Indonesian Rainforest Destroyer Asia Pulp and Paper Loses More Contracts

Press release - November 1, 2011
Jakarta, 1 November 2011 – Greenpeace today called on Indonesian company Asia Pulp and Paper (APP) to commit to ending its destruction of the country’s rainforests, in response to news that yet more companies around the world are cutting ties with the paper giant.

Greenpeace also warned that APP’s continued forest destruction threatened the Indonesian President’s own commitment to dedicate his remaining time in office to saving Indonesia’s forest.

“Asia Pulp and Paper is bad for Indonesia’s forests and bad for Indonesia’s reputation, and is even threatening the Indonesian President’s own commitment to save the forests”, said Bustar Maitar, Greenpeace South East Asia forests campaigner. “APP must immediately commit to stop destroying rainforests”.

The companies that recently announced they will stop buying from APP, include: 

  • Hasbro, one of the world’s largest toy manufacturers (1);
  • The Warehouse, New Zealand’s largest group of department stores (2);
  • Delhaize, the second largest retailer in Belgium and owner of Food Lion in the US (3);
  • Metcash, one of Australia’s largest supermarket chains (4);
  • Montblanc, the famous luxury pen maker (5);
  • Tchibo, the world’s fifth largest coffee roaster (6);
  • Cartamundi, the world’s leading maker of playing cards (7).

Banking group ING has also ceased providing banking services for an APP subsidiary this year, and have refused to do business with APP because the pulp and paper company is in contravention of the bank’s forestry policy (8).

These companies have joined other large well-known businesses that have excluded APP from their supply chains. These include the stationary giant Staples,which concluded that APP is a ‘great peril to our brand’ (9) as well global consumer goods companies such as Kraft, Nestle and Unilever.

International retailers such as Carrefour, Auchan, Metro Group and Tesco have all dropped APP from their own-brand products in the last two years, and sportswear giant Adidas has stopped business with APP too.

Recently, Mattel, the toy company behind Barbie, announced that they were cutting ties with APP and introducing new policies to remove deforestation from their supply chain (10).

On October 28th, the Dutch Advertising Code Commission ruled that APP’s TV and paper adverts, which attempt to position APP as a company that cares about the environment, are misleading the public (11).

Indonesia is the first developing country to set ambitious targets to reduce deforestation, greenhouse gas emissions and to tackle climate change. But the President’s plans continue to be undermined by APP activities. Over the last month, Greenpeace’s “tiger eye” campaign (12) found extensive clearance of rainforests inside APP concessions in Sumatra.  Areas being cleared include those mapped as habitat for the endangered Sumatran tiger and peatland areas more than three metres deep. Land clearance fires were also identified inside two APP concession areas. Both the development of deep peat areas and the use of fire to clear land are prohibited under Indonesian regulations.

Earlier this year, APP’s sister company, Golden Agri Resources, introduced new policies to tackle deforestation. It has since started to win back the customers it had lost in the international market place, including Nestle. 

“APP must follow GAR’s lead and immediately commit to an end to deforestation”, concluded Maitar.

Greenpeace is an independent global campaigning organisation that acts to change attitudes and behaviour, to protect and conserve the environment and to promote peace

ENDS

Contacts:

Bustar Maitar, Greenpeace forests campaigner, Indonesia: +62 813 4466 6135

Andy Tait, Greenpeace forests campaigner, UK: +44 7801 212 980

Natalia Truchi, Greenpeace International Communications + 31 6 24940977

Notes:

  1. Hasbro have announced the introduction of a new procurement policy to ensure all the products they buy are from responsible sources. http://www.hasbro.com/corporate/corporate-social-responsibility/Hasbro-Paper- and-Forest-Products-Procurement-Policy.cfm  

    It has also explicitly stated that APP is being removed from their supply chain: http://www.hasbro.com/corporate/corporate-social-responsibility/Frequently-Asked-Questions.cfm

  2. Green groups welcome Warehouse suspension of Cottonsoft http://www.scoop.co.nz/stories/AK1108/S00608/green-groups-welcome-warehouse-suspension-of-cottonsoft.htm

  3. Delhaize Group stated: ‘Having identified procurement links to Asia Pulp and Paper, Delhaize Group sought external expert advice and approached the company for further information. Based on this research, it was concluded that APP was not making sufficient measures to reduce the impact on deforestation. Delhaize Group has therefore begun phasing out APP products.’ Delhaize Group confirmed this position in a letter to Greenpeace, dated 9 September 2011.

  4. IGA Paper Products Sourced from Indonesia: http://www.metcash.com/our-responsibility/in-the-news#

  5. Confirmed in a letter to Greenpeace Germany, dated 14 June 2011.

  6. Confirmed in an email to Greenpeace Germany, dated 4 October 2011.

  7. In a letter to Greenpeace on August 16, Cartamundi said: ‘With regards to your specific question about our usage of APP-carton, we engage, at the level of the Cartamundi Group, to eliminate APP-carton from Indonesia from our supply chain until APP has taken the necessary steps to protect the rainforest.’ (English translation.)

  8. Confirmed to Greenpeace Netherlands on 27 June 2011.

  9. Staples Cuts Off Paper Supplier:
    http://online.wsj.com/article/SB120240874246651263.html

  10. Mattel drops paper company linked to Indonesia deforestation:http://latimesblogs.latimes.com/greenspace/2011/10/mattel-barbie-deforestation-asian-paper-and-pulp.html

  11. More information about the ruling: http://www.greenpeace.nl/press/Persberichten-2011/Reclame-Code-Commissie-reclames-APP-misleidend/


  12. Greenpeace “Tiger Eye” tour started bearing witness in Sumatra forests: http://www.greenpeace.org/international/en/news/Blogs/makingwaves/bearing-witness-to-the-threatened-beauty-of-i/blog/37146/