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02

The year 2010 marked a significant year for the paper industry
in China. The Chinese paper industry, recovered from the global
financial crisis, continued to grow rapidly and steadily. In less than
two decades China has become the largest paper and packaging
board producer in the world as a result of the surge in production by
major domestic industry players. The opening up of the Chinese paper
sector has also led to the restructuring of the global paper industry,
bringing substantial investments from global giants in upgrading and
mergers with domestic paper producers. All the increasing production
capacity was realized in 2010. On the other hand, during this year the
European Union initiated anti-dumping and anti-subsidy investigations
while the U.S. began to levy both anti-dumping and anti-subsidy duties
on imports of coated fne paper from China. Rising domestic capacity
and drastic reduction in export to the U.S. and European markets
posed dual challenges to APP-China.

In the meantime, ferce global competition for raw materials, changes
in the Governments policy towards foreign investments, and
increasingly stringent environmental compliance and regulations has
led APP-China to face with key global issues.

In spite of these mounting pressures, APP-China, guided by
the companys sustainability pledge Paper Contract with China,
succeeded in achieving production volumes of 8 million tons and
an export volume of 1.64 million tons of paper and packaging board
products in 2010. This accounted for 8.6% of the national production
capacity and 37.9% of the total export volume of Chinas paper
industry*. APP-Chinas total assets amounted to RMB96.834 billion
(US$14.90 billion) with sales revenue of RMB37.915 billion (US$5.83
billion) and proft of RMB2.517 billion (US$0.39 billion). This years
outstanding achievement was made possible by APP-Chinas
management teams leadership in a rapidly changing market and
our 38,900 employees commitment to the corporate philosophy of
Challenging Limitations and Pursuing Excellence.

With a keen eye on the changing business environment, APP-China
acted quickly in tapping into new international markets by increasing
export volume as well as improving product quality and creating
added value for the needs of domestic customers. Spearheaded
by the strong Integration of Plantation-Pulp-Paper green business
model, APP-China has remained competitive in securing raw
materials by continuing to develop plantation sites and through
acquiring pulp mills in Asia.

For the corporate management, 2010 was a year of implementation
with a focus on efficiency. To further reduce our greenhouse gas
emissions and lower our overall environmental impact, APP-China
raised the bar on the efficient use of energy and water, power
generation and power plant effciency, and the recycling and reuse
of production waste and byproducts. This strategy was proven a
success, as evidenced by a strengthened competitive edge and a
reduction in production costs.

We are proud that APP-China has one of the lowest consumptions
of energy and water per unit of production in the paper industry,
both in China and the world at large. We have met the ambitious
environmental standards in the Yangtze River, Taihu Lake and
Hainan Island regions, which employ environmental standards more
stringent than the national standards. To further the sustainable
development of Chinas paper industry, APP-China continues to
share our industry-leading sustainability practices and management
expertise with our counterparts.

APP-China places strong emphasis on employee and community
development. In 2010, APP-China founded APP University and
developed a succession plan to identify and cultivate an innovative
management team with insights and competence. As a strong advocate
of corporate social responsibility, APP-China subscribes to the spirit
of harmonious and economic development by providing employment
opportunities and growth in the regions in which we operate. In addition
to acting quickly and effectively in contributing to disaster relief and
rehabilitation, APP-China has been investing in education and training
for the underprivileged, promoting environmental protection, protecting
cultural diversity, and supporting the Governments modernization of
agriculture and rural transformation. With the management team taking
the lead and translating words into actions, APP-China employees are
encouraged to take part in community services, and individual employees
community service hours are critical towards their career advancement.

In the light of intensified market competition, the integration of
strategies and resources is crucial to APP-Chinas sustainable
devel opment i n the next three to fi ve years. Thi s i ncl udes
consolidating resources from APP-Chinas various business units to
accelerate market responses, expanding into new markets through
market integration, consolidating financial resources to explore
alternative financing options and solidify the firms financial risk
management, and building a diversifed product mix with a focus on
creating high value added products to stimulate the industry value
chain. Given the global environmental changes and the National
Twelfth Five Year Plan, APP-China will look into product life cycle to
leverage our integrated plantation-pulp-paper model, and continue to
make improvements on the effcient use of resources and promote a
recycle economy with sustainable development.
Teguh Ganda Wijaya
Chairman & CEO
Sinar Mas and APP-China
Message from
the Chairman
* Information source: China Paper Year Book 2011, China Paper Association
Contents
Message from the Chairman
About This Report
Corporate Profle
Achievements and Awards
Corporate Governance
Organization Chart
Ethical Business Practices
Anti-corruption and anti-bribery
International trade compliance
Stakeholder Engagement
Stakeholder study
Matrix of stakeholder concerns and impacts
Stakeholder communications channels
Sustainable Development and Management
Sustainable Development and Management System
Sustainable Forest Plantation Development
Overview of APP-China Forestry
Forestry Operation Management
APP-China Forestry sustainable
development strategy
Management policies
Legal compliance
Environment, health and safety management
Supply chain management
Modern Science and Technology Approach
Utilization of forest plantation resources
High conservation value protection
Enrichment of forest plantation
composition, structure and diversity
Greener fertilizing programs
Impact assessment and monitoring
Building Harmony within Communities
Fire prevention and control
Illegal logging prevention
Building social cohesion, harmony and security
2
4
5
7
9
17
19
Sustainable Pulp and Paper Production
Overview
APP-China 2010 performance map of
sustainable plantation-pulp-paper integration
Green Procurement
Energy Saving and Resources/Emissions Reduction
Maximizing water utilization rates
Energy effciency
Waste management and reduction
Recollect and Recycle Paper
Corporate Responsibility
Responsible for Products
Product quality and safety management system
Eco-labeling and certifcation
Eco-friendly product design
Customer services
Customer satisfaction
Responsible for Employees
Overview of employees
Salary and welfare
Training and development
Occupational health and safety
Employee satisfaction
Responsible for Industry
Promote industry exchange
Take lead in industry development
Responsible for Community
Contributing to Society
Facts and Figures
Outlook of APP-China Sustainable Development for 2011
ISO26000 Performance Statement
Assurance Statement
GRI Index
Glossary
Feedback
29
43
57
58
59
61
63
67
68
04
This is the fifth Sustainability Report published by Asia Pulp &
Paper China (APP-China), and the frst to utilize both ISO 26000
and GRI 3.1. Through this report we aim to keep stakeholders
informed of our policies, management, actions and performance
in sustainable development, as part of our ongoing commitment
to society.
This report used all of the core and complementary indices of
the Sustainability Reporting Guidelines Version 3.1 (G3.1) of
the Global Reporting Initiative (GRI) with the application ranking
qualifed under level B+.
For the frst time, it adopted the ISO26000 Guidelines on Social
Responsibility launched in November 2010 by the International
Organization for Standardization (ISO). Based on the foundation
of the 2009 report, the Sustainability Report 2010 continues to
address key stakeholder concerns so as to re-work Message
from the Chairman, Corporate Profile, Corporate Governance,
Sustainable Development and Management and Stakeholder
Engagement etc.
Language: Chinese and English;
Period: January 1, 2010 December 31, 2010;
Frequency: Annually;
Last Reporting Period: November, 2010;
Assurance: APP-China commissioned SGS-CSTC Standards
Technical Service Co., Limited (SGS) to assure the
reliability, objectivity and transparency of this report.
Please refer to the Assurance Statement.
APP-China is committed to promoting and strengthening the
sustainable development of our business by keeping an open
dialogue with our stakeholders. We welcome your comments,
perspectives, and suggestions on our work.
Index Selection
In accordance with the GRI (G3.1), APP-China developed this
report based on the following indicators:

The analysis of the most relevant and important


sustainable development issues;

Stakeholder engagement;

Continuity with the previous reports.


In particular, this report placed emphasis on the first two
i ndi cat ors and i nt ends t o address and respond t o key
stakeholder concerns and their impacts on APP-China and our
stakeholders with a more simplifed approach.
APP-Chi na commi ssi oned Det Norske Veri tas (DNV) to
conduct an independent third party study on the perceptions,
expectations, and recommendations of APP-Chinas key
stakeholders. Improvement measures include but not limited
to redesign the written questionnaire, conduct the study
complimented with face-to face interviews, enlarge the sample
size and adopt a semi-quantitative analysis. All aims to
examining the key stakeholder concerns and communications
channels in a comprehensive manner to establish a benchmark
for effective stakeholder communications and cooperation
in the future. For more details, please refer to the section for
Stakeholder Engagement.
Scope of Report
The APP-China Sustainability Report 2010 includes Hainan
Gold Hongye Paper Co., Limited and Hainan Gold Shengpu
Paper Co., Limited for the frst time, and was expanded to cover
Gold Hongye Paper Group Co., Limited from the previous Gold
Hongye Paper (Suzhou Industrial Park) Co., Limited. The full list,
including APP-China Head Office, eight pulp and paper mills,
APP-China Forestry, and 5 forestry business sub-units, covers
the following entities:

APP-China Head Offce

Gold East Paper (Jiangsu) Co., Limited (Gold East Paper)

Hainan Jinhai Pulp & Paper Co., Limited (Hainan Jinhai Pulp & Paper)

Ningbo Zhonghua Paper Co., Limited (Ningbo Zhonghua)

Ningbo Asia Pulp & Paper Co., Limited (Ningbo Asia)



Gold Huasheng Paper (Suzhou Industrial Park) Co., Limited (Gold Huasheng)

Gold Hongye Paper Group Co., Limited (Suzhou Gold Hongye)

Hainan Gold Hongye Paper Co., Limited (Hainan Gold Hongye)

Hainan Gold Shengpu Paper Co., Limited (Hainan Gold Shengpu)

APP-China Forestry Business Unit Head Offce (APP-China Forestry)

Hainan, Guangdong, Guangxi, Yunnan and Henan Forestry business sub-units
Given the large scale, complex organizations and widespread
locations, APP-China intends to extend scope of the report to
cover more business operations in the future.
Data and Information Collection
APP-China adopted industry-recognized guidelines and criteria
in listing, measuring and disclosing the data. The report includes
historical reference with no effort spared to help stakeholders
evaluate the performance of our sustainable development.
Methodology for Data and Information Collection
Building upon the foundation of APP-China Sustainability Report
2009 and its methodology for data and information collection, the
standards, defnitions, formula, indicators and footnotes used in
the 2010 report are an adaptation of major industry guidelines,
including; the GRI (G3.1), the International Finance Corporation
(IFC) Guidelines for Environment, Health & Safety of Forest
Logging Operation and Papermaking Industry, regulations of
the national and local authorities where APP-Chinas different
business units operate in, as well as APP-Chinas best practices
in sustainable development.
Clarifcation on Collected Data and Information:
Due to a larger reporting scope in 2010, there may be variations
or areas where comparison with those of the 2008 and 2009
reports is not feasible. Some data in this report was collected
and included for the first time and therefore has no basis for
comparison. Information from Hainan Gold Hongye and Hainan
Gold Shengpu was collected and included for the frst time and
does not have any historical reference.
Part of the data presented in the sections of Message from the
Chairman, Corporate Profle, and Achievements and Awards is
the aggregate amount of all entities operating under APP-China
while in all other sections, data and information presented only
refer to specifc entities specifed in the scope of the report.
About This Report
05
APP-China is synonymous with Sinar Mas Paper (China)
Investment Co., Limited and the group of companies under the
direct investments in China. APP-China is a business entity of
Asia Pulp & Paper Co., Limited of Indonesian Sinar Mar. Sinar
Mas was founded by the renowned Chinese entrepreneur Mr.
Huang Yicong and which operates in four major industries
including pulp & paper, food & agriculture, fnancial services and
real estate & property development. The pulp & paper business
was registered as Asia Pulp and Paper (APP) in Singapore in
1994. Over the years APP has grown to be one of the top 10
global pulp and paper companies with a total asset of USD 20
billion and an annual production of 14 million tons.
APP-China began to invest in manufacturing sites in China since
1992 focusing primarily on the Yangtze and Pearl River Deltas.
In less than two decades, APP-China has established more than
20 pulp and paper mills in China with state-of-the-art technology
and equipment, as well as managing well-developed modern
and fast-growing plantation sites. Major mills include Gold East
Paper, Hainan Jinhai Pulp and Paper, Ningbo Zhonghua, Ningbo
Asia, Gold Huasheng and Gold Hongye.
Gold East Paper is the largest paper mill in China and one of the
worlds major art paper producers, while Ningbo Zhonghua and
Ningbo Asia are two of the largest industrial paper producers in
China today. Gold Huasheng is one of Chinas biggest diversifed
fne paper producers. Similarly when it comes to tissue grades
Gold Hongye is one of the top household paper makers in
China. Hainan Jinhai Pulp and Paper is one of the largest pulp
producers in China, and fnally Yalong Paper is on the premier
league when it comes to Chinese paper stationery producers.
By the end of 2010 APP-China was operating more than 20
pulp and paper mills as wholly-owned subsidiaries and holding
companies representing total assets of RMB 86.83 billion. Total
production volume from the mills achieved 8 million tons with
sales revenues exceeding RMB 37.9 billion. The full time work
force of APP-China by the end of 2010 totaled 38,900 personnel.
In line with sustainable development, APP-China is committed to
operations being that are in harmony with the environment and
social development. As a world-class integrated Plantation-Pulp-
Paper operator in the 21st century, APP-China is devoted to a
renewable economic model with more than 300,000 hectares of
forestry plantation.
In January 2010, APP-China was honored with the 2009
Multinational Corporation in China Contribution Award for its
Circular Plantation-Paper Business Model. In January 2010, at
the frst annual meeting of Low Carbon China Forum, APP-China
was awarded the International Enterprise Contribution to Low
Carbon in China Award. In December the same year APP-China
was the first paper-making enterprise in China to obtain the
China Environment Labeling (Type I) from the Environmental
Certifcation Center of the Ministry of Environmental Protection
for fve of the products manufactured by the six mills, Gold East
Paper, Hainan Jinhai Pulp and Paper, Ningbo Zhonghua, Ningbo
Asia, Gold Huasheng and Suzhou Gold Hongye.
By the end of 2010, APP-China had invested more than RMB 5.5
billion in sustainable and responsible papermaking and in turn
has gradually changed the perception of the paper industry as a
major source of pollution in China.
As a responsible corporate citizen, APP-China plays an active
role in supporting local communities and giving back to society
in line with government policies. By the end of 2010, APP-
China has cumulatively paid more than RMB 15 billion in taxes
in China, and made more than RMB 600 million in charitable
donations. In March 2010, APP-China was honored the first
Global Charity Award.
Through introducing state-of-the-art technologies and large-
scale production, APP-China has transformed the Chinese
paper industry into an innovative, modern and sustainable one.
APP-China will continue to strengthen our best practices in
sustainability and promoting the green cycle concept in order to
achieve a green papermaking industry that balances economic,
environmental and social benefts.
Total production volume (10,000 ton)
0
2008 2009
437.76
444.96
479.88
700.87
764.46
909.9
2010
400
500
100
200
300

311:
Total assets (RMB 100 million)
400
2008 2009 2010
1000
600
800
900
500
700
)*)1:!
21
19

,TNQJ*
Note: The data and information disclosed in the two charts refer to the sum of those entities specifed in the scope of report. Due to a larger scope of report
in 2010 and a different data collection system used in 2009 and 2010, there may be variations or areas where comparison with those in the previous reports
is not feasible.
Corporate Profle
06
Main products of APP-China
Mills / Biz units
APP-China Forestry
Hainan Jinhai Pulp and Paper
Gold East Paper and Gold
Huasheng
Ningbo Zhonghua and Ningbo Asia
Suzhou Gold Hongye, Hainan Gold
Hongye and Hainan Gold Shengpu
Main products
Wood
Wood pulp
Coated paper, one side label, offset
paper, light coated print paper,
photocopy paper, drawing used for
engineering, digital printing paper,
carbonless paper
White paperboard
Toilet paper, tissue paper, toilet
tissue, kitchen towel and wet tissue
Main brands
---
Dragon
Space Shuttle, Dongfan,
Shendun, Likede, Gold Ball,
Gold Butterfly
Jinbei
1
, Jinou
1
, Qiuzhang, Hanwei,
Gold Butterfly
1
, Yupai and Baiyu
Virjoy
2
, Breeze
2
, Zhenzhen
Product
Forest plantation
Pulp
Fine art paper
Industrial paper
Household paper
Paper
Note 1: Gold Butterfy C2S two side coated art board, Jinou C2S playing card board and Jinbei C1S coated duplex board are recognized with the
honor of Famous Product of Zhejiang province in 2010.
Note 2: Virjoy is recognized as Famous Brand of Jiangsu province; Breeze is Famous Brand and Famous Product of Jiangsu province and
Suzhou city.
APP-China emerged from the global financial crisis with
steady operations and ended the year 2010 with total sales
revenues of RMB37.9 billion
37.9
billion
In 2010 APP-China achieved a production capacity of 8
million tons to meet the rapid growth from the Chinese and
International markets.
8
million tons
With increasing production capacity, APP-China provides
stable employment and career development to more than
38,900 employees.
38,900
employees
By the end of 2010, APP-China had invested more than
RMB 5.5 billion in environmental protection.
5.5
billion
By year end 2010, APP- Chi na empl oyees have
accumulatively contributed more than 98,000 man-hours
towards voluntary service.
98,000
man-hours
APP-China continued to improve water-use efficiency for
both pulp and paper production. Wastewater discharge at
major paper mills in 2010 amounted to 7.28 tons per ton of
paper and 15.78 tons per ton of pulp for major pulp mills.
7.28
tons
15.78
tons
07
Achievements and Awards
The Shanghai World Expo Coordination Bureau awarded a Letter of Appreciation to Mr.
Teguh Ganda Wijaya, Chairman and CEO of APP-China in recognition of his contribution to
EXPO 2010 SHANGHAI.
APP-China was honored the 2010 Global Corporate Philanthropy Award from Global
Charity magazine which was supported by the China Soong Qing Ling Foundation, the Red
Cross Society of China and the Care for China Next Generation Working Committee.
APP-China was featured for the second consecutive year as one of the Top 100 CSR
Enterprises in China. At the second annual meeting of CSR Enterprises of China
organized jointly by the China Association of Enterprises with Foreign Investment (CAEFI),
China Foundation of Consumer Protection (CFCP), China Private Economy Research
Institute, and China Forum of Environmental Journalists (CFEJ), APP-China was honored
with the 2010 China Good Corporate Citizen Enterprise Award.
APP-Chinas Circular Forestry-Paper business model was honored with the 2010
Multinational Corporation in China Contribution Award presented by the China Enterprise
News and the CSR Research Center for Chinese Companies for the second consecutive year.
Peoples Daily Online awarded APP-China the 2010 Innovative Award for Top 10 Low-
carbon Technology & Product in China for the second consecutive year.
APP-China was awarded the 2010 Best Recruitment Management Award and 2010
100 Best Human Resource Management Company by 51Job.com in recognition of
the companys outstanding practices of recruitment management and human resource
development.
08
09
Since 1992, APP-China has been dedicated to reviving one of the greatest Chinese inventions papermaking. APP-
China is committed to transforming the industry into a modern and sustainable one through introducing state-of-the-art
technologies, large-scale production and cleaner production. To support Chinese governments advocate of plantation-
pulp-paper integration model, APP-China has spared no effort in building infrastructure of raw material supply and in
social responsibility and sustainable development in the communities where we operate.
Vision and Mission (Please refer to APP-China Sustainability Report 2009 p. 9-10 for more information):
The management strategy of APP-China in 2010 was to reinforce the integration and development of its upstream and
downstream industry chain. For the upstream, APP-China actively expanded the forest plantation and pulp production.
For the downstream, APP-China adopted more sophisticated processing to create value added product lines and
customized paper products with special functions.
Core concept: Plantation-Pulp-Paper integration green cycle
values:
1. Pursuin Exoellenoe
2. nterity
3. Leaoersnip
4. Ownersnip
5. Teamwork
Business Pnilosopny:
1. Pespeot to noivioual
2. nnovation ano
Development
3. Customer Satisaotion
4. Hinest Perormanoe
Vision: APP-China will continue to be the world's premier, fully integrated
green-cycle plantation-pulp-paper conglomerate.
Mission: Be sensitive to the environment; Preserve paper-making inven-
tions; Improve quality of life;
Corporate Governance
10
APP-Chi nas governance structure i s composed of the
Shareholders Meeting, Supervisor, the Board of Directors, and
four Management Committees. Shareholders are responsible
for major policies. The Board of Directors is the policy-making
body that reports to shareholders. APP-China doesnt set up the
Board of Supervisors. One Supervisor is instead commissioned
by the investment party. The General Manager is appointed by
and reports to the Board of Directors and is in charge of the
Governance Structure
Note: Suzhou Gold Hongye, Hainan Gold Hongye and Hainan Gold Shengpu are included in the Gold Hongye Paper Group Co., Ltd.
Anti-corruption and anti-bribery
In 2010, APP-China continued with its internal anti-corruption
and anti-bribery measures with special attention on sales,
procurement and logistics positions. APP-China introduced the
whistle blower program especially to supervise sales involved in
the supply chain whereby honest informers are duly rewarded.
All moves are to further combat commercial bribery to ensure a
clean and law-abiding business environment for all its business
transactions. APP-China maintained open communications
channels to handle criticism and complaints from customers and
employees, to consolidate fnancial and economic beneft audit,
and to constantly improve internal control and risk management.
APP-China has a strict business code of ethics for its employees
Ethical Business Practices
in business transactions. There is a set of explicit corporate
policies and punishment rules against paying or accepting
bribes, kickbacks or favorable treatments, including gift sets and
recreational activities with higher budget. By the end of 2010,
APP-China had never had any litigation resulting from bribery
and corruption.
Moreover, APP-China extends its business code of ethics of
anti-bribery and anti-corruption throughout the supply chain to
the contractor and supplier contracts.
International trade compliance
In recent years, a number of Chinese companies have been
management and daily operation and other affairs assigned
by the Board of Directors. The Chief Financial Officer (CFO)
is in charge of financial and accounting and shall submit both
reports to the General Manager and the Board of Directors. The
Board of Directors shall remove posts from the management
any time in the event it is guilty of serious delinquency and
disqualification, illegal or non-appropriate personal gains or
succumbing to malpractice.
Shareholders meeting
Board of Directors
Corporate Headquarters
Supervisor
Personnel Review Committee
Price Committee Management Committee
Forestry Pulp Industrial Paper Fine Art Paper
Decision-making Committee
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Household Paper
2010 APP-China Organization Chart
Paper Products Domestic Sales
11
APP-Chi na emphasi zes the expansi on of vari ous open
communications channels with our stakeholders. We believe in
engaging stakeholders for mutual understanding and long term
cooperation.
Stakeholder study
To keep abreast of the key concerns and expectations of
stakeholders, APP-China commissioned DNV Sustainability
Center as an independent third party to conduct a stakeholder
study.
The study covers a wi de range of stakehol ders wi th a
significant influence such as customers, banks, employees
(top management and different levels), industry associations,
contractors/suppliers, schools and local communities. All
respondents have had more than three years of working and
cooperation relationship with APP-China.
Compared with the study for APP-China Sustainability Report
Stakeholder Engagement
2009, four areas were improved this year:
- Questionnaire design
In line with AA1000 SES Stakeholder Engagement, GRI
3.1 and Corporate Responsibility Assessment (CRA), DNV
standards and the most relevant conditions of APP-China, the
questionnaire covers 15 issues under four impact areas, with
score ranking according to degree of concerns and performance
respectively.
- Methodology
The study was conducted by written questionnaire mainly with
complimentary use of phone or face-to-face interview. In 2009,
the stakeholder study was conducted solely by phone interviews
and quality of the conversation was somewhat compromised by
the interviewees speaking environment.
- Statistics and analysis
A semi-quantitative method was adopted to analyze and
imposed with anti-dumping (AD) and countervailing duties (CVD),
special tariffs imposed by importing countries. These measures
are having a significant impact on the Chinese coated paper
export business.
In September 2009, the U.S. Department of Commerce
(DOC) accepted the petition submitted by three American
paper manufactures (NewPage Corp., Sappi Fine Paper
North America, Appleton Coated Paper LLC) and the United
Steelworkers Union (USW). Their petition claimed that certain
coated paper manufactured by the Chinese and Indonesian
paper producers beneftted from government subsidies and were
selling certain coated paper at unreasonably low prices.
The DOC carried out its AD/CVD investigations for the coated
papers imported from China and Indonesia and announced the
results in September 2010. The DOC imposed the CVD tariffs
against Chinese enterprises with levies from 17.64% to 178.03%,
and 17.64% for APP-China, while the AD rate ranged from 7.60%
to 135.83%, and 7.6% for APP-China. In October 2010, the U.S.
International Trade Committee (ITC) found that these imports
were threatening the U.S. coated paper industry and determined
that the above-mentioned duties will be imposed on imports of
certain coated paper from China. APP-China disagreed with these
fndings, and has challenged them in U.S. court.
In l ate December 2009 and March 2010 the European
Commission (EC) accepted two petitions fled by the European
Association of Fine Paper Manufacturers (CEPIFINE), alleging
that imports of certain Coated Fine Paper products were
imported into the European Union at dumped and subsidized
prices respectively. The EC initiated both investigations
in February and April 2010 respectively. This is EUs first
countervailing duty investigation on imports from China. In
November 2010, the EC imposed provisional AD duties against
Chinese imported paper for a six month period at a rate as
high as 31.5% for most Chinese paper companies, and a lower
rate of 19.7% for APP-China. Final adjudication for this case is
expected in May 2011.
APP-China considers the decision and action by ITC and EC an
unfair treatment against the Chinese paper manufacturers. It is a
violation of the principle of fair competition in international trade
and imposes damage to the interests of the downstream sector
and the consumers.
APP-China is disappointed in the one-sided investigations
adopted in both cases. In the face of the challenges from
international trade protectionism, APP-China, on the one hand
responded to the allegations proactively and in a strong stance
on behalf of Chinese paper industries to attain a fair treatment.
On the other hand, APP-China adjusted its market strategy and
began to aggressively develop new markets to reduce the impacts
of AD and CVD. APP-China has unweaving commitments to our
customers and to offer high-quality products and services.
APP-China will continue to abide by the principle of fair
competition in international trade and do its utmost to resist
trade protectionism in any form to promote the sustainable
development of Chinese and global papermaking industry.
12
interpret stakeholders key concerns and areas for improvement
across the 15 issues. The fndings, presented in a matrix, were
used to assess the level of impacts on each issue for APP-China
and our stakeholders.
- Sampling size
Compared with the 2009 study, valid questionnaires for the
2010 study was increased from 25 to 116, and with coverage
expanded from APP-China headquarters only to include the
scope of the report. The wider coverage allows for a more
comprehensive evaluation.
Note: This study did not include the Huang Yicong Foundation
Key stakeholder concerns:
DNV carried out an analysis on the key stakeholder concerns.
This report aims to provide responses to those concerns
according to APP-Chinas current conditions and operations.
The level of stakeholder concerns and impacts are as depicted
in the matrix. The horizontal axis represents the impact of
the issue on APP-China and the vertical axis represents its
impact on the stakeholders. In the diagram, the size of the ball
represents the scale of the problem. According to the AA1000
Stakeholder Engagement Standard (AA1000 SES), when the
issues have higher impact on stakeholders and APP-China, the
level of concerns is also higher. Therefore, the closer the ball to
the upper right hand corner with a corresponding larger diameter
ball indicates higher level of stakeholder concerns of the said
issue.
Valid Questionnaires
Employees
Suppliers / Con-
tractors
Senior Executives
Customers
Others
15
74
10
7
10
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s
Impacts on APP-China
Low risks with
low level of concerns
High risks with
high level of concerns
Moderate risks with
moderate level
of concerns
Supplier & contractor
management
Labor relations
Society &
communities
Recruitment & retention
Business ethics
Human rights
Anti-
corruption
Diversity in
workforce
Working conditions
Products
Natural resources
Ecosystems
Climate
change
Market
Waste & emissions
Supplier & contractor management
Market
Labor relations
Society & communities
Recruitment & retention
Business ethics
Human rights
Anti-corruption
Ecosystems
Diversity in workforce
Working conditions
Products
Natural resources
Waste & emissions
Climate change
High
High Low
Matrix of stakeholder concerns and impacts
13
1.40
1.50
1.60
1.70
1.80
1.90
2.00
2.10
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2.2
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2.4
Internal
(stakeholders)
External
(stakeholders)


