Section 1: Overview of key activities in the reporting period

Transcription

1 TFT Progress Report on Asia Pulp & Paper Group (APP) Forest Conservation Policy Commitments Reporting period: January, February, March 2014 Date: 27 May 2014 This is the sixth update report by TFT on APP s progress toward meeting its Forest Conservation Policy (FCP) commitments made on 5 February 2013, as part of its Sustainability Roadmap Vision This report covers activities undertaken throughout January, February and March Earlier progress reports can be viewed here (fifth report), here (fourth report), here (third report), here (second report), and here (first report). Section 1: Overview of key activities in the reporting period Moratorium on natural forest clearance TFT verification reports were published following allegations of a moratorium breach at PT Daya Tani Kalbar (DTK) in Kalimantan, and following grievances raised at APP supplier PT Wirakarya Sakti (WKS) in Jambi province. At DTK, a joint TFT and APP investigation found that a breach of the moratorium did not occur and that the alleged forest clearing of 1,400 hectares took place prior to the 1 February 2013 moratorium. At WKS, an investigation found that WKS had not continued to supply an APP mill at Tebing Tinggi with natural forest wood (NFW) under a different name, nor had any NFW entered this APP mill after 31 January Full verification reports for DTK and WKS can be accessed via APP s FCP monitoring dashboard. Moratorium / Natural Forest Wood (NFW) monitoring APP s moratorium boundaries and all pre-moratorium NFW usage is monitored quarterly as part of APP s Independent Observer (IO) monitoring programme. Monitoring was conducted with independent observers in Riau, Jambi, South Sumatra, West Kalimantan and East Kalimantan provinces in the second half of January. Field checking identified a number of ongoing threats to APP s moratorium area, but confirmed the moratorium remains intact in those concession areas. IO verified NFW processing figures were compiled and uploaded to APP s FCP monitoring dashboard. The next phase of IO monitoring will start in June. Rainforest Alliance (RA) In January, APP announced it had engaged international environmental organisation The Rainforest Alliance to conduct an independent evaluation of its progress in implementing its FCP. The evaluation will begin with APP suppliers concessions in Indonesia and later include an evaluation of progress in China. Indicators to evaluate APP s FCP implementation were developed by RA over January - March following consultation with stakeholders. More details of the evaluation can be accessed via The Rainforest Alliance website or via APP s FCP monitoring dashboard. 1

2 One-year FCP anniversary 5 February 2014 marked the one-year anniversary of APP s FCP. A panel event was held in Jakarta to discuss twelve months of progress and challenges. The panel comprised TFT, Rainforest Action Network, WWF-Indonesia, Greenpeace-Indonesia, Ekologika (APP s HCV assessor) and APP. The event was recorded and can be accessed via the APP website here. Peat expert team APP finalised the formation of its peat expert team in January. The team comprises a consortium of organisations including Euroconsult Mott MacDonald, Deltares and Wageningen University and Research Centre. It is being led by Wageningen University and Research Centre. The team began its work in February with a three-month inception phase. Dashboard v2.0 Dashboard version 2.0 went live on TFT s SURE Technology platform in February following stakeholder consultation and input in Q4 of The dashboard has been designed to allow users to track APP s implementation of its FCP. Version 2.0 includes additional progress data and information, including further details of APP s approach to FCP implementation in China. Section 2: Moratorium status The natural forest clearance moratorium is in place across all of APP suppliers concessions in Indonesia. In this reporting period, two moratorium breach allegations were investigated and reported. The investigations concluded that no breaches in the moratorium had occurred. PT Daya Tani Kalbar (DTK) On 17 December 2013, the NGO consortium RPHK (Kalimantan Forest Monitoring Volunteers) published a report claiming that a moratorium breach had taken place at APP supplier DTK in Kalimantan 1. The report alleged that DTK carried out natural forest clearance in an area of 1,400 hectares after 31 January 2013, new natural forest wood stacks had not been recorded in a September wood stock inventory (SO) and that DTK and APP had failed to prevent neighbouring palm oil concession, PT Gerbang Benua Raya (GBR) with whom DTK shares an overlapping concession boundary from further illegal land clearing in the overlapping concession area. A subsequent joint TFT and APP investigation found that: A breach of the moratorium did not occur and that the alleged forest clearing of 1,400 hectares took place prior to the 1 February 2013 moratorium. The area in question had been cleared prior to 1 February and had, accordingly, been established as a non-moratorium area. This conclusion was substantiated through boundary mapping, moratorium/non-moratorium demarcation and photographic documentation. 1 DTK was the focus of an earlier moratorium breach allegation in April A subsequent TFT verification report published in May found that APP had not violated its moratorium and that land clearing had been conducted by neighbouring palm oil supplier, PT Gerbang Benua Raya (GBR), the result of an overlapping concession licence between DTK and GBR. 2

