Climate Change Data

PT Asia Pacific Rayon (APR)

Climate Impact & Sustainability Data (2020, 2022)

Reporting Period: 2020

Environmental Metrics

Renewable Energy Share:100% (2020)
Total Energy Consumption:24.85 GJ/MT VSF (2020)
Water Consumption:39.88 m3/MT VSF (2020)
Waste Generated:78.13 kg/MT VSF (2020)

ESG Focus Areas

  • Sustainable pulp sourcing
  • Freshwater and wastewater management
  • Chemical management
  • Occupational health and safety
  • Employment, labour practices and people development
  • Waste management
  • Climate change
  • Community development
  • Innovation
  • Business ethics and anti-corruption

Environmental Achievements

  • Moved to 100% renewable energy to power VSF production in 2020
  • Achieved 6.4% reduction in energy intensity from 2019
  • Achieved 18.6% reduction in waste intensity from 2019
  • Achieved 20.2% reduction in process water consumption intensity
  • Achieved 90.7% sulphur recovery rate

Social Achievements

  • Over 780 people employed, 77% local to Sumatra
  • Average 4 hours of training provided to employees
  • 18% of women in workforce; 29% of senior management are women
  • 100% of employees covered by collective bargaining agreement
  • Launched Jakarta Fashion Hub (JFH) to support Indonesian designers and promote sustainable fashion

Governance Achievements

  • Updated APR sustainability policy in Sept 2020 to include compliance with Zero Discharge of Hazardous Chemicals Manmade Cellulosic Fibres (ZDHC MMCF) guidelines
  • Awarded EcoVadis Silver Medal in 2021

Climate Goals & Targets

Long-term Goals:
  • Achieve APR2030 goals (details not provided in this report)
Medium-term Goals:
  • Meet EU BAT hazardous waste intensity limits by 2023
  • Reach 70% sulphate recovery rate by 2025
  • Maintain a sulphur recovery rate of >95% year over year by 2025
Short-term Goals:
  • Achieve 93% sulphur recovery rate by 2021
  • Achieve 45% reduction in hazardous waste intensity by 2021
  • Meet EU BAT total sulphur to air emission criteria by Q4 2021

Environmental Challenges

  • Supply chain risks related to sourcing from Indonesia (as perceived by Canopy)
  • Concerns about odours emanating from the mills
  • Grievances about hiring practices (ratio of local to non-resident workers)
  • COVID-19 pandemic impacting global economy and operations
Mitigation Strategies
  • Engaging with suppliers and Canopy to address concerns and improve ranking
  • Briefing community members on processes and compliance with regulations
  • Communicating approach to recruiting local workers, including training and internship programs
  • Implementing rigorous health and safety measures to protect employees and maintain production during the pandemic

Supply Chain Management

Supplier Audits: Risk assessments and due diligence carried out for all sourced DWP

Responsible Procurement
  • Code of Procurement Ethics (COPE)
  • Sustainability Policy commitments
  • PEFCTM chain of custody standard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: EcoVadis Silver Medal (2021), STeP by OEKO-TEX® (APR), USDA-certified biobased product (APY), Biodegradable in soil and water (APR), FKT label (APY), OEKO-TEX® Standard 100 (APY), Seeding® Label (APR)

UN Sustainable Development Goals

  • Ten UN SDGs (specific goals not listed)

Mapped and prioritized against material issues and business activities throughout the value chain in 2019.

