Sustainability

Production

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:

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.

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. 4% of our emissions are attributed to the purchase of energy. 

Our energy intensity decreased 8% by the end of 2021 compared to a 2018 baseline, against our Vision 2030 target of 25%. By the end of 2021, 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. 56% of our energy needs are generated from renewable fuels, up from 2% in our 2018 baseline year.

At Indah Kiat Serang, the mill increased production while decreasing its electricity intensity. This is beneficial for the mill because it indicates that energy consumption is becoming more efficient. Its ongoing efforts and progress are directly related to its capacitor banks; by increasing capacitor bank consumption, electricity consumption will naturally decrease. It has exceeded its 0.85 target for capacitor banks, with the current average at 0.87. IKS plans to increase renewable energy share such as steam energy utilisation and optimisation, as well as microbe research and treatment in its biogas energy.

At Lontar Papyrus mill implemented a variety of energy and energy efficiency measures. Lontar has ISO 50001:2018 certification, which is used to manage energy performance, including energy efficiency and consumption. It also conserved energy by running and optimising only three of its five boilers, resulting in 3.5–4 Megawatts of savings. Additionally, the mill performed online repairs on its steam energy boilers. By ensuring that the boiler’s combustion is as efficient as possible, the flue gas outlet temperature can be kept as low as possible, allowing it to absorb and transfer as much heat as possible while consuming as little steam as possible for its preheater.

Lontar Papyrus mill has accelerated its transition to renewable energy, examining a variety of alternatives such as biomass and experimenting with palm fibre and shells to generate energy. 73% of its total energy mix is derived from biomass, while 27% is derived from fossil fuels. Previously, steam and electricity generation were heavily reliant on coal; now, they are reliant on biomass such as bark, palm fibre, and others.

At OKI, the mill continued to primarily focus on energy costs and targets, which were influenced by the use of oil, sand, coal, electricity, and steam. In 2021, turbine efficiency was increased, resulting in a reduction in steam and fuel consumption to an average of 150 KwH/Ton Steam, up from 140 KwH/Ton Steam previously. Apart from ISO 50001, third party checks are conducted every quarter to ensure that the usage of energy and emissions comply with all applicable government regulations and standards in South Sumatra.

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. We are constantly working on reducing our water consumption by implementing cutting-edge technology and initiatives. We use the same '3R' strategy for water as we do for other resources—reduce, reuse, and recycle. By the end of 2021, we have reduced water intensity by 10% relative to a 2018 baseline.

An example is in Indah Kiat Serang mill which constantly conducts water monitoring and supervision, is able to accurately predict rainfall during the rainy season in order to efficiently use it even during the dry seasons. The Ciujung River, which floods during the rainy season, allows the mill to utilise it in such a way that during the dry season the water can rise from downstream to upstream and thus the mill has a lagoon with a capacity of 4 million cubic metres. The mill continuously strives to reduce water use and increase efficiency each year.

Meanwhile, in 2021, Lontar Papyrus mill began installing an online Chemical Oxygen Demand (COD) sensor to comply with Ministry of Environment and Forestry requirements. The sensor will be used to determine the amount of oxygen required to oxidise all organic compounds in water, making it a critical indicator for water analysis.

For OKI mill, the mill achieved a less than 15% reduction in water intensity from 33 m3/ton to 27 m3/ton in 2021, a significant milestone for the mill. They succeed to increase the water recycling 30%.

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. 

Lontar Papyrus mill conducted study for the utilisation of dregs and grits waste in combination with boiler bio ash to create an inorganic soil repairer known as PTA 12; this trial is currently being under reviewed by IPB University. The mill is also studying with its use as a subbase for roads in plantation and other areas. It will continue to advocate for the elimination of waste-to landfill.

The OKI mill has conducted a number of studies in collaboration with renowned universities. We have planned for 2 solid waste utilization programs to start in 2022. The discussion has already started in 2021 with Sriwijaya University to study the use of the mill’s solid waste for sub base/road base and bricks & light bricks. OKI has also discussed with IPB University to study and improve inorganic soil enhancers using dregs, grits and ash. The mill prioritises optimising production system functions with current technology to reduce waste generation and reducing the use of natural resources. For the waste generated, our mill continues to explore alternatives for waste recycling and recovery.

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.