3 Clearing activities shown in the satellite images presented by RPHK illustrated the clearing of shrubs and bushes following removal of the natural forest logs felled prior to 1 February As to concerns on the natural forest wood stacks, the investigation confirmed that: These consisted of wood felled prior to the moratorium. Although DTK did report these final wood volumes to the Ministry of Forestry in September-November 2013 (in accordance with government regulation) they failed to report them to APP s FCP implementation team for stock inventory. Thus DTK failed to properly follow stock inventory procedures. The FCP implementation team also failed to record estimated volumes of these wood stacks sent by DTK in July before the aforementioned final volumes were reported to the government. With regard to land clearing activities by PT. Gerbang Benua Raya a palm oil plantation company, the TFT verification team concluded that DTK had taken meaningful actions to compel PT. Gerbang Benua Raya to stop its oil palm operations in the overlapping concession area. Despite these actions, PT. Gerbang Benua Raya continued its operations because it claims to be legally compliant with Indonesian law. A full TFT verification report for DTK is accessible via APP s FCP monitoring dashboard. PT Wirakarya Sakti (WKS) On 27 November 2013, APP received a grievance letter from a community representative in Lubuk Mandarsah village, setting out a number of grievances concerning WKS in Tebo province. Among those grievances were claims that WKS continued to sell natural forest wood to APP s mill at Tebing Tinggi and that WKS had cleared land in a riparian zone 2 after 1 February Issues concerning the resolution of conflict in the village, including TFT s role in mediating that conflict (concerning independence and speed of resolution), were also raised. A TFT verification team comprising APP, Sinar Mas Forestry, TFT, Greenpeace and local community members, investigated the grievances. The investigation found that: WKS had not continued to supply an APP mill at Tebing Tinggi with natural forest wood (NFW) under a different name, nor had any NFW entered this APP mill after 31 January The riparian zone in question turned out not to be a riparian zone, based on spatial planning results from APP s 2006 Micro Delineation 3 and General Work Plan (RKU). 4 Acacia planting and harvesting was therefore permissible and did not violate the moratorium. 2 Riparian zones are the areas of interface between a river and the land. They provide habitat to aquatic and territorial plants and animals as well as carrying out an important role in the regulation of river bank stability and river contamination. Agricultural activities are not permitted in riparian zones. 3 Micro delineation documents are mandatory under Government law. They are used to visualise the situation on the ground and as a tool for micro planning. 3

4 Investigations concerning claims around local conflict resolution in Lubuk Mandarsah village concluded that: The resolution process in the village is ongoing and TFT s role in the resolution is as a facilitator and not a mediator. Lubuk Mandarsah village appointed the Jambi Farmers Union (PPJ) as its representative and PPJ has since confirmed that it will continue negotiations according to the conflict resolution process and the conflict may take more time to settle. A full TFT verification report for WKS is accessible via APP s FCP monitoring dashboard. PT. Suntara Gajapati (SGP) TFT has been working with APP to resolve a land conflict at pulpwood supplier PT. Suntara Gajapati (SGP), in Dumai, Riau. In a land conflict dating back several years, the local leader (Khalifah), Hasan Basri, has claimed traditional ancestral lands over an area of 1,600 hectares inside the concession area which was granted by SGP. As part of the agreement between SGP and Khalifah, 900 hectares of this land had been cleared and is to be established into rubber plantation by the local community with the help of SGP prior to 5 February The Khalifah now wishes to continue to clear the remaining 700 hectares, all of which lies on forested peatland. Clearance of this land would breach APP s forest moratorium. TFT and APP have held meetings with the Khalifah to explore alternative solutions, including the offer of non-forested land in place of the forested 700 hectares. This offer has been rejected. TFT and a number of NGOs, including Greenpeace, Jikalahari, Scale Up, WBH and WWF, recently visited the SGP area to seek clarity on the legitimacy of the land claims being put forward by the Khalifah. This issue is ongoing and APP is seeking a solution. For more background, this issue was recently covered in a mongabay.com article. Moratorium / Natural Forest Wood (NFW) monitoring APP and TFT conduct moratorium boundary checking in order to identify potential breaches in the moratorium area (field monitoring), and to monitor the processing of natural forest wood cut prior to the 1 February 2013 moratorium (mill monitoring). The monitoring is conducted quarterly and involves Independent Observers (IO) from NGOs and local universities. During the reporting period, field monitoring was undertaken in Riau, Jambi, South Sumatra, West Kalimantan and East Kalimantan provinces. All monitoring was conducted between January and included participants from APP, TFT, Sinar Mas Forestry, and IOs. At the same time, monthly monitoring of NFW that reached APP s mills log yards at IKPP (Riau), LPPPI (Jambi) and SBSA (East Kalimantan) mills before 31 August 2013 continued. Monthly monitoring will carry on until all NFW stocks have been processed. The following conclusions and recommendations were made by the FCP implementation team: 4 RKU document is mandatory under Government law, to describe long-term planning. 4