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2.4
Internal
(stakeholders)
External
(stakeholders)

1.8

2.8
2.2
3.0
2.0
2.6
2.4

Issues for Improvement in priority


Comparison between internal &
external stakeholders
(by issues)
Comparison between internal &
external stakeholders
(by areas of impacts)
The above chart revealed that the issues most needed to be improved pointed out by stakeholders are Recruitment & Retention and
Supplier & Contractor Management.
Comparison with key concerns between internal & external stakeholders: External stakeholders pay much more attention to
Business Ethics, Market and Supplier & Contractor Management. Among four impact areas, external stakeholders cared more
about Corporate Integrity & Business Ethics.
Key Findings
14
Communications channels with stakeholders
APP-Chi na empl oys an open communi cat i on wi t h key
stakeholders via various channels and platforms. (Please refer
to the table below).
In 2010, APP-China, in cooperation with APP Indonesia,
established an internal platform to offer a systematic training
curriculum on the issues of sustainability to appointed APP
employees for the first time. Trainers, teaching materials
and data base will be refined after collecting feedback. The
Environment and Sustainability Communications Coordinator
(ESCC) was recrui ted from more than 20 APP-Chi nas
mills, the Headquarters, and domestic and overseas trading
departments. The ESCC is equipped with the knowledge and
the best practices in sustainability and communications to
respond to potential stakeholder enquiries on environmental and
sustainability issues in a timely manner.

1.8
2.8
2.2
3.0
2.0
2.6
2.4
Senior
Executives
Non-executive
Employees

1.8
2.8
2.2
3.0
2.0
2.6
2.4
Senior
Executives
Non-executive
Employees

1.8

2.8
2.2
3.0
2.0
2.6
2.4


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This stakeholder study will become a benchmark against future studies for APP-China Sustainability Reports. More importantly, APP-
China will leverage the fndings to reinforce its engagement with stakeholders and strengthen further cooperation.
Comparison with key concerns between senior executives & non-executive employees: Both groups have divergent
views regarding Labor Relations, Supplier & Contractor Management. The biggest gap in areas of impacts lies in Society &
Communities. Apart from Market, and Products, non-executive employees hold higher expectation than those of senior executives
for all the other issues. The gap of expectation in areas of impacts comes from Environment; the biggest gap of issues is in Labor
Relations, and Society & Communities.
Comparison with key concerns between
senior executives & non-executive employees
(by issues)
Comparison with key concerns
between senior executives &
non-executive employees
(by areas of impacts)
15
Overview of Stakeholder Concerns and Communications Channels
Key concerns of stakeholders
-Waste and emissions (Waste management storage,
treatment, disposal and recycling; Discharge and
spillage to water, ground and air)
- Working conditions (Health & safety; Hours of work;
illegal employment)
- Recruitment and retention (Compensation and
benefits, including health insurance); Career develop-
ment, training
- Business Ethics (Competition practices; Lobby-
ing and political donations; Whistle-blowing;
Conflict of interests; Political concerns; Privacy)
- Products (Safety and quality, including positive
/negative impact on society; Management, includ-
ing post-consumer waste; Labeling of content and
other consumer information)
- Market (Customer relations; Marketing activities
and advertising; Pricing; Accessibility of products)
- Business Ethics (Competition practices; Lobby-
ing and political donations; Whistle-blowing;
Conflict of interests; Political concerns; Privacy)
- Anti-corruption (Fraud; Embezzlement; Bribery;
Connivance; Extortion)
Stakeholders
Employees
Customers
Industry
associations
Selected target audience
- Employees
- Customers
- Consumers
- Industry
associations
Communications Channels
- Labor union
- Employee social clubs and seminars
- Career development and promotion committee
- Environment & Sustainability Communications Coordinator (ESCC)
- Environmental inspector system
- Informal meetings (i.e., Starbuck time)
- Human Resources Live News Room
- Happy Work Happy Life series of activities
- Training (including training in sustainable development)
- Management rules of employee community service activities
- Company trips
- Charity programs
- Employee satisfaction survey
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
- Market research
- Customer visits
- Key account clubs
- Blue Sky customer service project
- Sinar Mas Printing Award
- Exhibitions
- Quality service teams
- Service hotline
- Regular exchanges
- Customer satisfaction survey
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
- Daily communication
- Exchange and fact-finding tour
- Industry forums/seminars
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
16
Key concerns of stakeholders
- Business Ethics (Competition practices;
Lobbying and political donations; Whistle-
blowing; Conflict of interests; Political concerns;
Privacy)
- Supplier and contractor management (supplier
/contractor management; localization in procurement)
- Waste and emissions (Waste management
storage, treatment, disposal and recycling;
Discharge and spillage to water, ground and air)
-Products (Safety and quality, including
positive/negative impact on society); Manage-
ment, including post-consumer waste; Labeling
of content and other consumer information)
- Ecosystems (Locations and scope of operations; Site closures,
remediation and rehabilitation; Biodiversity conservation)
- Natural resources (Acquisition and use of water,
protoplasm, wood, land, fossil fuels, minerals etc.)
- Products (Safety and quality, including positive / negative
impact on society); Management, including post-consumer
waste; Labeling of content and other consumer information)
- Society and communities (Job creation and promoting local
economic development; Maintain dialogue and transparency with
local stakeholders; Community investment)
- Waste and emissions (Waste management -
storage, treatment, disposal and recycling;
Discharge and spillage to water, ground and air)
- Ecosystems (Locations and scope of opera-
tions; Site closures, remediation and rehabilita-
tion; Biodiversity conservation )
Stakeholders
Partners
Third party
organizations
Communities
Selected target audience
- Banks
- Suppliers
- Contractors
- Non-government
Organization
(NGO)
- Academic research
institutions
- Schools
- Media
- Student groups
- Poverty-stricken
areas
- Local communities
where scope of report
operate in
Communications Channels
- Regular visits
- Operational reports
- Expert meetings
- Site visits and fact-finding tour
- Communications on industry and market update
- Q&As of special topics
- Tender and bidding meetings
- Supplier code of conduct
- Supplier/contractor contract
- Supplier/contractor trainings/ networking events/seminars/customer
exchange meetings /contractor & supplier mutual assessment/
contractor competition & related activities
- Daily communications
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
- Site visits
- Independent research
- Road shows and press conferences
- PCwC Paper Industry Sustainability Forum
- News releases/media coverage/Feature articles
- Special co-operation projects
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
- Harmonious community platform
- Scholarship
- Discussion meetings
- Suggestion box/ bulletin board
- Charity initiatives and community
services
- Local hiring
- Website/newsletters
- PCwC quarterly reports
- APP-China Sustainability Reports
Overview of Stakeholder Concerns and Communications Channels
Note: Key concerns of stakeholder are identifed in the stakeholder study 2010.
Sustainable Development and Management
S
u
s
t
a
i
n
a
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e

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a
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t
18
Strategic sustainable development is at the center of APP-Chinas corporate vision and mission (Please refer to APP-
China Sustainability Report 2009 p. 9-10 for more information).
APP-China is both an advocate and practitioner of its sustainability pledge, the Paper Contract with China (PCwC)
(Please refer to next paragraph). APP-China recognizes that a sustainable paper industry is attainable only by
managing the balance of increasing market demand, environmental concerns, the lack of resources and economic
growth, and is resolutely committed to being part of the solution.
The establishment of a sustainable development & management system
All but one of APP-Chinas pulp and paper mills is certified with
OSO14001 (the newly established mill, Hainan Gold Shengpu has
not yet obtained any certification). Ningbo Zhonghua was APP-
Chinas first paper mill in China to be certified with OSO14001. In
addition, twelve of APP-Chinas pulp and paper mills hold PEFC-CoC
certifcation. By the end of March 2009, six pulp and paper mills and
two forestry business sub-units had completed their carbon footprint
assessment. APP-China is the first pulp and paper company in
China to have a carbon footprint assessment covering the plantation-
pulp-paper industry chain.
In 2010, APP-China continued to reinforce its sustainable
management system for its mills and other business units. (Please
refer to APP-China Sustainability Report 2009 p.13-14). Building
upon the foundations set in 2009, the scope of report (except for the
newly established mill, Hainan Gold Shengpu, has not yet obtained
any certification), including six APP-China Forestry business
sub-units, has all qualified for recertification and periodic audit. A
summary of the actions is listed below:
Sustainable Development & Management System
APP-China applies MBOS in the sustainable development and
management system platform of product quality and human
resources with good performance. Taking example, APP-China Head
Office invites senior executives from around the organization to be
the conveners and to lead discussions on a wide range of topics
including manufacturing, SEIRI, operational management, power
plant, environmental protection, occupational health & safety, R&D,
quality control, customer service with marketing to join in 2011. Each
committee elects their own convener to hold four or five discussion
meetings throughout the year.
To drive all of APP-Chinas business units to break new ground, APP-
China recognized its top performers as a benchmark and set example
for all other operating units. In 2010, APP-China held 39 seminars
for nine functions. The outcome was a total benefit amounting to
RMB1.56 billion. Seven out of twelve-five inter-company mutual
cooperation projects achieved Olympic Goals with the contribution
amounting to RMB150 million.
ISO9001
periodic audit
periodic audit
periodic audit
periodic audit
periodic audit
recertification
not yet audited
recertification
ISO14001
recertification
periodic audit
recertification
periodic audit
periodic audit
preliminary review
not yet obtained certification
periodic audit
OHSAS18001
recertification
recertification
periodic audit
recertification
periodic audit
preliminary review
not yet obtained certification
recertification
PEFC-CoC
not yet audited
periodic audit
periodic audit
periodic audit
periodic audit
not yet obtained certification
not yet obtained certification
recertification
Gold East Paper
Gold Huasheng
Suzhou Gold Hongye
Ningbo Zhonghua
Ningno Asia
Hainan Gold Hongye
Haina Gold Shengpu
Hainan Jinhai Pulp & Paper
2010 APP-China certification status overview
Note: For further details on PEFC certifcation, please refer to p.33 Green Procurement of this report. As a pioneer in setting up an energy management system of APP-China,
Gold Huasheng was qualifed energy auditing in 2010 and targets to establish the system in 2011.
APP-Chinas commitments are to:

continuously seek to improve sustainable forest plantation, bio-diversity


and conservation protection practices in the areas where we operate.

contribute to the fght against global warming by implementing


measures throughout its business to conserve energy, reduce
emissions and enhances its capacity to further engage employees
to support the companys environmental initiatives.

continue APP-Chinas commitment to community empowerment


by promoting economic growth, creating job opportunities,
investing in infrastructure, and building schools and establishing
skills training workshops to educate and improve local populations
in areas where we operate.
The progress of APP-Chinas sustainable development and
PCwC commitments are reported on a quarterly basis on the
websites of APP-China and PCwC (http://www.app.com.cn/
english/promise/lscn/index.html; http://www.papercontract.com/)
APP-China invites all parties (including non-proft organizations,
media, government, research institutes, student groups and
other third-parties) that have similar concerns for a sustainable
approach to paper manufacturing, to share their thoughts
with us, visit our facilities and help assess and supervise our
operations.
Sustainable Forest Plantation Development
S
u
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t
a
i
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e

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o
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t

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l
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20
In line with the progress towards a green economy, APP-China is committed to pursue a balanced and environmentally
sound business model. Its integrated plantation-pulp-paper model is the right approach to transform a traditional
papermaking industry into a sustainably developed future.
The sustainable development of forest plantation lays the foundation for APP-Chinas plantation-pulp-paper integration.
In accordance with national legislation and forestry development policies, APP-China adopts a scientifc management
approach to develop forest plantation to meet the growing demands for timber and paper products and to alleviate
pressure on imported fber.
APP-China commenced tree planting projects in China in 1995.
By the end of 2010, APP-China Forestry has established 19
forestry companies, with a total of 303,893 hectares of rental
land (including 24,385 hectares non-timber resources utilization
area) for forest plantation development; collectively it manages
more than 13,000 forest plantation compartments distributed
across 9 Chinese provinces with over 390 million standing trees,
composing of Eucalyptus, Acacia, Poplar, Pinus, Casuarina and
other tree species.
The organization structure comprises of a forestry head offce,
5 regional management units and 2 nurseries. The forestry
operations are located in the provinces as shown in the map.
Overview of APP-China Forestry
APP-China Forestry operations
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21
At the end of 2010, APP-China Forestry employed a total of
1,912 direct and non-direct staff. Of the total number, 65% is
local, 11% is female and 20% is ethnic minorities and 97%
forms the members of the workers union. In 2010, APP-China
Forestry engaged over 950 contractors and suppliers for its
forestry activities contributed more than 95,000 job opportunities
amounting to 9 million working hours for local communities.
Forest plantation and commercial value forest

Forest Plantation: Forest plantation by defnition is man-made. According to the United Nation Food and Agriculture
Organization Report published in 2011 on the worlds forest status, the gross area of the worlds forest plantation is about
260 million hectares, accounting for about 7% of the worlds forest cover and 2% of global land area. It also provides more
than half of the global industrial timber requirement. The scales and types of forest plantation varies from small farm
forests to industrial forests and are spread from cold temperate zones to tropical zone countries.
According to the results of the Seventh National Forest Resource Inventory (2009) as published in the National Bulletin on
Chinas Land Afforestation Status for 2009, the area of Chinas forest plantation covers 62 million hectares, making it the
largest in the world. Of that land area, Eucalyptus forest plantation occupies about 2.6 million hectares.