Awards & Recognition

  • Indonesia Industry 4.0 Readiness Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:40,130 t CO2e (market-based Scope 1 & 2)
Scope 1 Emissions:29,173 tCO2e
Scope 2 Emissions:10,958 tCO2e (market-based)
Scope 3 Emissions:6,006,634.4 tCO2e
Renewable Energy Share:100%
Total Energy Consumption:260,770 MWh (electricity) + 1,452,778 MWh (steam)
Water Consumption:1,714,026 m3
Waste Generated:17,931 tons
Carbon Intensity:0.14 t CO2e/t VSF (market-based)

ESG Focus Areas

  • Climate and Nature Positive
  • Clean Manufacturing
  • Circularity
  • Inclusive Prosperity

Environmental Achievements

  • Reduced greenhouse gas emission intensity by 88% since 2019
  • Reduced sulphur emission intensity by 55% since 2019
  • Reduced water consumption intensity by 35% since 2019
  • Reduced hazardous waste intensity by 28% since 2019
  • Reduced energy intensity by 18.6% since 2019
  • Completed Scope 3 GHG emission inventory
  • Improved total sulphur recovery rate to 93.3% compared to 89.2% in 2019
  • Successfully trialled 20% recycled textile in feedstock

Social Achievements

  • Reduced lost time injury frequency rate by 70.8% compared to 2019
  • Women comprised 25% of our workforce
  • Increased average annual training hours for women mill employees from 3.38 to 10.99
  • Launched new textile waste recycling programme with Matahari department stores
  • Supported 32 posyandu health centres and trained 31 posyandu cadres
  • Distributed supplementary feeding packages to 1,254 toddlers and 109 malnourished expectant mothers
  • Signed MOU with 7 universities for research and collaboration
  • Helped batik SMEs generate > IDR 259 million through APR’s Rumah Batik programme support

Governance Achievements

  • Published new Human Rights Policy
  • Revised APR Sustainability Policy
  • Received 3 ISO certifications for integrated management systems at APY
  • Received Indonesian government’s Primaniyarta Award and National Lighthouse Industry 4.0 Award

Climate Goals & Targets

Long-term Goals:
  • Halve product carbon intensity (against 2019 baseline) by 2030
  • Achieve net-zero emissions from APRIL’s land use by 2030
  • Determine the feasibility of establishing Indonesia’s first industrial-scale recycled textile facility
  • Determine the feasibility of establishing urban textile recycling centres in Singapore and Indonesia
Medium-term Goals:
  • Reduce process water consumption intensity by 50% against 2019 baseline by 2030
  • Reduce solid waste to landfill by 80% against 2019 baseline by 2030
  • Incorporate 20% recycled textile in VSF production by 2030
Short-term Goals:
  • Meet all EU BAT Polymer BREF criteria by 2023
  • Meet ZDHC MMCF guidelines’ aspirational levels by 2025
  • Increase total sulphur recovery rate to >95% by 2030

Environmental Challenges

  • Growing the market for sustainably produced viscose staple fibre (VSF) in Indonesia
  • Reliance on imported fabric that is more cost attractive in Indonesia
  • Lack of a clear national roadmap for the long-term development of the Indonesian textile and clothing industry
  • Textile waste dumping from other countries
  • Meeting EU BAT Polymer BREF requirements for hazardous waste levels
Mitigation Strategies
  • Promoting collaborative discussions towards a national sustainability roadmap
  • Participating in Rantai Tekstil Lestari (RTL)
  • Investing in research on recycled textiles and waste recycling programmes
  • Engaging with the Indonesian government and industry players to address systemic issues
  • Examining root causes of hazardous waste and exploring circularity options

Supply Chain Management

Supplier Audits: 4 suppliers assessed in 2022

Responsible Procurement
  • Code of Procurement Ethics
  • Pulp Sourcing Policy
  • 100% sustainably sourced dissolving wood pulp
  • Full supply chain traceability

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Increased demand for sustainable viscose

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001 (APY), OK Biodegradability Marine (APR), OEKO-TEX® (APY), Cradle to Cradle Certified Material Health Certificate™ (Silver)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 6
  • Goal 8
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

APR's initiatives contribute to these goals through community development, women empowerment, education, water management, employment, innovation, responsible production, climate action, biodiversity conservation, and partnerships.

Sustainable Products & Innovation

  • Viscose staple fibre made from renewable wood-based fibre
  • Recycled textile incorporated into VSF feedstock

Awards & Recognition

  • Indonesian government’s Primaniyarta Award
  • National Lighthouse Industry 4.0 Award