5 There were no breaches of the natural forest clearance moratorium commitment by APP s suppliers. The boundary markings and warning boards identifying the moratorium area were still well secured. A number of threats to the moratorium boundary areas exist in the concession areas monitored. These threats have been documented and this data will be used/compared in future boundary monitoring activities Suppliers should proactively socialise the existence of the moratorium area, the boundaries, the purpose and objective of the moratorium to all stakeholders. Suppliers should be proactive in resolving overlapping concession boundaries where these exist and pose a threat to the moratorium. Suppliers should work with relevant authorities to resolve the illegal logging issues in their respective concessions. Updated NFW processing figures were also compiled and uploaded to APP s FCP monitoring dashboard. Section 3: HCV and HCS commitment progress Policy commitment 1 High Conservation Value (HCV) and High Carbon Stock (HCS) APP and its suppliers will only develop areas that are not forested, as identified through independent HCV and HCS assessments. High Conservation Value (HCV) assessments HCV assessments for all 38 plantation suppliers (HTI) concessions are being undertaken by Asia Pacific Consulting Solutions (APCS) and Ekologika Consulting. APCS assessments on 11 suppliers concessions: o Draft HCV reports were submitted to peer review following an initial review and comment from APP. o Draft reports for TMA, WKS and RHM in Jambi province were shared with a number of NGOs in February for input and feedback. These reports are now final. o The remainder of APCS HCV reports have been peer reviewed and final drafts sent to APP. Ekologika assessments on 27 suppliers concessions: o Riau: Riau cluster I (RIA, MSK, BDL, RUJ, SGP, BKM): post-assessment public consultation scheduled for mid-may Target for final report to be finished is end of June Riau cluster II (PSPI, BDB, RML, MHJ, SPM, BBHA): pre-assessment public consultation 15 April 2014, field assessment end April mid May Target for final report to be finished is August

6 o o o South Sumatra: Full assessment completed. Stakeholder feedback from postassessment consultation being incorporated into report. Target date for final report to be finished is June East Kalimantan: Stakeholder feedback from post assessment consultation being incorporated into report. Target date for final report to be finished is May West Kalimantan: Peer review completed. Target date for final report to be finished is May High Carbon Stock (HCS) assessments Following revisions to the HCS assessment schedule (communicated in the fifth TFT progress update), solid progress was made during the reporting period. The final HCS completion date was adjusted to July (from June) due to a minor delay in the commencement of the revised schedule. Progress was as follows: Stage 01: South Sumatra (OKI and Muba) and Jambi province o Field inventory and land cover stratification final checks were all completed for South Sumatra (OKI and Muba) and Jambi regions o Draft report preparation has now commenced for both regions Stage 02: Riau province o Field inventory in Riau commenced in March and is 50% completed o Aerial survey in Riau was delayed due to smoke/haze and postponed until haze clears (estimated 3-4 weeks) Stage 03: East Kalimantan province (Kaltim) o Stratification in Kaltim commenced in April o Field inventory is planned for May 2014 Stage 04: West Kalimantan province (Kalbar) o Stratification of Kalbar to commence in May 2014 o Field inventory is planned for June 2014 Plantation growth & yield TFT met with Sinar Mas Forestry and APP to communicate the results of its growth & yield assessments and to receive feedback. These inputs are being used to finalise the report. The results and recommendations from the growth & yield study will also provide additional information for the development of the Integrated Sustainable Forest Management Plan (ISFMP) of APP s pulpwood suppliers plantation forest concessions. Integrated Sustainable Forest Management Plans (ISFMPs) APP s HCV assessor, Ekologika, held a meeting with PT Wirakarya Sakti (WKS) and PT Tebo Multi Agro (TMA) (APP suppliers in Jambi province), to begin preparations for ISFMP development in Jambi. WKS and TMA will be the first APP concessions to pilot the forest management planning process. 6

7 A meeting between Ekologika and forestry consultant group, Ata Marie, has also been scheduled to clarify outputs from the HCS study and to determine how these outputs will be integrated into the ISFMP development process. ISFMP development will begin in Jambi once all the feeder studies - HCV, HCS and peat - are completed for this area. ISFMPs for other regions will follow once the studies become available. Section 4: Peatland commitment progress Policy commitment 2 Peatland management APP will support the Government of Indonesia s low emission development goal and its target to reduce greenhouse gas emissions. In January 2014, APP formalised a team of independent peatland experts, who will work to provide implementation strategy and recommendations of best practices for APP s Peat Management and Monitoring Plan. The team of experts is being led by Wageningen University and Research Centre, Alterra, in collaboration with Euroconsult Mott MacDonald and Deltares. The team will carry out an independent peat land assessment. The first phase of the team s work is a three-month inception phase that began in February In this phase, the team is collecting data, establishing a preliminary database and maps as well as analysing current peat management issues and opportunities in APP supplier concessions. The output from the inception phase will establish the work plan for the second phase. The aim of the second phase is to fill any data gaps and define best management practices on peatlands. Recommendations from this team, along with the results of the HCV and HCS assessments, will be used to develop APP s Integrated Sustainable Forest Management Plans (ISFMP). The team is scheduled to complete the inception phase by May Section 5: Social commitment progress Policy commitment 3 Social and community engagement In order to avoid and resolve social conflicts across its supply chain, APP will actively seek and incorporate the input and feedback of a wide range of stakeholders, including civil society, as well as implementing principles including Free, Prior and Informed Consent (FPIC) of indigenous people and local communities and respecting human rights. Conflict resolution Indonesia TFT continues to support APP in resolving a number of ongoing conflicts with local communities within APP s Forest Management Units. We can report the following updates since our last progress update was published in January

