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A Sustainable Forestry Company

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Nguyễn Gia Hào

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A Sustainable Forestry Company A Sustainable Forestry Company

REDD+ Indonesia Day

Sonokeling, Manggala Wanabhakti April 29

th

, 2016

Zero deforestation, landscape approach, and

landscape governance

(2)

World Leading - from Indonesia to the world

Located in Pangkalan Kerinci, Pelalawan Regency, Riau

Integrated mill complex of 1,750 hectares

5,500 employees

Pulp production capacity: 2.8 m ton/year,

Paper production capacity: 1.2 m ton/year by 2016

Sustainable - from Policy to Products

PaperOneTM is sourced from 100% renewable fiber from certified, sustainably managed plantations, Sold in 70+ countries worldwide

Engaged – across the 4Cs

Alignment across Community, Country, Climate and Company

Overview

World Leading - from Indonesia to the world

Located in Pangkalan Kerinci, Pelalawan Regency, Riau

Integrated mill complex of 1,750 hectares

5,500 employees

Pulp production capacity: 2.8 m ton/year,

Paper production capacity: 1.2 m ton/year by 2016

Sustainable - from Policy to Products

PaperOneTM is sourced from 100% renewable fiber from certified, sustainably managed plantations, Sold in 70+ countries worldwide

Engaged – across the 4Cs

Alignment across Community, Country, Climate and Company

2

(3)

Indonesia’s Forests

130,000,000 ha

of forest in Indonesia

70,000,000 ha

set aside for production forestry by Indonesian Govt.

10,000,000 ha

has been issued permits to Industrial Plantations (pulp and paper and housing lumbers)

3,500,000 ha 130,000,000 ha

of forest in Indonesia

70,000,000 ha

set aside for production forestry by Indonesian Govt.

10,000,000 ha

has been issued permits to Industrial Plantations (pulp and paper and housing lumbers)

3,500,000 ha

(4)

Our Sustainability Journey

2010: Global Certification - Obtained PEFC Chain of Custody certification

2014: Sustainability Policy Leadership

- Launched Sustainable

Forest Management Policy (SFMP) - Set-up Stakeholder

Advisory Committee (SAC)

2015: Zero Deforestation and Peatland Protection

- Moratorium on peatland development

- Established Independent PEWG - Achieved PEFC SFM Certification

4 2002: Pioneered

Certification

– Introduced Wood Legality Chain of Custody System 2003: Advanced

Stakeholder Engagement – Published First

Sustainability Report 2005: Commenced Landscape Conservation - Implementation of High Conservation Value (HCV) assessments

2010: Global Certification - Obtained PEFC Chain of Custody certification

2015: Zero Deforestation and Peatland Protection

- Moratorium on peatland development

- Established Independent PEWG - Achieved PEFC SFM Certification 2013: Advanced Landscape

Protection

- Launched Restorasi Ekosistem Riau (RER)

(5)

Sustainable Forestry Management Policy (SFMP)

Comprehensive sustainable forest management policy to guide

operations, with independent oversight and audit

• Elimination of deforestation from supply chain and any future development only on non-forested land

• Added High Carbon Stock (HCS) to existing High

Conservation Value (HCVF) assessments process

• Moratorium on further work at natural forest areas for plantation development from 15 May 2015

• Important milestone on the way to achieving 1-for-1 Comprehensive sustainable forest management policy to guide

operations, with independent oversight and audit

• Elimination of deforestation from supply chain and any future development only on non-forested land

• Added High Carbon Stock (HCS) to existing High

Conservation Value (HCVF) assessments process

• Moratorium on further work at natural forest areas for plantation development from 15 May 2015

• Important milestone on the way to achieving 1-for-1

(6)

Conservation and Protection

Since 2005, adopted assessment and setting aside areas of High

Conservation Value Forests

Working with Fauna & Flora International and The

Nature Conservancy to implement eco-system restoration at Kampar Peninsula - 150,000

hectares under restoration

Announced USD100 million investment for 10 years in conservation and

restoration at UN climate meeting in Paris (COP21)

Eco-restoration

6

Eco-restoration

Since 2005, adopted assessment and setting aside areas of High

Conservation Value Forests

Working with Fauna & Flora International and The

Nature Conservancy to implement eco-system restoration at Kampar Peninsula - 150,000

hectares under restoration

Announced USD100 million investment for 10 years in conservation and

restoration at UN climate

meeting in Paris (COP21)

(7)

The Kampar Peninsula is an example of the

Landscape Approach in action:

• RER project identifies conservation and eco- restoration areas at the core of peninsula

• Uses plantations around outer areas to buffer and protect protection zone areas from encroachment

• Protection of protection zone areas is important to prevent degradation of land through illegal logging, unauthorized slash and burn farming and fires

• Collaboration with

community partners, NGOs

Landscape Approach and Protection

The Kampar Peninsula is an example of the

Landscape Approach in action:

• RER project identifies conservation and eco- restoration areas at the core of peninsula

• Uses plantations around outer areas to buffer and protect protection zone areas from encroachment

• Protection of protection zone areas is important to prevent degradation of land through illegal logging, unauthorized slash and burn farming and fires

• Collaboration with

community partners, NGOs

(8)

• Yes – through 1 to 1 commitment; HCV assessment; through reuse, recycle, and replenish our waste – biofuel use; through ecosystem restoration. All of these are reducing emission, stopping

deforestation, restoring degraded areas or avoid further degradation.

• Is APRIL implement MRV – yes on trial for one rotation of plantation and the report has been submitted to the government.

• What is the role of APRIL on implementation of REDD+; we are leading in private initiative but not a DA REDD+ and also do not expect any REDD+ funds for the coming 10 years – we are self- financing.

• What we expect from government and other stakeholders is that the REDD+ should be driven nationally and REDD+ should be

implemented in collaboration between CSO – representing

community; Government – representing the people of Indonesia;

and the Company – representing business interests.

IS APRIL IMPLEMENTING REDD+?

• Yes – through 1 to 1 commitment; HCV assessment; through reuse, recycle, and replenish our waste – biofuel use; through ecosystem restoration. All of these are reducing emission, stopping

deforestation, restoring degraded areas or avoid further degradation.

• Is APRIL implement MRV – yes on trial for one rotation of plantation and the report has been submitted to the government.

• What is the role of APRIL on implementation of REDD+; we are leading in private initiative but not a DA REDD+ and also do not expect any REDD+ funds for the coming 10 years – we are self- financing.

• What we expect from government and other stakeholders is that the REDD+ should be driven nationally and REDD+ should be

implemented in collaboration between CSO – representing

community; Government – representing the people of Indonesia;

and the Company – representing business interests.

8

(9)

“Good business is about what’s good for the

“Good business is about what’s good for the community,

community, country, climate country, climate and company… only then and company… only then will it be

will it be sustainable” sustainable”

-- Sukanto Sukanto Tanoto Tanoto, Chairman , Chairman RGE RGE

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