APP Climate Change Fact Sheet

8/7/2019 APP Climate Change Fact Sheet

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OVERVIEWAPP’s business relies on sel-sufciency,

conservation and sustainability. The companytakes very seriously its commitment becausesustainability is critical to our uture. As a result:

• APP has newer, more efcient paper-making technology,which produces lower carbon emissions than most NorthernEuropean or American paper makers.

• APP suppliers’ Indonesian pulpwood plantations sequester30 times more carbon than Northern European or American

pulpwood plantations.

• APP’s pulpwood suppliers are afforesting around 800,000hectares o denuded, repeatedly burnt, nutrient-depletedwasteland in Indonesia; changing the land from carbo sourceto carbon sink.

• Around 400,000 hectares of tropical forest are set aside forconservation, much of which provides massive carbonstorage, including:

- The 15,000-hectare Kampar Carbon Reserve, the frstplantation-carbon reserve conversion in the world.

- The 170,000-hectare Giam Siak Kecil Bukit BatuBiosphere Reserve, a UNESCO preserve that protectsbiodiversity and sequesters vast amounts of carbon,signicantly aiding Indonesia’s goal of reducinggreenhouse gas emissions and encouragingsustainable economic development.

• APP suppliers planted 950 million trees in last three years –three trees or each one used to make paper.

• APP’s supplier is committed to planting 1 million indigenoustrees in support of the Government of Indonesia’s initiativeto plant 1 billion trees in the country.

• Trees on APP Indonesia plantations grow to full maturity insix years, not the 60-80 years as in Europe.

KEY FACTS: CLIMATE CHANGE

(Conservation, Carbon Footprint, Peatland)

BEFORE: Waste land in South Sumatra, where peat subsidedmore than 1 meter ater repeated orest fres destroyed the area.Picture taken in 2004

AFTER: Eighteen months o Acacia cras-sicarpa growth ater the land becomes anAPP sustainable pulpwood plantation.Picture taken in March 2007

TE STOR I PICTRES:TE SAmE SCEE,

TREE EARS APART



FIRE PREVENTION KEY TO CUTTING

CARBON EMISSIONS

CARBO FOOTPRIT• As climate change has become a critical issue, the world is looking

for ways to reduce its carbon footprint, generally measured by theemission o Greenhouse Gases (GHG). APP became the industry’sfrst pulp and paper company to conduct a carbon-socio ootprint

assessment in 2007.

• The landmark assessment was done before many industrial rmshad even considered such initiatives. It was designed to identifysocial footprint and improvement strategy, carbon footprintbaseline, opportunities to quickly improve APP operations andurther reduce its carbon emissions.

• The foundation of any carbon footprint assessment is themethodology used, scope and boundary. The scope and boundaryof APP’s initial rst carbon were benchmarked against thestandards then common to the global pulp and paper industry’sapproach to carbon ootprint assessments.

APP’ C-S A• The carbon footprint assessed the production year from 1st

January 2006 to 31st December 2006. It looked at operationsand power generation facilities of each mill. Overall, the study

was divided into three components:

1. P. The study assessed sequestration within APP’sIndonesian pulpwood plantation stock and harvesting emissionsdirectly associated with the mills. The goal was to calculate impactup to the point where harvested logs are delivered to the mills;

2. Kf P. The study measured Greenhouse Gas (GHG)emissions associated with the production of Leaf Bleached Kraft Pulp(LBKP) pulp; and

3. P P. The study assessed Greenhouse Gas

(GHG) emissions associated with the production of base paper, up to jumbo roll.

APP’s 850-person orest frefghter orce controls fres on plantations and in nearby rainorests.

The leading cause of carbon emissions in Indonesia is forest res, which may be caused by natural occurrences like lightning strikes or maybe caused my people attempting to clear forestlands for agricultural uses.

APP enforces a strict No Burn policy since 1996 and has established Indonesia’s rst forest reghting network. The majority of Indonesia’sGreenhouse Gas emissions result from forest re caused by slash and burn activities to clear forest land for crops. APP and its pulpwood sup-pliers’ team of 850 reghters protect not only the pulpwood plantations, but also national parks and surrounding rainforests.

APP’s suppliers have created programs to provide local farmers with agricultural land so they do not destroy forestland for planting.