Commercial Forest: In contrast to ecological forest, commercial forest aims to provide economic benefts in the form of
goods and services. According to the Environmental Protection Law of the People's Republic of China, the different types
of commercial value forest are defned as below:
Timber forests: Forests and trees that are used mainly for producing timber, including bamboo forests that are used
mainly for producing bamboo timber;
Economic forests: Forest trees that are used mainly for producing fruit, edible oil, beverage ingredients, condiments,
industrial raw material and medicinal materials;
Firewood forests: Forest trees that are mainly used for producing fuel wood.
22
APP-China Forestry is committed to supporting an integrated plantation-pulp-paper business model for a green cycle
economy. It will continue to foster sustainable forest plantation practices, adding value towards the direct and indirect
development of the environment, society, and economy and herewith endeavor to:
1) Abide by laws and regulations of China. These laws and regulations shall form the backbone concerning all legal
compliances for the forest plantation management system and practices to achieve sustainable development. APP-
China Forestry shall employ scientifc methods to develop forest plantation within approved areas while protecting the natural
forest in strict accordance with classifed forest management system formulated by the government.
2) Make the most of, and protect existing land and related resource. APP-China Forestry shall apply modern science
and high technology approach and adopts international best practices to meet the increasing demands for wood by the pulp
and paper industry of China.
3) Protect and preserve the ecosystem and its service functions. APP-China Forestry shall at all time monitor the impact
of its operational activities on the environment. An environmental management system covering the protection of natural
ecosystem, biological diversity, water, soil and air has been established and is reviewed regularly for continuous improvement
to minimize the ecological footprint in the course of forestry operations.
4) Strengthen supply chain management, raise corporate value and promote win-win situations. APP-China Forestry
shall work closely with contractors to form effective advocacy, education and empowerment programs to support business in
addressing quality, health, safety and environment concerns. In all the localities where APP-China Forestry operates, it aims
to upgrade multiple management efforts to create more job opportunities and indirectly contribute towards the local socio-
economic development.
5) Build on social cohesion, harmony and security. APP-China Forestry shall cooperate with industrial associations,
technology institutions and universities on scientific research & development to strengthen the sustainability of its forest
plantation. It shall build on social development through constant engagement with local communities to help improve and
solve industrial and social issues to achieve a win-win solution.
Forestry Operation Management
Management policies
On 15 July 2010, APP-China Forestry released its updated
Plantation Management Policy and Environmental Policy.
The two policies will be the guiding principles for which APP-
China Forestry will measure all its operating units against
for their environmental, social and economic performances.
Promotional campaigns were introduced to communicate the
policies to the staff and key stakeholders. Publicity materials
were placed at strategic locations in the offce areas, place of
work as well as key gathering places within the communities
to enhance awareness. A pocket guide was distributed to
stakeholders such as employees, contractors and their workers.
A total of 6,700 pocket guides and 452 posters were distributed
to reach out to its stakeholders.
APP-China Forestry sustainable development strategy
23
APP-China Forestry seeks to be a good corporate citizen
and ensures strict compliance with all the laws, rules and
regulations of China and international conventions applicable
for its operation in a responsible manner. APP-China Forestry
announces that it was not reported for any environment related
legal violations in 2010.
In 2010, APP-China Forestry revised its Regulations for
Forestry Contractor Management, with the aim to strengthen
the legal compliance of contractors undertaking forest plantation
contracts with APP-China Forestry. The new regulations
set obligatory operation guidelines for which contractors
performance was evaluated against; this includes abiding by
operation norms, complying with environmental management
standards, efforts in workers training, conforming to prescribed
forest plantation management, policies and so on. To enforce
environmental responsibility and resolving social issues in forest
plantation operations, new clauses on land use, soil/biodiversity
conservation, community dispute prevention, complaint handling
and meeting minute fling were added to contracts and followed
through during implementation.
Environment, health and safety management
To strengthen environmental performances through continuous
review and improvement of its environmental management
system, APP-China Forestry had in May and June 2010,
expanded its internal audit team, by training 26 new internal
auditors in Guangxi and Yunnan districts, who received over
189 hours of intensive training. Between June and July the
same year, APP-China Forestry subsidiaries conducted internal
audit and management review of its operations. In August, 6
forestry companies located in Hainan, Guangdong and Guangxi
Provinces underwent third-party ISO 14001 certifcate renewal
audits on their environmental management systems and
succeeded in receiving their certifcates.
2008 - 2010 APP-China Forestry water and energy consumption
2008
34,630
3,663.60
348.02
2,330
2009
125,005
1
11,641
400.85
1,420
2010
73,429
2
1,367.90
371.90
1,640
Water consumption (ton)
Gasoline (GJ)
Diesel (GJ)
Electricity purchased (MWh)
2008 - 2010 APP-China Forestry chemical usage
2008
483.35
2.71
1.35
91,117.13
2009
84.14
0.21
0.42
29,523.31
2010
183.57
3
0.28
3
8.47
3
26,539.64
Unit (ton)
Herbicide
Fungicide
Pesticide
Chemical fertilizer
Note 1. In 2009, the demand for seedlings increased signifcantly; thus extending the nursing time and increased irrigation water usage.
Note 2. In 2010, water usage decreased due to improved production method in the nurseries.
Note 3, Forest plantation pickup after the economic crisis, thus, correspondingly increase demand for nursery stocks and chemicals usage.
With a recovery of the economy, APP-China Forestry operational
activities increased significantly, in turn triggering a potential
surge in work place incidents in 2010, calling for a stronger
emphasis in occupational health and safety awareness. In 2010
APP-China Forestry utilized a total of 1,770 hours to train 475
employees on occupational health and safety. It also provided
3,702 hours of health and safety awareness training program to
contractors and their workers totaling 10,245 persons. In 2010,
20 work related accidents were reported compared to 8 work
related injuries for 2009 and 15 for 2008. The industrial accident
for 2010 resulted in 6,786.5 lost hours per million working hours,
a new issue and challenge that demand APP-China Forestry
attention to review its systems and strengthen new contractors
occupational health and safety training to make improvement in
2011.
2008 - 2010 APP-China Forestry water and energy consumption
2008
34,630
3,663.60
348.02
2,330
2009
125,005
1
11,641
400.85
1,420
2010
73,429
2
1,367.90
371.90
1,640
Water consumption (ton)
Gasoline (GJ)
Diesel (GJ)
Electricity purchased (MWh)
2008 - 2010 APP-China Forestry chemical usage
2008
483.35
2.71
1.35
91,117.13
2009
84.14
0.21
0.42
29,523.31
2010
183.57
3
0.28
3
8.47
3
26,539.64
Unit (ton)
Herbicide
Fungicide
Pesticide
Chemical fertilizer
Legal compliance
24
Supply chain management - Involving contractors in
exploring new management approach
APP-China Forestry acknowledges that forest operation
contractors play an important role within the supply chain to
provide raw material feed stock to the pulp mills. In 2010, APP-
China Forestry actively worked on an overall solutions under
the principle of the TMS
3
spirit together with its 3P concept to
establish the Harvesting, Plantation Integrated Package (HPIP)
Program hereby contractors will be responsible for the whole
forest plantation management cycle including tree planting,
tending and forest plantation protection.
In 2010, APP-Chi na Forestry i nsti tuted qual i ty control ,
environment, health and safety training programs for its
contractors and their workers. The scope of the training includes
operational guidelines to set up buffer zones, identifcation and
protection of fora and fauna, work safety procedures, chemical
use safety and its safe disposals, emergency management,
hygiene keeping in living and site areas, fire prevention and
firefighting, maintenance of harvesting equipment and proper
handling of any hazardous materials.
In 2010, APP-Chi na Forestry conti nued wi th advanci ng
environmental, health and safety performances, adopting
modern management systems and technologies in enhancing
the sustainability of its forest plantation operations:
1) In 2010, APP-China Forestry upgraded its management
in activating the SAP system to all its regional operations. 20
sessions of related technical trainings were conducted for 447
employees so as to facilitate all the deliverables;
2) To reinforce the chain of custody (CoC) management, APP-
China Forestry rolled out several enhancement projects, such
as an improved Wood transport tracking and control system,
SkyView project and so forth, to increase the efficiency of
monitoring forest plantation sites, tracking of wood extraction
and transportation and shorten transport routes. With the
optimization of transport route, transportation cost is expected to
reduce by 5% and simultaneously increase effciency, reducing
energy consumption and emissions;
3) In facing APP-China Forestrys vastly distributed and
fragmented forest plantation compartments, and tracking site-
based foresters due diligence conduct and routine patrol of
the forest plantation assigned under their care, APP-China
introduced a real-time Location Based Service (LBS) system to
track and record individual site status monitoring and foresters
performances to guardian forest resources and wood safety;
4) To improve contractor capability, on-time delivery, higher
effciency, quality output, cost reduction and so forth, APP-China
Forestry worked closely with contractors on opportunities in
bundled forestry operation contracts, coupled with quality checks
and contractors review system to strengthen its existing system
for better consistency in services delivery;
5) For the mechanization, more efforts were put into improving
the quality and efficiency of harvesting, debarking and log
handling operations, reduce labor intensity and logging wastage,
ensure forest plantation wood are not left in the harvesting area
over extended period and exposing to wood possible theft;
6) A trial run with the yarder system in 2010 with encouraging
results, there were savings in road construction with reduced
manpower and repeated usage. Other mechanical methods
adopting a combination of logging machinery with small excavators
also demonstrated positive outcome of higher productivity.
Sustainable forest plantation management training
In 2010, APP-China Forestry received an invitation from the
State Forestry Administration (SFA) to co-organize The first
SFA forest certification auditors training course together with
the Science and Technology Development Center under State
Forestry Bureau, Talent Development and Exchange Center
and Zhonglin Tianhe (Beijing) Forest Certification Center, in
Haikou city, Hainan povince, from April 10 to April 25. APP-
China Forestry is responsible to provide its Hainans operation
and forest plantation for the audit training against Forest
Management (FM) and Chain of Custody (CoC) certification
standards. More than 40 participants from SFA nation-wide
subsidiary units attended the training.
In June 2010, APP-China Forestry launches a sustainable forest
management (SFM) training program for all its employees in
Hainan, Guangdong and Guangxi regions to promote awareness
and better drive its sustainable forest plantation development.
Note 1. TMS means Total MBOS Solution, an upgraded version of MBOS.
Note 2. 3P is the abbreviation of the Peer Review Team (PRT), Plantation Assessment Team (PAT) and Plantation Inventory Team (PIT) (Please refer to p. 27 of APP-China
Sustainability Report 2009). PRT is for quality review and corrective actions of each plantation process. PAT evaluates the survival rate and growth of 3-, 6- and 12-month old
forest plantations. PIT indicates Mean Annual Increment (MAI) monitoring and corrective actions for tree stands that are two to six-month old.
25
Eucalyptus Trees and Eucalyptus Forest Plantation
In March 2010, an article titled More than 30 Million Mu (equivalent to 2 million hectares) of Eucalyptus Plantations in Yunnan
exacerbate ecological catastrophe of the century, was widely circulated on the internet. It claimed that the continuous droughts
in Yunnan and Guangxi provinces were due to the planting of Eucalyptus trees. The argument on the cause of the drought then
shifted to the destruction of forest resources to plant Eucalyptus trees in various regions. The past controversy surrounding
Eucalyptus trees was rekindled. Local rumors that Eucalyptus plantation will prevent under storey vegetation growth and hence
lack of habitat for fauna, Eucalyptus trees will exhaust water and nutrients resources resurfaced again.
The State Council instructed the SFA and China Meteorological Administration (CMA) to organize a panel of experts specializing
in forestry, meteorology and ecology to conduct an investigation on the causes of extraordinary droughts in southwest China
and the effects of Eucalyptus plantation on the drought. The site study was carried out in the severe drought areas of Yunnan,
Guizhou and Guangxi provinces from April 7 to April 10, 2010. The SFA and CMA jointly sent a team of experts to survey the
severely drought affected areas in Yunnan and collect data on the Eucalyptus trees. Journalists from China Green Times
accompanied the team to conduct interviews along the way. The fndings were reported on the front page of China Green Times
on June 3
rd
under the headline titled, Speaking up on behalf of the Demonized Eucalyptus Trees, which explained that the
climate was affected by global ocean current, cyclone and monsoon and the severe drought in Southwestern China was caused
by the abnormal atmospheric circulation. Forests can only act as very minor buffer to the climatic change and may at maximum
improve microclimate; can hardly affect the global climate or the climate at large scale.
The fast growing Eucalyptus trees contribute positively towards stocking the commodity forest. The fast growing rate gives the
misconception that it could extract more water and nutrients from the land. In fact, the amount of water and nutrients taken up by
Eucalyptus trees is similar to any other living tree. When Eucalyptus trees are planted on barren and degraded lands, the positive
effect outweighs the negative one. In the south region of China where the precipitation is above 1,500mm, the negative impact is very
minor. There are about 2.6 million hectares of Eucalyptus plantations in China. Eucalyptus forest plantation in general also reduces
pressure on natural virgin forest. It is interesting to note that the biological diversity in Eucalyptus forest plantation is higher than that
found in forest plantation of other tree species, namely the Pinus, Acacia and Cunninghamia.
The Eucalyptus forest plantation of APP-China is distributed in the southern region of China with adequate rainfall. The land
available to APP-China Forestry to establish Eucalyptus forest plantation is normally degraded lands and in region of sandy soil
of low agricultural productivity.
The forest plantations are established to serve a similar
purpose as is widely accepted in agricultural production, to
create a crop of trees as a means to accommodate the needs
and development of the human beings. The adoption of a
scientifcally sound approach of forest plantation management
will prevent land degradation and allows the sustainable use
of land. APP-China Forestry is always on the lookout for better
practices to manage its forest plantation, seeking to enhance the
quality of the land at the same time promote the productivity of
forest plantation and implement measures to protect the health
and vitality of ecosystems.
The operation of forest plantation is similar to that of food crop
production:
Modern Science and Technology Approach
Plant-Stock Production

Plantation Operations & Activities Overview

REJECT

ACCEPT
Land Acquisition Process
Planning Process Plantation Operation Procedures
Plantation Operation Procedures

Management Plan

Planting

Tending

Protection

Montoring & Audits

Harvesting

Coppicing/Replanting

Land owners engagement

Pre-acquisition Land Audit


Evaluation & Approval

Land-Use Contract signing


Plantation Operations &
Activities Overview
Land owners engagement
Pre-acquisition Land Audit
REJECT
ACCEPT
Land Acquisition Process
Evaluation & Approval Land-Use Contract
Signing
Plant-Stock Production
Planning Process
Management Plan
Planting Tending
Protection Montoring & Audits
Harvesting Coppicing/Replanting
26
Biological diversity in forest plantation
When compared to natural forest, forest plantations are potentially weaker in their ecological composition. The forest plantations
industry faced challenges of monoculture, negative soil impacts, threat of forest fre from human intervention, pests and diseases
susceptibility, and so on. From another perspective, a properly managed forest plantation is an ecosystem on its own with its share
of ecological contributions in terms of services and functions. The establishment of forest plantation to some degree may reduce the
general pressure on logging of natural forest.
During the second half of the 20
th
century, the concept of tree crops appeared in the forestry industry. Tree crops can be equated
with agricultural crops. The objective of tree farm resembles agricultural activities. The common denominator is the limited selection of
species, intensive cultivation and high yield. The major objective of a tree farm is to have the highest yield in timbers with the highest
quality, which is just the same with hybrid rice and corn for which high yield and nutrition are important. If we treat trees the same
as rice and corn, which can provide different products to meet different needs, why should we be steadfast on the notion that forest
plantation must contain wide biological diversity? It is by establishing forest plantations to meet the increasing needs of the human
being that natural forest, with the biological diversity and biological functions of natural biological system, can exist undisturbed.
APP-China Forestry conducts ongoing scientific research and
development on new tree hybrids to improve the productivity
of forest plantations. Other studies include ecosystem and
biodiversity conservation measures which form an integral part
of the forest management policy towards achieving sustainable
development.
Utilization of forest plantation resources
Wood i s a renewabl e resource. A wel l managed forest
plantation should also be effective in biological regeneration
and recycling. As long as the cycle of the regenerative system
is capitalized upon, it can make major contributions towards the
environment and the economy. APP-China Forestry attaches
great importance to forest plantation land management and the
utilizing of by-products generated during the wood production.
During the harvesting operations, logs are extracted leaving
behind the debris in the form of dried leaves, branches and bark
which are then allowed to decompose to increase the organic
matter in soil for the next tree growing cycle, functioning as a
topsoil preservation cover in reducing topsoil loss from erosion,
retaining soil moisture, creating micro-habitats for soil organisms
and so on.
High conservation value protection
All natural habitats possess some inherent values. These would
include the presence of rare or endemic species, water origins,
sacred sites or historical relics. High Conservation Value (HCV)
areas, by definition, are areas where these valuables exist.
They could be considered to be of outstanding signifcance or of
critical importance.
By the end of 2010, APP-China Forestry set aside more than
22,000 hectares amounting to 7.4% of the total area of its
forest plantation as HCV areas. The HCV found in these forest
plantation areas consists of historical and religious sites, cultural
relics, community graves, forest plantation land boundaries,
buffer zone, riparian zone, wildlife corridor, mountain top, steep
mountain slopes and gullies.
For HCV conservation, APP-China Forestry had in 2010
conducted surveys and updates its forest plantation buffer zones
maps for the main operational areas in Hainan, Guangdong and
Guangxi province. To enforce protection of rare, threatened
and endangered (RTE) species, RTE identifcation, monitoring,
recording and protection trainings were conducted for its staff
and site operators. RTE distribution maps were distributed for
better protection measure implementation.
Enrichment of forest plantation composition,
structure and diversity
To improve on the diversity structure and composition of
its forest plantation, APP-China Forestry shall endeavor its
continuous effort in development of better sustainable forest
plantation models; this includes the research and development
on suitable indigenous tree species for pulp and paper industrial
use, mixed tree species forest plantation, agro forestry, etc.

APP-China Forestry propagated numerous indigenous
tree species under the scientifc research project to study their
potential as a high-yield species for commercial forest plantation
development. It will continue to monitor the result and analyze
their suitability as single species or mixed with Eucalyptus
species in the forest plantation.

In the Henan region, APP-China Forestry continues to
cooperate with the local communities on various agro forestry
programs, allowing farmers to intercrop and keep livestock
within its poplar forest plantations. The program utilizes a total of
1,614ha (hectares) comprises of 282ha for livestock breeding,
1,016ha for the agricultural produces, 145ha for traditional
Chinese medicinal herbs growing and 171ha tea-crop planting.
The program not only benefts the company environmentally and
socially, it also enhances forest plantation tending quality, and
contributes to reducte tending costs by RMB1 per hectare.
Greener fertilizing programs
In 2010, APP-China Forestry continued to reduce the use of
chemicals in the forest plantation operations. Since 2009, APP-
China Forestry started to promote various greener fertilizing
programs to increase soil fertility to maximize the productivity
of its forest plantation. They included the promotion of organic
fertilizers, composite fertilizers and intercrop of green manure.
By the end of 2010, the total area where the three different types
of fertilizers were trialed covered 3,054.95 ha, 2.63 ha and 7 ha
respectively.
27
APP-China Forestry promotes mixed organic-inorganic compound fertilizer in its Guangdong forest plantation
As part of its greener fertilizing program, APP-China Forestry had in 2010 set up 36 fertilizing trial plots, totaling 633 hectares in
its Guangdong forest plantation to test its new organic-inorganic compound fertilizer formulas. To follow through, it will in 2011
promote and monitor the effect of the organic-inorganic compound fertilizer on the health and growth. At the same time APP-
China Forestry planned to include part of the trial plots in its newly commissioned third party environmental monitoring program
from 2011.
Pests, diseases and alien invasive species prevention
In 2010, APP-China Forestry continued to strengthen its system in
tracking, prevention and eradication of forest plantation pests and
diseases. All foresters are equipped with the necessary skills to
recognize early signs of impending threat from pests and diseases,
and in the case where eradication is applicable, the optimum
and more environmentally friendly method will be selected.
APP-China Forestry had issued up-to-date instructions to all its
operators to avoid using any chemicals listed under the WHO1A
and 1B type chemicals list and only select eco-friendly chemicals
with low toxicity to prevent collateral damages to the ecosystem.
Hopefully this will help avoid pests and diseases mutate into more
chemical resistant strains. In the protection of biodiversity and
mitigation of alien invasive species, it has set up procedures and
guideline to manage its nursery and forest plantation operation
in the importance of planting materials for propagation and the
introduction of biological control agent for pest eradication. On
the ground, APP-China Forestry staff are kept posted of any new
alien invasive species that surface in China, according to the report
issued by the Ministry of Environmental Protection.
In 2010, the total area of forest plantation recorded for pests
and diseases infection was 459.23 hectares and the total area
of fully recovered after treatment was 458.54 hectares, with the
rest still at recovering state, under close surveillance.
Impact assessment and monitoring
APP-China Forestry attached emphasis on the implementation,
continuous improvement and supervision of the environment
and social management plan. It also conducted regular impact
assessment and monitoring of the progress throughout 2010 to
provide a scientifc basis for management decision-making.

Impact assessment: APP-China Forestry business
subunits in Hainan, Guangdong and Guangxi completed
compilation of the Work Instruction Manual to Conduct Social
Impact Assessment in October 2010. In conjunction with the
existing environmental impact assessment guide, they began to
conduct the environmental and social impact survey among the
staff, villagers, village committee, rural laborers, contractors and
government offcials in November and December. The fndings
will be ready by the beginning of 2011 to provide a reference
for the improvement of APP-China Forestry management and
corporate social responsibility.