8 Senyerang village, Jambi TFT has been working with SMF to monitor implementation of the MoU work plan as agreed and developed by all parties. Land compensation between the parties was agreed in January and a co-op has been established and handed over as the means by which the terms of the settlement will be delivered. TFT is monitoring the delivery of the terms of the settlement. Sorek district, Riau Through mapping and discussions with the local community, TFT identified two villages for participation in pilot conflict resolution. TFT has begun facilitation proceedings. In the initial stage of facilitation, TFT collected and verified relevant documents, began field interviews and undertook data collection/verification with relevant parties including community and government authorities at village, sub district and regency level. As a next step, TFT will conduct dialogues with the relevant parties. Progress was delayed in March due to forest fires in Riau. PT PSPI, Riau - TFT and the mediator (DKN the National Forestry Council) have completed mapping and delineating the conflict areas between the two land claimants PT PSPI and Datuk Rajo Melayu. TFT began facilitating conflict mediation with a meeting in February, but due to the absence of three Datuk leaders, agreement on the land boundaries could not be reached. Further mediation progress has not been made due to the absence of the Datuk leaders and additional time has been requested. Free, Prior and Informed Consent (FPIC) FPIC implementation OKI, South Sumatra: Eight villages were identified as being within the scope of the AMDAL (Environmental Impact Assessment Regulations). After socialisation of the mill development plan and field verification of the land tenure system and rights in the eight villages, the TFT and APP team found that only two villages (Jadi Mulya and Bukit Batu) have land rights in the designated area for mill development. FPIC is currently being implemented in these two villages. o During the socialisation and mill consultation process for the other six villages, community expectations from the mill development were captured. These included: 1. Local employment 2. Community development programme 3. Good waste treatment to prevent water pollution in the river 4. Support in education and public health 5. Communication access to the company, especially in handling any problems or community grievances FPIC Implementation PT Bumi Mekar Hijau (BMH): FPIC socialisation was completed in five villages in BMH further to the development of HTI in the district. The team will continue with field verification of the land tenure system and rights in these villages. 8

9 Conflict mapping Indonesia Following the completion of conflict mapping across all 38 suppliers concessions (see fourth TFT progress update), TFT has organised and rolled out a capacity-building workshop designed to train SMF staff and managers on how to develop action plans for resolving social conflicts, as identified through the mapping process. Workshops were held in Riau, Jambi, South Sumatra, East Kalimantan and West Kalimantan. SMF managers responsible for managing social conflicts in their respective concessions are now developing draft action plans for the resolution of such conflicts. All concessions have completed draft action plans to address the conflicts that they identified. Conflict mapping China RRI social performance study: Findings of the social performance study (with key focus around land acquisition) undertaken by land rights NGO Landesa at APP plantations in Guangxi and Yunnan provinces, were shared with APP at the end of February for APP s review and comments. Social conflict management: APP-China is developing new guidelines and standard operating procedures (SOPs) for conflict management and land acquisition. TFT has reviewed and provided input into the documents and APP-China has integrated that feedback accordingly. APP-China and TFT have discussed the possibility of using pilot forest farms to implement the guidelines and SOPs. Pilot community projects: TFT and APP-China have undertaken further field feasibility studies for the deployment of trial community relationship improvement projects. The initial study was carried out on two trial farms in Hainan province. TFT and APP-China will use the findings to develop an implementation plan for the trial projects. Social conflict database: TFT and APP-China agreed and finalised the database template for social conflict mapping. Data collection will begin in Lancang, Yunnan province, and Hainan province, and later be rolled out to other business units. Once complete, the mapping database will allow APP-China and TFT to understand the full scope of social issues across its circa 13,000 compartments and to provide the foundation for further social engagement and conflict management activities. Section 6: Third-party suppliers commitment progress Policy Commitment 4 Third-party suppliers APP sources fibre from all around the world and is developing measures to ensure that this sourcing supports responsible forest management Global suppliers 9

10 Indonesia mills rollout of APP s Supplier Evaluation and Risk Assessment (SERA) procedure began in January. TFT and APP socialised SERA with APP s procurement teams and with Sinar Mas Forestry. The SERA questionnaire was then distributed to imported pulp wood suppliers by APP procurement. Responses were used to prepare a supplier evaluation report which is now being socialised with APP s IKPP mill procurement team. China Mills TFT s work has focussed on Responsible Fibre Procurement and Purchasing Policy (RFPPP) risk assessing APP-China s third-party wood chip/ and pulpwood log suppliers for APP China s Jinhai and Jingui pulp and paper mills: Jinhai pulp & paper mill RFPPP assessment findings were discussed with Jinhai following the first round of on-site assessment for domestic third-party wood chip and pulpwood log suppliers. TFT and APP have also discussed and set targets for the subsequent improvement activities for 2014 and introduced a number of key documents to assist implementation, including: o A technical report containing key assessment findings, short-term corrective actions and a long-term improvement plan for individual domestic third-party wood chip suppliers. o An action plan for Jinhai mill on supplier training, inspection and monitoring mechanisms, with timetable. o A toolkit including tools to help individual wood chip suppliers improve their raw material traceability systems and strengthen legality inspection over input, and tools for Jinhai to inspect, monitor and record the implementation status of individual wood chip suppliers corrective action plans. Jinhai mill will be used as a pilot for establishing a mechanism for future RFPPP implementation. Experiences gained during the process can later be cascaded to Jingui and Gold East mills. Jingui pulp & paper mill TFT and Jingui mill carried out on-site RFPPP assessment of sampled domestic third-party wood chip suppliers and are updating the assessment finding report. In the meantime, TFT is working with the mill to review the current supplier management system and identify gaps following increases in third-party fibre sourcing. TFT will work with Jingui mill to address these gaps through improved third-party supplier management and recording systems. Vietnam supply to APP-China mills In February 2014, TFT Vietnam produced a RFPPP findings report which was based on the visits undertaken in The report assessed a number of the main chip mills against the RFPPP, made recommendations to improve compliance with the RFPPP and highlighted areas of high risk to APP policies. This report has been presented and accepted by APP and has been used as the basis for current and future activities. 10

