CONSERVATION
POLICY
5
THANNIVERSARY UPDATE
When APP launched the Forest Conservation Policy
(FCP) in 2013, we were armed with limited knowledge
and experience on the subject but with full
awareness that it had to be done. More importantly,
it had to be done right. APP made a irm decision to
have a deforestation-free supply chain, which is a
commitment that remains steadfast. We have proven
this with maintaining 100% plantation iber supply to
all our mills since 2013. We also knew that change was
not going to happen overnight and it was not going
to be easy. Hence, we were prepared to embark on
a journey, illed with challenges that we could and
could not anticipate. The launch of the FCP signiied a
complete business model transformation for APP as well
as for all of our suppliers across Indonesia. Since then,
the four pillars of the FCP have become completely
embedded in our business and day-to-day operations.
Throughout the journey of implementing the FCP over
the past ive years, our approach has evolved from irst
focusing on changing practices in APP concession
including third party suppliers concession areas, to
now working together with communities to protect
forests both within the concessions but also at the
larger landscape level. Community involvement is an
especially prevalent aspect of the FCP implementation.
Aside from communities, we are also strengthened
by the support of our other implementation partners
FOREWORD BY
and stakeholders, having engaged critical voices to
understand diferent perspectives while ensuring that
we do not rest on our laurels.
The understanding that a multi-stakeholder
approach is crucial to the success of the FCP is
why we give serious weightage and consideration
to the expectations of our stakeholders. APP also
appreciates that stakeholders would like to view
tangible and measurable results while hearing from
us on the progress, milestones and success thus far.
However, we still encounter many challenges along
this journey; some old and some new. Third party
forest clearance and social conlicts are among our
many prevailing challenges that we continue to face.
Meanwhile, our more recent challenges include
measuring the impact of our FCP as well as our eforts
for peat land management.
In the FCP 5th Anniversary Progress Report, we share
our progress to date, signiicant achievements we
have had to date, our thoughts on the challenges
we have faced over these last ive years and how we
have resolved or are approaching them as we move
forward. Some of our initiatives and eforts however
require a longer duration before any signiicant result
or success can be achieved, including our work
on development of alternative species to grow in
Elim Sritaba
May 2018
rewetted peatlands, rehabilitation and restoration as
well as conlict resolution, among others.
As we take the FCP forward, our focus will be to
assess our progress by developing more
science-based targets with measurable metrics and improving
data collection, reporting and transparency, continue
working alongside our partners and stakeholders.
We still have a long journey ahead of us and the road
can be a little bumpy at times as we strive to fulill our
FCP commitments while aspiring to become a more
sustainable and more responsible global corporate
citizen. We thank you for accompanying and supporting
us thus far but for us to achieve our collective goals,
we certainly hope to continue receiving your support
in the years to come as we strive to continuously and
THE FOREST TRUST (TFT)
Having worked with APP since February 2012 to
launch the Forest Conservation Policy, TFT has been
deeply involved in this exciting journey as a partner,
both on the ground and strategically. As I look back
at the work achieved to date, there are three key
learnings that stand out.
The irst is that company leaders who state their vision
and values through an ambitious policy, like APP did,
can drive an immense amount of change. Overcoming
the challenge of transforming a business model reliant
on natural forest ibre to make it exclusively reliant
on plantation ibre,while at the same time becoming
an agent for forest conservation, is not a small task.
But APP is proving to the world that it is possible.
Along the way it discovered ways to reduce waste
(9% reduction in ibre waste) and optimize production,
eiciently combat ires, accelerating the transition of
the company into a way of operating that is in line with
what the world expects from such a large business.
The second learning is that while change can be
fast in some respects, it does not happen overnight.
Solving the numerous social conlicts that were
simmering when the work started in 2012required
time, because it meant engaging on the ground with
skilled people to ind a mutually agreeable solution
to issues that have been present for years and
that are extremely complicated. Allowing time for a
company to change, while at the same time making
sure that things go as fast as they possibly could, is of
paramount importance. This understanding however
led to the realization that progress is hard to monitor
quantitatively. TFT introduced tools to monitor
forest concessions by satellite images - which APP
embraced - and we are now discussing how to better
integrate the feedback from local NGOs.
The third learning is that none of the above is
possible without strong partnerships and a genuine
stakeholder engagement, keeping ears wide open
to criticism, even if it sometimes appears unjustiied.
We have been challenging and will continue to
challenge APP on that front because we believe
they can do more to share their learnings, as well
as their challenges, with a wider audience. I am a
strong believer that doing so is also a way to call
for more support. The challenge of ighting climate
change and supplying the material needs of a
growing population worldwide has never been so
daunting, and nobody can face it alone. Yet, thanks
to an increased transparency, APP’s customers,
investors, governments and NGOs can make their
own assessment and eventually support APP
towards achieving the full implementation of its FCP.
