Sustainability Report

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

Integrated

Plantation-Pulp-Paper

R&D and seedling production

2 Main

Seedlings nurseries

Annual output of

200 Million

Seedlings nurseries

Forestry

38 forestry concessions

Seedlings nurseries

100% of forestry concessions

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

100% of forestry concessions

Certified with PHPL-VLK (SVLK, Timber Legality Assurance System)

Fiber sources for paper production

56%

Plantation Fiber

8%

Imported Fiber

36%

Recycled Fiber

Pulp & paper production

57% of our energy

is generated from renewable fuels

Water consumption

19m3

per tonne of production

We reused, recycled or recovered

36% of waste

in 2019

80% of our mills

Certified to ISO 50001 energy management system

Customers & consumers

150 Countries

APP brands are marketed in

17 Million

tonnes total capacity (APP Indonesia)

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 2019

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About Us

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

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Senior Statements

Chairman's & Chief Sustainability Officer's Statement

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 supporting the SDGs. 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 Global Goals.

We have provided a detailed breakdown of each Goal, indicator and sub-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

Forest Conservation Policy, Stakeholder, Materiality, Governance, Risks 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

Production Flow

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1. Wood Preparation
2. Cooking
3. Bleaching
4. Pulp, Paper & Tissue Product

Water Treatment

Water Waste Treatment

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Production

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

Policy Commitment

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As a responsible business, APP aim to support the Government of Indonesia in achieving its Nationally Determined Contribution (NDC) target, of which forestry protection plays a significant role through the way that areas of forestry and peat land can store carbon dioxide.

Policy Commitment 1

Protecting Natural Forest

1

Policy Commitment 2

Peatland Management

2

Policy Commitment 3

Social Commitments

3

Policy Commitment 4

Global Chain Supply

4

FCP Achievement in 2019

Certification

PEFC-SFM

Programme for the Endorsement of Forest Certification-SFM

Coverage

2018

91%

2019

92%

PHPL-VLK

SVLK. Timber Legality Assurance System

Coverage

2018

100%

2019

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. With the wildlife experts and local forestry offices 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.

7%

of Sumatran Elephant population in Sumatra

9%

of Sumatran Tiger population in Sumatra

15%

of Bornean Orangutan population in Kutai landscape

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Forest

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

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.

Mangrove Restoration Project

Woman Empowerment farmer group

Community Empowerment through Desa Makmur Peduli Api

Addressing water related issues in communities, access to clean water and sanitation

Developing Infrastructure

Microfinancing for SME's

Supporting handicraft for economic empowerment

End of career training programmes

Community-based Waste Management

Social Impact Assessments to determine local community needs

Health programmes for young mothers and infants

Health clinics for employees and their family

Scholarship programme

Graduate training programme

Safety Culture programme

Employee Welfare Policy, covering safety, welbeing and data protection

Training and development

Ethic Call Centre to report concerns

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People

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