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APP China 2009 Sustainability Report

APP China 2009 Sustainability Report

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Published by Asia Pulp and Paper
APP-China turns the lights off for “Earth Hour” 2011 on March 26
Major factories and operations going beyond Earth Hour across mainland China, Hong Kong, and Taiwan
Shanghai – March 25, 2011 – APP-China will turn off its lights tomorrow, March 26, from 20:30 to 21:30 and will once again become a participant in the amazing global environmental initiative, Earth Hour, of WWF. This year, APP-China will expand its participation from the company’s headquarters and major mainland China factories to its operations across Hong Kong and Taiwan in order to continue its commitment to environmental protection.

2011 is the third consecutive year for APP-China to participate in Earth Hour. To echo the theme of this year’s Earth Hour: “Go Beyond the Hour,” APP-China has not only increased the scope of its participation from major mainland China factories (including Gold East Paper Co., Gold Huasheng Paper Co., Ningbo Zhonghua Paper Co., Ningbo Asia Pulp & Paper Co., Gold Hong Ye Paper Co., Hainan Jinhai Pulp & Paper Co., and Guangxi Jingui Pulp & Paper Co.) and the headquarters of both Taiwan and Hong Kong operations, but the company has also further boosted its commitments to environmental protection through its newest campaign to educate the public about proper paper usage and to lead the paper industry’s efforts to plant more trees under the concept of plantation-pulp-paper integration in order to further improve the sustainability of the paper industry and to make sustainable lifestyles a reality.

“Turning off the lights for an hour may look like a small thing; however, the meaning of such action is significant,” Sophy Huang, PR director of APP-China said. “By participating in Earth Hour across APP-China’s operations in mainland China, Taiwan, and Hong Kong this year, we are hoping to raise environmental awareness on both sides of the Taiwan Strait. This is one big step going beyond our day-to-day efforts of reducing carbon emissions.”

Over the years, APP-China has carried out various activities for environmental protection around China, with initiatives in such areas as energy saving and carbon emission reduction. So far, APP-China has invested 740 million dollars (or 5 billion RMB) in environmental protection altogether. This sizeable investment, additional technology innovation, and advanced management processes helped APP-China become a green pioneer of the Chinese paper industry. The company has also received a great number of awards, like the Low Carbon China Contributing Enterprise (International) award and the 2010 Outstanding China CSR Enterprise award.

“APP is committed to environmental protection and we believe that it is a core part of our business operations,” PR director of APP-China added. “Going forward, we will continue to lead the industry through our ‘Paper Contract with China’ (PCwC) commitment that enters its fourth year in 2011. In the complex socio-economic environment of China, we are committed to development and sustainability, minimizing the environmental impact of our operations and ensuring that the social and economic impact of paper industry in China is resoundingly positive.”


# # #

About APP-China
Registered in Singapore in October 1994, Asia Pulp and Paper (APP) is one of the world’s leading pulp and paper companies and is ranked one of the largest vertically integrated pulp and paper producers in Asia. Since APP started investing in China in the early 1990s, it has over 20 pulp and paper mills in the form of subsidiaries or joint ventures, as well as forest plantations with a total area over 320,000 hectares. With over 37,000 employees, APP-China had a total production capability 7.6 million ton per year in 2009.
In June 2008, APP-China launched the Paper Contract with China, to showcase the company’s sustainable development strategy and its long-term commitments to China. By the end of 2009, APP-China had spent RMB 5 billion in environmental protection facilities and RMB
APP-China turns the lights off for “Earth Hour” 2011 on March 26
Major factories and operations going beyond Earth Hour across mainland China, Hong Kong, and Taiwan
Shanghai – March 25, 2011 – APP-China will turn off its lights tomorrow, March 26, from 20:30 to 21:30 and will once again become a participant in the amazing global environmental initiative, Earth Hour, of WWF. This year, APP-China will expand its participation from the company’s headquarters and major mainland China factories to its operations across Hong Kong and Taiwan in order to continue its commitment to environmental protection.

2011 is the third consecutive year for APP-China to participate in Earth Hour. To echo the theme of this year’s Earth Hour: “Go Beyond the Hour,” APP-China has not only increased the scope of its participation from major mainland China factories (including Gold East Paper Co., Gold Huasheng Paper Co., Ningbo Zhonghua Paper Co., Ningbo Asia Pulp & Paper Co., Gold Hong Ye Paper Co., Hainan Jinhai Pulp & Paper Co., and Guangxi Jingui Pulp & Paper Co.) and the headquarters of both Taiwan and Hong Kong operations, but the company has also further boosted its commitments to environmental protection through its newest campaign to educate the public about proper paper usage and to lead the paper industry’s efforts to plant more trees under the concept of plantation-pulp-paper integration in order to further improve the sustainability of the paper industry and to make sustainable lifestyles a reality.

“Turning off the lights for an hour may look like a small thing; however, the meaning of such action is significant,” Sophy Huang, PR director of APP-China said. “By participating in Earth Hour across APP-China’s operations in mainland China, Taiwan, and Hong Kong this year, we are hoping to raise environmental awareness on both sides of the Taiwan Strait. This is one big step going beyond our day-to-day efforts of reducing carbon emissions.”

Over the years, APP-China has carried out various activities for environmental protection around China, with initiatives in such areas as energy saving and carbon emission reduction. So far, APP-China has invested 740 million dollars (or 5 billion RMB) in environmental protection altogether. This sizeable investment, additional technology innovation, and advanced management processes helped APP-China become a green pioneer of the Chinese paper industry. The company has also received a great number of awards, like the Low Carbon China Contributing Enterprise (International) award and the 2010 Outstanding China CSR Enterprise award.