11 In response to the findings report, TFT Vietnam has drafted a new approach for achieving traceability within the Vietnam supply chain. This is required to ensure APP can achieve the required traceability outcomes. In February 2014, the findings and recommendations from visits in 2012 and 2013 in Vietnam were formally presented to APP. The global policy approaches taken by APP have been analysed with respect to their relevance, limitations and application within the Vietnamese context. Based on the findings report, TFT Vietnam is in the process of developing a training package to be delivered to APP s three main supplier chip mill companies in APP China forestry scorecard TFT and APP-China agreed to use Guangdong province as the pilot business unit for the development and implementation of the forestry scorecard. TFT, APP-China and the Guangdong business unit held several rounds of discussions to review and finalise the forestry scorecard framework. TFT refined the structure, elements, checkpoints and verifiers of the forestry scorecard and shared the updated version with APP-China Forestry for final review and revision. Meanwhile, the action plan and timetable for trial assessment of the Guangdong business unit, using the scorecard, has been finalised and agreed with APP HQ and APP-China Forestry. Association Procedure APP s draft Association Procedure aims to ensure that any new suppliers or concessions to APP are aligned with APP s FCP commitments. APP socialised the draft procedure in a focus group discussion with the Solutions Working Group, which consists of several key national and global NGOs, and incorporated their feedback. Section 7: China, forest restoration Hainan Ecological Exploration Programme (HEEP) Stakeholder engagement: TFT held a meeting with WWF-China to discuss the activities and commitments of APP-China with regards to the Hainan project. WWF emphasised that it would like to maintain an independent position in the process, and requested that TFT and APP share more details around next steps and upcoming stakeholder consultation. APP-China and TFT are planning the first round of key stakeholder workshops to gather ideas on an ecological exploration strategy and on resolution mechanisms for the restoration of APP s plantation land by the government. 11

12 Continuous dialogue is being held around the HEEP. This includes internal discussions between TFT and APP-China on next steps and stakeholder consultations e.g. a meeting in February with Wuzhishan and Yinggeling natural reserves in Hainan. The restoration of APP s plantation land by government for natural reserve remains a critical issue. Based on initial data collection and GIS mapping, and taking into consideration their high ecological values, these areas are identified as potential sites for kicking off the HEEP pilot. TFT has proposed to APP that a project-planning proposal for HEEP should be developed and submitted to the Hainan Government for inclusion as a project trial site under the new Hainan ecological compensation regulation ( 海 南 生 态 补 偿 条 例 ) and 2014 Hainan key reform work plan (2014 海 南 重 点 改 革 工 作 方 案 ). The regulation is under development. If selected by the government, learnings from HEEP implementation could be used during the drafting of the new regulation. APP-China is working on the proposals and these will be discussed with the Hainan Forestry Bureau in April. --ENDS-- 12

13 TFT Progress Report on Asia Pulp & Paper Group (APP) Forest Conservation Policy Commitments Reporting period: October, November and December 2013 Date: 20 th December 2013 This is the fifth update report by TFT on APP s progress toward meeting its Forest Conservation Policy (FCP) commitments made on February 5 th 2013, as part of its Sustainability Roadmap Vision This report covers activities undertaken throughout October, November and December Earlier progress reports can be viewed here (4 th report), here (3 rd report), here (2 nd report), and here (1 st report). Section 1: Overview of key activities in the reporting period Peat Expert Team APP has completed consultations with its partners and stakeholders to identify a team of independent peat experts. Once formalised, the team will work to provide implementation strategy and recommendations of best practices for the Peat Management and Monitoring Plan. Focus Group Discussion A Focus Group Discussion (FGD) was held by APP in Jakarta on 31 st October The FGD was intended to update stakeholders on the progress and challenges in FCP implementation since February. Three challenges were discussed in the FGD: 1) the utilization of natural forest wood stockpiles that did not enter APP s mills by the 31 st August 2013 deadline and non-hcv non-hcs wood residue from future land preparation activities; 2) the governance issue of overlapping licenses issued by government authorities, and; 3) issues around conflicts between natural forest protection versus requirements by local communities to develop land. More than sixty participants from more than twenty different organizations and government authorities attended the FGD. A full summary of the discussions will be made available on APP s FCP monitoring dashboard. FCP Online Monitoring During October, APP, with the support of its partner organisations, sought stakeholder feedback on APP s pilot online monitoring dashboard documenting the implementation and monitoring of the FCP. The consultation process provided an opportunity to socialise the dashboard with key stakeholder groups and to seek their input on its content and its future development. A number of areas were discussed with stakeholders including; 1) APP supplier level concession and landscape-level mapping, 2) an independent third-party audit of FCP implementation, 3) FCP implementation in APP s China operations, 4) plantation fibre availability and forecasts and APP s new pulp mill development in South Sumatra. Input will be used to inform the development of a version 2.0 of the dashboard targeted for launch in early Section 2: HCV and HCS Commitment Progress 1