Monitoring programs:
Third-party monitoring programs: APP-China Forestry has
commissioned third parties to conduct ecosystem impact monitoring
of its forest plantation activities. In Hainan, it partnered with the
Chinese Academy of Forestry; in Guangxi, the Forest College of
Guangxi University and in Yunnan the Chinese Academy of Forestry
Southwest Ecological Centre. The monitoring covers resource
productivity, biological diversity, soil fertility, hill slope hydrology, surface
and underground hydrology quality, pests and diseases, carbon
sequestration and the aesthetic value of forestry landscaping. At the
end of 2010, APP-China Forestry approach Guangdong Academy
of Forestry to negotiate a new ecosystem monitoring program for its
forest plantation to commence in early 2011.
In-house monitoring programs: To improve the operations
management, APP-China Forestry carries out internal monitoring
and checks at regular intervals. Site personnel was trained to
watch out for abnormal conditions, monitor and track forest
resources inventory, pests and diseases monitoring, and conduct
environmental impact surveys. All its subunits expected to produce
a quarterly environmental performance evaluation report to be used
for continuous improvement, information and knowledge sharing and
supporting materials for decision making.
28
Building Harmony within Communities
In the process of scientifc development of its forest plantation,
ensuring continuous improvement and minimizing negative
ecological impacts, APP-China Forestry also strives to identify
and manage environmental risks, as an effort to reduce social
impacts and promote harmonious relationship with local
communities where it operates.
Fire prevention and control
In 2010, due to severe drought, numerous forest plantation
of APP-China Forestry faced high fire risks. In October of the
same year, 93 out of 109 counties, districts and cities in Guangxi
province were affected by drought of varying degree.
The national forest fire protection headquarters placed the
drought area of Hunan, Guangdong and Guangxi province
under high alert on November 2 and 19. In the face of the
severe challenges, APP-China Forestry took the initiative to
support government efforts in intensifying forest fre protection
and firefighting drill and training. Within the forest plantation
area, APP-China Forestry engaged the local communities to
undertake fire prevention measures. To co-operate with the
government, the company staff and local communities took
preemptive actions, the area impacted by fire in 2010 was
reduced by 49% than that of the 2009 fgure.
Illegal logging prevention
In managing issues of illegal logging, APP-China Forestry
continued to working closely with the local government and
local community arbitration coordinators on mitigation of illegal
activities in its forest plantation. APP-China Forestry has put
in place an illegal logging control mechanism which includes
joining forces with the local governments and the communities
to control and prevent pilferage. In Hainan province, APP-
China solicited the support from the local police to organize a
forest protection security team. In areas such as Danzhou City,
more members are recruited for the team. In 2011, APP-China
Forestry plans to introduce the fre protection security team in
central and southeast Hainan. In Guangxi, APP-China Forestry
is in discussion with the municipal, county governments and
Forestry Administration to introduce forest protection security
networks in 70 counties and districts.
Building social cohesion, harmony and security
To further enhance the harmonious relationship network,
APP-China Forestry had in 2010 formed a team dedicated
to community engagement and relationship building with the
villages, towns, counties and provinces where it operates.
The team members represent APP-China Forestry to promote
its plantation management and environmental policies, raise
awareness on fre and illegal logging prevention, as well as work
closely with influential local stakeholders, such as villagers,
village cadres, township party committee, and local government,
the chief of police and forestry stations on local affairs. Other
functions include monitoring forest land rental payment and
the forest protection coordination. In 2010 APP-China Forestry,
through the effort in fghting drought, relief work and providing
relief aid to the needy in turn contributed to the development of
surrounding communities.
In 2010, APP-China Forestry furthered its environmental
management syst em, maki ng ecosyst em conservat i on
an integral part of its new environmental and plantation
management policies, for better enforcement in its daily
operations, reinforcing building harmony within communities with
the revisions of related policies and contracts and so on.
Aligned with development trends, APP-China Forestry will
continue to invest more resources to drive its environmental and
social performance, providing the company a stable and secure
conditions for sustainable development.
Legal compliance &
working with the
government
Strengthen community
communications &
improve harmonious
relations
Community care &
support
Campaigns &
communications activities
Cooperate with
research institutions &
actively improve
industry development
Improve & promote
stakeholder engagement
Contractors
Capacity building
Environmental risk management &
community security
fire
prevention
& control
pest & disease
prevention
illegal logging
prevention
frost, flood &
wind damage
Building harmony
within communities
Sustainable Pulp and Paper Production
30
S
u
s
t
a
i
n
a
b
l
e

P
u
l
p

a
n
d

P
a
p
e
r

P
r
o
d
u
c
t
i
o
n
In 2010, APP-China adhered to its PCwC commitment and the
principle of Reuse, Reduce and Recycle, actively pursuing
energy conservation and emissions reduction throughout
the product life cycle ( Please refer to the APP-China 2010
Performance Map of Sustai nabl e Pl antati on-Pul p-Paper
Integration to take a snapshot of its raw material input, product
output, emissions and waste management.).
In paper production operation, the raw materials are pulp, water,
energy and chemicals etc. Energy in the form of electricity
and steam are also required and reused in the manufacturing
process. APP-China practices strict procurement policies and
vendor appraisal procedures for its continuous improvements of
fber and wood chip sourcing. This is to ensure that APP-China
prohibits the use of raw materials obtained from the destruction
of high conservation value forest and minimizes its impact on the
environment. APP-China continuously advances the technology
to constantly reduce the consumptions of water, energy and
chemicals and lower per unit of emissions and waste output. With
its relentless efforts in the use of recycled paper from urban waste
paper and production by-products, in 2010, the ratio of recycled
pulp of Ningbo Zhonghua and Ningbo Asia accounted for 33%
and 50% of the production, which not only saves lots of natural
resources, i.e., wood, pulp and coal but also reduces waste.
In 2010, APP-Chinas annual output of paper was 4.8 million
tons and pulp, 1,216 million tons, for the operations within
the scope of this report. In addition to producing pulp and
paper, APP-China also makes the most of its power plants to
provide additional capacity of electricity and stream for local
communities and many enterprises to optimize the utilization
Chinas paper industry faces complex challenges of increasing paper demand and environmental and resource
constraints. During the National Twelfth Five Year Plan, more stringent regulations on energy saving and emissions
reduction will be rolled out to raise the bar for the whole industry to improve its cleaner production.
As one of the worlds leading pulp and paper producers, APP-China continues to advocate circular economy, to
maximize economic output and to reduce resources consumption from the product life cycle perspective. In this regard,
APP-China promotes the sustainability concept to the whole industry chain from environmental certification, green
procurement, reclaimed water, fnished products to recollection and reuse of waste paper, the goal is to build a low-
carbon emission, environmentally friendly and sustainable paper-making industry.
Overview
rate of equipment and energy.
In line with safe treatment of waste management, APP-China
spares no efforts to convert waste into resources, which results
in renewable economic model and lower per unit of discharge.
Major mills under APP-China introduced white water filtering
treatment, incineration of solid waste and recollection facilities
of alkali recovery systems. For instance, the alkali recovery
system recycles most of the alkali and heat generated in the
manufacturing process. The reclaimed water is reused and
turned into raw materials for the production process. Sludge
and waste dregs and grit are incinerated to generate electricity.
Other processes can absorb CO2 to produce Calcium Carbonate
for paper making. All of the actions taken combine to balance
environmental accountability and economic performance.
APP-Chi na conti nuousl y devel ops i ts green sol uti on to
perfect the environmental management system and advance
sustainable development, including setting up a three-level
network in wastewater and energy saving, an environmental
inspector system and an energy auditing system. By the end
of 2010, the major pulp and paper mills under APP-China are
ISO14001 certified for its environmental management system,
except for Hainan Gold Hongye and Hainan Gold Shengpu
(Hainan Gold Hongye was under preliminary review in October,
2010. As a newly-built mill, Hainan Gold Shengpu has not yet
obtained certification). APP-China endeavors to improve its
cleaner production and performance management. Future
achievements include heat collection which will create another
extension of the effective management of wastewater and
emissions to air in 2010.
APP-China 2010 Performance Map of Sustainable Plantation-Pulp-Paper Integration
APP-managed & jointly-
managed forest plantation
478,643 m
3
, 10.33%
Transported to the pulp mill Pulp & paper production
indicates Input
indicates Output
indicates Energy
indicates Raw materials i.e., forest plantation wood & pulp
indicates Water
344,386
28%
APP-China (air dried ton)
For sale (air dried ton)
872,284
72%
1,512,485
37%
2,585,415
63%
379.76
79.14%
38.1
7.94%
62.02
12.92%
clean condensate water
8,00010,000 tons/day
Light black liquor
White liquor
Absorb CO2 to
make Calcium
Carbonate
R
e
c
i
r
c
u
l
a
t
i
o
n
w
i
t
h
i
n

t
h
e

p
r
o
c
e
s
s
R
e
c
i
r
c
u
l
a
t
i
o
n

o
u
t
s
i
d
e

t
h
e

p
r
o
c
e
s
s
Reclaimed water
reuse rate 20%
Steam
Operation units in the pulp mill
Electricity and Steam
Incineration utilization
volume 275,129 tons
Incineration utilization
volume 10,275 tons
Collect
& resue
Long circulation of white water
Short circulation
of white water
white water
6.3 tons/air dried ton
Sustainable forest
plantation management
Alkali recovery
system
Procurement of forest plantation
wood & forest plantation wood chips
4,154,802 tons, 89.67%
Water consumption
77,175,173 tons
Coal 672,628,191 GJ
Gasoline 268,102 GJ
Diesel 3,585,354 GJ
Fuel oil 7,548,686 GJ
Natural Gas 71,395,113 GJ
LPG 796,925 GJ
Bio-fuel 385,811,768 GJ
Purchased Electricity 10,838 (10 MWh)
Outsourcing pulp 295.93 (10,000 ton)
Mechanical Pulp 53.62 (10,000 ton)
Chemical Pulp 219.59 (10,000 ton)
Chemicals 1,122,986 tons
Lime stone
Starch
Mirabilite
Hydrogen peroxide
Industry grade salt
Wastewater discharge 54.11 million tons
COD emissions 0.3684 tons
Sulfur Dioxide
emissions 7,235 tons
Sold volume
222,103 tons
Go to the air Total volume
622,574 tons
P
r
o
d
u
c
i
n
g

p
u
l
p

w
i
t
h
r
e
c
y
c
l
e
d

w
a
s
t
e

p
a
p
e
r
Electricity (GJ)
Steam (GJ)
Industrial paper
(10,000 ton)
Household paper
(10,000 ton)
Fine art paper
(10,000 ton)
Note: * data and information refer to the pulp and paper
mills specified in the scope of report of APP-China
Sustainability Report 2010: Gold East Paper, Gold
Huasheng, Suzhou Gold Hongye, Ningbo Zhonghua,
Ningbo Asia, Hainan Gold Hongye, Hainan Gold Shengpu
and Hainan Jinhai Pulp and Paper.
Recycled waste paper
57.85 (10,000 ton)
Forest plantation
wood preparation
Screening
& washing
Cooking Pulp dryer
Market pulp
Power plant
Repulping
Paper machine
screening
Back to the
pulp mill
Pulp
squeezer
Pulp
cleaning
Pulp
refinery
Blend
Chest
Paper making
White water system
Rewinder
Converting
Fan
pump
Bleaching
Wastewater Sludge Noise Dregs & grit
Emissions
to air
Additional
heat
APP-China 2010 Performance Map of Sustainable Plantation-Pulp-Paper Integration
APP-managed & jointly-
managed forest plantation
478,643 m
3
, 10.33%
Transported to the pulp mill Pulp & paper production
indicates Input
indicates Output
indicates Energy
indicates Raw materials i.e., forest plantation wood & pulp
indicates Water
344,386
28%
APP-China (air dried ton)
For sale (air dried ton)
872,284
72%
1,512,485
37%
2,585,415
63%
379.76
79.14%
38.1
7.94%
62.02
12.92%
clean condensate water
8,00010,000 tons/day
Light black liquor
White liquor
Absorb CO2 to
make Calcium
Carbonate
R
e
c
i
r
c
u
l
a
t
i
o
n
w
i
t
h
i
n

t
h
e

p
r
o
c
e
s
s
R
e
c
i
r
c
u
l
a
t
i
o
n

o
u
t
s
i
d
e

t
h
e

p
r
o
c
e
s
s
Reclaimed water
reuse rate 20%
Steam
Operation units in the pulp mill
Electricity and Steam
Incineration utilization
volume 275,129 tons
Incineration utilization
volume 10,275 tons
Collect
& resue
Long circulation of white water
Short circulation
of white water
white water
6.3 tons/air dried ton
Sustainable forest
plantation management
Alkali recovery
system
Procurement of forest plantation
wood & forest plantation wood chips
4,154,802 tons, 89.67%
Water consumption
77,175,173 tons
Coal 672,628,191 GJ
Gasoline 268,102 GJ
Diesel 3,585,354 GJ
Fuel oil 7,548,686 GJ
Natural Gas 71,395,113 GJ
LPG 796,925 GJ
Bio-fuel 385,811,768 GJ
Purchased Electricity 10,838 (10 MWh)
Outsourcing pulp 295.93 (10,000 ton)
Mechanical Pulp 53.62 (10,000 ton)
Chemical Pulp 219.59 (10,000 ton)
Chemicals 1,122,986 tons
Lime stone
Starch
Mirabilite
Hydrogen peroxide
Industry grade salt
Wastewater discharge 54.11 million tons
COD emissions 0.3684 tons
Sulfur Dioxide
emissions 7,235 tons
Sold volume
222,103 tons
Go to the air Total volume
622,574 tons
P
r
o
d
u
c
i
n
g

p
u
l
p

w
i
t
h
r
e
c
y
c
l
e
d

w
a
s
t
e

p
a
p
e
r
Electricity (GJ)
Steam (GJ)
Industrial paper
(10,000 ton)
Household paper
(10,000 ton)
Fine art paper
(10,000 ton)
Note: * data and information refer to the pulp and paper
mills specified in the scope of report of APP-China
Sustainability Report 2010: Gold East Paper, Gold
Huasheng, Suzhou Gold Hongye, Ningbo Zhonghua,
Ningbo Asia, Hainan Gold Hongye, Hainan Gold Shengpu
and Hainan Jinhai Pulp and Paper.
Recycled waste paper
57.85 (10,000 ton)
Forest plantation
wood preparation
Screening
& washing
Cooking Pulp dryer
Market pulp
Power plant
Repulping
Paper machine
screening
Back to the
pulp mill
Pulp
squeezer
Pulp
cleaning
Pulp
refinery
Blend
Chest
Paper making
White water system
Rewinder
Converting
Fan
pump
Bleaching
Wastewater Sludge Noise Dregs & grit
Emissions
to air
Additional
heat
31
In the PCwC manifesto issued in June, 2008, APP-China committed to cleaner production and set clear targets of environmental
indicators with respect to water consumption/wastewater discharge/COD emissions per unit of pulp/paper. The results are listed in the
table below:
Promised data
10
9
0.61
28
17
2.16
National standard
/
20
2*
/
80
16*
2008
9.27
8.47
0.58
28.58
16.05
1.61
2009
9.14
7.67
0.47
25.38
16.22
1.51
2010*
9.00
7.28
0.42
24.34
15.78
1.39
International level
12-18
/
/
35-41
/
/
Item
Water usage / ton of paper
Wastewater discharge / ton of paper
COD emissions / ton of paper
Water usage / ton of pulp
Wastewater discharge / ton of pulp
COD emissions / ton of pulp
Unit
ton of water/ ton of paper
ton of water/ ton of paper
Kg/ ton of paper
Ton of water/ton of pulp
Ton of water/ton of pulp
Kg/ ton of pulp
Note: The national standard is the Discharge Standard of Water Pollutants for Paper Industry (GB3544-2008) effective May 1
st
, 2009; .The data of the International level are
derived from the European Integrated Pollution Prevention and Control (IPPC2001).* indicates 2010 data which include the average value of Hainan Gold Hongye and Hainan
Gold Shengpu, the new scope of this report.
Note1: The data is the average of water consumption for all the paper mills in the
scope of the report
Note2: International level data is from the European Integrated Pollution Prevention
and Control (IPPC2001).
Note: * The national standard is effective May 1
st
, 2009. Source: GB3544-2008
Discharge Standards of Water Pollutants for Pulp and Paper Industry.
Note1: The data is the average of water consumption for the pulp mill in the scope of
the report
Note2: International level data is from the European Integrated Pollution Prevention
and Control (IPPC2001).
Note: * The national standard is effective May 1
st
, 2009. Source: GB3544-2008
Discharge Standards of Water Pollutants for Pulp and Paper Industry.
Annual average water consumption per ton of paper
2
0
2008
9.27
28.58
25.38
24.34
9.14
9.00
2010 2009
6
4
10
8
12
10
12
APP commitment
(Since June, 2008)
International level
APP commitment
(Since June, 2008)
International level
Annual average water consumption per ton of pulp
5
0
2008 2009 2010
15
10
30
20
35
28
35
25
4
0
2008 2009 2010
8.470
7.669
7.28
12
8
16
20
9
20
*
0
2008 2009 2010
16.05 16.22 15.78
40
20
60
80
17
80
*
Annual average wastewater discharge per ton of paper Annual average wastewater discharge per ton of pulp
APP commitment
(Since June, 2008)
International level
APP commitment
(Since June, 2008)
International level
4
0
2008 2009 2010
8.470
7.669
7.28
12
8
16
20
9
20
*
0
2008 2009 2010
16.05 16.22 15.78
40
20
60
80
17
80
*
Annual average wastewater discharge per ton of paper Annual average wastewater discharge per ton of pulp
APP commitment
(Since June, 2008)
International level
APP commitment
(Since June, 2008)
International level
Annual average water consumption per ton of paper
2
0
2008
9.27
28.58
25.38
24.34
9.14
9.00
2010 2009
6
4
10
8
12
10
12
APP commitment
(Since June, 2008)
International level
APP commitment
(Since June, 2008)
International level
Annual average water consumption per ton of pulp
5
0
2008 2009 2010
15
10
30
20
35
28
35
25
32
In 2010, APP-China fulflled its commitment to ensure all used
raw materials were legally sourced fbers originating from forest
plantations. APP-China prohibits the use of raw materials
obtained from the destruction of high conservation value forests.
The organization only purchases legal raw materials from home
and abroad and strictly adheres to national and international
timber trading laws and regulations. These laws and regulations
include but not limited to Forest Law, Regulation on Plant
Quarantine, and Administration of Timber Operation and
Transportation. Moreover, APP-China supervises and monitors
its supply chain to ensure the legality and traceability of procured
raw materials.
APP-China will continue to manage and scrutinize the pulp
and paper suppliers and set priority to select those whose raw
materials are certified from legal and certified sources and
properly managed forest plantations. APP-China endeavors to
encourage the pulp and paper suppliers to increase the ratio
of their raw materials procurement that has been certified by
sustainable forest management (SFM). This is to contribute to
the promotion of sustainable development of the global forest.
Green Procurement
Total amount of wood fiber from forest plantations
439.33
543.04
605.21
Total amount of PEFC-certified wood fiber
-
104.76
59.16
Unit (10,000 ton)
2008
2009
2010
Total use of wood fiber
507.34
454.00
566.75
2008 - 2010 APP-China overview of wood fiber procurement and consumption
Wood procurement
In 2010, APP-China strictly implemented its procurement policy
to source 100% of its wood fber from forest plantations. The
wood fiber used in APP-China's pulp and paper production
comprises of wood originated from China, Vietnam, Australia
and so on, and the certifed wood used originated Australia and
Indonesia.
To meet customer's demand in 2010, APP-China had increased
its purchase of wood fber from Vietnam and other parts of Asia
and significantly reduced its wood fiber source from Australia.
The ratio of certified wood fiber purchased had decreased in
2010.
2008 - 2010 APP-China overview of wood fiber procurement
(10,000 ton)
100
0
2008 2009 2010
71.8%
66.1%
70.8%
300
200
400
500
50
250
150
350
450
Import
China
29.2%
33.9%
28.2%
With a strict supplier survey audit, evaluation and improvement,
APP-China enables and guarantees the legal and sustainable
supply of the raw materials. In 2010 twelve business entities
under APP-China received PEFC-CoC certifcation.
Certificate No.
SGS-PEFC/CoC-0249
SGS-PEFC/CoC-0263
SGS-PEFC/CoC-0328
SGS-PEFC/CoC00334
SGS-PEFC/CoC-0360
SGS-PEFC/CoC-0462
SGS-PEFC/CoC-0533
SGS-PEFC/CoC-0339
SGS-PEFC/CoC-0352
SGS-PEFC/CoC-0628
SGS-PEFC/CoC-0805
SGS-PEFC/CoC-0787
Scope of Certification
Sales
Printing paper
Fine art paper
Packaging paper
Packaging paper
Household paper
Photocopy paper, stock forms and carbonless paper
Sales
Sales
Food packaging paper
Pulp and coated paper
Notebook, paper bag
No.
1
2
3
4
5
6
7
8
9
10
11
12
APP-China Companies
Gold East Trading (Hong Kong) Company Ltd.
Gold East Paper (Jiangsu) Co., Ltd.
Gold Huasheng Paper (Suzhou Industrial Park) Co., Ltd.
Ningbo Zhonghua Paper Co., Ltd.
Ningbo Asia Pulp and Paper Co., Ltd.
Gold Hongye Paper (Suzhou Industrial Park) Co., Ltd.
Gold Shengpu Paper Products (Suzhou Industrial Park) Co. Ltd.
China Union (Macao Commercial Offshore) Co., Ltd.
Top Harvest Asia Co., Ltd.
Jin Fengyuan Paper (Shanghai) Co., Ltd.
Hainan Jinhai Pulp and Paper Co., Ltd.
Yalong Paper Products (Kunshan) Co., Ltd.
APP-China PEFC-CoC certified companies
33
Pulp procurement
There are purchased pulp and recollected pulp for mills within
the scope of this report for APP-China. For the purchased pulp,
it is divided into pulp purchased from Hainan Jinhai Pulp and
Paper (internally sourced) and outsourced pulp.
In 2010, seven paper mills listed in this report purchased a
total of 2,959,300 tons of pulp. Hainai Jinhai Pulp and Paper
contributed about 862,500 tons and the remaining (2,096,800
tons) were purchased from other sources. Regarding the pulp
type, 80% is chemical pulp and 20% is mechanical pulp. PEFC-
certifed pulp made up 14% of the total. Except for Hainan Gold
Hongye and Hainan Gold Shenpu, pulp procurement in 2010
increased by 40% compared to that of 2009, mainly due to
increase by Gold East Paper. In 2010, the pulp produced from
recollected paper accounted for about 16.4% at 579,900 tons.
In 2010 APP-China imported 1.9994 million tons which accounted
for 67.56%, mainly from Canada, Brazil, Chile and other
Southeast Asian countries.

24.37%
16.39%
59.24%
2010 overview of APP-China pulp sourcing
1.4%
1.7%
0.8%
2010 overview of APP-China pulp sourcing regions
35.4%
9.8%
18.5%
32.4% China
Other Asian countries
Europe
South America
North America
Oceania
Others
Hainan Jinhai Pulp and Paper
Outsourced pulp
Recollected Pulp
24.37%
16.39%
59.24%
2010 overview of APP-China pulp sourcing
1.4%
1.7%
0.8%
2010 overview of APP-China pulp sourcing regions
35.4%
9.8%
18.5%
32.4% China
Other Asian countries
Europe
South America
North America
Oceania
Others
Hainan Jinhai Pulp and Paper
Outsourced pulp
Recollected Pulp
34
Forest Certifcation
A forest certifcation logo or product labeling provides organizations (governments, private sector, non-government organizations
(NGOs), communities, and customers) with traceable evidence that timber (and non-timber) products are produced legally and
sustainably.
There are two types of forest certifcation:

Forest Management (FM)


FM certifes that the forest in which the timber is sourced and managed in a sustainable way, balancing economic, social
and environmental needs.

