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Asia Pacific Rayon (APR – part of the RGE Group)

Products: VSF / Rayon

Risk Status
Address Risk Prior Audit
Next Gen Solutions
Chemical Management (out of 8)
8
Hot Button Score (out of 40)
8 =
中文

Risk of sourcing from Ancient and Endangered Forests

Address Risk Prior Audit

APR continues to source more than 90% of its dissolving pulp from two high-risk Indonesian suppliers: Asia Pacific Resources International Ltd (APRIL) and Toba Pulp Lestari (TPL). These APR suppliers and their supply partners have a legacy of deforestation and conversion of natural forests and peatlands to monoculture plantations that has yet to be sufficiently remedied. APRIL’s plantations include operations on carbon-rich, drained tropical peatlands, and both APRIL and Toba Pulp have a history of disputes with local communities and land rights-holders. 

As part of the Royal Golden Eagle Group (RGE), APR is a sister company to: 

  • APRIL, the Indonesian pulp and paper producer and plantation company
  • Sateri, an MMCF producer based in China

The Toba Pulp Lestari (TPL) mill in Indonesia, an APR supplier, is held by the same beneficial owner as RGE, the Tanoto family. 

APR is willing to undertake a CanopyStyle Audit, however, the supply chain risks and concerns identified in sister company Sateri’s audit apply equally to APR (both sourcing from APRIL) and must be addressed and mitigated prior to further audits being initiated. APRIL is currently engaged in a Remedy Framework process with the Forest Stewardship Council (FSC) in an effort to regain FSC certification. This framework would require the company to effectively address its legacy of both social and environmental harms. Additionally, recent information indicates APR supplier Toba Pulp has been logging protected forests within its concession boundaries. APR is encouraged to address this additional potential risk in its wood pulp sourcing.  

APR’s Hot Button score has fluctuated in recent years, with some gains noted at times, increased risk at others. Overall, they remain at a yellow-red shirt due to risk in their supply chain.

Areas where company is showing leadership

  • Risks in supply have yet to be effectively addressed. 
  • APR has a web-based tracking system that traces bales of fibre from concession-holder and plantation region to mill, then port.
  • Encouraged RGE and key supplier APRIL to support conservation initiatives in the critically important Leuser Ecosystem. Progress has been made in 2024 through the purchase of a logging concession and efforts underway to secure conservation for the area.
  • APR supplier APRIL has established a conservation fund, wherein one US dollar for every tonne of production is allocated towards research and potential action on conservation and restoration activities.
  • APR has established an automated pilot plant to test Next Generation fibre inputs and blends and is investing in R&D into pre- and post-consumer waste fibre sourcing. 
  • Parent company RGE established a five-year Research Centre project to develop new technologies for textile recycling, in partnership with Nanyang Technological University in Singapore.
  • Is researching potential sources of pre-consumer textile waste supply in three countries.

Key Improvements Required

As part of the RGE family of companies, APR is well-positioned to advocate internally for substantive change in the practices of its primary suppliers to address identified risks, including encouraging APRIL and TPL to:  

  • Address the legacy of forest conversion and associated environmental impacts by increasing the restoration and protection of high-carbon peatlands within its operating land base. 
  • Set targets and timelines to retire and restore high-carbon peatlands within concession boundaries.
  • Scale up Next Generation technologies, innovation, and production while reducing reliance on forest-derived fibre.
  • Implement concrete and effective measures to remediate or provide restitution for adverse environmental and social impacts, including resolving conflict with traditional and local communities.
  • Ensure all supply partners and open-market suppliers are not associated with the conversion of natural forests to plantations. 
  • Reinstate the 2015 cutoff date for any fibre sourcing associated with deforestation into RGE, APR and all forestry-related affiliates’ sourcing policies.

Facilities

Asia Pacific Rayon (APR) opened its mill in 2019 in Kerinci, Riau, Sumatra, Indonesia. 

  • Current production capacity is 300,000 tonnes of viscose staple fibre. In 2021 APR publicly announced funding was secured to double production to 544,311 tonnes, however, the timeline for expansion is presently unclear.

In 2020, Asia Pacific Yarn was opened, adjacent to and sourcing VSF from APR. 

APR has one facility that has been registered on the ZDHC platform and has been assessed at the progressive level in all three criteria related to chemical management: chemical recovery, wastewater discharge, and air emissions. 

POLICYAUDIT REPORTLIST OF SUPPLIERS

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Hot Button Score

8 =

  1. Completion of CanopyStyle Third-Party Verification Audits

    1. Conducts Audits 1/2
    2. Audits published and results acted on0/2
    3. Audit risk results0/2

  2. Contribution to Conservation Legacies

    1. Promotes Ancient and Endangered Forest conservation1/2
    2. Supports conservation targets 0/1
    3. Influences supply chain and decision makers1.5/2
    4. Contributes to legislated protection0.5/2
    5. Extra responsibility: additional support for conservation1/2

  3. Innovation via New Alternative Fibres

    1. Advocates for Next Gen 1/1
    2. Invests in R&D0.5/1
    3. Has a commercial-scale product 0/2
    4. Publishes targets and timelines0.5/2
    5. Uses Next Gen pulp0/1
    6. Proportional contribution0/2
    7. Implementing ambitious scale-up0/2

  4. Adoption of Robust Forest Sourcing Policy

    1. Has a policy2/2
    2. Policy aligns with CanopyStyle0.5/2

  5. Traceability & Transparency

    1. Has track and trace systems1/1
    2. Publishes list of suppliers2/2
    3. Conducts due diligence in sourcing0/2

  6. Leaders in Supply Chain Shifts

    1. Is responsive and proactive0.5/1
    2. Acts on FSC preference 0/1
    3. Supports ForestMapper0/1
    4. Addresses risk0/2

  7. Associated with High Risk of Sourcing from Ancient and Endangered Forests and other Controversial Sources

    1. High risk sourcing-5/-5

More information

Sustainable Chemical Management

8

  1. Participation in ZDHC

    The company is an active participant in ZDHC, where all of their viscose staple fibre and modal staple fibre facilities have joined the ZDHC Supplier Platform and have access to the MMCF Module.2/2

  2. Chemical Recovery

    All of the company’s MMCF viscose staple fibre and modal staple fibre facilities have reached at least the Progressive level in their chemical recovery parameters and limit value, according to Chapter 1: ZDHC MMCF Responsible Fibre Production Guidelines V2.22/2

  3. Wastewater

    All of the company’s MMCF viscose staple fibre and modal staple fibre facilities have reached at least the Progressive level in their wastewater discharge parameters and limit values, according to Chapter 2: ZDHC MMCF Wastewater Guidelines V2.22/2

  4. Air Emissions

    All of the company’s viscose staple fibre and modal staple fibre facilities have reached at least the Progressive level in their hazardous chemicals’ air emissions parameters and limit values, according to Chapter 3: ZDHC MMCF Air Emissions Guidelines V2.22/2

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