Asia Pacific Rayon (APR – part of the RGE Group)

4.5/35

Completion of CanopyStyle Third Party Verification Audits

Undertaking Annual Audits

Audits Public and Results Acted On

n/a

Audit risk results

n/a

Contribution to Conservation Legacies

A&E promotion

n/a

Public Collaborative Leadership

n/a

Influences Decision Makers

n/a

Legislated protection

n/a

Innovation via New Alternative Fibers

Partnerships

R&D Investments

Scaling to commercial products

n/a

Targets & timelines

n/a

Aggressively increasing commercial scale

n/a

Adoption of Robust Forest Sourcing Policy

Policy adoption

Policy meets all CanopyStyle criteria

Traceability & Transparency

COC & supplier list completed

Track & trace system in place

Public sharing of supplier list

Forest of origin is public and mapped

Leaders in Supply Chain Shifts & Sustainable Sourcing

Producer Is Proactive

FSC preference

n/a

Forest Mapper support

n/a

Associated with High Risk of Sourcing from Ancient & Endangered Forests and other Controversial Sources

Risk is known and no action is taken

Initial action taken to adress risk

n/a

Sourcing risk has been resolved

n/a

Total:

Buttons 4.5

Risk of sourcing from Ancient & Endangered forests

Asia Pacific Rayon (APR), is a new viscose mill opened in 2019 with a current production target of 240,000 tonnes now operational in Riau, Indonesia.  The company is part of the Royal Golden Eagle Group (RGE), and closely connected with APRIL, the Indonesian pulp producer and plantation company.
In fact, per communication with APR, more then 90% of the company’s sourcing is from APRIL, which confirms the presence of high-risk fibre in their supply chain, due to APRIL’s legacy of deforestation, loss of endangered species habitat, conversion of natural forests and peatlands, past and ongoing social conflicts, and continued impacts on climate.

APR’s fibre tracking and traceability web page (https://www.followourfibre.com/) also shows the company sources from Toba Pulp Lestari, a high-risk, controversial supplier of dissolving pulp located in North Sumatra.

Despite efforts by RGE and APRIL on sustainability issues, APR’s fibre basket remains of significant concern. APR offers forest certification, but the system in use allows ecologically damaging, and socially controversial logging practices in Indonesia.  This is a result of different standards being accepted under the PEFC umbrella in different regions globally, so this is not seen as an adequate assurance for sustainable sourcing by the CanopyStyle initiative.

APRIL does have a 1:1 restoration commitment to conserve forest areas equalling the size of its plantation areas, and APR is now a member of ZDHC (Zero Discharge of Hazardous Waste) to address issues concerning chemical use. While the company has a grievance procedure in place to register and track community complaints, local civil society is critical of the process and the company is encouraged to explore mechanisms to resolve social conflicts that are more suited to community needs.

Canopy recommends a considered approach by potential customers at this stage.  Brands and retailers should closely track how APR is engaging with Canopy towards real change on the ground in Indonesia.

Key Improvements Required

Similar to its sister company Sateri, APR is encouraged to adopt and implement an action plan with time-bound milestones, in order to influence its main supplier APRIL and parent company RGE to achieve meaningful change, including but not limited to the following outcomes:

  • Active support from RGE and its affiliates for the conversion of three key concession licenses within the Leuser Ecosystem into conservation or ecosystem restoration concessions.
  • The protection of any/all remaining intact peatlands throughout APRIL concessions, restoration of priority peat landscapes, no net loss of peat, suspension of the drainage of peatlands identified by best available science as a priority for conservation and/or restoration, and sharing reports of large-scale trials of different peatland restoration options.
  • A public commitment by RGE that no sourcing of fibre (including from supply partners or open market suppliers) will be undertaken by RGE or any of its associated companies that is derived from new development/conversion of forests in Papua, West Papua and the Leuser Ecosystem as well as from any new or additional development on intact or marginally fragmented forests in West Kalimantan or Kalimantan.
  • A commitment that APRIL will ultimately increase its restoration commitments to more fully reflect both the current and historical impact of its operations.
  • A commitment that APRIL will meaningfully engage in a mutually agreed process to resolve social conflicts and community land tenure and rights issues.
  • Significant financial investment in the development and scaling up of Next Generation Solutions to broaden the fibre basket, with the development of fibres with 100% innovative fibre sourcing, such as post-consumer recycled fabric sources and agricultural residues.
  • A commitment that Next Generation fibres will be used to replace tree fibre, providing APR and APRIL with the solution space to enable the phasing out of high carbon-value peat plantations that are a priority for restoration, replacing tree fibre with alternatives.

Areas where the company is showing leadership

The company is proactively reaching out to Canopy, and attending Canopy events.

The company has shown strong interest in being audited, however, given the known risk in their supply chain, Canopy has recommended the audit not proceed until a 2020 action plan addressing sourcing risk has been developed, and progress has been made on implementation.

APR has increased fibre sourcing transparency, establishing a web-based fibre tracking system for its product that traces bales from concession-holder and plantation region to mill then port.

APR’s parent company, RGE, has recently announced major investments in Infinited Fibre, a next generation solution provider which is using textile waste to produce new fibres. It will be important, as next generation fibre is scaled-up, that it replaces APRIL plantation fibre rather than being an add-on or new niche product line.

Canopy and APRIL are exploring the potential of a dialogue aimed at finding common ground in addressing the sourcing of fibre for viscose in support of the overarching goals in Canopy’s framework approach. Any developments of note will be communicated by both parties if and when they emerge.

Number of viscose, lyocell and dissolving pulp mills + location and production volumes

Asia Pacific Rayon (APR), is a new viscose mill opened in 2019 with a current production target of 240,000 tonnes now operational in Riau, Indonesia. The company is part of the Royal Golden Eagle Group (RGE), and closely connected with APRIL, the Indonesian pulp producer and plantation company.