Conscious of the great challenges ahead, we
remain committed to supporting APP in solving the
problems and the issues that we are facing and
which we will meet together as we continue on this
DELTARES
Deltares has been engaged in helping improving APP’s water and peatland management practices in coastal
lowlands since 2014, after their FCP announcement in 2013. The scale of APP’s operations is huge, maybe even
unprecedented for any private company in the world.
Considering the challenges faced, we can conidently say that much has already been achieved in the last four
years. However it is also clear that much more still needs to be done. In terms of peatland management, the
massive ires in drained peatlands of 2014 and 2015 have been a wake up call to APP, that it has responded to with
very substantial investments in knowledge development and, subsequently, management improvement.
A major obstacle to management improvement in the past has been a lack of data and understanding of peatland
functioning and condition. In fact, even the presence and thickness of peat was in many areas not clear from
existing maps. Over 2014-2017 we have therefore focused on measuring conditions and creating maps and
models. A key tool in this has been airborne LiDAR that was collected from 2015 to 2017, over an area exceeding
5 million hectares. Combined with ield surveys, LiDAR data was used in creating elevation models, peat thickness
maps, water depth assessments, lood maps and more. A ield monitoring system and database system for water
levels was set up that now allow APP to better understand conditions in many thousands of locations.
In parallel to improving data availability, we have worked with APP on deining pilot activities that will provide the
basis for larger scale management improvements. This includes retiring 7,000 hectares of productive plantation in
South Sumatra and Riau to let forest return, constructing over 5,000 compacted peat dams in plantation boundary
canals to start bringing up water levels to better protect neighbouring peat swamp forest and reduce ire risk,
developing a trial site with raised water levels in Siak for alternative production species that are tolerant of such wet
Now that data availability has much improved and the irst results of pilots and assessments are becoming clear,
we are committed to help APP start applying this knowledge to management improvements at a much larger scale.
Diiculties and opportunities in raising water levels in peatlands are better understood now, allowing targeted
interventions. Work is ongoing on a full rezoning plan for all APP supplier concessions that contain peatland. The
objectives of the zoning are to create large water storage areas with natural or near natural high water levels on
top of all peat domes, which is necessary toimprove control of water levels on lower slopes, and to better protect
remaining forest applying bufer zones within the concessions. This includes additional retirement of plantations
to forest in most sensitive areas.
These changes aim to substantially improve sustainability in APPs supplier concessions, in terms of reduction of
ire risk, carbon emissions, health of natural forest and eventually also production if losses to ire and loods are
prevented. Working with a large company like APP is complex but we remain impressed by the will to push forward
with improvements despite internal and external challenges. While the pace of change may seem slow sometimes,
the targets are worthwhile and deserving of our support in implementation. APP will need partners in achieving these
2013
2014
Launch APP Forest Conservation Policy
APP mills stopped receiving natural forest woods
HCV, HCS, Social assessment start Conlict Mapping
Growth and Yield study
Senyerang Conlict resolved (1st Pilot)
Independent Observer Moratorium formed and started
FCP Monitoring Dashboard launch
Rainforest Alliance Assessment on FCP implementation progress Deltares (Peat Expert) engaged, work started on developing peat management plan
APP released Procedure for Association for its existing and potential suppliers
Launched commitment to support forest protection and restoration outside concessions
1.
2.
3. 4. 5. 6. 7.
8.
1.
2.
3.
4.
