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Asia Pulp & Paper

Company nameAsia Pulp & Paper
IndustryPaper
Founder(s)Eka Cipta Widjaja

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Asia Pulp & Paper, also known in the paper industry as APP is based in Singapore, is one of the largest pulp and paper companies in the world. It was founded by Eka Cipta Widjaja, who had significant ties to the Suharto ruling family in Indonesia. APP claims to obtain 80-90% of the fiber for papermaking from sustainable plantations. While several organizations continue to claim that a significant portion of its raw materials come from rainforests in addition to farmed wood, APP recognizes an imperfect early track record and is now working actively to rely on sustainable plantations for future production and to promote preservation of rainforests and peat lands.

It can produce about 2 million tons of pulp and more than 5 million tons of paper and packaging materials per year. Part of the Sinar Mas Group, it operates plants in Indonesia and China and sells to clients in more than 60 countries around the world. In the late 1990s various NGO's made allegations of poor environmental practices, but in recent years the company has defended itself more vocally while also making vigorous reforms in its management of land and water and its cooperation with local and national governments and other organizations. APP has announced a partnership with Carbon Conservation, an environmental and sustainability consulting firm, to craft Vision 2020, a roadmap to guide sustainability principles, goals and program execution across all aspects of the company’s Indonesian operations through the year 2020.

The company has been at the center of many environmental controversies and has been accused of being involved in illegal logging in Cambodia and in Indonesia, and has breached agreements with three major environmental organizations. The company is also well known for defaulting on debt repayments in 2001, during a period of wide-scale financial problems in the South East Asia region.

In recent years, however, the company has significantly increased spending to advance sustainability and environmental protection. By the end of 2009, APP-China has invested more than 5 billion RMB in environmental protection, with emission indicators said to exceed national and international standards. At the end of June 2008, APP-China's six main pulp and paper mills and two forestry companies completed a greenhouse gas assessment (GHS) covering the entire plantation-to-industry chain, making APP-China the first Chinese pulp and paper company to conduct a comprehensive carbon footprint analysis. In 2009, APP's Gold East Paper company completed the GHS by Carbon Trust and became the first Chinese paper producer to pass PAS 2050.

To address the many challenges from limited raw material resources in Asia for pulp and paper production, APP has introduced a program called Plantation-Pulp-Paper Integration. This program combines advanced scientific forest management methods for sustainable plantations with supply chain management across its product lines. APP has also adopted a "Paper Contract with China Manifesto" that calls for the adoption of pollution standards. Key indicators being tracked for improved environmental stewardship include water consumption per ton of pulp, wastewater discharge per ton of pulp, COD emissions per ton of pulp/paper, all of which are said to now be well below international standards.


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