PHASE 1: Identify and analyze all gaps in the 2006 carbon footprint report that need to be lled for APP to achieve full consistency withthe GHG Protocol and ISO 14064.

PHASE 2: Using Phase 1 ndings, APP’s carbon footprints for 2007 and 2008 will be assessed. Emission evaluations will follow WRI/

WBCSD Greenhouse Gas (GHG) Protocols, using the ICFPA (International Council of Forest and Paper Association) / NCASI (National Councilfor Air and Steam Improvement) carbon footprint tool and requirements set by ISO 14064. Current IPCC standards will be used in carbonsequestration and sink calculations, which will cover APP ber suppliers’ plantations and wood sources for APP pulp and paper mills. Carbondata for post consumer waste paper supply will be calculated using the best publicly available data.

PHASE 3: An ISO 14044 consistent assessment of the full gate-to-end usage emissions of three common paper products willbe conducted.

PHASE 4: A desktop analysis and feasibility study, based on potential GHG reduction programs, will present potential absolute andpercentage reductions in the APP carbon footprint over time that are possible.

THE NEW STUDY: methodology, scope and boundary

Eucalyptus pelita plantation, ready or harvest



CARBON FOOTPRINT OF PULPWOOD PLANTATIONS

Unlike the pulp and paper industry in developed nations, which•started many centuries ago, Indonesia’s pulp and paper industrybegan in 1960s. Most Indonesian pulpwood plantations were

established in the 1990s.

All of Indonesia’s forests are owned by the Government of •Indonesia. The government allocates just 3 percent of its totallandmass for pulpwood plantation concessions. These pulp-wood plantation areas are dened by the government as lowvalue, degraded land; peat land, and wasteland.

Having learned from the forest management mistakes of •developed nations, Indonesia takes a more cautious approachto managing the nation’s forests – including plantation areas.It requires that multiple socio-environmental assessmentsbe conducted before forest land is developed into pulpwoodplantations. These assessments are meant to identiy andprotect high conservation value forests and critical peatlandsfound in the areas designated by the government for pulpwoodplantation use.

QESTIOS ABOT PEATLAD AD

CLImATE CAGESustainable peatland management is a new science. To date,•there is no body o data supported by scientifc consensus

determining the carbon impact of plantations in Indonesianpeatland.

A UNDP-supported Indonesian Government’s Second National•Communication, a report on Indonesia’s emissions, was submit-ted to the UN on November 23, 2009. It said Indonesia’s GHGemissions in 2000 were around 1,415,988 gigagrams, less thanhal the number cited in an earlier, controversial World Bankstudy.

WORLD BAK CARBO EmISSIOS

DATA CALLEGEDThe World Bank data, which is often cited by WWF, Greenpeace,•Wetlands International, Rainforest Action Network and JapanTropical Forest Action Network, is based on one study by SusannPage, et al, conducted in one year, in one Indonesian region,Kalimantan, the Indonesian portion of the Island of Borneo.Kalimantan has an area of 58.3 million hectares, representingless than 31 percent of Indonesia’s total landmass. The reporthas been challenged for several reasons:

- The study year, 1997, saw an unusual number of forestres in Kalimantan. The region experienced unusually dryconditions that year, the result of both El Nino and Indian

Ocean Dipole weather conditions.

- Data from Kalimantan’s unusual weather and reconditions – which led to an unusual number of forest resthat year – were extrapolated to all of Indonesia. Thiseffectively concluded that all of Indonesia emitted thesame amount o carbon, every year.

- Other expert studies, such as Levine (1999), Duncanet al. (2003), Heil, Langmann and Aldrian (2007) andothers disagree with Page’s ndings, yet those ndingshave been embraced by many environmental groups.

- This data is not relevant to total orestry carbon emissionof Indonesia, which has different land use, soil type anddifferent natural occurrences throughout the years.

- But the act remains that the main source o carbonemission in Indonesia is forest re.

m f APP’ w ww I. m G f

I w R .F, w- - f f,w :

- There is no oversight from a responsiblemanagement authority.

- Poverty pressures some people to slash and burnland to clear forests for sustenance farming.

