A Sustainable Forestry Company

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1 A Sustainable Forestry Company Zero deforestation, landscape approach, and landscape governance REDD+ Indonesia Day Sonokeling, Manggala Wanabhakti April 29 th,

2 Overview World Leading - from Indonesia to the world Located in Pangkalan Kerinci, Pelalawan Regency, Riau Integrated mill complex of 1,750 hectares 5,500 employees Pulp production capacity: 2.8 m ton/year, Paper production capacity: 1.2 m ton/year by 2016 Sustainable - from Policy to Products PaperOneTM is sourced from 100% renewable fiber from certified, sustainably managed plantations, Sold in 70+ countries worldwide Engaged across the 4Cs Alignment across Community, Country, Climate and Company 2

3 Indonesia s Forests 130,000,000 ha of forest in Indonesia 70,000,000 ha set aside for production forestry by Indonesian Govt. 10,000,000 ha has been issued permits to Industrial Plantations (pulp and paper and housing lumbers) 3,500,000 ha developed as of 2016 mainly for pulp and paper 3

4 Our Sustainability Journey 2003: Advanced Stakeholder Engagement Published First Sustainability Report 2002: Pioneered Certification Introduced Wood Legality Chain of Custody System 2010: Global Certification - Obtained PEFC Chain of Custody certification 2005: Commenced Landscape Conservation - Implementation of High Conservation Value (HCV) assessments 2014: Sustainability Policy Leadership - Launched Sustainable Forest Management Policy (SFMP) - Set-up Stakeholder Advisory Committee (SAC) 2013: Advanced Landscape Protection - Launched Restorasi Ekosistem Riau (RER) 2015: Zero Deforestation and Peatland Protection - Moratorium on peatland development - Established Independent PEWG - Achieved PEFC SFM Certification 4

5 Sustainable Forestry Management Policy (SFMP) Comprehensive sustainable forest management policy to guide operations, with independent oversight and audit Elimination of deforestation from supply chain and any future development only on non-forested land Added High Carbon Stock (HCS) to existing High Conservation Value (HCVF) assessments process Moratorium on further work at natural forest areas for plantation development from 15 May 2015 Important milestone on the way to achieving 1-for-1 conservation to plantation ratio, currently 83% achieved 5

6 Conservation and Protection Since 2005, adopted assessment and setting aside areas of High Conservation Value Forests Working with Fauna & Flora International and The Nature Conservancy to implement eco-system restoration at Kampar Peninsula - 150,000 hectares under restoration Announced USD100 million investment for 10 years in conservation and restoration at UN climate meeting in Paris (COP21) 6 Eco-restoration

7 Landscape Approach and Protection The Kampar Peninsula is an example of the Landscape Approach in action: RER project identifies conservation and ecorestoration areas at the core of peninsula Uses plantations around outer areas to buffer and protect protection zone areas from encroachment Protection of protection zone areas is important to prevent degradation of land through illegal logging, unauthorized slash and burn farming and fires Collaboration with community partners, NGOs and local government 7

8 IS APRIL IMPLEMENTING REDD+? Yes through 1 to 1 commitment; HCV assessment; through reuse, recycle, and replenish our waste biofuel use; through ecosystem restoration. All of these are reducing emission, stopping deforestation, restoring degraded areas or avoid further degradation. Is APRIL implement MRV yes on trial for one rotation of plantation and the report has been submitted to the government. What is the role of APRIL on implementation of REDD+; we are leading in private initiative but not a DA REDD+ and also do not expect any REDD+ funds for the coming 10 years we are selffinancing. What we expect from government and other stakeholders is that the REDD+ should be driven nationally and REDD+ should be implemented in collaboration between CSO representing community; Government representing the people of Indonesia; and the Company representing business interests. 8

9 Good business is about what s good for the community, country, climate and company only then will it be sustainable - Sukanto Tanoto, Chairman RGE 9