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

Riau, Sumatra, Indonesia

9.5
1.5
RP
shim
Risk to be addressed prior to audit

1. Completion of CanopyStyle Third Party Verification Audits

1.1 Undertaking Annual Audits

1.2 Audits Public and Results Acted On

n/a

1.3 Audit Risk Results

n/a

2. Contribution to Conservation Legacies

2.1 International Targets

2.2 Public Collaborative Leadership

2.3 Influences Decision Makers

2.4 Legislated Protection

2.5 Extra Respon­sibilities

3. Innovation via New Alternative Fibers

3.1 Partnerships

3.2 R&D Investments

3.3 Scaling to Commercial Products

n/a

3.4 Targets & Timelines

3.5 Contributing to Collective Goal

n/a

3.6 Aggressively Increasing Commercial Scale

n/a

4. Adoption of Robust Forest Sourcing Policy

4.1 Policy Adoption

4.2 Policy Meets All CanopyStyle Criteria

5. Traceability, Transparency, and Sustainable Sourcing

5.1 Using the Dissolving Pulp Classification

5.2 Track & Trace System In-Place

5.3 Public Sharing of Supplier List

5.4 Proactive Sourcing Decisions

n/a

6. Leaders in Supply Chain Shifts

6.1 Proactive Sourcing Decisions

6.2 FSC Preference

n/a

6.3 Forest Mapper Support

n/a

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

7.1 Risk Is Known and No Action Is Taken

7.2 Initial Action Taken to Address Risk

n/a

7.3 Sourcing Risk Has Been Resolved

n/a

Total:

Buttons 9.5

Chemical Management

The Producer Is Addressing the Pollution Originated by the Chemical Substances Used During the MMCF Production Process. It Has Joined a Credible Initiative That Advances Solutions on Chemical Management.

The producer is implementing, for all of its sites, pollution control technologies to limit their impact, developing an approach for the recovery of substances used or generated during the production of MMCF.

N/A

ZDHC Responsible Fibre Production Guidelines ZDHC Wastewater Guidelines (evaluated in 2020, worth 3 points) ZDHC Air Emissions Guidelines.

N/A

Total:

1.5 Points

Risk of sourcing from Ancient and Endangered Forests

As part of the Royal Golden Eagle Group (RGE), APR is a sister company to:

  • APRIL, the Indonesian pulp producer and plantation company.
  • Sateri, a MMCF producer based in China.
  • Bracell, a Brazilian-based dissolving pulp supplier.

It is also associated with the Toba Pulp Lestari (TPL) mill in Indonesia, held by the same beneficial owners, the Tanoto family.

APR has confirmed that more than 90% of its dissolving pulp is sourced from two Indonesian suppliers, both of which are considered to be high risk and controversial.

Throughout 2020 and the first half of 2021, Canopy engaged in dialogue with RGE and APRIL in an effort to secure the changes on the ground that would address these issues. To date these conversations have not resulted in significant change.

Canopy recognizes some progress has been made in certain areas, however to date, none of the substantive operational issues have been addressed. Canopy remains committed to constructive engagement and seeking opportunities where progress is possible. Brands should continue to liaise with Canopy to monitor the timely implementation of the much-needed key milestones by APR and its core suppliers.

Risk of sourcing from Ancient and Endangered Forests and controversial sources remains. Canopy recommends a considered approach by the marketplace at this stage.

Key Improvements Required

As part of the RGE family of companies, APR is uniquely positioned to advocate internally for substantive change in the practices of its primary suppliers to address identified risks, including encouraging APRIL to:

  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks, with a corresponding tonne-for-tonne reduction in the sourcing of high-carbon peatland fibre and other controversial supply sources;
  • Implement concrete and effective measures to remediate or provide restitution for the company’s legacy of adverse social and environmental impacts, including resolving conflict with traditional and local communities;
  • Significantly reduce operations on high-carbon peatlands and increase the restoration and protection of peat ecosystems within the concession land base; and
  • Increase restoration commitments across its operational land base beyond the current 1:1 ratio, incorporating science-based targets more appropriate for tropical rainforest ecosystems.

APR can also:

  • Encourage transparency regarding APRIL’s planned production expansion, in particular open sharing of detailed information on projected fibre sourcing;
  • Ensure all suppliers and their supply partners are not associated with the conversion of natural forests to plantations;
  • Adopt a clear preference for FSC-certified fibre in its own corporate policy and make this publicly available;
  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks for future expansion plans and new suppliers; and
  • Accelerate the use of Next Generation fibre solutions in order to meet or exceed the target of production being 50% Next Gen by 2030.

Areas where the company is showing leadership

  • The company is engaging its core supplier APRIL and parent company RGE to take concrete steps that advance conservation in critical landscapes in the endangered Leuser Ecosystem.
  • APR has established an automated pilot plant to test fibre inputs and is investing in R&D into pre-and post-consumer waste fibre sourcing. With APR’s encouragement, RGE/APRIL committed to no sourcing from Intact Forest Landscapes.
  • APR has engaged in dialogue with Canopy and customer brands about reducing the risks currently associated with its sourcing, although its primary supplier and parent company has yet to implement necessary measures.
  • The company has increased fibre sourcing transparency with a web-based tracking system for its product. The tool traces bales of fibre from concession-holder and plantation region to mill, then port. This will position them well, if and when they are able to eliminate all controversial fibre from their supply chain.

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

Asia Pacific Rayon (APR) opened its mill in 2019 in Kerinci, Riau, Sumatra, Indonesia.

  • Current production capacity is 240 000 tonnes of VSF (viscose staple fibre), which APR plans to double to 600 000 tonnes by 2023.

In 2020, Asia Pacific Yarn was opened, adjacent to and sourcing VSF from APR.