sustainable Products & Innovation

• Foopak Bio Natura™ Cup
• BPA-free thermal product
• Touchcare functional tissue series
• Breeze™ Cooling Wipes
• Breeze™ Glass Cleansing Wipes

Awards & Recognition

• Best Practice Award for Chinese Businesses in Achieving SDGs
• Carbon-value Ecological Practice Award
• Most Responsible Enterprise of 2018
• Sustainability Product of the Year (Foopak Bio Natura™ Cup)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest Conservation
• Community Development
• Green Transformation
• Digital and Intelligent Transformation

Environmental Achievements

• Environmental investment in 2021: over RMB 1.031 billion
• Cumulative environmental investment: over RMB 13.5 billion
• Cumulative carbon sequestration: 42.395 million tons
• Renewable energy: up 44.12% year on year
• Average industrial water reuse rate: 95.74%
• Comprehensive utilization rate of non-hazardous solid waste: 90.9%
• Breeze and EMPORIA products obtained China Green Product Certification

Social Achievements

• Total employee training hours: 753,012
• Employee training investment: over RMB 5.62 million
• Nearly 70 positions provided for people with disabilities
• Percentage of workers covered by Occupational Health and Safety Management System: 100%
• Average hazard correction rate: 98.87%
• Cumulative charitable giving: close to RMB 1.2 billion

Governance Achievements

• Integrated ESG into the Company's sustainability strategy framework
• Established Group-level Carbon Neutral Working Group
• Gold East Paper passed AAA-Level Standard Implementation Certification for Integration of Informationalization and Industrialization Management System

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on production and operations
• Extreme weather events damaging forests
• Supply chain disruptions
• Stringent environmental regulations

Mitigation Strategies

• Formulated low-carbon transition strategies
• Optimized energy mix
• Strengthened carbon emissions management
• Developed low-carbon products
• Implemented climate change adaptation initiatives
• Improved energy efficiency
• Increased use of renewable energy
• Developed “Zero Plastic” products
• Strengthened supplier management mechanism

Supply Chain Management

Responsible Procurement

• Sinar Mas Supplier/Partner Pledge on Business Compliance and Integrity
• Corporate Social Responsibility Statement and Pledge
• Responsible Fiber Procurement & Processing Policy (RFPPP)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (high temperatures, typhoons, heavy rainfall)
• Flooding
• Typhoons
• Sea level rise

Transition Risks

• Regulatory changes
• Market shifts
• Constraints on energy consumption and GHG emissions
• Carbon compliance costs

Opportunities

• Development of energy-efficient products
• Development of green bonds
• Increased use of clean energy

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards for Pulp & Paper Products and Forestry Management, TCFD, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001, CFCC/PEFC-FM, CFCC/PEFC-CoC, China Green Product Certification

Third-party Assurance: TÜV SÜD Certification and Testing (China) Co., Ltd. Shanghai Branch

Sustainable Products & Innovation

• 'Zero Plastic' cups
• Biodegradable and recyclable products
• Eco-friendly high-grade pure-quality paper
• Yunfan white cardboard
• Lamination-free products
• Antibacterial kitchen paper towel

Awards & Recognition

• National Green Factories (Ningbo Asia, Gold East Paper, Guangxi Jingui Pulp & Paper)
• Green Factory in Zibo City (Bohui Paper)
• Other awards listed in the report