2015
2016
2017
HCV and HCS assessment completed in all suppliers
Updated FCP Implementation Plan 2015 based on RA assessment 1st LiDAR Mapping completed
Retirement of 7,000 ha of productive plantation on peat Integrated Forestry & Farming System (IFFS) program launched in COP21
Landscape masterplan completed Stakeholder Advisory Forum for FCP progress update
Belantara Foundation launched in COP21
PSPI / Datuk Rajo Melayu conlict resolved (2nd Pilot)
ISFMP completed for all suppliers Rolled out of Integrated Fire Management strategy
Research for alternative species for peatland started
IFFS program implemented in 80 villages
Jurisdictional approach with South Sumatra and West Kalimantan province
Utilizing high technology to monitor forest cover (MDA)
2nd LiDAR mapping completed
Riding conlict resolved Regional Social Working Group (SWGR) established
IFFS implemented in 146 villages
Protected Areas in APP’s Suppliers’ Concessions after HCV
and HCS Assessments
ZERO casualty from human-wildlife conlict
within APP’s suppliers concession areas
since 2013
OVER
600,000HA
ZERO
Areas Impacted by Forest Fire in 2017 out of the Total Gross Area
Natural Forest Loss Rate in APP’s Suppliers Protected Areas by 3rd
Party Deforestation the Wood Legality Veriication System
100%
100%
APP Suppliers Plantation Area IFCC
– PEFC Sustainable Forest Management
Certiied
86%
Commercial Plantation in Peat land Retired for Conservation Purposes
Perimeter Canal Dams Built to Raise and Maintain Water Levels
7,000HA
5,000
OVER
Alternative Peat Tree Species Identiied for Rewetted Peat Areas
12
FCP ACHIEVEMENTS - SUMMARY IN NUMBERS
Social Conlicts Resolved
Villages Participating in the IFFS Program
(as of March 2018)
46%
191
Households are Beneiciaries of the
IFFS Program
(as of March 2018)
FCP INVESTMENTS IN NUMBERS
*over a 5 year period
50 MIL
*LANDSCAPE
APPROACH FOREST
CONSERVATION
100 MIL
DEVELOPMENT OF
THE INTEGRATED
FIRE MANAGEMENT
SYSTEM
*over a 5 year period
10 MIL
*IMPLEMENTATION
OF THE IFFS
FCP PROGRESS REPORT:
Protected Areas in APP’s Suppliers’ Concessions after HCV
and HCS Assessments
ZERO casualty from human-wildlife conlict
within APP’s suppliers concession areas
since 2013
OVER
600,000HA
ZERO
Areas Impacted by Forest Fire in 2017 out of the Total Gross Area
Natural Forest Loss Rate in APP’s Suppliers Protected Areas by 3rd
Party Deforestation (Mar 2017 – Jan 2018)
0.01%
0.1%
APP Products Sourced from Plantation Fibres
APP Suppliers’ Plantation Area Certiied under the Wood Legality Veriication System
100%
100%
APP Suppliers Plantation Area IFCC
– PEFC Sustainable Forest Management
Certiied
86%
COMMITMENT 1: NATURAL FOREST PROTECTION
Since February 2013, APP and our suppliers stopped converting natural forest for the purpose of pulpwood
plantation development. As of September 2013, APP’s mills stopped accepting Mixed Hardwood (MHW), and only
relies 100 percent on plantation wood and certiied material.
Integrated Sustainable Forest Management Plans (ISFMP)
APP designed and completed the Integrated Sustainable Forest Management Plans (ISFMP) for all suppliers’
concessions with the support and assistance of our implementation partners and key stakeholders that we engage with.
The ISFMP is a consolidation of recommendations as well as data that was gathered through various assessments – High
Conservation Value (HCV), High Carbon Stock (HCS), Social Impact, Peat Mapping, Growth and Yield – that serves as the
foundation in developing management plans for each of our suppliers’ concessions. The process included an extensive
stakeholder consultation process to ensure that their concerns were taken into account in the ISFMP.
HCV, HCS, Social assessment start IO Moratorium formed and started
HCV and HCS assessment completed in all suppliers Integrated Forestry & Farming System (IFFS) Program Launched in COP21 Landscape Master Plan completed
Utilizing high technology to monitor forest cover (MDA) 0,01% of total gross area were impacted by forest ire IFFS implemented in 146 villages ( 191 as per March 2018) Launched commitment to
support forest protection and restoration outside concessions
concessions
Rolled out of Integrated Fire Management strategy IFFS program implemented in 80 villages
Jurisdictional approach with South Sumatra and West Kalimantan province
• APP mills stopped receiving Mixed Hardwood (MHW), relying only to plantation iber
The ISFMP for all suppliers were completed in 2016, with several of them subsequently being approved by
the Government of Indonesia. These plans were then
developed into manuals to serve as guidelines for its
implementation.
The protected areas within APP and its third party
suppliers’ concessions, according to the initial version
of the ISFMP, increased to more than 20 percent
(over 600,000 hectares) from the gross area, which is twice the minimum amount required by the
Government of Indonesia.
The ISFMP is currently undergoing further revision and
updating to align itself to the new Peat Regulation and
the process set forth by the Government of Indonesia.
Recommendation analysis
Management plan and SOP development
Landscape region multi stakeholder workshop
Dissemonation to key stakeholders
Integrated management plan hierarchy development
Map of recommendation synergies and conlicts List of redundant recommendation
Management plan document SOPs
Key stakeholder awareness raised Working group (4-people) for the development of management plan priorities (hierarchy)
Final priorities for non-spatial recommendations agreed upon
Most acceptable spatial scenario chosen
Agreed upon hierarchy for reconciling conlicting recommendation
Spatial and non-spatial analyses
Final priorities for non-spatial recommendations
Map or guideline detailing where recommendation need to be inserted into
Protecting Forests:
3rd Party Deforestation & Fires
Among the concerns and challenges that APP still
faces is third party deforestation despite the fact that
APP’s suppliers no longer convert natural forests
into pulpwood plantation since February 2013. We
have been working tirelessly to address this through
various eforts, including engaging communities as
well as harnessing technology to further enhance our
forest security and monitoring measures.