Chain of Custody (CoC)
Certifes that the management systems adopted by the production and sales units help ensure its fnal products are
manufactured using raw material sourced from certifed sustainable forest.
PEFC and LEI: PEFC is a global forest certifcation scheme and LEI is national system in Indonesia. Both of them have FM and
CoC certifcations.

The Programme for the Endorsement of Forest Certifcation (PEFC) is an international non-proft NGO dedicated to
promoting sustainable forest management through independent third-party certifcation. PEFC works throughout the
entire forest supply chain to promote good practice in the forest and to ensure that timber and non-timber forest products
are produced with respect for the highest ecological, social and ethical standards. Thanks to its eco-label, customers and
consumers are able to identify products from sustainably managed forests. Established in 1999, PEFC is the world's
largest forest certifcation system nowadays.

Lembaga Ekolabel Indonesia (LEI) was established in 1998. It consists of community organizations, NGOs, private
enterprises and academic institutions, LEI incorporates governmental and non-government perspectives and ensures the
development of sustainable forest management.
Forest Management
Conversion Facility eg
Sawmill, Pulpmill
Product Manufacturing
eg Fumiture, Paper
Forest
Management
Certifcation
Chain of Custody Certifcation
Tracks fow of wood & fber in production processes
Haulage
Dealers
35
Hainan Jinhai Pulp & Paper
33,996,310
24.34
94.98
Gold East Paper
16,205,772
7.01
96.50
Suzhou Gold Hongye
1,718,310
11.49
97.70
Gold Huasheng
5,717,748
9.22
96.70
Ningbo Zhonghua
7,284,839
12.43
93.27
Hainan Gold Hongye
744,405
6.04
98.50
Hainan Gold Shengpu
531,330
5.45
98.50
Total water consumption (ton)
Water reuse rate (%)
2010 APP-China overview of water utilization
Hainan Jinhai Pulp & Paper
28.58
25.38
24.34
Gold East Paper
7.19
7.00
7.01
Suzhou Gold Hongye
12.62
11.58
11.49
Gold Huasheng
8.94
9.06
9.22
Ningbo Asia
12.54
12.38
11.49
Ningbo Zhonghua
11.66
12.01
12.43
Hainan Gold Hongye
-
-
6.04
Hainan Gold Shengpu
-
-
5.45
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of average wastewater consumption per ton of paper/pulp of major mills
Hainan Jinhai Pulp & Paper
94.90
94.93
94.98
Gold East Paper
95.90
96.20
96.50
Suzhou Gold Hongye
97.67
98.86
97.70
Gold Huasheng
96.54
97.20
96.70
Ningbo Asia
91.80
92.05
92.58
Ningbo Zhonghua
92.30
92.75
93.27
Hainan Gold Hongye
-
-
98.50
Hainan Gold Shengpu
-
-
98.50
Unit (%)
2008
2009
2010
2008 - 2010 APP-China water reuse rate of major mills
Annual average water consumption
per ton of paper/pulp (ton)
Ningbo Asia
10,976,459
11.49
92.58
MBOS reduces the procurement cost and boosts
environmental performance
I n 2010, APP- Chi na s pr ocur ement was f aced wi t h
unprecedented pressure due to an increase in commodity
prices. To meet these challenges, the procurement department
liaised with the production and the R&D departments initiating an
MBOS campaign, Mega Project, to develop alternative solutions.
The project made great achievements, saving millions of US
dollars for the group during 2010. For example, biological latex
and bio-fuel have been used to replace petroleum and other
resources and reduce emissions of carbon dioxide, creating the
economic and ecological benefts.
Localization in procurement
In 2010, APP-Chinas localization procurement rate reached
94.16%, including spending in complementary materials, spare
parts, equipment and related maintenance and services. The
priority was set to select local suppliers with qualifed credentials,
when purchasing new machines or processing lines, which not
only gives more opportunities for local vendors, but also saving
the logistics costs, transportation resources and minimizing the
negative impact on the environment.
Maximizing water utilization rates
Water is much needed in the pulp and paper-making process.
To maximize water utilization rates, APP-China adopted state-
of-the-art production equipment and advanced technologies
at its major mills. Manufacturing processes and equipment
were constantly upgraded to improve efficiency and reduce
the consumption of water and steam through recirculation and
reuse. On one hand, APP-China increased reuse rates of water
resources. On the other hand, average wastewater consumption
per ton of paper/pulp decreases gradually among major mills.
In 2010 the total amount of wastewater consumption accounted
for 77.175 million tons and reclaimed water reuse rate reached
95.9%. Among them, annual average wastewater consumption
per ton of paper of Gold Huasheng and Ningbo Zhonghua
increased slightly. This is because both mills used clean water
to replace certain amount of white water in the recirculation
process to ensure product quality in hot summer.
Energy Saving and Resources/Emissions Reduction
Hainan Jinhai Pulp & Paper
33,996,310
24.34
94.98
Gold East Paper
16,205,772
7.01
96.50
Suzhou Gold Hongye
1,718,310
11.49
97.70
Gold Huasheng
5,717,748
9.22
96.70
Ningbo Zhonghua
7,284,839
12.43
93.27
Hainan Gold Hongye
744,405
6.04
98.50
Hainan Gold Shengpu
531,330
5.45
98.50
Total water consumption (ton)
Water reuse rate (%)
2010 APP-China overview of water utilization
Hainan Jinhai Pulp & Paper
28.58
25.38
24.34
Gold East Paper
7.19
7.00
7.01
Suzhou Gold Hongye
12.62
11.58
11.49
Gold Huasheng
8.94
9.06
9.22
Ningbo Asia
12.54
12.38
11.49
Ningbo Zhonghua
11.66
12.01
12.43
Hainan Gold Hongye
-
-
6.04
Hainan Gold Shengpu
-
-
5.45
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of average wastewater consumption per ton of paper/pulp of major mills
Hainan Jinhai Pulp & Paper
94.90
94.93
94.98
Gold East Paper
95.90
96.20
96.50
Suzhou Gold Hongye
97.67
98.86
97.70
Gold Huasheng
96.54
97.20
96.70
Ningbo Asia
91.80
92.05
92.58
Ningbo Zhonghua
92.30
92.75
93.27
Hainan Gold Hongye
-
-
98.50
Hainan Gold Shengpu
-
-
98.50
Unit (%)
2008
2009
2010
2008 - 2010 APP-China water reuse rate of major mills
Annual average water consumption
per ton of paper/pulp (ton)
Ningbo Asia
10,976,459
11.49
92.58
Hainan Jinhai Pulp & Paper
33,996,310
24.34
94.98
Gold East Paper
16,205,772
7.01
96.50
Suzhou Gold Hongye
1,718,310
11.49
97.70
Gold Huasheng
5,717,748
9.22
96.70
Ningbo Zhonghua
7,284,839
12.43
93.27
Hainan Gold Hongye
744,405
6.04
98.50
Hainan Gold Shengpu
531,330
5.45
98.50
Total water consumption (ton)
Water reuse rate (%)
2010 APP-China overview of water utilization
Hainan Jinhai Pulp & Paper
28.58
25.38
24.34
Gold East Paper
7.19
7.00
7.01
Suzhou Gold Hongye
12.62
11.58
11.49
Gold Huasheng
8.94
9.06
9.22
Ningbo Asia
12.54
12.38
11.49
Ningbo Zhonghua
11.66
12.01
12.43
Hainan Gold Hongye
-
-
6.04
Hainan Gold Shengpu
-
-
5.45
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of average wastewater consumption per ton of paper/pulp of major mills
Hainan Jinhai Pulp & Paper
94.90
94.93
94.98
Gold East Paper
95.90
96.20
96.50
Suzhou Gold Hongye
97.67
98.86
97.70
Gold Huasheng
96.54
97.20
96.70
Ningbo Asia
91.80
92.05
92.58
Ningbo Zhonghua
92.30
92.75
93.27
Hainan Gold Hongye
-
-
98.50
Hainan Gold Shengpu
-
-
98.50
Unit (%)
2008
2009
2010
2008 - 2010 APP-China water reuse rate of major mills
Annual average water consumption
per ton of paper/pulp (ton)
Ningbo Asia
10,976,459
11.49
92.58
36
Hainan Gold Hongye/Hainan Gold Shengpu carried out the water balance analysis, which defned the water consumption at
each manufacturing process and developed a customized approach to improve water effciency, steam recycling and reclaimed
water recycling in an hope to accomplish the goals of zero discharge.
Energy effciency
In 2010, APP-China furthered its efforts on energy efficiency
in a number of projects, including additional heat utilization,
electricity saving and lighting improvement, refrigeration
equipment upgrade, condensate water recycling as well as
enhanced operation of Energy Saving Committee. Moreover,
Gold Huasheng initiated the first pilot project of Energy
Management System (GB/T23331) at APP-China. This is to
transform a technical improvement program into a system.
In 2010 Gold Huasheng set up a three-level water saving mechanism step by step. A water saving committee comprised of
many department heads to formulate the strategy and action plans. For instance, the Energy Department launched the boiler
blowdown and wastewater and air heater condensate recycling project. This is to reduce wastewater consumption per ton of
paper and expenditure of energy consumption per ten thousand RMB output value to 5 tons and 10 tons respectively. In 2010,
Gold Huasheng undertook 42 water saving measures to save about 4703.5 tons of water each day.
Water Management
System
Measurement
Management System
Water Usage
Record System
Meeting Follow-op
and Implementation
Define the role
and responsibility
of Water Saving
Committee and
water saving
guidelines.
Formulate
the rules
and
regulations
for the water
measure-
ment
Record and
monitor the
water
usage of
each
department
Hold regular
meetings to
review water
usage and track
status of technical
improvement
programs
Gold Huasheng water saving mechanism
Wet pulp LBKP
0.4 million tons of water
Steam system
0.324 million
tons of water
Evaporation in
the dryer
0.35 million
tons of water
10,000 tons of
water contained
of 180,000 tons of
paper
0.21 million tons
to be reused to
the pulp mill
Plant irrigation
0.1 million tons
Cleaning and
waste discharge
0.6 million tons
Water treatment
system
0.6 million tons
Pulping & pulp washing
(under planning) 0.5 million tons
Recycling water rate
targets at 98.5%
Steam system
0.324 million
tons of water
Dry pulp NBKP
50,000 tons of water
Clean water supply
0.72 million tons
The minimized water
with a target of zero
discharge system
Papermaking Process
Water balance analysis conceptual diagram of Hainan Gold
Hongye/Hainan Gold Shengpu
37
Gold Huasheng was awarded the Energy Effciency Star
Gold Huasheng took part in the Suzhou City Energy Effciency Star campaign promoted by the local government. To improve
its energy saving performance, the mill not only made an investment in improving the effciency of power plant, boilers and
paper machines, but also boosted its energy measurement management to initiate the frst energy management system in the
industry and further reduce the average energy consumption per ton of paper.
In 2010, Gold Huasheng invested RMB9.6865 million to upgrade several systems or programs, including the load allocation of
turbine boilers, coal management, variable frequency conversion of power plant and the reduction of the frequency and time of
In 2010, the consumption of black liquor and biofuel increased
by 19% and the consumption of natural gas increased by 48.9%.
Consequently, this decreased coal and LPG consumption and
reduced the emissions of carbon dioxide.
The increase of purchased electricity of Ningbo Zhonghua and
Ningbo Asia was primarily due to the management making
the most of the additional electricity from the local power plant
during the off-peak periods. This action reduced the waste of
electricity by the local energy producer and contributed to the
effective overall use of energy.
Coal
688,710,254
680,296,798
672,628,191
Gasoline
236,322
217,385
268,102
Diesel
3,399,520
3,383,711
3,585,354
Fuel oil
5,497,467
6,586,964
7,548,686
Pulp making black
liquor & biofuel
254,064,888
324,245,244
385,811,768
Natural gas
44,419,381
47,963,834
71,395,113
LPG
4,010,063
3,101,855
796,925
Purchased electricity
(10 MWh)
13,685
6,777
10,838
Unit
(GJ)
2008
2009
2010
2008 - 2010 APP-China overview of energy utilization for eight mills
Gold East Paper
273,111,452
66,281
1,896,265
0
277,908
23,428,698
655,921
0
Suzhou Gold Hongye
35,394,196
30,401
146,525
0
0
3,251,897
96,549
0
Gold Huasheng
101,190,143
43,769
426,880
0
0
2,694,042
38,934
0
Ningbo Zhonghua
75,698,982
29,480
217,518
0
73,473
0
0
3,511
Ningbo Asia
110,293,938
18,362
402,144
489,225
27,214
190,516
5,520
7,327
Hainan Gold Hongye
0
1,400
32,000
0
0
6,224,265
0
0
Hainan Gold Shengpu
0
486
3,100
0
0
4,192,985
0
0
Unit (GJ)
Coal
Gasoline
Diesel
Fuel oil
Pulp making black liquor & biofuel
Natural gas
LPG
Purchased electricity(10 MWh)
2010 APP-China breakdown of energy utilization for eight mills
Hainan Jinhai Pulp & Paper
76,939,480
77,923
460,922
7,059,461
385,433,173
31,412,709
0
0
Coal
688,710,254
680,296,798
672,628,191
Gasoline
236,322
217,385
268,102
Diesel
3,399,520
3,383,711
3,585,354
Fuel oil
5,497,467
6,586,964
7,548,686
Pulp making black
liquor & biofuel
254,064,888
324,245,244
385,811,768
Natural gas
44,419,381
47,963,834
71,395,113
LPG
4,010,063
3,101,855
796,925
Purchased electricity
(10 MWh)
13,685
6,777
10,838
Unit
(GJ)
2008
2009
2010
2008 - 2010 APP-China overview of energy utilization for eight mills
Gold East Paper
273,111,452
66,281
1,896,265
0
277,908
23,428,698
655,921
0
Suzhou Gold Hongye
35,394,196
30,401
146,525
0
0
3,251,897
96,549
0
Gold Huasheng
101,190,143
43,769
426,880
0
0
2,694,042
38,934
0
Ningbo Zhonghua
75,698,982
29,480
217,518
0
73,473
0
0
3,511
Ningbo Asia
110,293,938
18,362
402,144
489,225
27,214
190,516
5,520
7,327
Hainan Gold Hongye
0
1,400
32,000
0
0
6,224,265
0
0
Hainan Gold Shengpu
0
486
3,100
0
0
4,192,985
0
0
Unit (GJ)
Coal
Gasoline
Diesel
Fuel oil
Pulp making black liquor & biofuel
Natural gas
LPG
Purchased electricity(10 MWh)
2010 APP-China breakdown of energy utilization for eight mills
Hainan Jinhai Pulp & Paper
76,939,480
77,923
460,922
7,059,461
385,433,173
31,412,709
0
0
Note: Hainan Jinhai Pulp & Paper offered electricity for Hainan Gold Hongye and Hainan Gold Shengpu, 13,269 MWh and 10,772 MWh respectively.
2008 - 2010 APP-China overview of energy sold
2,000,000
0
2008 2009 2010
6,000,000
4,000,000
7,000,000
1,000,000
5,000,000
3,000,000
Steam
Electricity
Unit (GJ)
38
Ningbo Zhonghua and Ningbo Asia optimized their energy management system and three-level energy saving supervision network
to ensure the systematic management and work procedures. Both mills stipulated KPIs and standard operating procedures (SOP)
in coal consumption reduction, electricity utilization, water consumption for power generation and gasoline consumption to set
clear targets for any post and by each staff. In 2010, Ningbo Zhonghua invested RMB 3.07 million and saved 2,564 ton standard
coal. Ningbo Asia reduced its integrated energy consumption by 1.44%, from 253.46 kg ce/t (kg standard coal per ton) to 249.81
kg ce/t (kg standard coal per ton), meeting the target set by Ningbo municipal government.
Waste management and reduction

Wastewater
In 2010, major mills of APP-China further improved their
wastewater treatment systems, achieving the wastewater
discharge per ton of paper less than one half of the national
standard. Meanwhile they have been advancing the reclaimed
water recycling through three-level wastewater treatment
system.
Total water discharge
56,677,882
52,671,699
54,110,253
Wastewater treated
65,602,741
63,198,510
67,641,260
Reclaimed water reuse
8,924,859
10,526,811
13,530,247
Reclaimed water reuse rate (%)
13.60
16.66
20.00
BOD
414
448
504.65
COD
4,420
3,729
3,684
Suspended solids (SS)
1,619
1,576
1,400
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of wastewater discharge, other major pollutants & reclaimed water reuse
Hainan Jinhai Pulp & Paper
19,187,405
19,248,294
60,889
0.32
Gold East Paper
12,340,450
15,081,210
2,740,000
18.17
Gold Huasheng / Suzhou Gold Hongye
5,621,552
7,166,688
1,545,136
21.56
Ningbo Zhonghua
7,584,023
11,598,486
4,014,463
34.61
Hainan Gold Hongye
58,182
584,362
526,180
90.04
Hainan Gold Shengpu
61,740
423,139
361,399
85.41
Unit (ton)
Total water discharge
Wastewater treated
Reclaimed water reuse
Reclaimed water reuse rate (%)
2010 APP-China wastewater discharge/reclaimed water reuse for eight mills
Hainan Jinhai
Pulp & Paper
15
30
287.8
88
100
1,688.5
41
70
786.7
Gold East
Paper
6
30
74
50
100
617
22
50
271
Gold Huasheng /
Suzhou Gold Hongye
5.27
20*
29.6
49.4
60
277.7
22.2
30*
125
Hainan Gold
Hongye
15
30
0.9
88
100
5.1
41
100
2.4
Hainan Gold
Shengpu
15
30
-
88
100
5.43
41
100
2.53
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
B
O
D
e
m
i
s
s
i
o
n
s
C
O
D
e
m
i
s
s
i
o
n
s
S
u
s
p
e
n
d
e
d

s
o
l
i
d
s

(
S
S
)
2010 APP-China overview of wastewater major pollutants for eight mills
Unit (mg/L)
Ningbo
Zhonghua
9.4
30
70.4
73.3
100
550.4
12.6
50
94.6
Ningbo Asia
9,256,901
13,539,081
4,282,180
31.63
Ningbo
Asia
4.55
30
42
58.3
100
540
13
50
118
break for paper machines. The outstanding result saw its integrated energy consumption fall to 574.75kg standard coal/ton of
paper, a reduction of 85.54kg standard coal/ton of paper compared with the year of 2005. Exceeding the target of the National
Eleventh Five Year Plan, the mill won the honor of the citys Pioneer of Energy Saving during the Eleventh Five Year Plan.
Gold Huasheng was assessed by the Suzhou Economic and Trade Commission on 76 indicators under four major categories,
namely, energy management system, energy efficiency indicators, technology advancement and energy performance. Its
performance was highly recognized by the team of experts and Gold Huasheng was awarded the four-star rating of Energy
Effciency Star, being only one of the four companies which won the highest recognition in this appraisal.
Hainan Jinhai Pulp & Paper condensate water & additional heat collection system
W
a
t
e
r

s
u
p
p
l
y

t
o

R
e
c
o
v
e
r
y

B
o
i
l
e
r

1

H
e
a
t
e
x
c
h
a
n
g
e
r
H
e
a
t
e
x
c
h
a
n
g
e
r
H
e
a
t
e
x
c
h
a
n
g
e
r
70C
65C
50C
B
a
o
k

l
o
w

w
a
t
e
r
p
i
p
e
l
i
n
e
s
Backflow
water tank
75C
Pure
water tank
25C
Condensate
water tank
55C
Backflow water of
operational units
Hainan Jinhai Pulp and Paper condensate water and additional heat collection
The escalation of production volume is set to increase the backflow volume of steam condensate water, the increasing load
of condensate collection unit (TG), and the increasing heat loss. Hainan Jinhai Pulp and Paper spared no efforts to improve
additional heat collection from the joints of backfow water pipelines of operational units, to proceed with the heat exchange within
the water supply of alkali recovery system, to reduce the temperature of condensate water of backfow water tank and decrease
fash etc. In 2010 Hainan Jinhai Pulp and Paper expected to collect 46.2 GJ/hour, equivalent to 13,577 ton standard coal/year.
39
Ningbo Asia adopted a closed white water recollection
system. The treated wastewater is recollected and
used in the manufacturing process and to reduce
the consumption of clean water and the discharge of
wastewater. In November 2009, Ningbo Asia invested
over RMB32 million in the construction of a Fenton
wastewater treatment system, with a designed daily
capacity of 40,000m
3
. When it was fully operational in
2010, the COD emissions were reduced to 58.3 mg/
L, lower than the latest national wastewater discharge
standard (to be stipulated in 2011) for the paper
industry. The annual COD emissions were expected
to decrease by more than one third and the quality of
reused water will be greatly improved. Meanwhile, the
Fenton wastewater treatment plant also reduced the
emission of odors, hence alleviating the impact on the
neighboring environment.
Total water discharge
56,677,882
52,671,699
54,110,253
Wastewater treated
65,602,741
63,198,510
67,641,260
Reclaimed water reuse
8,924,859
10,526,811
13,530,247
Reclaimed water reuse rate (%)
13.60
16.66
20.00
BOD
414
448
504.65
COD
4,420
3,729
3,684
Suspended solids (SS)
1,619
1,576
1,400
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of wastewater discharge, other major pollutants & reclaimed water reuse
Hainan Jinhai Pulp & Paper
19,187,405
19,248,294
60,889
0.32
Gold East Paper
12,340,450
15,081,210
2,740,000
18.17
Gold Huasheng / Suzhou Gold Hongye
5,621,552
7,166,688
1,545,136
21.56
Ningbo Zhonghua
7,584,023
11,598,486
4,014,463
34.61
Hainan Gold Hongye
58,182
584,362
526,180
90.04
Hainan Gold Shengpu
61,740
423,139
361,399
85.41
Unit (ton)
Total water discharge
Wastewater treated
Reclaimed water reuse
Reclaimed water reuse rate (%)
2010 APP-China wastewater discharge/reclaimed water reuse for eight mills
Hainan Jinhai
Pulp & Paper
15
30
287.8
88
100
1,688.5
41
70
786.7
Gold East
Paper
6
30
74
50
100
617
22
50
271
Gold Huasheng /
Suzhou Gold Hongye
5.27
20*
29.6
49.4
60
277.7
22.2
30*
125
Hainan Gold
Hongye
15
30
0.9
88
100
5.1
41
100
2.4
Hainan Gold
Shengpu
15
30
-
88
100
5.43
41
100
2.53
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
B
O
D
e
m
i
s
s
i
o
n
s
C
O
D
e
m
i
s
s
i
o
n
s
S
u
s
p
e
n
d
e
d

