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Sustainability

Production

Sustainability is intrinsically linked to our products because we use responsibly sourced, renewable, and recycled fiber. On top of that, we apply innovative design and ensure high manufacturing efficiency in our mills to preserve the environment for our future generations.

Sustainability

Production

Sustainability is intrinsically linked to our products because we use responsibly sourced, renewable, and recycled fiber. On top of that, we apply innovative design and ensure high manufacturing efficiency in our mills to preserve the environment for our future generations.

Sustainability - Production (used)

Responsible Sourcing

To achieve Asia Pulp and Papers' sustainability goals in production, we require all suppliers--both current and potential--to comply with our Forest Conservation Policy (FCP). Additionally, we have also developed the Responsible Fiber Procurement and Purchasing Policy (RFPPP) to guide our suppliers. It provides an overarching framework for the specific processes and criteria that we use in evaluating their compliance with our FCP.

Furthermore, we also developed Supplier Evaluation and Risk Assessment (SERA) tools to facilitate the implementation of the RFPPP across our fiber supply chain. For new suppliers, SERA acts as an initial screening to evaluate the level of risk within a supplier’s operations. Once accepted on our list, these approved suppliers will be subjected to annual SERA evaluations to ensure continued compliance with the FCP.

SERA evaluates suppliers against 12 indicators:

The company, or any of its associated companies in the pulpwood industry, converting natural forest after February 1st, 2013.

Country / region

Tree species

Third-party certification/verification

Chain of Custody System

Legality Compliance

Protection of High Conservation Values or High Carbon Stock

Species protection as listed on the IUCN Red List of Critical Endangered Species and CITES

Company’s respect for traditional civil and human rights

Compliance with ILO Core Conventions

Company’s respect for the health and safety of forest workers

No introduction of genetically modified organisms (GMOs)

We only accept woods from suppliers that have not converted any forest area identified as High Carbon Stock (HCS) as of February 2013.

Based on the risk assessment results, we categorize potential suppliers into "significant risk" or "negligible risk." If a potential supplier is categorized as a "significant risk," it will be required to implement corrective actions (CARs) within an agreed period. Otherwise, it will not be accepted as our supplier.

We upload the summary of the risk assessment report of all potential suppliers on the Asia Pulp and Paper monitoring site for public notification, 14 calendar days before we decide on whether or not to accept the potential supplier into our pulpwood supply chain.

Carbon and Energy

carbon

Energy use is an important consideration for the Company and conserving or reducing the use of energy in production activities is a paramount concern. We strive to limit our negative impact on the environment. We closely monitor this impact by evaluating energy efficiency and use of renewable energy in production.

A key focus at all of our mills is energy efficiency. Generating energy on site makes the most impact on our direct CO2 emissions. We use renewable fuels as much as possible, except for when it is not technically or commercially feasible. We have significantly reduced fossil fuel use at our integrated pulp and paper mills by utilising biofuel waste streams. The majority fuel of our integrated pulp & paper mills use are renewable fuels, supplemented predominantly with coal or natural gas. 6% of our emissions are attributed to the purchase of energy. 

Our energy intensity decreased 1.8% by the end of 2020 compared to a 2018 baseline, against our Vision 2030 target of 25%. By the end of 2020, we achieved a carbon intensity reduction of 13% compared to 2018 baseline, against a target of 30% in 2030. This was achieved predominantly by replacing fossil fuels with renewable fuels for energy generation. 59% of our energy needs are generated from renewable fuels, compared to 49% in our 2012 baseline year. This represents an increase of over 65 million GJ of energy generated from renewable sources.

In 2020, biofuel consumption increased by 5% for Indah Kiat Perawang and Lontar Papyrus and OKI mill increased 1% respectively.  In efforts to reduce coal consumption, several programmes and initiatives are implemented inplace. All mill initiatives are registered and monitored under the Skill Development Activity (SDA) Programme. The SDA Programme is designed to improve operation process includes energy reduction, production efficiency, and reducing environmental impacts. is the SDA overseen by the Management by Olympic System (MbOS) Team and monitored periodically.

Water

Water is key to our operation as we use it in pulp and paper production and steam production at various stages of the processes. At the same time, we recognize that our responsibility is to protect local water sources at all of our mill sites. Therefore, we minimize our consumption and ensure that our water-discharge meets the highest environmental standards so we can recycle it back to the water sources.

To do that, we conduct water balance studies at all mills and conduct regular sampling checks with the help of external water experts. And as a result, in 2020, we reused and recycled 13% of our water in our production processes. It means that we use less freshwater, reducing our water usage intensity by 8%, compared to the 2018 baseline.

In 2020, the water intensity at Tjiwi Kimia increased to 29 m3/tonne, from 27 m3/tonne in 2019, due to modifications that changed a white paper machine into a brown paper machine. Wastewater treatment was improved in 2020 by actions including a clarifier modification and the installation of a new outlet and pump. At Indah Kiat Perawang, we installed new reverse osmosis (RO) to improve water treatment system. Through new RO system we can reduce resin consumption which impacted to the reduction of resin waste that categorized as hazardous waste. 

Pindo Deli Karawang implemented a sludge-handling programme to improve the quality of wastewater treatment at mill 1; through this action, we succeeded in reducing the COD and BOD effluent parameters by 19% and 24% respectively. As a Company that draws water from the Citarum River, Pindo Deli Karawang participated in the government-run ‘Citarum Harum’ programme, to improve the quality of water of the Citarum River.
 

Waste

We are committed to minimising waste and maximising the opportunities to reuse waste materials through the ‘3R’ strategy—reduce, reuse, and recycle.  This strategy helps us to maximise the value of resources at each life cycle stage.

The majority of our waste is generated through onsite power production and the pulp and paper making process. To increase our energy efficiency, we turn by-products such as black liquor, bark, and other residues into energy sources to replace the use of fossil fuels at our integrated pulp and paper mills.  Furthermore, this means these by-products are diverted from landfill, which along with their use for the generation of power, and reduces the carbon footprint of our mills significantly. 

We work closely with local governments to identify and secure the required licensing for innovative waste processing. Our Indah Kiat Perawang and Lontar Papyrus mills collect sludge waste from their wastewater treatment and mix this with waste bark from the wood preparation area and bio ash to form a soil conditioner. The calcium, magnesium, and other micronutrients neutralise acidity on the top layer of soil and enhance forestry growth. This is spread in areas of forest where we wish to boost growth rates. 

Certification

We have expanded the hectarage of our pulpwood supply chain that is covered by formal third-party certification. We use certification as a ‘chain of custody’ assurance tool that enables us to trace the fiber that we use to a well-managed source.