APP started using the Forest Alert Service provided
by MacDonald, Dettwiler and Associates (MDA)
in March 2017 to monitor APP’s and its suppliers’
concession areas, with special focus in the protected
areas. The MDA feeds alerts directly to our operations
team on a 24-day cycle. These alerts will enable us to
detect of forest cover changes and follow by speciic
ield veriication to identify the causes such as illegal
logging, encroachment, and other sources of forest
loss while the data captured by MDA will form as a
basis to develop our strategy in addressing these
issues.
The involvement of community is also a critical
factor in protecting forests. Hence, we developed
a community-based forest security program, complementing the forest patrols conducted by APP’s
security vendors, whereby community members will
patrol the forest area surrounding their villages.
The involvement of community is also a critical
factor in protecting forests. Strengthening the
existing forest security patrol by the suppliers and
their security vendors, we developed a
community-based forest security program, complementing the
forest patrols conducted by APP’s security vendors,
whereby community members will patrol the forest
area surrounding their villages. This program is being
piloted in South Sumatra, with a view to be rolled out
to all regions.
These various eforts resulted in a signiicant decrease
of forest cover loss in APP’s suppliers protected area.
An assessment taken from MDA data analysis in the
period March 2017 till January 2018 indicates only 0.1 percent third party deforestation rate, signiicant
reduction in natural forest cover change from total
protected area compared with the 2014 and 2015
Integrated Forestry & Farming Systam (IFFS)
The Integrated Forestry & Farming System (IFFS)
plays a critical role in protecting natural forests as it
aims to reduce the threats of ire, encroachment and
social conlict. Also known as Desa Makmur Peduli Api (DMPA), the IFFS program was rolled out in 2016 and targets 500 villages. The program supports
communities to improve their livelihoods through
training on agro-ecological practices and
climate-smart agriculture, thus reducing pressure on forests
from agricultural expansion and one of the driving
forces behind uncontrolled ires and land clearance.
As of March 2018, the program has been
implemented in 191 villages, beneitting more than
13,800 households. APP partnered with the Center for International Forestry Research (CIFOR) and the World Agroforestry Centre (ICRAF) to better
understand the impacts and to further improve our
ability to attribute impacts to speciic components of
the programme, with the aim of developing a feasible
business model that can be adapted and scaled up with
smallholders across forest landscapes in Indonesia.
Integrated Fire Management (IFM) Strategy
In 2016 APP rolled out the Integrated Fire Management to tackle the issue of forest ire across APP’s and its
suppliers’ concession areas. Developed in consultation with ire experts from Canada and South Africa, the IFM
consist of four main pillars: Prevention, Preparedness, Early Detection and Rapid Response.
In prevention, APP mainly engaged with the communities through the IFFS program, providing training and
assistance on agro-ecology, maximizing the yield of the available land to reduce the risk of opening forest area for
agricultural purpose. On preparedness, APP continues to improve the personnel’s capacity by providing routine
training to the ire marshals as well as the ireighting teams. APP also continues to research technologies that can
Landscape Approach to Restoration and Conservation
APP quickly realized when we started implementing the FCP that forest protection cannot be done in silo. Rather,
it needs a landscape approach with multi-stakeholder involvement to succeed. With that in mind, in 2014, APP
provided the seed funding to set up the Belantara Foundation, a grant-making institution with the goal of delivering
wide- ranging community and conservation results in 10 landscapes in Indonesia. Formally established in 2016,
the Foundation primarily focuses on allocating grants to support restoration, protection and conservation of
endangered species, institutional development and community empowerment initiatives.
Belantara Foundation has signed MoUs with stakeholders in the landscapes, such as the Provincial Government
of South Sumatra, Provincial Government of West Kalimantan, the Man and Biosphere Program, IDH Sustainable
Trade Initiative, YAPEKA, and KPHP Meranti, to name a few. The Foundation has also developed catalogues on
ive main commodities amongst the communities in the regions: cacao, cofee, rubber, coconut, and palm oil, in
order to enable potential donors and partners to identify potential areas for the projects suitable with their
respective objectives.
More information on Belantara Foundation projects can be found at : www.belantara.or.id
6 helicopters – 3 of them large capacity Superpumas, as well as helitack teams and implementing a more cohesive
strategies in ire suppression.