s
o
l
i
d
s

(
S
S
)
2010 APP-China overview of wastewater major pollutants for eight mills
Unit (mg/L)
Ningbo
Zhonghua
9.4
30
70.4
73.3
100
550.4
12.6
50
94.6
Ningbo Asia
9,256,901
13,539,081
4,282,180
31.63
Ningbo
Asia
4.55
30
42
58.3
100
540
13
50
118
Note: * data source: Jiangsu Provincial Government Environmental Protection Bureau (2004) No.75 Document.
Total water discharge
56,677,882
52,671,699
54,110,253
Wastewater treated
65,602,741
63,198,510
67,641,260
Reclaimed water reuse
8,924,859
10,526,811
13,530,247
Reclaimed water reuse rate (%)
13.60
16.66
20.00
BOD
414
448
504.65
COD
4,420
3,729
3,684
Suspended solids (SS)
1,619
1,576
1,400
Unit (ton)
2008
2009
2010
2008 - 2010 APP-China overview of wastewater discharge, other major pollutants & reclaimed water reuse
Hainan Jinhai Pulp & Paper
19,187,405
19,248,294
60,889
0.32
Gold East Paper
12,340,450
15,081,210
2,740,000
18.17
Gold Huasheng / Suzhou Gold Hongye
5,621,552
7,166,688
1,545,136
21.56
Ningbo Zhonghua
7,584,023
11,598,486
4,014,463
34.61
Hainan Gold Hongye
58,182
584,362
526,180
90.04
Hainan Gold Shengpu
61,740
423,139
361,399
85.41
Unit (ton)
Total water discharge
Wastewater treated
Reclaimed water reuse
Reclaimed water reuse rate (%)
2010 APP-China wastewater discharge/reclaimed water reuse for eight mills
Hainan Jinhai
Pulp & Paper
15
30
287.8
88
100
1,688.5
41
70
786.7
Gold East
Paper
6
30
74
50
100
617
22
50
271
Gold Huasheng /
Suzhou Gold Hongye
5.27
20*
29.6
49.4
60
277.7
22.2
30*
125
Hainan Gold
Hongye
15
30
0.9
88
100
5.1
41
100
2.4
Hainan Gold
Shengpu
15
30
-
88
100
5.43
41
100
2.53
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
B
O
D
e
m
i
s
s
i
o
n
s
C
O
D
e
m
i
s
s
i
o
n
s
S
u
s
p
e
n
d
e
d

s
o
l
i
d
s

(
S
S
)
2010 APP-China overview of wastewater major pollutants for eight mills
Unit (mg/L)
Ningbo
Zhonghua
9.4
30
70.4
73.3
100
550.4
12.6
50
94.6
Ningbo Asia
9,256,901
13,539,081
4,282,180
31.63
Ningbo
Asia
4.55
30
42
58.3
100
540
13
50
118
40
In response to the energy saving and emissions reduction policy in
the National Eleventh Five Year Plan and to improve the reuse rate of
industrial water, Gold Huasheng invested nearly RMB 28 million in a
7000m
3
/day reclaimed water reuse system in 2009. The system was put
into test operation in March, 2010. The trial run produced 810,000 tons
of clean water. It is expected to save 2.56 million tons of clean water and
reduce COD emissions by 126.72 tons and SS by 48 tons annually.
Meanwhile, Gold Huasheng also expanded its biological wastewater
treatment system from 30,000 tons/day to 36,000-40,000 tons/day,
relieving the load of the wastewater treatment system. By means of pure-
oxygen aeration, the biological wastewater treatment system will reduce
emissions of Volatile Organic Compounds (VOC) from the aeration tank
and eliminate the impact of its odors on the neighboring environment.
Environmental Inspector System
In 2010, Ningbo Zhonghua initiated an Environmental Inspector
System, which deployed a dedicated team to perform 24-hour
patrol and inspections with pictures and files on record.

Emissions to air
In 2010, APP-China continued to reduce its emissions to air,
including the odors produced from the alkali recovery boiler
was chemically treated; the emissions to air comes from the
bleaching of pulp and in preparation of chemicals; the soot
generated by the boiler and lime kiln were screened by the
electrostatic precipitator before emitting from the smoke stacks.
All measures ensure the emissions to air were below the
national standards.
2008
8,725.74
5,328.23
2009
8,117.08
6,350.95
2010
7,235.00
5,403.50
Unit (ton)
Sulfur Dioxide
Nitrogen Oxide
2008 - 2010 APP-China emissions to air for eight mills
Hainan Jinhai
Pulp & Paper
75
1,200
1,147
157.41
650
2,402
26.74
200
Gold East
Paper
545/306
1,200/400
3,718
170/169
1,100/450
1,325
67/32
200/50
Gold Huasheng /
Suzhou Gold Hongye
211/198
400
461/462
98.6/119.1
250
215.5/278
66.7/58.5
200
Ningbo
Asia
98
400
436
178
450
824
18
50
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Total emissions volume (ton)
Average annual discharge concentration
Standard limit
Sulfur
Dioxide
(SO
2
)
Nitrogen
Oxide
(NO
2
)
Particles
2010 APP-China emissions to air for eight mills
Unit (mg/m
3
)
Ningbo
Zhonghua
298
1,200
1,011
123.5
-
359
82
250
Such endeavors not only reduced the incidents of abnormal
discharge and leakage, but also relieved the load on wastewater
management and lowering the treatment costs.
41
Note: The solid waste of Suzhou Gold Hongye is treated by Gold Huasheng; the solid waste of Hainan Gold Hongye and Hainan Gold Shengpu is treated by Hainan Jinhai
Pulp and Paper.
2008
705,008
709,131
253,016
578
2009
597,566
781,663
231,608
500
2010
622,574
747,735
222,699
698
Unit (ton)
Sludge
Fly ash
Dregs and grit
Hazardous waste
2008 - 2010 APP-China overview of solid waste for major mills
Hainan Jinhai Pulp & Paper
56,248
0
85,475
0
60,836
Gold East Paper
17,803
50,666
311,500
3,620
70,342
Gold Huasheng
14,286
0
106,771
0
57,320
Sold volume
Sold volume
Sold volume
Sludge
Fly ash
Dregs & grit
2010 APP-China solid waste disposal volume
Ningbo Zhonghua
38,628
59,477
111,364
6,655
9,679
Unit (ton)
Ningbo Asia
148,164
55,097
132,625
0
23,926
Incineration for
power generation
Incineration for
power generation

Solid Waste
The solid waste generated by papermaking includes fy ash, dregs
and grit, hazardous waste and sludge generated from wastewater
treatment. Major mills under APP-China reduced the solid waste
by burning them as the fuel in the boilers and calcinated in the
lime kiln for the recollection of the lime mud and sludge. All
mills do their best to avoid using landfll sites. As an alternative
approach, they strive for the maximized utilization. The solid
waste was sold to qualifed organizations to be raw materials, to
turn it into products and minimize its impact on the environment.
2008
705,008
709,131
253,016
578
2009
597,566
781,663
231,608
500
2010
622,574
747,735
222,699
698
Unit (ton)
Sludge
Fly ash
Dregs and grit
Hazardous waste
2008 - 2010 APP-China overview of solid waste for major mills
Hainan Jinhai Pulp & Paper
56,248
0
85,475
0
60,836
Gold East Paper
17,803
50,666
311,500
3,620
70,342
Gold Huasheng
14,286
0
106,771
0
57,320
Sold volume
Sold volume
Sold volume
Sludge
Fly ash
Dregs & grit
2010 APP-China solid waste disposal volume
Ningbo Zhonghua
38,628
59,477
111,364
6,655
9,679
Unit (ton)
Ningbo Asia
148,164
55,097
132,625
0
23,926
Incineration for
power generation
Incineration for
power generation
Gold East Paper has been utilizing the emissions to air with the latest equipment and technologies from the beginning of the
project. The mill used the CO2 from the boiler as raw materials to make the precipitated calcium carbonate, reducing 0.57 billion
m
3
of fue gas emissions along with 208.9 tons of SO2 and 92,000 tons of CO2 in 2010.
In 2010, 100% of Gold Huashengs sludge was burned to generate electricity with effective use of 14,286 tons of sludge,
reducing the coal consumption by 1,457 tons and lime stone, 3,940 tons. It is a win-win solution for economic and
environmental performance. Meanwhile, Gold Huasheng produced organic fertilizer from sludge, a high-end paper made from
physical-chemical sludge, and used slurry to make packaging cardboard etc. In doing so, it signifcantly reduced the waste
discharge and emissions.
In 2010 Gold East Papers power plant produced about 332,500 tons of solid waste such as fly ash, dregs and grit. The
byproducts were sold to Zhenjiang Fly Ash Utilization and Development Co., Ltd. to turn into block bricks. The quality of the
bricks was assessed by provincial-level experts and is highly recommended by Zhenjiang Wall Material Reform Offce. The
quality and price of the block bricks are more competitive than those of the traditional ocher fred bricks.
42
Recollect and recycle paper
To recollect and recycle paper significantly lowers the use of
wood fber and chemicals, upgrades effciency and effectiveness
of resources, reduces hard-to-process black liquor, a by-product
of wood pulp making, and comparatively minimizes pollution and
impact on the environment during production. It is meaningful
both for environmental protection and sustainable development.
2008 - 2010 APP-China overview of recollected waste paper volume & origions of import
0.00
39.39
Japan USA Europe
40.00
20.00
50.00
10.00
30.00
China
3119 311: 3121
37.16
47.93
15.92
5.53
6.50
5.23
3.79
2.83
4.44
4.65
0.25
Unit (10,000 ton)
The expertise of Ningbo Zhonghua and Ningbo Asia is to collect
and recycle waste paper to produce industrial paper. With the
increasing demand and peoples awareness of environmental
protection, the waste paper collection and recycling has a bright
future. The collection rate of waste paper was over 70% in
APP-China will continue with its sustainabilty efforts to improve cleaner production, emissions reduction and waste management
through the state-of-the-art technologies and management to optimize resource utilization and minimize its impact on the
environment. APP-China endeavors to balance its performance in environmental, economic and social development with
sustainable forest plantation management, sustainable pulp and paper production and green papermaking.
the developed countries and it was only 33% in China. There
was huge room for growth. With advanced technology and
management, APP-China will further its efforts in waste paper
collection and recycling to play its part for the sustainable
development.
Having been one of the largest industrial paper manufacturers in
China, APP-China has two business entities with the collection
and recycling paper capacity, namely Ningbo Zhonghua and
Ningbo Asia. In 2008 they were also the first PEFC-certified
paper manufacturers using recollected paper in China.
From 2007 to 2010, the two mills collected 2.37 million tons of
waste paper, which saved 40.29 million trees or an equivalent of
30,666 hectares of forest plantations as raw materials of paper-
making. Other resources such as water and coal were also
saved. In 2010, Ningbo Zhonghua and Ningbo Asia collected
578,500 tons of waste paper, mainly imported from Japan.
The ratio of collected paper pulp to be the raw materials of
papermaking for Ningbo Zhonghua and Ningbo Asia was 33%
and 50% respectively.
Corporate Responsibility
C
o
r
p
o
r
a
t
e

R
e
s
p
o
n
s
i
b
i
l
i
t
y
44
APP-China is committed to balancing environmental, economic and social development. APP-China respects our
role as a corporate citizen, maximizes its contribution and minimizes the negative impact of our operations on the
environment. APP-China strives to understand the expectations of our stakeholders and respect our employees,
customers and consumers. Our social responsibility is evidenced by taking proactive measures to drive industry
development, support social welfare initiatives, and contribute to local communities.
materials used in pulp production and papermaking. In
addition to providing strong technical support to the production
division, the laboratory works well to expand the scope and
accuracy of inspection to ensure product quality and safety.
Ningbo Zhonghua and Ningbo Asia carried out independent
quality inspection and customer complaint analysis for each
paper machine to track and measure the quality indexes for
different product requirements. For customer complaints,
the Quality Control division is in charge of assessment and
follow-up as an on-going process for product quality and
customer satisfaction improvement.
Furthermore, Ningbo Zhonghua and Ningbo Asia have
established nationally accredited laboratory systems and
are authorized to conduct tests on 4 categories of paper and
packaging board, pulp, coal and calcium carbonate covering
a total of 53 items. The laboratory system was accredited
with China National Accreditation Service for Conformity
Assessment (CNAS) in May 2008. In March 2011, both
laboratories will undergo system reassessment as well as
apply for pre-assessment on expanded product range. This
will signifcantly strengthen the mills product and raw materials
testing capability and in turn further product quality and safety.
Customer satisfaction is the ultimate goal. APP-Chinas business
philosophy and common practice are to adopt a customer driven
and market oriented strategy and to develop products and
services that create added value for our customers.
Product quality and safety management system
To ensure that the benefits of customers and consumers are
not compromised, all but one of APP-Chinas pulp and paper
mills covered in this report are certified with ISO9001 as an
added assurance of our quality management system. The only
exception is Hainan Gold Shengpu. As a newly established
mill, Hainan Gold Shengpu has not yet been certifed with any
management system.
Every mill has also established its customized product quality and
safety measures according to its own production and product features.
Having adhered to ISO9000 series of quality control, in May
2003, Hainan Jinhai Pulp and Paper established a quality
assurance laboratory which was approved and certified
with ISO17025 for laboratory quality management in August
2008. The laboratory is equipped with the most advanced
pulp and paper inspection and testing equipments to analyze
and conduct R&D on timber, wood chips and chemical raw
Corporate
Responsibility
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Responsible for Products
45
Supervi sed by a st ri ngent product qual i t y and saf et y
management system, APP-China continued to receive superior
results in product inspections by the government, the customers
and independent third parties in 2010. For example:
Hainan Gold Hongye and Hainan Gold Shengpu passed
the national random inspection tests in May 2010 and the
random inspection of microbes in the production environment
by Hainan Province Disease Control Center in August 2010.
APP-China Household Paper Products Group (HPPG)
was randomly inspected by provincial and national
supervision team on site and in the market place on 5 and
61 occasions respectively. HPPG passed all the tests.
Samples submitted to a third party inspection have all
passed. Besides, HPPG passed all the third-party customer
inspection, including TESCO, JUSCO and BUNZL.
Eco-labeling and certifcation
I n 2010, t he f i ve cat egor i es of pr oduct s whi ch wer e
manufactured by Gold East Paper, Hainan Jinhai Pulp and
Paper, Ningbo Zhonghua, Ningbo Asia, Suzhou Gold Hongye
and Gold Huasheng went through the verification process
by the Environmental Certification Center of the Ministry of
Environmental Protection and were certified under the China
Environmental Labeling (II) Certification scheme. They were
allowed to use the type II China environmental label. This was
the frst time that such a label was granted to so many product
categories from any large-scale pulp and paper mill in China.
Part of Ningbo Zhonghua and Ningbo Asias products obtained
ISO14025 certification (China Environmental Labeling (III) in
April 2010, awarded after an on-site verifcation. The design of
the label carries a fying ginkgo leaf and a swan symbolizing the
importance of protecting environment.
Eco-friendly product design
APP-China communicates our belief in green and sustainable
concepts with our customers and consumers by promoting
environmentally friendly products.
Suzhou Gold Hongye replaced the plastic wrappings for tissue
rolls with highly degradable and recyclable paper. Without
compromising product hygiene and safety, the new design
has lowered the use of packaging materials and costs. The
new packaging design has been applied in global markets
and is increasingly gaining local acceptance as consumers
become more environmentally-conscious in China
Customer services
APP-China is devoted to superior customer services to ensure
quality of our products, logistics support and after-sale services.
In 2010, APP-China emphasized and improved our customer
services capability
Blue sky customer service project
In the second half of 2008, Gold East Paper launched the
Blue Sky Customer Service Project. Gold East Paper
established a cross-department service team led by senior
executives to establish point-to-point contact with personnel
of corresponding functions on the customers side. Fifty-
eight key accounts from all over the country were included
in the initiative. The aim of the project was to further
the understanding of customer needs and encourage
interactions to ensure quality of the products and improved
management of customer services.
In 2010, it continued to be strengthened after 1.5 years
of implementation to enhance the quality of services. It
expanded to 4 teams with 13 groups and more than 90
members. A training program was created to equip the team
members with a solid knowledge of customer services. Key
accounts were broadened with different types of customers
from all over China. Team operations became more practical
to focus on customer benefts, value creation and common
interest.
Since the launch of the Blue Sky Customer Service Project,
the teams had visited almost 900 customers, gathered
46
nearly 1,300 pieces of valuable information and solved
nearly a thousand customer related issues. Through face-
to-face communications to understand customers needs
and put forth solution, it succeeded in achieving strategic
cooperation and exploring market potential between Gold
East Paper and the customers.
Customer satisfaction
APP-Chi na carri es out customer sati sfacti on surveys to
obtain feedback. This leads to better communications with
the customers and consumers and allows the company to
respond in an effective and timely manner. It also allows for
gathering market intelligence to assess the performance of the
organization and continued improvement. For example:
By different categories of customers, Suzhou Gold Hongye
distributed a total of 356 customer satisfaction survey
forms to gather information on their perception of its service
quality. It made direct contact with the customers via the
800 service hotline, online information feedback and e-mails
to upgrade customer satisfaction and customer loyalty.
An annual customer satisfaction survey was conducted to
assess its product quality of the current year to establish the
quality target for the following year. In 2010, Suzhou Gold
Hongye implemented 531 corrective measures in response
to customer complaints. The losses attributable to customer
complaints accounted for 0.06% of the sales revenue.
Customer satisfaction scoring was at 82.09 and the quality
target was achieved each month of the year.
Hainan Gold Hongye and Hainan Gold Shengpu conducted
monthly customer surveys to understand customers
satisfaction on the quality of its tissue products and
services. Timely feedback was analyzed and reported to top
management for developing corresponding improvement
measures. For example, both hills stabilized the manufacturing
process of the paper machine to improve the elasticity of
the paper and to reduce the occurance of any broken and
incomplete layers. Both hills made continuous refinement
in mixing formula of the pulp and paper to control the
thickness of the paper etc. In 2010, on average, the customer
satisfaction ranking of Hainan Gold Hongye and Hainan Gold
Shengpu reached 88.
Overview of employees
In 2010, the scope of the report collectively employed a total
of 28,552* personnel. The recruitment process followed the
provisions of national laws. APP-China does not use child or
forced labor.
Employees are APP-Chinas most important stakeholder and
assets. This section will provide an overview on APP-Chinas
employee composition, labor relations, salary and welfare,
training and development, occupational health and safety and
Responsible for Employees
2008 - 2010 APP-China percentages
of female employees
%
0
25.7
2008 2009 2010
20
40
10
30
24.7
33.71
2008-2010 APP
!!

0.00
2008 2009 2010
40.00
80.00
20.00
60.00
60.88
55.84
2008 - 2010 Number of female employees
in the management level
person
0
359
2008 2009 2010
600
200
400
417
533
2008-2010 APP
!!

