APP | Stakeholder Advisory Forum (SAF) 2022 1

APP Sinar Mas - Sustainability Roadmap Vision (SRV) 2030

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SRV 2030 – Production | 30% Reduction in Carbon Footprint

To reduce our environmental footprint and contribute towards a circular global economy, we commit to produce paper goods responsibly, sustainably
To produce sustainable products: Responsible sourcing | Carbon & energy | Water | Waste | Certification

LOW CARBON PRODUCTS INNOVATIVE PRODUCTS

GOALS GOALS
1. Increase the share of renewables in the energy mix 1. Increase recycled fiber composition
2. Reduce energy consumption 2. Increase product biodegradability and resource efficiency
3. Reduce water consumption
4. Zero waste to landfill

INCREASE IN THE SHARE OF RENEWABLES IN THE ZERO WASTE TO LANDFILL INCREASE RECYCLE FIBER COMPOSITION INCREASE PRODUCT BIODEGRADABILITY
ENERGY MIX RESOURCE EFFICIENCY

13% 7% 44% In progress

Reduction in carbon intensity – Reduction waste to landfill – of our fibre composition utilizes recycled fibre Developing new biodegradable products
Compare to 2018 baseline From 2018 baseline data
56%
of total energy mix utilized renewable fuel
8%
of Energy Intensity -
Compare to 2018 baseline
10%
Reduction in Water Intensity -
Based on 2018 baseline
26%
Chemical Oxygen Demand (COD) emissions -
Lower than government regulation

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SRV 2030 – Forests | Over half a million hectares of natural forests conserved

To continue research and improvement in sustainable forestry while protecting and restoring natural forests in and around supplier concessions.
Conserving the forests: Forest protection & restoration | Peatland management | Conserving key species | Sustainable forests management | Integrated Fire Management

FIBER SOURCING FORESTS PROTECTION INTEGRATED FIRE MANAGEMENT

GOALS
1. Source only from certified Sustainable
Forests and increase fiber productivity.
FIBER SOURCING
100%
Fibre supply from sustainably-managed plantations –
Mean Annual Increment of 6.3 ADT/ha/year
GOALS GOALS
1. Conserve High Carbon Stock (HCS) forest 1. Maintaining area impacted by fires
and High Conservation Value (HCV) area and at under 2%.
continue restoration efforts.
2. Conserve critical peatland ecosystems.
3. Protect Indonesia's flora and fauna,
focusing on the three priority wildlife MAINTAINING AREA IMPACTED BY FIRES AT UNDER 2%
and ten species of rare trees.
0,025% of all concession areas were affected by fire
CONSERVE HCS FORESTS & HCV AREA
CONTINUE RESTORATION EFFORTS
82% of natural forests in concessions maintained in good condition

CONSERVE CRITICAL PEATLAND ECOSYSTEM

41% of peat dome peak areas have been restored

FOCUS ON 3 PRIORITY WILDLIFE & 10 SPECIES OF RARE TREES

• 76 Sumatran Tiger, 289 Sumatran Elephants, 145 Orangutans
• 5 Tree species repopulated in conservation area, in 2021.
• 15% fatal conflicts occurring of total in the province
• 73% Decrease of illegal poaching tools
Compared to 2019 baseline

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Monitoring Forest Cover Change

Forest Cover Change (%)

6.00

5.00
0,25%
Forest Cover Change

4.00

3.00

2.00

1.00
MDA inserts forest alert
polygons directly in to APP staff access data in
APP Database real-time validation

0.00
2013 - 2015 2017 2018 2019 2020 2021

1. Using satellite technology – RADARSAT 2 since 2016

2. Covering 600,000 ha of protected forest areas across suppliers concessions
3. Monitoring forest cover change – Early Detection
4. This methodology is able to provide accurate detection of clear cuts, selective logging, and natural forest degradation

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Monitoring Forest Cover Change | https://sustainability-dashboard.com/forest-monitoring

Forest monitoring dashboard

Provide access to our stakeholders to monitor

the changes in forest cover in the protected
areas of our suppliers concessions.

The forest monitoring data on APP's Forest

Monitoring Dashboard is verified by third party
firm EY.

The independent summary report is available in

APP Forest Monitoring Dashboard

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Integrated Fire Management | https://sustainability-dashboard.com/daily-fire-update

In 2021

0.025%
Of total APP suppliers
concession areas were
impacted by fire

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Restoration Approach

Enrichment & Eradication Natural Regeneration

82% of degraded areas directly implement forest restoration work.

As per 2021, more than 38,000 hectares already restored.

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Retirement on Critical Peat Dome Area

Challenge: for ex-production area, the natural succession taking

place is mostly wild acacia. This is due to the abundance of acacia
seedlings as well as the nature of acacia as pioneer species which
can grow in harsh condition.

In order to find a strategy for restoration in ex-production peatland,

APP is working together in collaboration with an international
research institution, our research with a leading global university, natural regeneration on peat
National University of Singapore (NUS) Environmental Research dome peaks in TPJ
Institute (NERI). .

