TFT and APP Work Plan

TFT has been accompanying APP in their sustainability journey to balance the world’s demand for products against the natural resources available to deliver them. In facing the complexity that the company may and has encountered in the journey, TFT believes in deploying correct strategy through building blocks/management system, capacity building, pilot, monitoring and evaluation, and consistently cascading these to operational level.

Given their commitment to No Deforestation and their FCP implementation plan 2015 and beyond, we are working with APP to achieve the following objectives:

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Summary of the 2016 APP work plan.

 

General objectives: To continue APP’s sustainability journey in order to ensure delivery against the values articulated in Sustainability Roadmap Vision 2020 (SRV 2020) – that includes Responsible Fibre Procurement and Processing Policy (RFPPP) – and Forest Conservation Policy (FCP), and in so doing, enhance trust with APP’s key stakeholders.

 

Specific objectives:

  1. Bring APP’s operational units – including all suppliers – into compliance with the APP commitments (RFPPP and FCP) and monitor progress;
  2. Pursue re-association with the FSC, comply with the FSC Policy for Association (FSC PfA) and eventually achieve internationally recognised certification;
  3. Support the implementation of the restoration and conservation program, focusing on social and FSC policy for association elements;
  4. Communicate the APP business sustainability journey externally to various stakeholders.

 

Overarching strategy: Establishing sound management practices and resource capacity across APP’s and its suppliers’ operations are essential to deliver on the RFPPP & FCP and enable APP to run its business responsibly and sustainably.

 

General overview of the result:

  • APP has made good progress in the development of the ISFMP – an integrated land use plan – for each forest management unit that serves as a comprehensive business plan taking into account environmental, social, legal and financial aspects.
  • TFT supported APP in developing a six step approach for managing and resolving conflicts revolving around land ownerships and rights within the 38 concessions owned by APP and its suppliers in Indonesia. The steps involved the development of new procedures for conflict resolution, trainings, capacity building, conflict mapping, action plans, and stakeholder engagement. APP has been implementing this approach since it was developed. APP have achieved relatively significant progress in the conflicts resolution process. As the quality of the progress is also important, TFT supports APP in monitoring the quality of the progress. The monitoring process include quantification of 4 phases of land conflicts resolution processes. They are (1) Availability of baseline data, (2) Negotiation, (3) MoU between parties in disputes reached, and (4) implementation of the MoU. The figures that was/is publicly announced reflect the percentage of the conflicts that have entered phase 3 and/or phase 4. TFT has carried out a due diligence to check the accuracy of the percentage figure of identified conflicts that have entered these two phases. APP made statement in end 2016 on the basis of the due diligence by TFT.
  • In mid-2016 the original 2014 APP Growth and Yield – pulpwood supply projection was updated. These projections incorporate plantation yield and wood handling efficiency improvements, as well as fire impacted pulpwood plantation area losses. Whilst APP has made significant progress, from 2013 through to end 2015, in improving its plantation yield and wood handling efficiencies, the fire occurrence in 2015 do indeed have an impact on the short-term wood supply projections. However, the significant operational improvements have helped to close the anticipated wood supply deficit from previous projections.  Furthermore, these improvements and additional planted areas, as a result of the comprehensive land use planning (Integrated Sustainable Forest Management Plan / ISFMP), will provide APP with potential wood supply surpluses in 2025. To start addressing the risks on peat lands, APP will need to develop and implement a comprehensive action plan to minimize risks in lowland plantations, whilst maintaining wood supply sufficiency.
  • There has been constructive dialogue with FSC and other relevant stakeholders in ending the disassociation between FSC and APP. The roadmap of the re-association has officially been conditionally approved by FSC pending its successful completion through the development of relevant action plans.

Summary of the 2017 APP work plan

The general objectives and overarching strategy remain the same as of the 2016. The specific objectives are continuation of those of 2016 simultaneously with more involvements of the third parties operational teams (sub-contractors).