Since 2016, APP has invested more than USD 100 million on the IFM. In 2017, only 0,01% of the total APP’s and its
suppliers’ concession areas were impacted by forest ire.
PREVENTION
• Integrated Forestry & Farming System (IFFS) • MPA Incentives
• Prevention Planning
• Water Management : Built more than 5,000 perimeter canal blocks
PREVENTION
• Infra-red detection cameras • Satellite trial
• Increased ground patrol
• Integrated Fire Information IT System
EARLY DETECTIO N PREPARATION
• Training • Situation room • Patrol routes
• 2,700 Fire-fighters standby
RAPID RESPONSE
APP will support the Government of Indonesia’s low emission development goals and its target to reduce the emission of greenhouse gases.
COMMITMENT 2: PEATLAND BEST
MANAGEMENT PRACTICES
APP committed to employing its resources to explore and test approaches in a means to identify the best practices
to manage peatland. This includes identifying methodology to rehabilitate the natural function of peatlands, which
is to store carbon and contribute towards biodiversity.
APP has given top priority to this, having invested heavily to improve the management of peatlands in APP’s
and its suppliers areas, including, but not limited to, ire prevention and suppression eforts, peat mapping, peat
rehabilitation strategy as well as research into alternative species.
Deltares (Peat Experts) engaged and started work on developing Peat Best Management Practices
Research on Alternative Species for Peatland Started Develop over 5000 Perimeter canal Dams
1st LiDAR Mapping Completed Retirement of 7,000 Ha of
Productive Plantation on Peat 2nd LiDAR Mapping Completed
• •
• •
• •
2014 2016
2015 2017
Commercial Plantation in Peat land Retired for Conservation Purposes
Perimeter Canal Dams Built to Raise and Maintain Water Levels
7,000HA
5,000
OVER
Alternative Peat Tree Species Identiied for Rewetted Peat Areas
Peat Mapping
APP, together with Deltares, in 2015 undertook
a LiDAR (Light Detection and Ranging) mapping
exercise over approximately 5 million hectares of
coastal lowland across Riau, Jambi, South Sumatra
and West Kalimantan. The primary purpose of the
irst LiDAR initiative was to map the distribution and
topography of peat in the landscapes where APP’s
suppliers operate.
A second LiDAR mapping exercise followed in 2017
for more assessments and products. The LiDAR data
have yielded an elevation model that is accurate
enough (within 0.5m) for improved water management
zoning and design, and for peat thickness mapping.
A new technique was developed to determine canal
water depth (CWD) below the surface, and CWD maps
were produced. The LiDAR data are now also used
to better determine vegetation types from canopy
height, with a focus on retirement areas.
Retirement
APP decided to retire 7,000 hectares of
commercial plantations on peatlands located near the Berbak – Sembilang National Park in
South Sumatra and near the Kerumutan Wildlife
Reserve in Riau to protect the natural forest in
these landscape based on the data analysis from
the first LiDAR mapping. The retired areas are
now used to develop knowledge on strategies to
rehabilitate peat, both on natural regeneration as
well as assisted restoration. APP is working with
academics and researchers in finding suitable
methods to restore peat forests on a large scale.
Water Management
APP is exploring the possibility of using LiDAR as
a monitoring tool, working with experts to assess
whether it can be used to help measure canal water
levels in the future, alongside ground monitoring;
results look promising. A system of dipwells was
implemented across all plantations on peatland
to monitor groundwater depth and land surface
subsidence; to this the PROPER monitoring system
designed by the Ministry of Environment and Forestry
is now being added. A central database system
(Operational Water Management System / OWMS)
allowing water managers to enter and analyze
relevant information such as water levels and rainfall
is being implemented. We have also built 5,076
perimeter canals dams to raise water levels along the
boundaries of our suppliers’ production areas, with a
focus on natural forest.
Alternative Species Research
In collaboration with Gadjah Mada University
(UGM), APP has identiied 12 species able to grow
in peatlands with higher water tables for alternative
species to be used of commercial, restoration and
community production purposes. Eleven of the
species are already planted and monitored in trial sites
in Riau and South Sumatra. Helped by the Research &
Development Agency of the Ministry of Environment
& Forestry, APP also conducts research into peatland
mychorrhiza, which are various types of fungi that
have symbiotic relationships with plants, and can help
them better absorb nutrients. APP will continue to
implement the trial and research, and will involve the
To avoid and resolve social conlicts across its supply chain, APP actively seeks input and feedback from a wide range of stakeholders, including civil society, to implement a set of principles including the FPIC, responsible resolution of conlicts and community empowerment.
