Thursday, April 4, 2013

CORRECTING and REPLACING TFT Verification Report Shows Asia Pulp & Paper Moratorium Intact

JAKARTA, Indonesia - Thursday, April 4th

2013 [BUSINESS WIRE/ ME NewsWire]

Correction...by Asia Pulp & Paper

Please replace the release dated April 3,

2013, at 11:01 p.m. PT / April 4, 2013, at

2:01 a.m. ET with the following corrected

version due to multiple revisions.

The corrected release reads:

TFT VERIFICATION REPORT SHOWS ASIA PULP &

PAPER MORATORIUM INTACT

Asia Pulp & Paper Group (APP) has issued a

report showing that allegations of its

Forest Moratorium being violated are

unfounded.

The report has been issued following a

complaint received from a consortium of

local NGOs (Relawan Pemantau Hutan

Kalimantan / RPHK) that two of its suppliers

were clearing natural forest in West

Kalimantan Province, in direct contradiction

to APP’s Forest Conservation Policy

announced on February 5th. The cornerstones

of this policy are a commitment to zero

deforestation throughout APP’s supply chain,

and a clear grievance procedure.

On the day of the complaints, APP stated,

“We, and our partner TFT, are investigating

these allegations, and in the interests of

complete transparency, will publish our

findings as soon as they are available.” The

company added that it could not draw a

conclusion until it had all the facts to

hand.

APP has now received The Forest Trust’s

(TFT) full technical report available here.

It includes accurate GPS mapping of the

areas under investigation, records of

discussions with the contractors on-site,

and analysis of ground level activity as

well as examination of inter-company

relationships.

The two allegations made are related to

activities carried out by DTK (PT Daya Tani

Kalbar) and ATP (PT Asia Tani Persada), both

of which are suppliers to APP. In both cases

there was clearance of natural forest being

undertaken, but in neither instance was the

clearance related to APP. Therefore neither

APP, nor its suppliers, are in breach of its

moratorium.

In both cases, however, the over-riding

issue is concession overlap. So far as DTK

is concerned, clearance was for the

development of a palm oil plantation owned

by a company, Gerbang Benua Raya (GBR).

There is evidence of old land clearance, and

there are oil palms that are about 18-months

old.

In the case of ATP, TFT found canal

construction through forested peatland,

being carried out on behalf of a Bauxite

mining business, Karya Utama Tambang Jaya

(KUTJ), a company unrelated to APP.

Additionally, this activity is taking place

outside the APP moratorium area, according

to mapping data.

In neither case is there any evidence of

cross-ownership between APP’s suppliers and

both companies (GBR and KUTJ). APP and TFT

are therefore confident, based on the

evidence in the report, that on this

occasion the allegations made that suppliers

were in breach of the APP Forest

Conservation Policy are unfounded.

Aida Greenbury, APP’s Managing Director of

Sustainability, said, “We committed to full

transparency and to independent

investigation through our Grievance Protocol

of any alleged breach in our moratorium on

natural forest clearance. This is an example

of our commitment in action. Despite

unsubstantiated commentary by some parties,

we said from the start that we would not

speculate before the facts were known. We

will continue to adhere to our grievance

procedures. Where there are concerns, we

urge communities and NGOs to bring them to

our attention and we promise we will be

thorough in our investigation, as we have

been in this case. We also reiterate the

fact that if a supplier were found to be in

breach of our Forest Conservation Policy, we

will not hesitate to take swift action.”

“There is a wider issue at stake,” she

continued. “Licensing and concession overlap

is not uncommon in Indonesia. It is clear

that there must be greater precision in

governance. Currently, APP and TFT are

mapping all overlapping areas in our

suppliers’ concessions. Once we have all the

details, we will adopt a strategy to resolve

this and protect the integrity of the

natural forests in the areas, together with

other stakeholders, national government and

provincial legislatures. We urge other

forest dependent businesses, communities and

NGOs to join us in helping to make this

happen.”

ABOUT APP

Asia Pulp & Paper Group (APP) is a trade

name for a group of pulp and paper

manufacturing companies in Indonesia and

China. The APP Group of companies is one of

the world’s largest vertically integrated

pulp and paper companies, with an annual

combined pulp, paper, and converting

products capacity of over 18 million tons.

APP-Indonesia and APP-China currently market

their products in more than 120 countries

across six continents. The majority of APP’s

production facilities are Chain-of-Custody

certified by SVLK, LEI and PEFC.

APP launched its Sustainability Roadmap

Vision 2020 in June 2012 and its Forest

Conservation policy in February 2013, to

further improve its environmental

performance, biodiversity conservation, and

protection of community rights.

For more information about the APP

Sustainability Roadmap Vision 2020, please

visit http://www.rainforestrealities.com or

www.asiapulppaper.com.

The APP Forest Conservation Policy is

available on www.asiapulppaper.com.

ABOUT TFT

Established in 1999, The Forest Trust (TFT)

is a global non-profit that helps businesses

bring responsible products to market.

Responsible products improve peoples’ lives

and respect the environment at all stages of

the product lifecycle. TFT helps its more

than 90 members worldwide build responsible

supply chains by identifying and addressing

embedded social and environmental issues.

Having established a strong record of

achievement in timber supply chains, TFT has

expanded its work into palm oil, leather and

stone. TFT has offices in 15 countries, and

an on-the-ground presence in many more,

http://www.tft-forests.org.

Contacts

APP Indonesia

Redita Soumi, (62-21) 3929266 Ext. 2832

redita_soumi@app.co.id



or

Aniela Maria, (62-21) 392 9266-69 Ext. 2834

aniela_maria@app.co.id