Greenpeace cuts ties with pulp giant APP after 5 years

An Asia Pulp and Paper mill in Palembang, Sumatra. APP said that the businesses cited by Greenpeace linked to the clearing of forests and peatland were not under "the direct jurisdiction of APP".
An Asia Pulp and Paper mill in Palembang, Sumatra. APP said that the businesses cited by Greenpeace linked to the clearing of forests and peatland were not under "the direct jurisdiction of APP".ST FILE PHOTO

It says firm still linked to destruction of forests for pulpwood, but APP denies claims

International environmental group Greenpeace is cutting ties with a haze-linked company over allegations that Asia Pulp and Paper (APP) is still linked to the destruction of forests for pulpwood.

The announcement puts an end to some five years of collaboration between the group and the company. Greenpeace had advised APP on the implementation of the latter's forest conservation policies.

"Greenpeace International has put these allegations to APP/Sinar Mas. The group failed to provide a credible response or take meaningful action. As a result, Greenpeace has ended all further engagement with APP/Sinar Mas," Greenpeace said yesterday.

Sinar Mas Group is the parent company of APP, Indonesia's largest pulp and paper company, which was linked to the severe haze in the region in 2015. Following the crisis, APP beefed up its fire-suppression strategies, and reaffirmed its commitment to the zero-deforestation pledge it made in 2013.

But Greenpeace said yesterday its investigations showed that the firm had reneged on this promise.

An analysis of satellite imagery and company deeds showed that almost 8,000ha of forests and peatland had been cleared in two concessions owned by pulpwood company Muara Sungai Landak and a Sinar Mas mining company, Golden Energy and Resources, said Greenpeace.

It added that both concessions were linked to APP and the Sinar Mas Group, a claim which APP has disputed.

The latest allegations follow an Associated Press report last December that implied that APP had covered up links to suppliers that practise deforestation or illegal slash-and-burn methods. APP rubbished the report when it was published.

Yesterday, the company maintained its position, saying that the businesses cited by Greenpeace were not under "the direct jurisdiction of APP".

The APP spokesman said an unnamed independent auditor had in 2014 concluded that Muara Sungai Landak had no relationship with APP.

"However, as a result of the allegation made in the Associated Press report, we conducted an investigation and found that three of (the company's) shareholders, and not two as stated in... Greenpeace's statement, had relationships with APP."

Two were former employees, and one was an employee who had not declared his shareholdings and position within Muara Sungai Landak.

"The employee was terminated with immediate effect," said the APP spokesman. He added that he was unable to speak on behalf of Golden Energy and Resources as it "operates independently from us and does not supply wood to APP".

A version of this article appeared in the print edition of The Straits Times on May 17, 2018, with the headline 'Greenpeace cuts ties with pulp giant APP after 5 years'. Print Edition | Subscribe