COMMITMENT 3: SOCIAL ENGAGEMENT
APP recognizes that communities must be engaged as we grow our business. We also recognize that the survival
of our business depends on being able to balance the interests of the company with that of local communities and
the environment, therefore inding a solution that works for everyone.
Thus, we dedicated signiicant resources towards tackling social challenges and to also ind ways of providing
support to local communities living in and around our suppliers’ concessions to improve their livelihoods and thus
reduce the pressure of the natural forest deforestation.
Conlict Mapping Conducted Conlict Resolution Guideline developed 1st Pilot Senyerang Conlict Resolved
IFFS Program Implemented in 80 Villages
Conlict Resolved by end of 2016: 40%
IFFS Program Launched in COP21
2nd Pilot Datuk Rajo Melayu Conlict Resolved Conlict Resolved by end of 2015: 34%
3rd Pilot Riding Conlict Resolved
Regional Social Working Group Established IFFS Implemented in 146 Villages
Conlict Resolved by end of 2017: 46%
Villages Participating in the IFFS Program
(as of March 2018)
46%
191
Households are Beneiciaries of the
IFFS Program
(as of March 2018)
Social Conlict Resolution
Soon after launching the FCP, APP and our suppliers began the process of mapping land disputes, grouping them
by the eight typologies identiied, which are:
We developed stages in the Conlict Resolution
Process for monitoring and evaluation purposes.
These are the four phases:
APP considers a conlict as resolved when it has
reached Phase 3. As of February 2018, 46 percent of
social conlicts mapped at the beginning of the FCP
are in phase 3 and phase 4.
We subsequently developed guidelines for
responsible conlict resolution that emphasised on the
need for multi-stakeholder engagement. We piloted
this guidance while rolling it out across all conlicts
to ensure that it was efective and for continues
improvement. The three pilots that were determined
at the beginning of the FCP implementation have now
been concluded and have shown that this type of
methodology can work.
COMPLETION OF CONFLICT MAPPING, ANALYSIS AND
ENGAGEMENT, EXPLORING OPTIONS, NEGOTIATION PROCESS, ACHIEVEMENT OF INITIAL AGREEMENT
Highlighting the complexities of reaching conlict resolution, this particular case dated back to 2000.
Following numerous meetings, agreements for community development programme investments, external
veriication, government endorsements and multi stakeholder working groups a resolution was inally agreed
by all parties in 2013. Regular monitoring & evaluation of the implementation is now in place.
Pilot Project: Senyerang
A local tribe claimed that the land managed by an APP supplier for pulpwood plantation was in fact their land
to develop rubber and palm oil. An resolution agreement was signed in June 2015 – implementation of the
agreed actions has begun and the schedule for monitoring is currently being discussed by the parties.
Pilot Project: Datuk Rajo Melayu
In 2005, the community of Riding Village in South Sumatra claim a portion of land located in an APP’s
supplier’s concession area. By involving the local government, village leaders, 2 local social NGOs, and the
Ministry of Environment and Forestry, in April 2017 the conlict was resolved through a community forestry
partnership agreement.
Regional Social Working Groups (RSWG)
Based on recommendations from the biannual Stakeholder Advisory Forum (SAF), in 2017, APP established Regional Social Working Groups (RSWG) for social conlict resolution at the provincial levels. The RSWG gathers NGOs, academicians, local government and community representatives to discuss social conlicts at the regional level. Ad hoc teams were set up from within the groups to verify, monitor, resolve conlicts and to reach agreements. These regional platforms are formed to speed up the conlict resolution process and identify mechanisms for establishing better cooperation between APP and the communities living in and around concessions.
While the dynamics between these three regions difers from one another, the RSWG in Jambi has shown encouraging results with one conlict already resolved through MOU signing, and two more in the pipeline. From the experiences since mid-2017, key lessons learnt in multi-stakeholder conlict resolution process is the importance of all parties sharing the same spirit to resolve conlict as soon as possible. It is also critical that companies act in proactive way during the resolution process and for the community to receive assistance and support from NGOs.
Free, Prior and Informed Consent (FPIC)
APP adopted the UN Guiding Principles on Business and Human Rights, ensuring that FPIC procedures are performed before proceeding with any proposed new developments (conservation and plantation).
All of APP’s suppliers have begun to use the Standard Operating Procedures (SOPs) for FPIC and land tenure issues in preparing their Annual Work Plans. APP continues to monitor the efectiveness of our approach. In 2017, we conducted a pilot to assess FPIC implementation in South Sumatra.
