SinarmasSustainabilityReport2022Web

Vision & Values

As a leading global pulp and paper company, we believe in delivering innovation, sustainably and responsibly, working together to secure a better future of our customers, communities,employees, shareholders and you.

Our Value

01

Our employees, who are integral to Asia Pulp & Paper (APP) Sinar Mas success

02

The environment, as our business, depends on sustainable operations

03

Our customers and suppliers, who sustain our business

04

Our shareholders, and the community to whom we are accountable

05

The principles of good governance as we continue to build a sustainable business

Sustainability Highlights

Pillar 1: Production

59% of our energy

is generated from renewable fuels

100% of our mills

maintained Chain-of-Custody (CoC) certifications

39% of waste

recycled/reused

6 Mills

PROPER Biru

17%

of water consumption reduction

91% of our raw materials

were sourced from local suppliers

7%

of energy intensity reduction

0.99 tCO2e

of carbon intensity

USD32.9 million

in sales revenue of Foopak Bionatura

Pillar 2: Forest

100% of pulpwood supplier

are compliant to PEFC scheme and certified with PHPL-VLK (SLVK, Timber Legality Assurance System)

0.014% of APP and its longterm pulpwood suppliers' total concession areas

was affected by fire

100% of its plantation wood

from sustainable manage forest

63.3%

of APP and its longterm pulpwood suppliers' total land disputes resolved

USD3.7 million

social investments through Desa Makmur Peduli Api (DMPA) Program

Pillar 3: People

26.43%

Female in senior management position

12

Hours of training per employee

2,168

Community groups and partners involvement

>616,000

Beneficiaries through CSR Program

100%

Employee's welfare aligned with ILO Declaration on Fundamental Principles and Rights at Work Standards

We believe that the growth of our business is dependent on the support of the people around us: partners, employees, communities, and you. Together, we are growing our tomorrow.

Awards & Achievement in 2022

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About Us

History, Our Products, Map of Operations, Our Mills, Mills and Products Certification

Sustainability Roadmap

Sustainability has always been at the core of our business. At APP, we create products and deliver services with care through responsible and sustainable innovations for every product life stage.

For us "Growing" is not only about business but also the purpose of improving the livelihoods of people around us.

Sustainable Development Goals

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APP are fully committed to contribute in achieving SDG's. We applied the UN's SDG Compass tool to create a detailed map of how our activities and our wider supply chain directly impact a range of the Goals.

We have provided a detailed breakdown of each Goal and indicator that we are addressing through our activities in the Appendix of this Report.

More info on

Step 01

Understanding
the SDGs

Step 02

Defining priorities

Step 03

Setting goals

Step 04

Integrating

Step 05

Reporting &
communicating

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Strategy & Governance

SDGs Top Priority, Stakeholder, Materiality, Governance, Business Ethics & Risk Management

To maintain sustainability in our operation, we are committed to carefully and responsibly manage these resources, applying the precautionary principle in our approach to identifying and managing adverse impacts on the environment.

By applying innovative design and ensuring the highest manufacturing efficiency in our mills, we directly support our customers' sustainability goals.

Waste Management

Efficient Use of Water

Supplier Compliance Mechanism

Emissions Monitoring

Water Reuse and Recycling

Efficient Use of Raw Materials and Fuel

Energy and Material Flow 2022

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Production

How We Work, Energy & Carbon Emissions, Waste & Materials, Product Innovation

Policy Commitment

We recognize the importance of forestry in its Sustainability Commitment as a business reliant on natural resources. To uphold this commitment, we strictly enforce a no deforestation policy throughout our supply chain. This is achieved through the implementation of Chain of Custody (CoC) measures in our mills and the adoption of Sustainable Forest Management (SFM) practices across our pulpwood suppliers concessions. Our Forest Conservation Policy (FCP) and Fibre Procurement and Processing Policy (FPPP) provide comprehensive guidelines for preserving and protecting forests. Furthermore, our commitment extends to safeguarding High Conservation Values (HCV) and/or High Carbon Stocks (HCS) areas, including their rich biodiversity, as outlined in our FCP.

SRV Achievement in 2022

Certification

PEFC-SFM

Programme for the Endorsement of Forest Certification-SFM

Coverage

2020

95%

2021

93%

2022

94%

PHPL-VLK

SVLK. Timber Legality Assurance System

Coverage

2020

100%

2021

100%

2022

100%

Training and Education for Human-Wildlife Conflict Mitigation

We engage with wildlife experts and The Natural Resources Conservation Agency (BKSDA) to provide routine training for APP's pulpwood suppliers Task Force Team. The wildlife experts and local forestry officers provide training and education to forestry workers, contractors as well as local communities related to the conservation of endangered species and tips on how to prevent, avoid and mitigate conflict with wildlife.

The minimum population of Sumatran Elephants, Sumatran Tigers, and Borneo Orangutans in APP and its longterm pulpwood suppliers' area.

296

Sumatran Elephants

77

of Sumatran Tigers

190

of Bornean Orangutans

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Forest

Forestry Value Chain, Sustainability Dashboard, Sustainable Forest Management, Safeguarding Biodiversity, Forestry Innovation, Environmental Initiatives and Partnerships.

APP recognizes its responsibilities not only to its employees but also to the local communities living in and around its operation areas. Under the Sustainability Roadmap, we are investing in human capital management to ensure our business continuity, as well as empowering and inclusiveness of communities as part of our sustainable operations.

Creating Social Value

DMPA (Desa Makmur Peduli Api)

Woman Empowerment Programme

Human Rights

Diversity & Equal Opportunities

Education and Training

Health and Safety

WASH and Waste Management Programme in Community

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People

How We Work-CSR, CSR Programmes, Our People, Our Employees, Training, Human Right etc.