2.80
2008 2009 2010
2.90
2.88
73.13
2.90 2.90

30!45%
30.50!53%
50!2%
Fair treatment
APP-Chi na respects empl oyees ri ghts and uphol ds fai r
treatment for all its employees. APP-China adheres to the
principle of the same payment for the same work and opposes
any forms of discrimination.
Note: The data and information disclosed in the above charts refer to the sum of those entities specifed in the scope of the report. Due to the increasing scope of the
report in 2010, and the new defnitions, units, standards and formulas adopted in both 2009 and 2010, selected data cannot be compared with those in 2008.
the employee satisfaction. This is to demonstrate APP-Chinas
people frst business philosophy and sustainable development in
career development.
47
Labor relations
APP-China is committed to strengthening its labor union
and communications channels (Please refer to Stakeholder
Engagement) to establish healthy and harmonious relations with
its employees. Examples of this initiative are: APP-China was
awarded the Harmonious Labor Relations Enterprise by Human
Resources and Social Security Bureau of Huangpu district of
Shanghai; Gold Huasheng was acknowledged by Suzhou city for
its excellent labor relations with A grade of corporate reputation.
Ningbo Zhonghua was honored the Advanced Enterprise of
Harmonious Labor Relations, Zhejiang Province; Ningbo Asia was
granted the title of Harmonious Labor Relations Enterprise in the
National Papermaking Industry.
Human resources appraisal committee system
APP-China established the Human Resources Appraisal
Hainan Jinhai
Pulp & Paper
9.77
11.44
13.51
ACF
62.06
13.41
8.05
1
Gold East
Paper
4.24
4.42
4.54
Suzhou Gold
Hongye
29.84
27.75
36
2
Gold
Huasheng
21.92
10.69
9.31
1
Ningbo
Asia
20.13
3
25.43
3
24.84
3
Ningbo
Zhonghua
11.38
10.87
16.6
2
Hainan Gold
Hongye
/
/
31.3%
Hainan Gold
Shengpu
/
/
33.6%
HQ
17.7
8.91
13.63
2008
2009
2010
2008 - 2010 APP-China overview of employee turnover rate
Unit (%)
Note 1: Employee turnover for Gold Huasheng and APP-China Forestry (ACF) declined in 2010. Gold Huasheng increased much entry-level employees salary and strengthened
training and development for employees. For ACF, new policies coupled with salary adjustment, organizational change and room of individual development contributed to higher
retention rate.
Note 2: Employee turnover of Suzhou Gold Hongye and Ningbo Zhonghua observed a rising trend in 2010 due to the loss of migrant workers for infrastructure change and
seasonal turnover. Both mills adjusted salary ranges and established partnership with local vocational schools for talent bank, in addition to improving working conditions in the
hottest weather.
Note 3: Since more than 60% of Ningbo Asias employees are under age 30, the mill faced a higher turnover rate due to marriage and family reasons. In addition, the Ningbo city
is known for its high real estate and living prices, when more than 40% of the mill consists of workers all over China, it poses a challenge to employee retention. Ningbo Asia has
been working to improve its manpower structure, increase productivity and boost morale.
2008 percentage of APP-China employees by different age groups
under 30 55.9%
30-50 41.7%
over 50 2.4%
under 30 50.2%
30-50 46.7%
over 50 3.1%
2009 percentage of APP-China employees by different age groups
under 30 45%
30-50 53%
over 50 2%
2010 percentage of APP-China employees by different age groups
Item
Total number of employees
Number of employees for direct employment
Number of employees for indirect employment
Percentage of employees for different age groups (under 30; 30-50: over 50)
Percentage of employees of ethnic minorities
Percentage of gender (male: female)
Number of female employees in the management level
2008
20,367
18,170
2,197
55.9:41.7:2.4
2.9%
74.3:25.7
359
2009
21,332
18,644
2,688
50.2:46.7:3.1
2.9%
75.3:24.7
417
2010
28,552
23,095
5,467
45:53:2
2.9%
67.3:33.7
533
Note: Manaement inoioates oeputy seotion onie ano niner at APPCnina
Committee System under the labor union to ensure that fair and
reasonable decisions as part of the congenial labor-management
relationship practice. The committee consists of members from the
Labor Dispute Mediation Committee and four randomly selected
representatives from the company.
In the event of an appeal against the decision made by the
companys human resources department concerning an employee,
the labor union, human resources department and internal control
department will form an investigation team. After the cross-
department investigation, the team will communicate its analysis
of the situation with the concerned employee. If the employee
is still not satisfied with the decision, the case will be brought
to the Human Resources Appraisal Committee for deliberation.
The committee will review and discuss the issue, take a vote and
communicate the decision to the investigation team for fnal action.
Note: Management indicates deputy section chief and higher at APP-China.
48
Salary and welfare
Salary and welfare are one of the most discussed issues among
the employees.
APP-China contributes to employee insurance policies to
include but not limited to endowment, unemployment, medical,
personal accident and maternity insurances and housing fund. An
incentive system is in place to reward employees with outstanding
performances.
In addition to employee social security insurance as a mandate,staff
who engage in hazardous assignments are covered with personal
accident insurance. Additional medical insurance for employees are
available in mills with good performance. For employees required
to take frequent business trips are covered with travel insurance.
APP-China adjusts employee salary based on their performance.
For example, a salary adjustment of 9% will be made up of 5%
for average salary increment and the additional 4% is based on
outstanding performance.
Training and development
APP-China attached great importance to the training and
development of employees to create a healthy career development
environment for them. In March 2010, APP-China established APP
University (APPU), aimed at instilling a sense of cohesiveness
within the group by establishing a platform for skill and talent
development. APPU was also intended to promote the corporate
culture in line with the values of the group, to grow MBOS
leadership and corporate competence. This activity was designed
to improve the organizational effectiveness and realize APP-Chinas
vision and strategic objectives.
Since its establishment, APPU has implemented a number of
training initiatives including the Environment and Sustainability
Communications Coordinator (ESCC) system. It provides
employees with the opportunities to develop and strengthen their
skills for further career development. For example:
(1) Provide training and development opportunities to middle and
senior management as well as employees with high potential
selected to be in the succession plan on topics such as self-
leadership, leadership among others, strategic corporate
management, and marketing management, etc.
(2) Conduct internal training on the groups corporate culture such
as entrepreneurial behavior, culture of appreciation, concept and
knowledge about environmental protection, leadership, talent
development, marketing management courses.
(3) In charge of recruiting and running the groups management
trainee programs with stringent standards and tools which have
intensive but fexible approach.
Furthermore, APP-China has established the Talent Development
and Coaching Committee. This committee is responsible for
assessing, guiding and promoting the development of talents
through the implementation of effective policies and providing
fnancial support.
In addition, those business units and major mills have their own
employee training and development platform. For example, under
the framework of Talent Development and Coaching Committee,
Suzhou Gold Hongyehas a talent appraisal team to evaluate
candidates according to the established Competency Assessment
Guideline. Mentors are appointed to guide the selected individual
along a career development path.








Set qualification criteria for
key positions
Committee Members, HR*
Tracking the Progress of
Development Plan
HR*, Mentor
Implementation
Promotion, Talent retention
First selection of
candidates
Quantitative & Qualitative
Work out personal
development plan
Result evaluation. Mentors assistance
2nd evaluation of the talent
appraisal team on
Competency Assessment Guideline



Mentor



Once every
half year

Qualified talents to
assign mentor
Identify the gap between the target
positions qualifications & that of the
candidates.Develop personal
development plan

T
a
l
e
n
t

D
e
v
e
l
o
p
m
e
n
t

a
n
d
C
o
a
c
h
i
n
g

C
o
m
m
i
t
t
e
e
Note: *HR refers to Human Resources department
49
2008
343
38.39
2009
295
33.12
2010
304.06
33.28
Average training costs per employee (RMB)
Average training time per employee (hour)
2008 - 2010 APP-China overview of employee training & development
Occupational health and safety
For the management system, APP-Chi na promoted the
OHSAS18001 certification for occupational health and safety
management procedures at the major mills. By the end of 2010,
with the exception of Hainan Gold Hongye and Hainan Gold
Shengpu, all those within the scope of the report had been
certifed with OHSAS18001 (Hainan Gold Hongye is expected
to be certifed by 2011. As a newly established mill, Hainan Gold
Shengpu is not yet certifed with any management system).
The major mills of App-China implemented mill-specific and
effective occupational health and safety mechanism according
to nature of its equipment and workplace environment.
Hainan Jinhai Pulp and Paper set up an Occupational
Health and Safety Committee. The general manager was
head of the committee. It established a 3-level safety net to
ensure the implementation of occupational health and safety
procedures. Due to the slightly high number of workplace
injuries in the previous years, Hainan Jinhai Pulp and Paper
carried out a targeted campaign in 2010 and reduced the
number of work-related injuries from 13 in 2009 to 6 in 2010.
Those improvements made on the occupational health and safety
management system greatly reduced workplace injuries in the
recent three years (see table below).
Among them, in 2010, one employee of Ningbo Asia was killed
at work while checking an abnormal production situation violating
standard operational procedures. To prevent such incidents in the
future, Ningbo Asia immediately improved the machines safety
protection measures and reinforced operational staff safety training.
2008
2
96
6,022.99
4,420
3,631
0
2009
1
84
4,118.34
4,701
4,657
4
2010
1
92
1,237.91
6,645
2
5,661
0
Number of fatalities at work
Number of work-related injuries
Hours lost per million working hours
(excluding hours lost due to fatality on duty)
1
Number of people affected by occupational diseases
Number of people who have taken the occupational health check-up
Number of people suffering from occupational diseases
2008 - 2010 APP-China overview of occupational health & safety
Note 1: 2008 data excluded APP-China Forestry and Hainan Jinhai Pulp and Paper; 2009 data excluded APP-China Forestry. Due to lack of complete statistics, 2008 to
2010 data didnt include Hainan Gold Hongye and Hainan Gold Shengpu. Besides, data of Gold East Paper excluded subcontracted workers, which will be improved the data
collection system in 2011.
Note 2: The scope of the report was extended in 2010 to see more growth of the data.
2008 - 2010 APP-China overview
of hours lost per million working hours
0
2008 2009 2010
4000
8000
2000
6000
50
Employee satisfaction
In 2010, APP-China conducted annual survey of employee
satisfaction.
The survey probed into 5 dimensions of employee satisfaction
including satisfaction with compensation, working environment,
colleagues, management and operations. The questionnaire
included 50 questions on three levels. Each business unit
APP-China plays an important role in leading the development of
the pulp and paper industry. In addition to driving technological
advancement of the industry, APP-China is committed to taking
part in accelerating industry growth through actively participating
in industry associations and in the exchange of best practices
with other key players to further industry chain development.
Promote industry exchange
APP-China actively involves in various industry associations
and also holds important positions in several infuential industry
associations such as China Paper Association and China
Technical Association of Paper Industry.
Moreover, APP-China proactively takes part in the formulation of
various industry standards, thereby contributing to the industry
development. For instance, Gold Huasheng participated in the
drafting of Carbonless Paper - National Standard and Photocopy
Paper - National Standard. In 2010 Gold Huasheng also involved
in drafting Hectograph Paper - National Standard, Thermal Paper-
National Standard, and General Specifcation for IT Commercial
Rolling Thermal Paper - Industry Standard.
APP-China organizes and participates in various industry
exchange activities. From January 25
th
to 27
th
2010, APP-
China attended the First Annual China Fast-Growing
Forest Forum held in Nanning, Guangxi province. At the
Responsible for Industry
forum, APP-China introduced the modern forest plantation
technology in developing more than 300,000 hectares of
fast-growing and high-yield trees while fulfilling ecological
conservation. APP-Chinas forest plantations consist mainly
of Eucalyptus, Poplar, Pinus, Acacia Rachii, Casuarinaceae
and Broussonetia papyrifera. This is to meet the increasing
demand of raw materials which simultaneously absorb more
than 8 million tons of carbon dioxide each year and in turn
contribute to fghting global warming.
In August 2010, APP-China invited 27 representatives from
the Hong Kong Printing Industry Society, the Society of
Publishers in Asia, and Hong Kong Environmental Protection
Association to visit APP-Chinas nursery, Eucalyptus forest
plantations and Hainan Jinhai Pulp & Paper to understand
the manufacturing base of plantation-pulp-paper integration.
provided in-depth analysis and solutions. For example:
Suzhou Gold Hongye looked into 10 issues with the lowest
satisfaction rating and provided corresponding suggestions,
including salary adjustment and improving staff dormitory
conditions such as replacing TV sets and adding laundry and
entertainment facilities.
Hosted by the China Paper Association, China Business News (CBN)
and sponsored by APP-China, the PCwC Sustanability Forum 2010
was held in Nanjing from 29
th
to 30
th
July, 2010. Nearly one hundred
stakeholders including customers, NGOs, industry associations,
academia and media representatives gathered to discuss the
development of paper industry in a low carbon economy.
On December 2
nd
, 2010, another PCwC forum was held with the
theme of When you use paper, we plant trees Better Paper Better
Life to discuss the challenges and trends that the tissue industry,
including how to provide consumers safe and high quality products
and how the sustainability of the paper industry can be implemented.
The forum was hosted by China National Household Paper Industry
Association (CNHPIA) and the Economics Observer and sponsored
by APP-China and other industry players.
51
Responsible for Community
APP-Chinas PCwC manifesto clearly indicates that it will
continue with its commitment to community empowerment
by promoting economic growth through job creation, building
infrastructure and schools in rural areas, and providing job
training in the communities where its business operates.
Guided by this commitment, the scope of the report has actively
contributed to community services and when appropriate,
incorporating MBOS in their work. As an example, in 2009,
Gold East Paper established the Management Guidelines for
Employees Volunteer Services included volunteer involvement
into employee KPI. APP-China widely popularized this practice
and all the mills within the scope of the report support their
employees to participate in community services and rolled out
service programs based on different development needs within
their communities.
The Sinar Mas Print Award held by Gold East Paper has been successfully run
for four consecutive years. Its impact has spread from Mainland China, Greater
China, Asia Pacifc to the globe. The number of works submitted during the 2010
event increased to 2,000 from 1,000 in the past and the number of participating
companies increased to nearly 1,000 from over 400 previously.
The Sinar Mas Print Award has become widely recognized as a highly regarded
professional printing competition around the world especially in the Asia Pacifc
region with increasing infuence in the printing and other related industries and
contribution to the technology advancement of the industry.
-- Quote from Professor Wang Qiang, A distinguished Professor of Hangzhou
University of Electronic Science and Technology, member of Steering Committee of
Printing Engineering Teaching Academy of the Ministry of Education and Executive
Director of Digital Printing Branch, China Printing Technology Association. --
Taking lead in industry development
The plantation-pulp-paper integration is a national policy leading
the way to the sustainable development of the pulp and paper
industry. As a world leader, APP-China began its investment
in China with the plantation-pulp-paper integration in the early
1990s. Currently, APP-China owns over 20 modern pulp and
paper companies and high-yield forest plantations. APP-China
spearheads the low carbon and sustainable development of
the paper industry through implementing a green cycle of the
integrated model and contributing to the transformation and
advancement of Chinas paper industry.
APP-China also played an active role in driving technological
exchange and cooperation with the downstream printing
industries:
Gold East Paper took lead in expanding Harmony in
Community activities into a form of community relations.
A special budget is allocated for the initiative. At the
end of each year, Gold East Paper assessed the years
performance to make improvements for the next year. In
2011, Gold East Paper allocated over RMB1.81 million to
organize and conduct community activities.
In 2010, Gold East Paper carried out a series of activities in fve
areas, such as Holding Hands with Love (an activity to assist
the impoverished students and the poor), Im Happy Because
I Contribute, (a volunteer program). The man-hours devoted to
the volunteer activities increased from 29,247 in 2009 to 41,040
in 2010, an increase of 40%. This is not only highly recognized
by local communities but also marks a milestone for Gold East
Paper to be truly part of the communities.
APP-China is committed to minimizing the negative impact on
the environment through reducing waste emissions, energy
saving, recycling and reuse (please refer to Sustainable Pulp
and Paper Production of this report). On the other hand,
APP-China maximizes the positive contribution to society by
promoting economic growth and cordial community relations.
In 2010, APP-China created a total of 15,943 jobs for the
communities where the mills are located and also provided
many indirect employment opportunities by promoting the local
industries such as in logistics support, thereby contributing to
the local economy.
52
Hainan Jinhai Pulp and Paper held an annual pubic movie campaign in the rural villages of Hainan province since 2007. About 8,000
movie titles were aired free of charge to 2,500 administrative villages in Hainans 18 townships, counties and the Yangpu Economic
Development Zone. Within three years a total of 24,000 movies were released for the beneft of over 5.8 million villagers.
This campaign added to the sharing of scientifc and cultural knowledge and the villages social events whilst enriching the cultural life
of the villagers. It also allows the teenagers of the communities in rural areas to have the opportunity to enjoy movies, contributing to
the harmonious social development of Hainan, including the healthy development of the local teenagers.
In October 2010, Hunan province suffered the worst food in 60 years. On October 29
th
, APP-China Forestry head offce and
representatives of the Hainan area donated RMB20, 000 worth of rice, oil and tissue paper produced by APP-China to 62
families.
The Sixth APP-China Environmental Protection Summer Camp for University Students was held in Guangxi province from
August 16
th
to 18
th
2010. The event was to share modern forest plantation management and scientifc development in forest
plantations with university and college students. The activities include theory, site visits, observation and practices. Twenty
teachers and students from fve universities, namely the Wuhan Textile University (WTU), Huazhong Agricultural University,
Wuhan Institute of Technology, Hubei College of Finance and Economics and International Business and Economics College
of WTU were givens a full briefing on APP-Chinas green model and best practice of plantation-pulp-paper integration. In
July 2010, APP-China's Scientifc Development in Forest Plantation- Environmental Protection Summer Camp for University
Students was featured for the Typical Case Studies of National Scientifc Literacy and Corporate Social Responsibility.
Note: in December 2009, with the support of China Association for Science and Technology (CAST), Chinese Society for Science and Technology Journalism (CSSTJ),
China Research Institute for Science Popular Education (CRISP) and Beijing Science International PR Ltd. together rolled out the National Scientifc Literacy and Corporate
Social Responsibility - Case Study Collection campaign. It focused on the survey, evaluation and promotion of more than 600 domestic and foreign companies. More than
20 scientists and experts participated in the selection of 43 typical cases, and publication titled the Typical Case Studies of National Scientifc Literacy and Corporate Social
Responsibility.
Reference: http://www.uisp.org.cn/2010-07/28/content_3630217.htm
The changes of Yangpu, Hainan, where Hainan Jinhai Pulp
& Paper is located
Before Hainan Jinhai Pulp and Paper was established in Yangpu
in 2003, there were only 3 motorcycles in Gongtang Lower
Village. Brick houses were also rare then. The construction and
operation of Hainan Jinhai Pulp and Paper improved the living
standard of the people in Gongtang Lower Village tremendously.
Now concrete buildings were everywhere and all the families
of more than 800 residents in Gongtang Lower Village own
motorcycles. Some even bought cars to serve logistics work for
Hainan Jinhai Pulp and Paper.
53
Apart from paying attention to the local communities where
the mills and business units operate, APP-China also cares
about the larger community of China to actively fulfll its social
responsibility on a group level.
The Huang Yicong Foundation (the Foundation) founded by
the family of Sinar Mas founder was officially registered with
the Ministry of Civil Affairs in May 2010 to be an independent
legal entity. The Foundation inherits the founders family and the
companys belief in philanthropy and social responsibility and will
continue with existing philanthropy projects and new initiatives
with innovation. In addition, the Foundations dedication towards
philanthropy invigorates the community services of APP-China.
Contributing to Society
Cultivating university students
University scholarship and speeches/presentation
of circular economy
Since 2004, APP-China established scholarships in colleges
and universities throughout the country and promotes the
circular economy each year. From 2010 to 2011, three hundred
and fifteen high performing students from 12 universities and
colleges were awarded the scholarships.
Since the Foundation took over the scholarship projects in
2008, it began to hold annual discussion sessions with the
awarded students to understand issues related to their studies,
life and future plans. The Foundation also ran campus activities
to promote environmental protection, public services and
encourage university students to participate in philanthropic
activities and cultivate a sense of social responsibility in addition
to their pursuit of excellence in study and integrity.
APP Internships at NPOs (Non-Proft Organizations, NGOs)
In June 2010, APP-China introduced APP Internships at NPOs
campaign. It opened a new window of opportunity for university
students by supporting and encouraging them to contribute their
time for the NPO internship during summer vacations. It also
creates a new direction of cultivating young talents.
In summer 2010, six outstanding students from leading colleges
and universities in Shanghai took up the offer and were posted
to six NPOs in Shanghai. Through participating in the operations,
the students gained in-depth work experience, fast growth in
how to deal with daily tasks and a strong sense of fulfillment.
The cultivation of such philanthropic personality will beneft the
young generation for their life-long journey.
The Foundation plans to expand the scope of the campaign to
benefit more students based on the success of the 2010 pilot
projects.
54
Primary and junior high school education
Joy of Reading Project
Since 2009, the Foundation began to implement Joy of Reading
Project for the primary and junior high schools in remote areas
to build and enrich school libraries. By organizing reading
campaigns and competitions, it helped the students form a good
reading habit to beneft them for life.
In 2010, Joy of Reading Project donated books worth over
RMB260,000 to three schools in Luojiang, Fujian province. The
Foundation helped promote reading campaigns as well.
Sustainability education/Planet Watch launch and promotion
In October of 2010, the Foundation and the Shanghai Popular
Science Press introduced a distinguished book in environmental
protection, Planet Watch, originally published by Dorling
Kindersley Limited. The Foundation leverages the launch and
promotion of the book to roll out the sustainability education. This
school-family-community model is to enhance the concept of
sustainability for future generations and promote the community
practice in environmental protection.
As of May 2011, twenty-five schools from Shanghai, Jiangsu,
Zhejiang, Hainan, Fujian and Gansu provinces participated in
this program. More than 10,000 students have benefted and the
Foundation aims to expand more cooperation with these schools
in the future.
Education sponsorship for Shanyao ethnic group, Yunnan
In May of 2010, APP-China and the Foundation donated RMB
1 million through Shanghai Hongkou Education Bureau to the
children of Shanyao Ethnic Group in Funing County, Yunnan. The
aid not only sponsored and rewarded those students doing well in
school study but also benefted all students through the nutrition
program of giving one cup of soybean milk and one egg every
day.
55
Community development
Sanlin Expo Homestead of Shanghai
The Foundations support for the Sanlin Expo Homestead
of Shanghai program began in September, 2008. It was in
cooperation with the Shanghai Wulixiang Community Service
Center. It aims to build a LOHAS community by organizing
painting, calligraphy, garbage sorting to exchange green
products and low-carbon living style activities. Such activities
attracted many other communities in different areas to visit and
join the efforts.
APP-China Shanghai Here We Come! Expo Summer Camp
The Foundation continued to build momentum built on the basis
of the Shanghai Here We Come! Exp Summer Camp started
in 2009. The Foundation organized three 6-day Shanghai Expo
Summer Camps to host high-performing teachers and students
Disaster relief and post-disaster re-construction
After the earthquake in Yushu, Qinghai province in April 2010, APP-
China and the Foundation jointly donated RMB 20 million through the
Overseas Chinese Affairs Offce under the State Council to support
the reconstruction of the No. 3 Wanquan Primary School in Yushu
County. The school is expected to be completed by the end of 2011.
The new campus construction of Beijing Chinese Language and
Culture College (BCLCC) is expected to be competed by 2011 to
2012. In 2009 APP-China and the Foundation jointly donated RMB
100 million to BCLCC.
to tour Shanghai Expo Park, Oriental Pearl, and the Bund. They
also visited Gold Hongye and Gold Huasheng to understand
paper maki ng processes and toured the envi ronmental
protection park of the factories. A total of 8 teachers and 30
junior high school students of eight schools from six poor and
remote regions such as Inner Mongolia, Hebei, Gansu, Sichuan,
Guangxi and Fujian were invited for the tour. The students also
had the opportunity to interact with students from Beijiao Senior
High School of Hongkou district, Shanghai.
The Foundation is more than happy to share its philanthropy,
community service experiences and case studies with all the
APP-China mills to give back to the society.
The Psychological Counseling Program established in two
schools in Sichuan after the Wenchuan earthquake in 2008
has enabled the community to develop a comprehensive local
counseling platform and provide counseling training to local
teachers. Another project kicked off in 2008, The Fujian Yicong
School Scholarship continued to award teaching to support the
development of the school in 2010.
56
Employee volunteer services
In addition to promoting community programs, The Foundation is
also devoted to encourage APP-Chinas employees in Shanghai
to participate in volunteer services. In 2010, the volunteer
activities includes the Shanghai-Fujian Correspondence
Volunteer Program, clothing donation, World Expo Summer
Camp and "Give Love, Give a Scarf" Project. From 2008 to
In 2010, APP-China and the Foundations total charity donation
APP-China is guided by our sustainability pledge, Paper Contract with China, and will continue to be a good corporate citizen to
fulfll its social responsibility. APP-China respects and values our employees, customers and consumers and are committed to the
advancement and sustainable development of the industry and the society to help boost the industry chain, to support community
services and do its part to further sustainable development for the society.
2008
5,608
2009
3,300
2010
4,975
Year
Donation amount (RMB 10,000)
2008 - 2010 total value of charity donation of APP-China and the Foundation