Integrated Forestry and Farming Systems (IFFS)
APP Products the Wood Legality Veriication System
100%
100%
APP Suppliers Plantation Area IFCC
– PEFC Sustainable Forest Management
Certiied
86%
APP and its suppliers will only develop areas that are not forested, as identiied through independent High Conservation Value (HCV) and High Carbon Stock (HCS) assessments.
COMMITMENT 4: SUSTAINABLE FIBRE
SUPPLY & SOURCING
APP commits to only sourcing ibre from sustainable sources. All existing and potential APP suppliers must comply with the FCP, the Responsible Fibre Procurement & Processing Policy (RFPPP) and Supplier Evaluation & Risk Assessment (SERA), the last being a tool APP uses to continuously ensure compliance and to monitor risks associated with potential suppliers entering our supply chain. One key parameter in SERA is that the potential suppliers should not be involved in deforestation or natural forest conversion as of February 2013. If the potential suppliers are unable to show proof of this, they will be automatically rejected. This pass-fail mechanism help to ensure the integrity of APP supply chain in complying with the FCP.
In conducting the SERA assessment, APP is assisted by The Forest Trust (TFT). The result of risk assessment, which may consist of a ield assessment, is then submitted to the Joint Steering Committee (JSC), which includes
APP mills stopped receiving natural
Implementation of SERA to potential suppliers 3 suppliers are IFCC-PEFC SFM certiied
25 suppliers are IFCC-PEFC SFM certiied (as of March 2018, 30 suppliers are IFCC-PEFC SFM certiied) APP released the
Procedures for Association for its existing as well as potential suppliers
representatives from APP, APP Forestry Division, and The Forest Trust (TFT). The JSC then takes the decision on whether or not to accept the potential supplier into our supply chain. Details of existing and potential suppliers are listed on the FCP Monitoring Dashboard.
In 2017, APP approved six new one-time suppliers through the SERA process. Outside of these six suppliers, APP terminated contract with two one-time suppliers as they are proven to have affiliated companies that are still involved in forest conversion practice.
Despite the progress made by APP in fulilling its FCP commitments, especially with regards to ending
natural forest clearance, concerns were raised pertaining to our ability to fulill the increasing demand
following the OKI mill commencing operations. These concerns were based on APP’s past performance,
referencing our previous Growth and Yield Assessments.
Fortunately, over the last ive years, we have made many improvements in yield and eiciency, such as
addressing wood loss and leakages, none of which relected when stakeholders raised their concerns.
Using a methodology which was veriied by Rainforest Alliance, and working closely with TFT and Ata
Marie, APP conducted its own growth and yield projections that take into account, among others, the area
burnt in 2015 as well as potential development on existing land banks in APP’s suppliers’ concessions.
The result of this indicates that APP will be able to supply all of our mills, including OKI, through to 2025.
However, between now and 2025, APP will be reviewing potential new suppliers while also exploring
ways to further improve yield and eiciency. We are working with research facilities to explore how to
maximise yields sustainably on these soils.
APP has existing undeveloped areas in its concession on mineral soils in Kalimantan (PT Finnantara Intiga)
which could also be developed through the implementation of ISFMP with the partnership with the local
communities inside the concession.
In addition, APP is working with communities and smallholders to source for additional wood, having
approved four community forests as new suppliers in 2017. All new suppliers are required to meet APP’s
FCP and SERA process prior to acceptance to supply chain.
APP has started the process to develop the next sustainability roadmap – Sustainability Roadmap Vision
2030 – by taking stock of our achievements in meeting and even exceeding many of the goals set in
APP’s Vision 2020. The aim is for the new Vision 2030 to be a more cohesive strategy, which targets
forests, peatlands, people, and products under the overarching frame of contributing to addressing climate
change and the Sustainable Development Goals. The Sustainability Vision 2020 is the integral foundation
for our ability to achieve the targets we will identify for 2030. It is thus important that we relect on our
implementation of the FCP over the last ive years to identify how to overcome key obstacles.
Transparency is fundamental in building trust and we have aimed to build trust with our stakeholders in
part by regularly reporting on FCP progress and organising bi-annual multi-stakeholders consultations to
discuss progress with stakeholders. We have been using this platform to take opportunity to share the
challenges we have faced and our plans to overcoming them.
We are conscious that progress in some areas has been time-consuming, particularly in areas where we
are breaking new ground with research and restoration, which take considerable time to produce results.
This in no way means that we are reducing our ambitions. We hope that the challenges outlined in this
report can inspire further conversations and partnerships, leading to solutions that spur our eforts to
accelerate the progress within the FCP implementation.
