Wednesday, October 26, 2011

China’s Commitment to Embrace Forest Certification – APP-China PCwC Quarterly Report Seeks to Clarify Confusion around Responsible Purchasing of Paper


SHANGHAI - Wednesday, October 26th 2011 [ME NewsWire]

(BUSINESS WIRE)-- The Paper Contract with China – China Paper Industry Sustainability Forum 2011, held in August, highlighted that responsible procurement and certification systems are critical to achieving sustainable forest management and long-term economic growth for the Asia Pacific region. In the same month, China Forest Certification Council (CFCC) joined Programme for the Endorsement of Forest Certification (PEFC), the world’s largest forest certification organisation. This marks a significant milestone for China towards international recognition of its national forest certification system.

In the latest edition of its ‘Paper Contract with China’(PCwC) quarterly report, APP-China highlights that the Chinese paper industry is obliged to wade through a range of complex and confusing certification schemes currently available in the market while facing two critical issues: shortages of raw materials and the need to minimise negative environmental impact. The PEFC-CFCC move is therefore a big step forward welcomed by China’s forestry sector, and the initiatives undertaken by China should eventually serve as reference points for other Asian countries in the pursuit of sustainable forestry management.

Today, some western-based NGOs promote Forest Stewardship Council (FSC) and FSC-certified products as the sole standard for sustainable management of the forestry industry. This is a one-sided and misleading message. The very purpose of promoting forest certification standards in the procurement process is to ensure that responsible and sustainable practices are implemented throughout the supply chain, the company says.

But a critical point, which is often ignored, is that it is very difficult to have a single common standard which applies to all parts of the world. Implementation of sustainable practices needs to be adjusted by region, depending on the economic and social conditions which apply. In this regard, many countries have set up their own national systems, such as CFCC, which is tailored to local priorities and forestry situations. According to Zhonglin Tianhe (Beijing) Forest Certification Center (ZTFC), China’s first forest certification body, more than 3 million hectares of forests will be CFCC-certified by the end of 2011.

From a global perspective, the two internationally recognised forest certification schemes are FSC and PEFC. In addition, there are dozens of other schemes that have the same bottom line impact in promoting sustainable forestry management. As one of the global leading pulp and paper manufacturers, APP embraces all credible, third-party certification systems, and is committed to working with stakeholders to promote sustainable forest management.

Sophy Huang, PR Director of APP-China, said: “From a market perspective, responsible procurement allows companies to move from a base of legal compliance to pursue environmental certification that meets advanced national or international standards. Beyond that, supply chains should meet forestry certification requirements which balance environmental, social and economic development needs.”

Huang added: “It has to be stressed that these forestry certification schemes should be viewed primarily as guidelines for companies; they are not absolute principles to be applied at all times and in all places. True responsible procurement has to adjust to particular circumstances which may go beyond one certification scheme or another.”

In addition to examining the role of certification schemes in responsible purchasing, the new issue of the report also provides the latest review of APP-China’s sustainability performance since the launch of its upgraded Paper Contract with China 2011 Manifesto in this quarter. Gold Huasheng Paper acquired the Certification on Energy Management (GB/T23331-2009), becoming the first company in Suzhou and one of the first paper companies in China to receive this recognition.

APP-China is also committed to CEO Water Mandate initiative. In August 2011, APP-China and its 6 major mills in China together pledged commitment to UN CEO Water Mandate, including Gold East Paper, Hainan Jinhai Pulp & Paper, Ningbo Zhonghua Paper, Ningbo Asia Pulp & Paper, Gold Huasheng Paper and Gold Hongye Group. APP-China is one of the first pulp and paper manufacturers in China to commit to this mandate.

About the Paper Contract with China 2011 Manifesto

APP-China launched its upgraded Paper Contract with China manifesto in August 2011. Building upon its previous manifesto released in 2008, the updated version further outlines the company’s sustainable practice and future objectives, and meanwhile calls for the entire pulp and paper industry’s collective efforts in building a sustainable industry. The reinforced manifesto covers three key areas of APP-China including sustainable plantation development, cleaner production and corporate social responsibility, and set clear goals for water consumption/waste water discharge/COD emission for paper/pulp per ton.

APP-China invites all parties that share concerns for a balanced approach to paper manufacturing to share their thoughts with the company, as well as to visit its facilities and assess and supervise its operations. For more information, please visit http://www.papercontract.com.

About APP-China

Registered in Singapore in October 1994, Asia Pulp and Paper (APP) is one of the world’s leading pulp and paper companies and is ranked one of the largest vertically integrated pulp and paper producers in Asia. Since APP started investing in China in the early 1990s, it has over 20 pulp and paper mills in the form of subsidiaries or joint ventures, as well as forest plantations with a total area over 300,000 hectares. With over 38,900 employees, APP-China had a total production capability 8 million tons per year in 2010.

In June 2008, APP-China launched the Paper Contract with China manifesto, to showcase the company’s sustainable development strategy and its long-term commitments to China. By the end of 2010, APP-China had spent RMB 5.5 billion (USD 846 million) in environmental protection facilities and RMB 600 million (USD 92.3 million) in various charitable causes and community development projects across the country. For more information, please visit www.app.com.cn.

Contacts

APP-China

July Cheng, (86 21) 6335 2222 (ext.7538)

Fax: (86 21) 6335 1459

Julycheng@app.com.cn

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