Asia Pulp & Paper (APP) Announces New Policies on High Conservation Value Forest

JAKARTA, 2012, May 17 – Asia Pulp & Paper Group (APP) has announced its new High Conservation Value Forest policies to evolve APP’s business, including the immediate suspension of natural forest clearance on its own pulpwood plantations in Indonesia.

Over the past decade, APP has built and implemented a broad-ranging sustainability strategy to preserve critical aspects of Indonesia’s precious natural resources, high conservation areas and biodiversity.

Now, in what the Group calls the ‘next natural evolution’ of its sustainability strategy, APP is announcing a move to adopt the internationally- recognized standards for High Conservation Value Forest (HCVF).

The HCVF policies will be implemented immediately in the following way:

1. With respect to APP owned concessions in Indonesia:

a. Effective from 1st June 2012, we will suspend natural forest clearance while HCVF assessments are conducted.

b. We have engaged credible experts to conduct HCVF assessments, in accordance with HCV Resource Network best practice. The assessments will be based on a multi-stakeholder approach.

c. We will protect all identified HCVF areas as a result of the HCVF assessments.

2. With respect to APP’s independent pulpwood suppliers in Indonesia:

a. Given our firm commitments on HCVF, APP expects independent suppliers to comply with our request for HCVF assessments, by 31 December 2014.

b. With an international NGO partner, we will engage with our independent suppliers to adopt HCVF assessments.

c. We will review and reevaluate supply agreements where HCVF assessments are not conducted.

APP’s Managing Director of Sustainability, Aida Greenbury, said:

“Effective immediately, we are embarking on a bold program to ensure we can offer our customers products with the highest environmental and social integrity, and to ensure delivery of a shared vision for the global community. We are taking account of critical issues raised in our dialogue with NGOs. It is the aim of APP’s policy to exclude HCVF from the supply chain.”

Regarding APP’s future expansion, Ms Greenbury said: “As a business we are always assessing the markets for opportunities. We will ensure that our Natural Forest Policy will apply to all of our current mill operations and any future expansion.”

“We are confident in our ability to embed these policies in our business, but we also acknowledge that success will require the engagement of many stakeholders.” said Robin Mailoa, CEO of Sinar Mas Forestry. “High conservation value forest (HCVF) management is a protocol that stretches beyond our own concessions and needs to be embraced and supported by members of local communities, government, civil societies and by everyone that touches the pulpwood production process.”

APP stakeholders have welcomed the announcement:

Darori, Director General of Forest Protection and Nature Conservation at the Indonesian Ministry of Forestry, said:

“The Government of Indonesia has made the protection of natural forests a key element of national policy. For this to work, the private sector organizations also need to take initiatives which go beyond what the law expects of them. The Government supports today’s announcement and hopes other companies will follow APP’s example in this regard.”

Y.W. Junardy, President of the Indonesian Chapter of the United Nations Global Compact Network, said:

“We welcome APP’s strategic step to protect and conserve the forest. As a corporation that is active in the Global Compact movement, this step demonstrates the commitment and efforts of APP in implementing the principles of the United Nation Global Compact, especially the environmental aspect. This commitment is important for the sustainability of business and the environment for the long term.”

APP will provide regular reports on its progress against the commitments outlined today on its website:www.asiapulppaper.com.

About APP Indonesia

APP Indonesia is a brand umbrella for paper products which are produced by several mills in Indonesia such as PT Indah Kiat Pulp & Paper Tbk, PT Pindo Deli Pulp & Paper Mills, PT PabrikKertas Tjiwi Kimia Tbk, PT Lontar Papyrus Pulp & Paper Industries, and PT Ekamas Fortuna. APP is headquartered in Indonesia and markets its product to more than 120 countries. Most of APP’s production facilities are Chain-of-Custody certified by LEI and PEFC. APP supports several main conservation initiatives, including a 178,000 hectare Biosphere Reserve in Giam Siak Kecil – Bukit Batu and an area of 106,000 hectare for the Senepis Tiger Sanctuary. Both are located in the province of Riau, Sumatra. Other APP wildlife preservation initiatives include the support of the Kutai Orangutan Program in Kalimantan and the conservation of the Javan Rhino in Ujung Kulon National Park. For more information, please visit:www.asiapulppaper.com

About APP China

APP China is headquartered in Shanghai, with over 20 pulp and paper mills in the form of subsidiaries and joint ventures, as well as forest plantations with a total area of over 300,000 hectares. With over 38,900 employees, APP China has a total production capability of 8 million tons per year in 2010. By the end of 2010, APP China has spent RMB 5.5 billion (USD 869 million) in environmental protection facilities and RMB 600 million (USD 92.3 million) in various charitable causes and community development projects across the country. For more information, please visit www.app.com.cn.

For more information, please contact:

Redita Soumi, APP Indonesia
E: redita_soumi@app.co.id

North America
Naomi Bata, Cohn & Wolfe
T: +1 312 596 3332
E: naomi.bata@cohnwolfe.com

Cohn & Wolfe
T: +44 7331 5246
E: app.ukteam@cohnwolfe.com

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