14 Policy Commitment 1 High Conservation Value (HCV) and High Carbon Stock (HCS) APP and its suppliers will only develop areas that are not forested, as identified through independent HCV and HCS assessments. High Conservation Value (HCV) assessments HCV assessments for all 38 HTI suppliers concessions are being undertaken by Asia Pacific Consulting Solutions (APCS) and Ekologika Consulting. APCS assessments on 11 suppliers concessions: o APP has now received, reviewed and commented on draft reports from APCS for the first 11 suppliers concessions. o APCS will now submit the draft reports for peer review in accordance with the HCV Toolkit assessment protocol. Draft reports will also be circulated to NGOs for input. o HCV assessment reports will be finalised, subject to both the peer review and NGO input processes. Once finalised, APP will publish summary findings of the final HCV reports via the FCP monitoring dashboard. Ekologika assessments on 27 suppliers concessions: o Full assessments in East Kalimantan and West Kalimantan are completed. o Field assessments are ongoing in South Sumatra, and the draft reports are targeted to be completed by January o Field assessments are ongoing in Riau, and the draft reports are targeted to be completed by March o Following the HCV assessment protocol, Ekologika will proceed with public consultations on the draft reports. Schedules of these consultations will be updated through the monitoring dashboard. High Carbon Stock (HCS) assessments In January 2013 the HCS team commenced deployment of an action plan to roll out the HCS methodology across 38 concessions over a 1 year period. By July 2013, the initial vegetation stratification (the process of using satellite and aerial images to identify high carbon stock forest and other types of vegetation) of 38 suppliers concessions and field verification of 23 priority suppliers concessions was completed and the team commenced a process of refining; adjusting and improving the original stratification using data and observations collected during the field visits. The ongoing process of HCS stratification refining has revealed a low-level of correlation between the original desktop HCS stratification and actual strata sampled during the fieldwork. Imprecisions in the desktop stratification were greater than anticipated due to issues with satellite image quality, significant variability in forest strata, and a not enough GIS staff time for manually delineating the strata. 2

15 In view of these issues, Ata Marie Group Ltd (AMG) has now been commissioned to support the HCS team to complete all work by the end of June 2014 in all 38 suppliers concessions. This will include ongoing stratification refining, flyovers, and additional field work that will be deployed over 4 stages: Stage 01: OKI (South Sumatra), Jambi province and Muba (South Sumatra) Stage 02: Riau province Stage 03: East Kalimantan province (Kaltim) Stage 04: West Kalimantan province (Kalbar) Plantation fibre availability (Growth & Yield studies) In the 3 rd TFT Progress Update, we provided detail on a comprehensive plantation fibre Growth and Yield assessment being undertaken by TFT across all 38 of APP suppliers concessions. The assessment was designed to follow up on earlier yield projection work undertaken by APP, TFT and Ata Marie Group in early 2013 (as detailed on the FCP monitoring dashboard). The objective of the TFT assessments has been to evaluate the long-term availability of plantation fibre to supply APP s pulp mills in Indonesia including the demand of its new pulp mill at OKI, South Sumatra as well as to provide recommendations to APP on how to improve plantation productivity, how to minimise wood losses (from harvesting through wood chipping at the pulp mills) and how to move toward a more integrated Plantation Yield Regulation System (PYRS). As part of the assessment, TFT has reviewed baseline data on tree species/site type/age class and this has been used to verify current data on standing plantation stocks, harvesting yields and wood conversion rates from harvesting through to the production process at APP mills. TFT has now completed the assessment work and draft reports are being prepared for final sign-off by APP. Recommendations made by TFT will be used to inform the development of Integrated Sustainable Forest Management Plans (ISFMPs) for each individual Forest Management Units (FMU). APP will publish methodology of the assessment via its FCP monitoring dashboard. Integrated Sustainable Forest Management Plans (ISFMPs) APP s FCP commitments will be delivered through the implementation of sustainable forest management practices in each of the 38 suppliers concessions. This will require the development and implementation of ISFMPs for each FMU. ISFMPs will combine the results and recommendations from all ongoing assessment work (HCV/HCS/Peatland/Social Conflict mapping/growth and Yield) into longterm, tailored, action plans for each FMU. During the last reporting period, TFT supported APP through the provision of ISFMP capacity-building workshops. These workshops were designed to train Sinar Mas Forestry (SMF) managers and executives on how to develop ISFMPs using a systematised approach and guidance process developed by TFT. SMF managers can use the approach when developing the ISFMPs (subject to the completion of all assessment work). The first FMUs to create ISFMPs will be PT. TMA and PT. WKS in Jambi, followed by the South Sumatra FMUs. 3