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Restoration in ex-Production Area

▪ The research takes place in the

concession of an APP supplier, PT.
Tripupa Jaya
▪ Study a large retired Acacia plantation
▪ First to create a large-scale controlled
peatland experiment in 72 plots over 3
hectares.
▪ The research will takes around 3 years
(2020-2023)

Disepalum rawagambut (Annonaceae)

Controlled Environment Large Peatland Restoration Experiment

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Alternative Species

12
species
Seedling collection from its natural
habitat.

5
• Complete family groups
species • Development of seedstands
• Vegetative propagation
• Research on Mycorrhiza, to boost the
growth of the trees on peat.
3
species
• Analyze the wood properties
• Mycorrhiza in nursery
• Mycorrhiza in field Next step:
2 Collaboration with Puslitbanghut for further
research of mycorrhiza
species
*Mycorrhiza: It is used to reduce chemical fertilizer so it will
be more eco-friendly, maintaining quality and soil fertility,
also help to optimize carbon absorption.

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SRV 2030 – People | Improving the lives of millions

To work together, across employees, forests communities and allies in sustainable development
Working together as community: DMPA | Community Business Model Development | Empowering community, empowering women | Free, prior and informed consent | Workers welfare

SUSTAINABLE LIVELIHOOD WORKFORCE MANAGEMENT BUSINESS ETHICS & CONDUCT

GOALS GOALS GOALS
1. Reduction of land conversion for agricultural 1. Increase the number of 1. Best practices for fraud reporting and
purposes through the use of fire. women in management whistleblower management.
2. Improve the welfare of local communities through positions. 2. Best practices for ensuring adherence to our
capacity building and enhance community access to markets 2. Strengthen organizational agility. Code of Conduct.
3. Respect the rights of local communities and indigenous people
through increased multi-stakeholder engagement.

COMMUNITY EMPOWERMENT
2,880 community groups partnership As of end of 2021 –
An increase of 9% compared to the 2019 baseline
INCREASE THE NUMBER OF WOMEN IN MANAGEMENT POSITIONS
24,5% of senior management positions in APP Sinar Mas
headquarter – are women
STRENGTHEN ORGANIZATIONAL ABILITY
453 participants in the APP People Development Program
REDUCE LOST TIME INJURY FREQUENCY RATE (LTIFR)
BEST PRACTICES FOR FRAUD REPORTING & WHISTLEBLOWER
MANAGEMENT
107 average number of days spent on whistleblower
investigations.
BEST PRACTICES FOR ENSURING ADHERENCE TO THE BUSINESS
CODE OF CONDUCT
95% of all employees trained passed the training evaluation

0,73 LTIFR in mills operations

1,91 LTIFR in forestry operations

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Desa Makmur Peduli Api (DMPA) – Empowering local communities, improving lives

million

Decouple economic growth from 78% DMPA beneficiaries location are free or reduced from fire
deforestation - By empowering local
communities through varied program. More than 39 DMPA villages were in process PROKLIM 2022

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Empowering Community, Empowering Women

Our community investment programs are key to our commitment to addressing the United Nations’ SDGs.
Through contribution in supporting Micro, Small Medium Enterprise (MSMEs)

Indonesia Womenpreneur Community

In collaboration with Yayasan Doktor Sjahrir and Indonesia Womenpreneur
Community (WPC), APP Sinar Mas continues to support the communities through
business incubation programs, empowering micro small medium enterprise
(MSMEs) to access wider market so they can thrive and improve their livelihoods.

Providing basic knowledge of online marketplace, product innovation and

developing business model, supported with knowledge on product photography
and copywriting to help them communicating their products.

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Land Dispute Resolution – Progress

61% 39%
Land disputes resolved to be resolved
70%

60% ▪ Village inside concession 19.9%

50% ▪ Customary land 2.6%

40%
▪ Livelihood 2.2%
30%
▪ Speculator 11.9%
20%
▪ Non-procedural land use 0.8%
10%

▪ Overlapping licenses 1.7%

0%
2016 2017 2018 2019 2020 2021

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Guidance Process - Typology 1

General steps to resolved the

dispute in typology 1 Identification of Develop indicative
Data Collection
villages/hamlets map

Meetings at
Signing agreed MoU Socialization of
community level –
and or Partnership forest operation
consultation with
Schemes license
MoEF

Implementation of Monitoring and

Reporting
the Agreement Evaluation

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Transparency reporting for our sustainability journey

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Sustainability Report & Dashboard

SRV 2030
Sustainability Dashboard

• Committed to transparently we
disclose our sustainability journey
through our Sustainability
Dashboard and annual Sustainability Report
Sustainability Reports, aligned
with the Global Reporting
Initiative (GRI) standards.

• Projecting highlights of our

Sustainability Roadmap Vision
(SRV) 2030 and, within the
roadmap, our Forest Conservation
Policy commitments.

SR2021 will be launched in July

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Monitoring & Reporting

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Grievance

One of the Company's Sustainability Commitments is to manage a robust grievance mechanism that allows for the resolution of legitimate grievances.

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Global Platforms

In order to be part of the solution to the global issues, as well to keeping track of the global trends and updates,
APP Sinar Mas is part of the several global platforms

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Our Partners

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Thank You

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