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.