16 Section 3: Peatland Commitment Progress Policy Commitment 2 Peatland Management APP will support the Government of Indonesia s low emission development goal and its target to reduce greenhouse gas emissions. Peat experts were engaged by both APCS and Ekologika as part of their HCV assessment process. Additionally, APP has completed consultations with its partners and stakeholders to identify a team of independent peat experts. Once formalised, the team will work to provide implementation strategy and recommendations of best practices for the Peat Management and Monitoring Plan (PMMP). Section 4: Social Commitment Progress Policy Commitment 3 Social and Community Engagement In order to avoid and resolve social conflicts across its supply chain, APP will actively seek and incorporate the input and feedback of a wide range of stakeholders, including civil society, as well as implementing principles including Free, Prior and Informed Consent (FPIC) of indigenous people and local communities and respecting human rights. Conflict resolution Indonesia TFT continues to support APP in resolving a number of ongoing conflicts with local communities within APP s Forest Management Units. We can report the following updates since our last Progress Update was published in October. Senyerang village, Jambi a Memorandum of Understanding (MOU) was signed by SMF and stakeholders from the Senyerang village community in July. TFT has since been working with SMF and local stakeholders to support the implementation of key points within the MOU agreement. This has included supporting the development and socialisation of an MOU implementation workplan. Riding village, South Sumatra TFT has been supporting conflict resolution between Riding village and PT. Bumi Mekar Hijau (BMH) in South Sumatra. Since TFT s last Progress Update, a local NGO mediation partner has been agreed and a second phase of conflict mediation is now in progress. Riau TFT has been supporting conflict resolution proceedings in the province of Riau between PT Perawang Sukses Perkasa Industri (PSPI) and Datuk Rajo Melayu, facilitated by the National Forestry Council (DKN). Since TFT s last Progress Update, a Community Head (Datuk) representing the local community was confirmed and preparations for a third phase of mediation have begun. As part of the third-phase preparatory work, in November TFT worked with the DKN to undertake a field study designed to provide clarity on key elements within the dispute (e.g. the actors / land owners and land boundaries). 4

17 Free, Prior and Informed Consent (FPIC) FPIC training: follow-up FPIC implementation training has been conducted in South Sumatra with participants from PT. BMH, PT. SBA, PT. BAP and at OKI, the site of APP s new mill. The training was designed to refresh SMF managers on the FPIC implementation process before those managers then develop action plans to implement FPIC in selected districts. FPIC implementation OKI, South Sumatra: following results from the initial data mapping, the implementation of FPIC at the OKI mill development will be held in 11 villages, beginning in January FPIC implementation - forestry pilot in South Sumatra: FPIC implementation began in November at 7 villages in two new districts of forest plantations in South Sumatra province. Conflict mapping Indonesia Following the completion of conflict mapping across all 38 suppliers concession (see 4 th TFT Progress Update), TFT has organised and rolled-out a capacity-building workshop designed to train SMF staff and managers on how to develop action plans for resolving social conflicts, as identified through the mapping process. Workshops were held in Riau, Jambi, South Sumatra, East Kalimantan and West Kalimantan. SMF managers responsible for managing social conflicts in their respective concessions are now developing draft action plans for the resolution of such conflicts. Conflict mapping China Major findings of the social performance study (with key focus around land acquisition) undertaken by land rights NGO, Landesa (in collaboration with the Rights and Resources Initiative) at APP plantations in Guangxi and Yunnan provinces were expected to be presented to APP China, to consider whether modifications to the current social engagement and conflict management approach were needed. In one region, Lancang of Yunnan province, the focus of TFT s work has been around social and community engagement. TFT held a workshop in November with APP-China foresters and managers to introduce the principles of FPIC. TFT and APP-China are currently mapping communities in Hainan, Yunnan and Guangxi provinces to determine 3 pilot areas/villages to deploy community relationship improvement projects. Database building for social conflicts of APP China s plantation operations is in progress. The database has 2 major attributes: one is the existing data on compartments and land lease contracts; while the other one is data on communities neighbouring APP s plantation operations, with special focus on the status of social conflicts. The database will allow ACF and TFT to understand the full scope of social issues and to provide the foundation for further social engagement and conflict management activities. 5

18 Section 5: Third Party Suppliers Commitment Progress Policy Commitment 4 Third party suppliers APP sources fibre from all around the world and is developing measures to ensure that this sourcing supports responsible forest management Global suppliers Indonesia mills since our last Progress Update, TFT has been supporting APP to align its Supplier Evaluation and Risk Assessment tool (SERA) with both the FCP and the Responsible Fibre Procurement and Processing Policy (RFPPP). This is to ensure that all global suppliers to APP s paper mills in Indonesia are in compliance with its FCP and RFPPP. As a result of this process, TFT and APP have prepared a number of revisions and additional tracking systems to SERA. The revised SERA process will be rolled-out to APP mills in early 2014 with TFT providing additional training support where necessary. The end goal is to evaluate all global suppliers using the new SERA tool in order to identify levels of supply chain risk and to develop action plans as/if necessary. China Mills TFT s work has focussed on risk assessments of APP China s 3 rd party wood chip/ and pulpwood log suppliers: Jinhai pulp & paper mill TFT and Jinhai completed the first round of RFPPP assessment for domestic 3 rd party wood chip and pulpwood log suppliers based on a sampling approach. The assessment was completed in two phases, 1) assessment of 4 major suppliers whose total supply accounts for over 63% of Jinhai s overall domestic third party wood chip and pulpwood log input; 2) assessment of 4 selected suppliers in Hainan and Guangdong provinces. The two assessment reports are under preparation and are expected to be provided to APP China for further review and improvement program design. Jingui pulp & paper mill TFT and Jingui completed RFPPP assessment for 2 major 3 rd party domestic wood chip suppliers during th Nov The assessment report is under preparation and will be shared with Jingui by 30 th Dec Gold East paper mill - TFT and APP China HQ have scheduled a mill visit to Gold East in early Jan 2014, to set up detailed action plan and timeline for domestic 3 rd party wood chip supplier RFPPP assessments. Association Procedure APP s draft Association Procedure aims to ensure that any new suppliers or concessions to APP are aligned with APP s FCP commitments. APP is now seeking NGO feedback on the draft procedure via a focused group consisting of several key national and global NGOs. 6

