Asia Pulp & Paper promised to end all deforestation across Indonesia in a new Forest Conservation Policy (FCP) published to a surprised, if not sceptical, world on 5 February.
If implemented successfully, it brings an end to a long and murky history of rainforest devastation, a decade of protests and the cause for a swathe of media coverage so damaging it prompted more than 100 companies – including giants from Lego to Xerox – to suspend contracts with a business that itself, despite the loss of all those deals, remains a huge name in paper and packaging.
To ensure, and prove to the industry, that APP and its entire supply chain will not falter on its FCP commitments, the company engaged with The Forest Trust (TFT) – a non-profit group helping firms and communities work more sustainably – to independently monitor its activities and publish regular reports on APP’s activities on its 2.6 million hectares and in Indonesia.
So far, three reports have been published (and further reports will be published by TFT every two months), covering three six-week periods from February to end-June, which are also included in APP’s recently published progress report.
TFT monitors reported “no breaches of the moratorium in any direct supplier operation” as well as APP’s proactive approach in testing new-wood tracking systems and formalising meetings with local people.
However, between March and April, a tier-two supplier was found clearing an area of natural forest – instead of managed plantations – in breach of the conservation policy. APP was swift to delist the company.
A further breach has also come to light through a verification report published by TFT on 29 June, after it investigated an alleged, accidental breach of APP’s deforestation moratorium, which resulted in the clearing of 70 hectares of forest. The investigation confirmed the breach, finding that it had occurred as a result of a local decision to honour a two-year-old agreement to develop community land. APP admitted its mistake and is reviewing internal sign-off procedures as a result and says it remains “steadfastly committed” to its FCP commitment.
Among APP’s policy commitments is to avoid social conflicts in its supply chain by seeking feedback from a range of stakeholders. In its second report, TFT said it had helped the company complete its first round of conflict training for managers. Both TFT and Greenpeace, one of APP’s loudest, longest-standing critics, say progress is good. But will it last?
APP managing director Aida Greenbury says it will. “The hardest part is to make sure natural forest is identified and protected, so that is a main objective. Another is to achieve a sustainable forest management standard such as Forest Stewardship Council (FSC) certification.”
Can we take her word for it? After all, Greenpeace has been campaigning for a decade against APP, which has made loose commitments in the past but not “stuck to them”, says forests campaigner, Richard George of Greenpeace UK. Five months after pledging to end natural forest clearing, however, he says the environmental NGO is “cautiously optimistic”, and with good reason.
TFT has around 50 monitors on the ground in Indonesia, while satellites check the tree canopy from above. All of its work is published and can be viewed by third parties, ensuring openness to independent scrutiny. Greenpeace trusts TFT and insists it is in nobody’s interest – not even an APP desperate to clean up its image – to cover up.
TFT founder and executive director Scott Poynton says: “APP’s forest conservation policy and no-deforestation pledge are without question its most ambitious step yet. With many hectares and a complex supply chain, it won’t always be plain sailing. But as a team, with TFT, Greenpeace and other NGOs, we are headed in the right direction.”
For companies toying with returning to APP, Greenbury says: “Whether they come back to us or not is their decision, but they need to support us. We are one of the very, very few large companies to implement a no-deforestation policy.”
Greenpeace’s George feels such a step is “a little too optimistic” right now, saying: “Listing or delisting is a big commitment. There are positive signs from APP and it is important the industry supports a policy made very publicly. There have been a few reports of deforestation and it’s about how open and quick the firm is to punish transgressors or delist suppliers. We need a long, sustained period without mishap.”
Antalis was one of many to break links with APP. UK-based product marketing director James Jarvis would say only: “Currently, Antalis does not undertake any business with APP and doesn’t sell any of its products. Should APP gain FSC certification in the future across a wide range of their products, Antalis may decide to review the situation.”
For now, the likes of Antalis and Greenpeace must play a waiting game, says George. “If APP sticks to its promises it will be ahead of the game in Indonesia by some margin; the question is whether it will stick to its commitment.”
Timeline: APP’s turnaround
June 2003 Asia Pulp & Paper (APP) responds to allegations about its eco impact by saying it will draft a memorandum of understanding on initiatives including creation of protection zones
February 2005 German activists target the Paperworld exhibition, proclaiming, “paper companies are clear-cutting Sumatra” and saying they have targeted APP about its forestry methods for two years
July 2010 Greenpeace publishes Pulping the Planet, alleging firms including KFC, Pizza Hut and Tesco are buying from APP, and that APP is destroying tiger habitats in Sumatra
July 2011 Lego becomes the first toy company to cancel its contracts with APP, followed by Mattel in October of that year, and Hasbro a month later
March 2012 A year-long Greenpeace investigation finds protected ramin trees in APP’s Indah Kiat mill; Xerox, National Geographic and Mondi say they will not buy from APP
November 2012 An open letter signed by 60 non-government organisations (NGOs) goes to banks, financial institutions and other investors in 12 countries urging them not to back APP
February 2013 APP vows to stop chopping down rainforests, publishes a Forest Conservation Policy and works with the Forest Trust (TFT) on meeting its new environmental agenda
March 2013 TFT publishes its first report, noting that APP and its suppliers have been implementing protocols, GPS and tracking systems to ensure pledges on forest clearance hold
May 2013 TFT publishes second progress report on APP conservation policy commitments, saying to date no breaches have taken place in any direct APP supplier operation
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