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

Riau, Sumatra, Indonesia

9.5
2
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

1.3 Audit Risk Results

2. Contribution to Conservation Legacies

2.1 Public support web/panels

2.2 International conservation

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

3.4 Targets & Timelines

3.5 10% of pulp is NG

3.6 Contributing to Collective Goal

3.7 Aggressively Increasing Commercial Scale

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 Track & Trace System In-Place

5.2 Public Sharing of Supplier List

5.3 Conducts Due Diligence

6. Leaders in Supply Chain Shifts

6.1 Proactive outreach/ Inspires Leadership

6.2 FSC Preference

6.3 Forest Mapper Support

6.4 Using the Dissolving Pulp Mill Classification

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

7.1 Risk is Known

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

In the future, criteria will be built out by ZDHC to apply V2.0 of ZDHC MMCF Guidelines, including air emissions and responsible fibre production.

N/A

Total:

2 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.

The Toba Pulp Lestari (TPL) mill in Indonesia, is 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:

  • Asia Pacific Resources International Ltd (APRIL) 
  • Toba Pulp Lestari (TPL) 

APRIL approved a new forest management policy in 2015, which included a commitment to no deforestation and no further sourcing from suppliers responsible for deforestation. While a step in the right direction, APRIL has yet to sufficiently address its legacy of conversion of natural forests and peatlands to monoculture plantations and the associated impacts on ecosystems, species, and climate. APRIL continues to operate on carbon-rich, drained tropical peatlands, and there have been reports of violations of the management plan commitments and incidents of local community disputes with both TPL and APRIL, their operations, and their wood suppliers.  

Canopy and APRIL/RGE have maintained contact for several years and engage, intermittently, in dialogue focused on seeking solutions satisfactory to both parties and beneficial to RGE viscose producers’ Hot Button rankings.  

Canopy acknowledges some progress has been made, particularly on Next Generation R&D and support for APRIL/RGE’s efforts to secure conservation in the critical Leuser Ecosystem in cooperation with local civil society organizations. To date, however, the substantive and core operational issues within APRIL and TPL concessions have yet to be effectively addressed. Canopy remains committed to constructive engagement and seeking opportunities where progress is possible.  

Risk of sourcing from Ancient and Endangered Forests and controversial sources remains. Canopy recommends a considered approach by the marketplace at this stage. Brands should continue to liaise with Canopy to monitor the timely implementation of the much-needed key milestones by APR and its core suppliers. 

Key Improvements Required

APR is well positioned, as part of the RGE consortium, to advocate internally for meaningful change in the practices of its majority suppliers to address identified risks, including encouraging APRIL to:  

  • Prioritize the integration and sourcing of Next Generation Solution technologies and feedstocks while reducing the input of high-carbon peatland-sourced fibre and other controversial supply sources;  
  • Undertake Landscape Level Planning, identifying priority areas for restoration and connectivity, through the engagement of credible independent scientists and in collaboration with local communities and rights-holders 
  • 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;  
  • 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 long-term fibre supply  
  • Ensure all suppliers and their supply partners are not associated with the conversion of natural forests to plantations;   
  • 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

APR continues to invest in and support Next Generation Fibre research and its Hot Button ranking increased slightly between 2021 and 2022.  

Sourcing:  

  • 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.    
  • 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.  
  • States it is collaborating with Trus Trace to develop traceability from plantation to market.

Conservation: 

  • Engaged with RGE and key supplier APRIL to support conservation initiatives in the critically important Leuser Ecosystem, including having signed a collaborative MoU with a local conservation organization in Aceh province, undertaken mapping and analysis, and communicated with the provincial government.
  • With APR’s encouragement, RGE/APRIL committed to not sourcing from Intact Forest Landscapes.  
  • Supported the call for protecting 30% of the world’s Ancient and Endangered Forests by 2030, in a letter from MMCF producers to countries that are party to the Convention on Biological Diversity (CBD).  

Next Generation Solutions: 

  • APR has established an automated pilot plant to test Next Generation fibre inputs and blends and is investing in R&D into pre-and post-consumer waste fibre sourcing.  
  • In 2022, parent company RGE launched a five-year, $6-million Research Centre project to develop new technologies for textile recycling, in partnership with Nanyang Technological University in Singapore 

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 217 724 tonnes of viscose staple fibre, which APR plans to double to 544,311 tonnes by 2023. 

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