19 APP China Forestry Scorecard TFT and APP-China agreed to set Guangdong province as the pilot business unit for implementation of the agreed scorecard. TFT organized a meeting with APP-China and the Guangdong business unit to discuss detailed scorecard development on the 14 th -15 th November. TFT-China is now coordinating with TFT-Indonesia on specific control points of the scorecard (points in the operation where checks of compliance against standards are made) while APP-China and the Guangdong business unit are ensuring those control points and their verifiers align with APP s operations in China and meet regional requirements. Section 6: China Forest Restoration Hainan Exploration Project APP China has integrated plantation-pulp-paper projects approved by central government dated back to July, In recent years, Hainan is granted with changed zoning approvals to become an international tourist and resort destination. As a result of this Government expansion of protected areas in Hainan, APP has plantations that are now located within the newly re-classified protected area boundaries. APP-China and TFT have held meetings with the Hainan Provincial Department of Forestry to resolve the issue of APP-China s plantation areas being located in protected areas (or water catchment reserves) in Hainan province. The meeting enabled both APP and TFT to understand the Department s position on the issue, to gain their support on a multi-stakeholder approach and to explore a solution for all affected stakeholders including the government, APP-China and local communities. Following the Government meeting, APP-China and TFT have agreed that the first step is to identify and analyze the scale of the issue and to build up a database of geographical information on affected areas for future discussion and activities. TFT have proposed that APP-China creates two new job positions (a qualified Forester and GIS expert) in order to drive this work forward. APP-China, APP- Headquarters and TFT held a follow up meeting on 14 th October to discuss the Hainan plantation issues. APP-China and TFT have since compiled a list of stakeholders and identified two stakeholder engagement phases, A: priority stakeholders; B: all other stakeholders. APP-China and TFT have completed the first phase of stakeholder engagement respectively and face-to-face discussions were being scheduled to take place in Hainan in December APP-China, TFT and Greenpeace-China met on 26 th November 2013 in Beijing to review the Hainan exploration project. Greenpeace expressed their willingness to remain an important stakeholder to the project and would, where possible, offer technical support and perspectives from an international NGO s position. --END-- 7

20 TFT Progress Report on Asia Pulp & Paper Group (APP) Forest Conservation Policy Commitments Reporting period: July, August and September 2013 Date: 18 October 2013 This is the fourth update report by TFT on APP s progress toward meeting its Forest Conservation Policy (FCP) commitments made on February 5 th 2013 as part of its Sustainability Roadmap Vision This report covers activities undertaken throughout July, August and September Earlier progress reports can be viewed here (3 rd report), here (2 nd report), and here (1 st report). Section 1: Overview of key activities in the reporting period Moratorium on natural forest clearance Following a moratorium breach within PT. Riau Indo Agropalma (RIA), an urgent review (and subsequent TFT investigation) identified a potential moratorium breach within PT. Bina Duta Laksana (BDL) in Riau. Both the PT. RIA and BDL cases involved agreements with the local communities to develop the areas that pre-dated the moratorium. A breach of APP s no new peatland development policy was confirmed in the BDL concession. Ongoing FCP monitoring by TFT and APP identified a further moratorium breach in South Sumatra with the concession of PT. Bumi Andalas Permai (BAP), PT. Sebangun Bumi Andalas (SBA), and PT. Bumi Mekar Hijau (BMH). APP self-reported this moratorium breach on September 2013, and the full report is available via APP s FCP Monitoring Dashboard here. Focus Group Discussion PT RIA moratorium breach On July 18th, TFT facilitated an APP Focus Group Discussion (FGD) to enable relevant stakeholders to provide input on the recommendations and action points put forward in the TFT RIA Verification Report. APP s FCP and natural forest clearance moratorium were discussed, including the future of the RIA land allocated to community-use. Participants included APP, SMF, TFT, RIA, NGOs, local community representatives, the Village Head and District and Provincial Forestry Officers. The participants agreed to meet again once the HCV/peat and HCS assessment are completed. Natural Forest Wood (NFW) also known as Mixed Tropical Hardwood (MTH) monitoring: As of 1 st September 2013, APP s pulp mills were no longer accepting NFW cut prior the February 1 st moratorium. NFW processing and stock inventory figures show the following; - The final volume of pre-february 1 st NFW was 1,606, m3 after all NFW from the field had been extracted, stacked and measured, as well as estimate variations used in the February Stock Inventory (SO) analysis were assessed. - Of a total 1,606, m3 of NFW verified through the SO, 899, m3 had been received by APP s pulp mill mills by the August 31st 2013 deadline. - Of the remaining NFW, APP suppliers have sold 46, m3 to 3rd parties, 56, m3 has been allocated for internal use (e.g. infrastructure used with concession areas), 1