- The presence o plantations provides active orestmanagement and creates buffer areas that prevent encroachment and illegal occupation.



APP’ w f w- :

- Developing plantations or reforesting degraded peatlands designated by the government for production forestry.

- Responsible water management in peatlands to create an environment for tree growth while limiting the subsidence of peat.

- Active re prevention and suppression management in cooperation with local communities.

- Setting aside natural peat swamp forest of unique and special merit for permanent conservation and carbon storage.

- Water management on peatlands.

- Preservation and enhancement o orest areas o special merit identifed and set aside or conservation.

- Developing areas zoned for production forestry that were previously logged and degraded forestlands.

- Full scientic assessments on peatland pulpwood plantation and its impact on carbon emissions have never been done before,until APP stepped in.

Peat marshland in Sumatra



APP STDIES PEATLAD EmISSIOS• Though the Government of Indonesia decides how specic forest land is used, APP decided in 2010 to conduct a two-year assessment of peatlands in its concession areas. The goal is to assess the impact of plantation operations on underground peat reserves. Assessments aretailored to the unique peat deposits and soil conditions at each study site to ensure a precise assessment.

- In July 2010, APP, Agriculture Institute of Bogor and international peatland experts signed an agreement to conduct a fullscientic assessment on carbon impacts of APP’s pulpwood supplier concessions in Sumatra.

m, :The assessment will measure and calculate carbon budget of pulpwood plantations on different peatland soil types in Sumatra through-•out all seasons o a year.

It will measure Green House Gases (CO2, CH4 and Nox) by collecting gas emission samples; monitoring water tables, water ow and•water’s chemical aspects; checking the soil’s chemical, physical and biological characteristics; monitoring biomass; checking climatedata, and determining the social, economy and culture of the surrounding communities.Results of this assessment, expected in 2012, will be used to determine and implement the best sustainable pulpwood plantation forest•

management practices in Sumatra.

PEATLAD PRESERVATIOAPP protects peatland on the plantation concessions assigned by the Government of Indonesia to its forestry suppliers in two key ways:•

- By setting aside critical peatlands that scientists have identied as high value conservation areas. These set asides createsanctuaries that will protect the high value areas from disturbance.

- By maintaining a water table high enough to protect peat deposits in areas that are not identied as high value conservationareas, ensuring that even peat areas that fail to meet Government of Indonesia requirements for preservation continue to storecarbon or years to come.

APP has built canals in some peat areas to lower the water table enough to plant pul trees on the government-assigned lands. However,• the company carefully maintains ground water levels to protect and seal the peat, ensuring it continues to store carbon even as thesurface is used for renewable timber production.

Peatland plantation water level management: Desired water level is 50- 80 cm



After years of study APP and Carbon Conservation created the Kampar Carbon Reserve in October 2010. APP worked with the Indonesian•Ministry of Forestry, land concession holder PT. Putra Riau Perkasa (PRP), and local stakeholders to re-allocate more than 15,000 hectaresof deep peat carbon sink from pulpwood plantation to conservation land. Kampar Reserve is a unique way to preserve a high valueconservation area containing deep peat deposits that store vast amounts of carbon.

It is the rst privately funded conversion of pulpwood plantation concessions into a carbon reserve.•

• All carbon credit revenues from will be reinvested in programs to create opportunities for local villagers to provide alternatives to•traditional agricultural practices that involve illegal logging.

C R

APP continually seeks ways to reduce its use of natural resources. This includes:• Recycling production water to dramatically reduce consumption.

• Making sure waste water discharged from our mills exceeds most global standards (toughest standard used for comparison):- Biochemical Oxygen Demand (BOD): 1.1-1.8 from APP mills; US standard is 8.05.- Chemical Oxygen Demand (COD): 11-18 from APP mills; World Bank standard is 15.- Total Suspended Solids (TSS): 1.3-3.1 from APP mills; Swedish standard is 4.- Adsorbable Organic Halogen (AOX): 0.2-0.4 from APP mills; World Bank: 0.2-2.0.

• Cutting by 50 percent the amount of wood ber used to make quality paper.

• Producing power from production byproducts.

KAMPAR CARBON RESERVE

Peatland plantation water level management:Desired water level is 50- 80 cm

APP Climate Change Fact Sheet

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