Indonesian pulp and paper mills APRIL (Asia Pacific Resources International Ltd.) and APP (Asia Pulp and Paper) are pitting their green credentials against one another. After years of fiercely campaigning against the pulp and paper giants, eco-lobby groups Greenpeace and World Wildlife Fund are not popping the champagne just yet, but admit it’s a positive sign to see the two mills competing on environmental standards.
APRIL and APP operate some of the world’s largest pulp and paper mills out of Indonesia. Their logging of rainforests has come under intense scrutiny over the past decade. Greenpeace and the World Wildlife Fund, among others, have condemned the mills, accusing them of deforestation and destruction of conservation areas. APP and APRIL continue to export to Australia, but there has been public disavowal of the brands from companies such as Fuji Xerox and Officeworks.
According to Tim Woods, local pulp and paper guru, director of IndustryEdge and publisher of industry bible Pulp & Paper Edge, in 2013 December quarter 475 tonnes (only 1.2%) of uncoated wood-free paper (reels, sheets and cut-reams) came into Australia from Indonesia. At the same time 11,600 tonnes (29%, the second largest category behind China) came in marked NCD, a category set up to mask country of origin. It is widely accepted that a major part of NCD imports comes from the two mills.
The two pulp and paper giants have begun to promote their green credentials and are now going head-to-head in a bid to regain brand favour and footing in Australia. The major paper merchants back the progress toward Indonesian paper sustainability and even the lobby groups are taking notice. This is happening as Australia’s own pulp mill in north Tasmania once again hits the agenda in the lead up to the state election on March 15. An APRIL spokesman has commented that the company was interested in the former Gunns site.
The two companies are competing on who is greenest. One year after APP announced its fibre supplies would no longer be sourced from pulping Indonesia’s natural forests, rival APRIL has established its own Sustainable Forest Management Policy. It declared a moratorium on clearing concessions not yet independently assessed for conservation value. It commits the company and its long-term supply partners to complete plantation establishments by the end of 2014, as well as the restoration of 20,000 hectares of degraded peatland in the Kampar Peninsula, and an additional 20,000 hectares in Pulau Padang. APRIL also commits to sourcing 100% plantation fibre by the end of 2019.
The policy has met with mixed reactions. The World Wildlife Fund has “cautiously welcomed” the plan. It noted the commitment to support forest conservation areas equal in size to its plantations “sets a new standard for the pulp and paper industry in Indonesia.” Phil Aikman, Greenpeace senior forest campaigner, however, publicly condemned the policy as “half measures that fail to immediately protect rainforests.”
According to Aditya Bayunanda, WWF Indonesia forest market transformation leader, the commitment introduces “a new chapter in the move of the Indonesian paper industry towards sustainability that should be followed by other companies. WWF calls pulp and paper buyers to observe closely independent monitoring and civil society assessments as proof of compliance by APRIL to these commitments.”
The policy allows APRIL to still utilise wood from tropical forests until the end of 2019, but WWF is urging it to become a 100% plantation fibre company this year. The group warns that without robust processes and independent monitoring, high value and high carbon forest material could continue to leak through this loophole into the pulp mills.
According to Stephen Gates, executive general manger, APRIL, the mill is already directly sourcing 100% plantation. But he acknowledges that a percentage of pulp continues to come from native forest supplied by its contactors. Gates has described the “endorsement from WWF” as a positive step in a very long journey.
“The World Wildlife Fund is a great organisation… and for them to stand up for us, and put a statement out about us, we see that as a positive engagement,” said Gates.
A WWF spokesperson has since warned that despite acknowledging the company’s progress, World Wildlife Fund neither endorses nor supports APRIL.
Rod Taylor, director WWF global forests programme, says that “APRIL is signalling that it may be ready to address its legacy”, but urges that now is not the time to ease the pressure on either APP or APRIL. Taylor also cautions that despite gaining a year’s head-start on its rival, “APP’s commitment came at the point when little forest not already under legal protection remained in its Sumatra concessions.”
Despite commending APP on its ongoing turnaround, particularly its commitment to a total suspension of use of tropical hardwood, Reece Turner, senior campaigner, Greenpeace, is also quick to point out Greenpeace’s continued position of non-endorsement for either company. Turner agrees that while APRIL’s commitment is “good in principle,” its priority should be to cease sourcing non-plantation fibres.
“It’s fantastic that we’re seeing the big pulp and paper companies starting to compete on their environmental standards,” said Turner, cautioning that both still have work to do. Turner encourages a greater vigilance from businesses trading with any major pulp and paper provider to establish where timbre is sourced.
According to Tim Woods, “At a market level the signal provided by WWF and Greenpeace is intended to be clear. Whether that’s having an impact in the Australian market, it’s too soon to say.”