“APP is committed to environmental protection and we believe that it is a core part of our business operations,” PR director of APP-China added. “Going forward, we will continue to lead the industry through our ‘Paper Contract with China’ (PCwC) commitment that enters its fourth year in 2011. In the complex socio-economic environment of China, we are committed to development and sustainability, minimizing the environmental impact of our operations and ensuring that the social and economic impact of paper industry in China is resoundingly positive.”


# # #

About APP-China
Registered in Singapore in October 1994, Asia Pulp and Paper (APP) is one of the world’s leading pulp and paper companies and is ranked one of the largest vertically integrated pulp and paper producers in Asia. Since APP started investing in China in the early 1990s, it has over 20 pulp and paper mills in the form of subsidiaries or joint ventures, as well as forest plantations with a total area over 320,000 hectares. With over 37,000 employees, APP-China had a total production capability 7.6 million ton per year in 2009.
In June 2008, APP-China launched the Paper Contract with China, to showcase the company’s sustainable development strategy and its long-term commitments to China. By the end of 2009, APP-China had spent RMB 5 billion in environmental protection facilities and RMB

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Published by: Asia Pulp and Paper on Mar 25, 2011
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APP-China Forestry takes a scientifc approach to the establishment of
its forest plantations, and has established state-of-the-art research and
development centers and nurseries, in Ding'an County of Hainan Province
and Qinzhou City of Guangxi Zhuang Autonomous Region to conduct
cutting-edge research on rapid propagation and advanced cultivation
techniques for developing fast-growing, high-yield planting materials.
At the same time, APP-China Forestry has incorporated best practices,
such as widespread use of SOPs, computerizing data and information
management, and mechanization, in its forest plantation management to
enhance overall quality, effciency and proftability.

Quality tree species and scientifc research

In the continuous effort to enhance the productivity of its forest
plantations, APP-China Forestry has invested heavily in research and
development of superior planting materials. To date, APP-China Forestry
has developed a variety of fast-growing, high-yield tree species that are
resistant to pests and diseases, drought and frost, tolerant of wind, and
are able to grow well in high altitudes. To maximize production effciency,
APP-China Forestry carefully matches the most suitable and best-
performing tree species to the specifc micro-environment to be planted
when establishing a new forest plantation. Therefore, it extensively
researches the cultivation of trees with superior environmental adaptation
to meet the demands of the diverse geographic and climatic settings of
its widely distributed forest plantations, while minimizing production costs.
For instance, at its Hainan Province's nursery, intensive R&D is carried
out to enhance the development of new Eucalyptus hybrids, which are
fast-growing, high-yield, consistent producers and are highly adaptable.

Information systems

Systems Application Products in Data Processing (SAP)

APP-China Forestry is proactively improving its forest plantation
management through the implementation of systems to enhance
management of its operational data, and has introduced SAP to integrate
information from its various business units. As a result, the information
management systems of the forestry business, plantations, materials
management and the fnancial department are all integrated into the SAP
system. The resulting integration ensures real-time information-sharing
throughout its business operations, signifcantly improving effciency.

Plantation Management System (PMS)

To systematically manage forest plantation resources, APP-China
Forestry makes full use of modern science and information management
technology. The PMS is one system developed to serve this requirement.
It allows real-time tracking of individual forest plantation department
operations, geographic information system map management, tree
stands inventory, materials inventory, contract job records, quality
review records, and other data. In addition, to meet the needs of
remote site-based personnel, APP-China Forestry works closely with
local telecommunication service providers to establish channels for
direct transmission of plantation data to the PMS platform via mobile
phones. So far, such implementations have enhanced the effcient use of
resources and increased transparency, allowing management to access
updated forest plantation data for decision making.

Mechanization

To enhance its forest plantation efficiency, APP-China Forestry has
adopted and incorporated modern machinery into its operations. Newly
introduced machinery is used for labor-intensive tasks such as clearing
plantation lands, weeding, soil preparation and timber harvesting, greatly
reducing labor intensity, improving effciency, and effectively increasing
plantation productivity.

Performance monitoring, audits & control

APP-China Forestry has established multiple monitoring and auditing
systems to routinely review its forest plantation management and business
activities. Each audit team is comprised of experts in their respective
felds. For example, the silviculture audit team is responsible for overall
management quality control review; the plantation assessment, plantation
investigation and peer-review teams are responsible for reviewing forest
plantation resource monitoring and SOP audits; the environmental and
sustainability team is responsible for reviewing environment management
system and sustainable forestry performance; and the accounting and
financial audit teams are responsible for integrity of accounting and
fnancial systems.

3P systems (PRT, PAT & PIT)

To track forest plantation growth, health and implementation of SOPs
at each site, APP-China Forestry has established “3P” teams and
systems to monitor and check performance throughout the plantation
rotation. The Peer Review Team (PRT) is responsible for plantation
operation process quality review and corrective action recommendations;
the Plantation Assessment Team (PAT) evaluates the survival rate
and growth of 3-, 6- and 12-month old plantations, and the Plantation
Inventory Team (PIT) is responsible for Mean Annual Increment (MAI)
monitoring and corrective action recommendations for tree stands that
are two to six years old. The “3P” systems allow a review of individual
forest plantation department performance through the rotation period, for
better corrective action and forecast of yield.

Third-party monitoring and audit

In addition to in-house monitoring and audit systems, APP-China Forestry
routinely engages accredited, third parties to conduct audits and offer
recommendations to continually improve its management systems.
This includes ISO14001 annual audits to review the credibility of its
environmental management systems, joint environmental monitoring
and impact assessment programs with local universities and research
institutes to ensure APP-China Forestry meets legal requirements and in-
house corporate sustainability objectives.

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