Indonesian firm APP says green label restrictions are not a suspension, no timeline for them to be lifted

SINGAPORE: The temporary restriction on Asia Pulp and Paper's (APP) green certification is not a suspension, the Indonesian company said on Tuesday (Oct 20), a day after its certification was restricted by a non-profit environment organisation.

In response to CNA's queries, APP acknowledged the Singapore Environment Council's (SEC) notice on the use of its enhanced Singapore Green Labelling Scheme (SGLS+) certification in relation to three concession areas, or land that a company is allowed to use or develop.

"These restrictions do not constitute a suspension of APP’s SGLS+ certifications," said the company, which is behind paper product brands such as Paseo and Nice. 

SEC issued the restriction on Sunday after three of APP's wood-fibre suppliers were linked to fires in Indonesia that caused haze in Singapore. 

The three suppliers – PT Bumi Mekar Hijau, PT Bumi Andalas Permai and PT Sebangun Bumi Andalas Wood Industries – were also issued preventive measures notices by the National Environment Agency (NEA).

Asked if it has a timeline for meeting the requirements for the restriction to be lifted, APP said the notice requires daily reporting "until further notice" from the SEC.

From Wednesday, the company will be required to enhance monitoring and reporting on hotspot activity, fire-prevention measures, mitigation and suppression efforts and further actions being taken at the three concession areas.

The reports will provide the SEC with regular updates on the status and locations of hotspots, the measures implemented to prevent and contain fires, the progress of on-the-ground response efforts and actions planned to minimise the risk of recurrence.

"APP is working to fulfil these reporting requirements and will continue engaging with the relevant parties to support effective fire monitoring, prevention and response," the company said. 

The firm added that it takes SEC's concerns seriously and recognises the importance of strengthening oversight of fire prevention, preparedness and suppression measures.

"We remain committed to working constructively with SEC to address the concerns raised and to maintaining transparency and accountability across our operations and supply chain," said APP.

The company was previously linked to fires that led to severe haze in Singapore in 2015, and its products were pulled from shelves for around four years until it received certification from the SEC in 2019.

The three concessions currently linked to APP also received notices from the NEA in 2015.

SEC said that APP's certificate may be suspended if it fails to demonstrate that strengthened monitoring, fire prevention and suppression measures are implemented effectively.

"There is currently no specified timeline for the restrictions to be lifted. APP's immediate priority is to meet the reporting requirements, provide SEC with the necessary information and demonstrate progress in addressing the concerns raised," the company said.

APP added that it will work closely with the council and respond to further requirements as appropriate.

RETAILER MONITORING DEVELOPMENTS

FairPrice, which pulled APP products off supermarket shelves in 2015, said it is "closely monitoring developments". 

In response to CNA's queries, a FairPrice Group spokesperson said the company takes responsible sourcing seriously and expects its suppliers to comply with applicable environmental regulations.

"We are closely monitoring developments related to the regional haze situation and have proactively engaged relevant suppliers to seek clarification on reported concerns and the measures being taken to address them," the spokesperson said.

FairPrice Group added that it will continue to assess credible information, including findings from the relevant authorities, and review the next steps as appropriate.

CNA has also reached out to other major supermarkets and retailers regarding the sale of APP products in their stores.