Challenge:
Third Party Forest Clearance
Approach over 5 years: We continue to face challenges in eradicating third party forest clearance
and encroachment into protected forests. Over
the last ive years, we have deployed a number of
strategies and initiatives – e.g. IFFS programme
and increased monitoring. We’ve strengthened
our monitoring of forest change through the use
of forest cover alert technology and on the ground
monitoring networks of communities in order to be
able to respond more quickly to changes we see
and quickly address any clearing activities before
they expand. Through our landscape approach to
forest protection we have also aimed to work with all
stakeholders across the landscape – including other
private sector actors addressing the same issue
2018 Strategy: APP will continue to strengthen its forest protection eforts, particularly by involving
communities. APP is also looking into new ways
to improve the efectiveness of its patrol, such as
improving & prioritising the patrol routes based
on the data received through MDA, as well as
integrating SMART patrol concept to its suppliers’
forest security patrol.
Further, APP will continue to pursue collaboration
with other stakeholders on forest protection
and community development. A key focus
going forward will be to engage with neutral,
independent organisations that can take up a role
as facilitator and/or mediator in order to bring
stakeholders with diverse interests together. We
will also increase our support for jurisdictional
approaches to forest protection.
Challenge:
Culture Change
Approach over 5 years: When we undertook the endeavour to decouple our business from
deforestation, we knew that we were also taking
on the responsibility for achieving a shift in
culture. A shift in culture not only in our business,
but the culture of our suppliers, the culture of the
communities within and around our concessions,
and with the stakeholders all around us. One of the
gifts of Indonesia is its incredible cultural diversity,
but this also means that a strategy that works in
shifting practices in one village will not necessarily
work in another. This means that we need to target
our initiatives and engagements to the speciic
cultural context of each area across 5 provinces. In
some instances, we have tried to make progress with
one approach and have had to improve and re-plan
when we have come up against cultural diferences.
2018 Strategy: As part of the IFFS programme, we will train ‘change agents’, in an efort to ‘train
the trainers’ in each community on climate smart
agricultural practices and agro-forestry techniques
who can then adapt them to their own context and
with APP’s support facilitate training for the larger
community. We will also continue to work with NGO
partners on raising awareness related to issues
around human-animal interactions and the negative
impacts of ires, among other issues.
CHALLENGES AND PROPOSED
Challenge:
Measuring Impact
Approach over 5 years: The initiatives APP is embarking on, whether environment or social,
need to be measured in terms of impacts so that
we can identify what works and what needs to be
improved. This is where the challenge lies – there
is no globally acknowledged method to measure
impacts of conservation and restoration eforts
– particularly over the short-term. While success
stories can be found in some places, they have
usually been conducted in small areas. Measuring
impacts in large areas such as APP’s concession and
its third party suppliers’ concessions is a relatively
new endeavour.
2018 Strategy: APP will increase engagement with academics and research organisations to deine and
develop a science-based methodology to measure
the impact of its protection, conservation and
restoration eforts economically, environmentally
and socially. Collaboration has already commenced
with CIFOR – ICRAF in the IFFS project in 2017 and
expanding with University of Indonesia in 2018.
Challenge:
Social conlict resolution
Approach over 5 years: We have been very careful in addressing the very complex issue of managing
conlicts we inherited from the moment the company
was granted concessions by the Government of
Indonesia. We conducted a detailed mapping of
these conlicts to adapt the resolution process to
each case. As mentioned previously in this report,
each situation is a speciic one and there is no one
solution to address these diferent types of conlicts.
We are learning a lot from our collaboration with
local stakeholders and hope to be able to develop
more partnerships with local groups that would be
ready to support our eforts to solve all conlicts as
soon as possible.
2018 Strategy: APP will continue working closely with stakeholders joining the regional platforms.
We will also analyse through case studies how the
diferent components of our FCP – ire prevention,
IFFS, community forestry – can be better integrated
with our conlict resolution eforts to hopefully help
reinforce these eforts. In addition, we will continue
training our staf to improve their capacity to prevent
and address disputes.
These eforts, among many others, will take time to produce results. We recognise the urgency of halting
deforestation, and we remain committed to doing our part to stamp out illegal logging and encroachment in addition
to upholding our commitment to no natural forest clearance in our concessions or those of our suppliers. At the
same time, we are keen on investing resources where we can be proactive and bring sustained improvement. APP
will continue to engage in longer-term projects, such as restoration, research on alternative species, social conlict
resolution and changing mindsets.
As we take on more complex challenges, which take longer time to deliver results, we will remain accountable to our
commitments. To this end, we will work with relevant experts and organisations to develop more science-based targets
with measurable deined metrics to facilitate tracking and assessment of our progress in overcoming these challenges.
We will also improve our data collection, reporting, and transparency to make it easier to follow our progress. Through
all of this we will maintain in dialogue with all our stakeholders hearing their criticisms but also welcoming their proposals