Banner Sustainability Poduction
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
To achieve our 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
Chain of Custody System
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 our FCP monitoring dashboard 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
As we can’t rely on grid electricity alone to meet our entire energy demands, our mills must generate electricity and steam on their own. Therefore, we use renewable fuels where feasible, while in other cases our only option is to use coal or natural gas.
Such fuel use is the main contributor to carbon emissions in our operations. Less than 11% of our emissions are related to purchased electricity. And we mitigate our impacts through careful considerations of fuel types and investments on efficient production to ensure our energy demands are as low as possible.
We achieved a carbon Intensity reduction of 18% by the end of 2018, compared to a 2012 baseline, against a target of 10%. It is achieved predominantly by replacing fossil fuels with renewable fuels for energy generation. Meanwhile, our energy intensity decreased by 9% by the end of 2018, compared to a 2012 baseline, slightly short of our target of 10% that we committed to in Vision 2020.
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 2018, we reused and recycled 15% of our water in our production processes. It means that we use less freshwater, reducing our water usage intensity by 24%, compared to the 2013 baseline.
Pindo Deli Perawang is one of our mills that immediately saw the benefits of modern installations, following the arrival of its new tissue machine. Water use audits have been conducted at the mill since 2015. Working backward from water-discharge to water source, the engineering team assess the water balance of the process and identify improvement areas. Modifications to pumping systems, seals and wash press showers all contributed to a 41% reduction in water use intensity from 2015 to 2018.
And like all of our mills, Indah Kiat Perawang reuses water in various processes throughout its operations, reducing the demand for freshwater. By reducing dilution rates of hot water besides collecting and reusing condensate heat recovery, the mill has reduced its water usage intensity for pulp and paper production by 13% and 7%, respectively, against the 2015 baseline. By overhauling existing equipment and installing improved fiber recovery equipment, the mill also reduced its total suspended solids (TSS) from pulp making activities by 63%. Investments and improvements will continue through 2019, with a target TSS reduction of 83%.
The majority of our waste comes from our onsite power production and pulp and paper making process. As a part of our commitments to the circular economy, we endeavor to minimize waste and maximize the opportunities to reuse waste materials.
We turn by-products, like black liquor, bark, and other residues from forestry and pulping activities, into energy sources that directly replace fossil fuels at our integrated pulp and paper mills. Besides diverting waste from landfills, using these waste streams helps reduce the carbon intensity of our mills significantly. In 2018, our integrated mills utilized over 9 million tonnes of these by-products.
Working closely with local governments, who issue the waste handling licenses we require to reuse a waste stream, we continue to look for suitable technologies or partners to provide us with such opportunities.
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.