2008 - 2010 overview of
APP-Chinas volunteer services
man-hour
0
2008
16,311
2009
30,272
2010
45,116
20000
50000
10000
40000
30000
2010, the man-hour of APP-Chinas volunteer services saw a
great growth: total man-hours of volunteer services at 16,311,
30,272 and 45,166 for the past three years.
There was an emerging atmophere for every staff to enjoy in
volunteeer services at APP-China.
amounted to RMB 49.75 million.
57
Note 1: The data disclosed in this chart refer to the sum of those entities specifed in the scope of the report.
Note 2: Total water discharge and Total COD emissions includes all the entities specifed in the scope of the report (including Hainan Jinhai Pulp and Paper, Hainan Gold Hongye
and Hainan Gold Shengpu). The same data of APP-China Sustainability Report 2009 covers only paper mills of the scope of the report (except for Hainan Jinhai Pulp and Paper,
Hainan Gold Hongye and Hainan Gold Shengpu) .
Note 3: Due to the expanded scope of the report in 2010, and the new defnitions, units, standards and formulas adopted in 2009 and 2010, some of the data cannot be compared
with those of 2008 and 2009.
Facts and Figures

2008
488
599
14,894
25.7
2.9
73.13
343.0
38.4
2
96
6,023.0
4,420
3,631
0
5,608.0
16,311
20.60
14.19
281.81
700.87
2009
647
626
12,986
24.7
2.9
60.88
295.0
33.1
1
84
4,118.3
4,701
4,657
4
3,300.0
30,272
30.12
13.66
258.42
764.46
2010
625
827
15,943
33.6
2.9
55.60
304.1
34.0
1
87
1,215.5
6,645
5,661
1
4,975.4
43,378
25.53
13.73
395.71
987.58
Environmental Performance
Total investments in environmental protection (RMB100 million)
Total water discharge (ton)
Total COD emissions (ton)
Total CO2 emissions (ton)
Solid waste generation volume (ton)
Total Nitrogen Oxide emissions (ton)
Reclaimed water reuse rate (%)
Energy consumption per ton of paper (100 million joules)
Energy consumption per ton of pulp (100 million joules)
Annual average water consumption per ton of paper (ton)
Annual average water consumption per ton of pulp (ton)
Annual average wastewater discharge per ton of paper (ton)
Annual average wastewater discharge per ton of pulp (ton)
COD emissions per unit of product (kg per ton of paper)
COD emissions per unit of product (kg per ton of pulp)
Social Performance
Total number of employees
Number of female employees
Number of female employees in the management level
Employees under 30 years old
Employees from 30 to 50 years old
Employees over 50 years old
Number of employees from ethnic minorities
Number of local employees
Percentage of female employees (%)
Percentage of employees from ethnic minorities (%)
Percentage of local employees (%)
Average training cost per employee (RMB)
Average training time per employee (hour)
Number of work-related fatalities
Number of work- related injuries
Lost hours per million working hours (excluding lost hours resulted from work- related fatalities)
Number of persons in contact with occupational hazard factors
Number of persons to take health check-up for occupational diseases
Number of persons with occupational diseases
Charity donations (RMB 10,000)
Volunteer services (man-hour)
Economic Performance
Total profits (RMB 100 million)
Total taxes paid (RMB 100 million)
Sales revenues (RMB 100 million)
Total assets (RMB 100 million)
2008
4.68
56,677,882.00
4,420
8,725.74
1,667,733.45
5,328.23
13.6
139.53
64.46
9.27
28.58
8.47
16.05
0.58
1.61
20,367
5,232
359
11,392
8,487
488
599
14,894
25.7
2.9
73.13
343
38.39
2
96
6,022.99
4,420
3,631
0
5,608
16,311
20.60
14.19
281.81
700.87
2009
3.27
52,671,699.00
3,729
8,117.08
1,611,265
6,350.95
16.66
137.54
81.52
9.14
25.38
7.67
16.22
0.47
1.51
21,332
5,262
417
10,718
9,967
647
626
12,986
24.7
2.9
60.88
295
33.12
1
84
4,118.34
4,701
4,657
4
3,300
30,272
30.12
13.66
258.42
764.46
2010
4.63
54,110,253.00
3,684
7,235.00
1,593,706
5,439.50
20.00
137.66
72.38
9.00
24.34
7.28
15.78
0.42
1.39
28,552
9,625
533
12,737
15,190
625
827
15,943
33.71
2.9
55.60
304.06
33.28
1
92
1,237.91
6,645
5,661
0
4,975
45,116
30.06
16.41
310.11
909.9
58
Outlook of APP-China
Sustainable Development for 2011
In 2011, APP-Chinas
main focuses will be as below:
Management Platform
1. Improve the sustainable development management system and further stakeholder engagement, communications and co-operation;
2. Strengthen the cross-department/cross-functions/cross-mill information exchange mechanism:

Adjust new targets continuously and establish the early warning color system of the three-phase target and
conduct regular reviews;

Donate to the annual mutual support programs, this is to increase the number of quarterly mutual support projects;

Use special projects to resolve diffcult issues and intensify the tracking of follow-up and comparison. Stimulate
mutual cooperation among companies and encourage them to share and adopt effective measures.
3. Evaluate to set up an on-going CSR data/information/case study collection system
4. Reinforce core team building to stabilize corporate development
Compliance and Legality
Sustainable Forest
Plantation Development
The pursuit of harmony in
the course of forest plantation
development;
Conti nuousl y i mprove
forest management technology
a n d i n c r e a s e t h e l a n d
productivity;
E x p a n d t h e s c o p e
o f t h e e n v i r o n me n t a l
i mpact assessment and
regul ar moni tori ng for the
environmental conservation.
Sustainable Pulp
and Paper Production
Adapt to the new emission
standards of the Nati onal
Twelfth Five-Year Plan and
follow the committed data of
APP-Chinas sustainability
pledge, Paper Contract with
China (PCwC);
Improve manufacturing
technol ogi es and escal ate
i mpr ovement pr oj ect s t o
further resources and reuse
rates and waste management
in water discharge, emissions
to air and solid waste;
St ar t wat er f oot pr i nt
projects step by step.
Social Responsibility
Strengthen services for
the later phases of product life
cycle, increase service items
and accelerate service quality;
I mprove occupat i onal
health and safety management.
Cont i nue t o pr omot e t he
system verifcation.
Expand the Harmony
in Community initiatives and
relevant MBOS activities.
Leverage i nfl uence to
take lead in the sustainable
development for the industry.
ISO26000 Performance Statement
59
60
61
Assurance Statement
62
GRI Index
63
1. Strategy and Analysis
2. Corporate Profile
3. Report Parameters
4. Governance,
Commitments and
Engagement
Pae
2
2
4
6
10
Baok oover
5
5
5
25
4
8
4
4
4
68
41114
4
4
4
4
4
4
6366
4
10
10
Not applioable
15
10
11
1048
918
Pae
1011
10
1920
4
50
1516
11
111516
1516
2557
2
48

35
57
5156
51
Foloin, 3233
Foloin, 42
Foloin, 37
Foloin, 37
3638
3638
3638
Foloin, 35

Foloin, 3536
2026
2326
26
22252758
4. Governance,
Commitments and
Engagement
Economic
Performance Indicators
Environmental
Performance
Indicators
G3.1Stanoaro Disolosures
Proile
4.9 Prooeoures o tne ninest overnanoe booy or overseein tne oranizations ioentiioation ano manaement o eoonomio, environmental, ano sooial
perormanoe, inoluoin relevant risks ano opportunities, ano aonerenoe or oomplianoe witn internationally areeo stanoaros, oooes o oonouot, ano prinoiples.
4.10 Prooesses or evaluatin tne ninest overnanoe booys own perormanoe, partioularly witn respeot to eoonomio, environmental, ano sooial perormanoe.
4.11 Explanation o wnetner ano now tne preoautionary approaon or prinoiple is aooresseo by tne oranization.
4.12 Externally oevelopeo eoonomio, environmental, ano sooial onarters, prinoiples, or otner initiatives to wnion tne oranization subsoribes or enoorses.
4.13 Membersnips in assooiations (suon as inoustry assooiations) ano/or national/international aovooaoy oranizations.
4.14 List o stakenoloer roups enaeo by tne oranization.
4.15 Basis or ioentiioation ano seleotion o stakenoloers witn wnom to enae.
4.16 Approaones to stakenoloer enaement, inoluoin reouenoy o enaement by type ano by stakenoloer roup.
4.17 Key topios ano oonoerns tnat nave been raiseo tnroun stakenoloer enaement, ano now tne oranization nas responoeo to tnose key topios ano oonoerns, inoluoin tnroun its reportin.
Perormanoe noioators
EC1 Direot eoonomio value enerateo ano oistributeo.
EC2 Finanoial implioations ano otner risks ano opportunities or tne oranizations aotivities oue to olimate onane.
EC3 Coverae o tne oranizations oeineo beneit plan obliations.
EC4 Siniioant inanoial assistanoe reoeiveo rom overnment.
EC5 Pane o ratios o stanoaro entry level wae by enoer oompareo to looal minimum wae at siniioant looations o operation.
EC6 Polioy, praotioes, ano proportion o spenoin on looallybaseo suppliers at siniioant looations o operation.
EC7 Prooeoures or looal nirin ano proportion o senior manaement nireo rom tne looal oommunity at looations o siniioant operation.
EC8 Development ano impaot o inrastruoture investments ano servioes provioeo primarily or publio beneit tnroun oommeroial, inkino, or pro bono enaement.
EC9 Unoerstanoin ano oesoribin siniioant inoireot eoonomio impaots, inoluoin tne extent o impaots.
EN1 Materials useo by weint or volume.
EN2 Peroentae o materials useo tnat are reoyoleo input materials.
EN3 Direot enery oonsumption by primary enery souroe.
EN4 noireot enery oonsumption by primary souroe.
EN5 Enery saveo oue to oonservation ano eioienoy improvements.
EN6 nitiatives to provioe eneryeioient or renewable enery baseo proouots ano servioes, ano reouotions in enery reouirements as a result o tnese initiatives.
EN7 nitiatives to reouoe inoireot enery oonsumption ano reouotions aonieveo.
EN8 Total water witnorawal by souroe.
EN9 Water souroes siniioantly aeoteo by witnorawal o water.
EN10 Peroentae ano total volume o water reoyoleo ano reuseo.
EN11 Looation ano size o lano owneo, leaseo, manaeo in, or aojaoent to, proteoteo areas ano areas o
nin biooiversity value outsioe proteoteo areas.
EN12 Desoription o siniioant impaots o aotivities, proouots, ano servioes on biooiversity in proteoteo areas ano areas o nin biooiversity value outsioe proteoteo areas.
EN13 Habitats proteoteo or restoreo.
EN14 Strateies, ourrent aotions, ano uture plans or manain impaots on biooiversity.
G3.1Stanoaro Disolosures
Proile
1.1 Statement rom tne most senior oeoision maker o tne oranization (e.., CEO, onair, or eouivalent senior position) about tne relevanoe o sustainability to tne oranization ano its stratey.
1.2 Desoription o key impaots, risks, ano opportunities.
2.1 Name o tne oranization.
2.2 Primary branos, proouots, ano/or servioes.
2.3 Operational struoture o tne oranization, inoluoin main oivisions, operatin oompanies, subsioiaries, ano joint ventures.
2.4 Looation o oranizations neaoouarters.
2.5 Number o oountries wnere tne oranization operates, ano names o oountries witn eitner major
operations or tnat are speoiioally relevant to tne sustainability issues oovereo in tne report.
2.6 Nature o ownersnip ano leal orm.
2.7 Markets serveo (inoluoin eorapnio breakoown, seotors serveo, ano types o oustomers/beneioiaries).
2.8 Soale o tne reportin oranization.
2.9 Siniioant onanes ourin tne reportin perioo rearoin size, struoture, or ownersnip.
2.10 Awaros reoeiveo in tne reportin perioo.
3.1 Peportin perioo (e.., isoal/oalenoar year) or inormation provioeo.
3.2 Date o most reoent previous report (i any).
3.3 Peportin oyole (annual, biennial, eto.)
3.4 Contaot point or ouestions rearoin tne report or its oontents.
3.5 Prooess or oeinin report oontent, inoluoin oeterminin materiality, prioritizin topios witnin tne report, ano ioentiyin stakenoloers tne oranization expeots to use tne report.
3.6 Bounoary o tne report.
3.7 State any speoiio limitations on tne soope or bounoary o tne report.
3.8 Basis or reportin on joint ventures, subsioiaries, leaseo aoilities, outsouroeo operations, ano otner
entities tnat oan siniioantly aeot oomparability rom perioo to perioo ano/or between oranizations.
3.9 Data measurement teonnioues ano tne bases o oaloulations.
3.10 Explanation o tne eeot o any restatements o inormation provioeo in earlier reports, ano tne reasons or suon restatement.
3.11 Siniioant onanes rom previous reportin perioos in tne soope, bounoary, or measurement metnoos applieo in tne report.
3.12 Table ioentiyin tne looation o tne Stanoaro Disolosures in tne report.
3.13 Polioy ano ourrent praotioe witn rearo to seekin external assuranoe or tne report.
4.1 Governanoe struoture o tne oranization, inoluoin oommittees unoer tne ninest overnanoe booy responsible or speoiio tasks, suon as settin stratey or oranizational oversint.
4.2 noioate wnetner tne Cnair o tne ninest overnanoe booy is also an exeoutive oioer (ano, i so, tneir unotion witnin tne oranizations manaement ano tne reasons or tnis arranement).
4.3 For oranizations tnat nave a unitary boaro struoture, state tne number ano enoer o members o tne ninest overnanoe booy tnat are inoepenoent ano/or nonexeoutive members.
4.4 Meonanisms or snarenoloers ano employees to provioe reoommenoations or oireotion to tne ninest overnanoe booy.
4.5 Linkae between oompensation or members o tne ninest overnanoe booy, senior manaers, ano exeoutives (inoluoin oeparture arranements), ano tne oranizations perormanoe.
4.6 Prooesses in plaoe or tne ninest overnanoe booy to ensure oonliots o interest are avoioeo.
4.7 Prooess or oeterminin tne oomposition, oualiioations, ano expertise o tne members o tne ninest
overnanoe booy ano its oommittees, inoluoin any oonsioeration o enoer ano otner inoioators o oiversity.
4.8 nternally oevelopeo statements o mission or values, oooes o oonouot, ano prinoiples relevant to eoonomio, environmental, ano sooial perormanoe ano tne status o tneir implementation.
64
1. Strategy and Analysis
2. Corporate Profile
3. Report Parameters
4. Governance,
Commitments and
Engagement
Pae
2
2
4
6
10
Baok oover
5
5
5
25
4
8
4
4
4
68
41114
4
4
4
4
4
4
6366
4
10
10
Not applioable
15
10
11
1048
918
Pae
1011
10
1920
4
50
1516
11
111516
1516
2557
2
48

35
57
5156
51
Foloin, 3233
Foloin, 42
Foloin, 37
Foloin, 37
3638
3638
3638
Foloin, 35

Foloin, 3536
2026
2326
26
22252758
4. Governance,
Commitments and
Engagement
Economic
Performance Indicators
Environmental
Performance
Indicators
G3.1Stanoaro Disolosures
Proile
4.9 Prooeoures o tne ninest overnanoe booy or overseein tne oranizations ioentiioation ano manaement o eoonomio, environmental, ano sooial
perormanoe, inoluoin relevant risks ano opportunities, ano aonerenoe or oomplianoe witn internationally areeo stanoaros, oooes o oonouot, ano prinoiples.
4.10 Prooesses or evaluatin tne ninest overnanoe booys own perormanoe, partioularly witn respeot to eoonomio, environmental, ano sooial perormanoe.
4.11 Explanation o wnetner ano now tne preoautionary approaon or prinoiple is aooresseo by tne oranization.
4.12 Externally oevelopeo eoonomio, environmental, ano sooial onarters, prinoiples, or otner initiatives to wnion tne oranization subsoribes or enoorses.
4.13 Membersnips in assooiations (suon as inoustry assooiations) ano/or national/international aovooaoy oranizations.
4.14 List o stakenoloer roups enaeo by tne oranization.
4.15 Basis or ioentiioation ano seleotion o stakenoloers witn wnom to enae.
4.16 Approaones to stakenoloer enaement, inoluoin reouenoy o enaement by type ano by stakenoloer roup.
4.17 Key topios ano oonoerns tnat nave been raiseo tnroun stakenoloer enaement, ano now tne oranization nas responoeo to tnose key topios ano oonoerns, inoluoin tnroun its reportin.
Perormanoe noioators
EC1 Direot eoonomio value enerateo ano oistributeo.
EC2 Finanoial implioations ano otner risks ano opportunities or tne oranizations aotivities oue to olimate onane.
EC3 Coverae o tne oranizations oeineo beneit plan obliations.
EC4 Siniioant inanoial assistanoe reoeiveo rom overnment.
EC5 Pane o ratios o stanoaro entry level wae by enoer oompareo to looal minimum wae at siniioant looations o operation.
EC6 Polioy, praotioes, ano proportion o spenoin on looallybaseo suppliers at siniioant looations o operation.
EC7 Prooeoures or looal nirin ano proportion o senior manaement nireo rom tne looal oommunity at looations o siniioant operation.
EC8 Development ano impaot o inrastruoture investments ano servioes provioeo primarily or publio beneit tnroun oommeroial, inkino, or pro bono enaement.
EC9 Unoerstanoin ano oesoribin siniioant inoireot eoonomio impaots, inoluoin tne extent o impaots.
EN1 Materials useo by weint or volume.
EN2 Peroentae o materials useo tnat are reoyoleo input materials.
EN3 Direot enery oonsumption by primary enery souroe.
EN4 noireot enery oonsumption by primary souroe.
EN5 Enery saveo oue to oonservation ano eioienoy improvements.
EN6 nitiatives to provioe eneryeioient or renewable enery baseo proouots ano servioes, ano reouotions in enery reouirements as a result o tnese initiatives.
EN7 nitiatives to reouoe inoireot enery oonsumption ano reouotions aonieveo.
EN8 Total water witnorawal by souroe.
EN9 Water souroes siniioantly aeoteo by witnorawal o water.
EN10 Peroentae ano total volume o water reoyoleo ano reuseo.
EN11 Looation ano size o lano owneo, leaseo, manaeo in, or aojaoent to, proteoteo areas ano areas o
nin biooiversity value outsioe proteoteo areas.
EN12 Desoription o siniioant impaots o aotivities, proouots, ano servioes on biooiversity in proteoteo areas ano areas o nin biooiversity value outsioe proteoteo areas.
EN13 Habitats proteoteo or restoreo.
EN14 Strateies, ourrent aotions, ano uture plans or manain impaots on biooiversity.
G3.1Stanoaro Disolosures
Proile
1.1 Statement rom tne most senior oeoision maker o tne oranization (e.., CEO, onair, or eouivalent senior position) about tne relevanoe o sustainability to tne oranization ano its stratey.
1.2 Desoription o key impaots, risks, ano opportunities.
2.1 Name o tne oranization.
2.2 Primary branos, proouots, ano/or servioes.
2.3 Operational struoture o tne oranization, inoluoin main oivisions, operatin oompanies, subsioiaries, ano joint ventures.
2.4 Looation o oranizations neaoouarters.
2.5 Number o oountries wnere tne oranization operates, ano names o oountries witn eitner major
operations or tnat are speoiioally relevant to tne sustainability issues oovereo in tne report.
2.6 Nature o ownersnip ano leal orm.
2.7 Markets serveo (inoluoin eorapnio breakoown, seotors serveo, ano types o oustomers/beneioiaries).
2.8 Soale o tne reportin oranization.
2.9 Siniioant onanes ourin tne reportin perioo rearoin size, struoture, or ownersnip.
2.10 Awaros reoeiveo in tne reportin perioo.
3.1 Peportin perioo (e.., isoal/oalenoar year) or inormation provioeo.
3.2 Date o most reoent previous report (i any).
3.3 Peportin oyole (annual, biennial, eto.)
3.4 Contaot point or ouestions rearoin tne report or its oontents.
3.5 Prooess or oeinin report oontent, inoluoin oeterminin materiality, prioritizin topios witnin tne report, ano ioentiyin stakenoloers tne oranization expeots to use tne report.
3.6 Bounoary o tne report.
3.7 State any speoiio limitations on tne soope or bounoary o tne report.
3.8 Basis or reportin on joint ventures, subsioiaries, leaseo aoilities, outsouroeo operations, ano otner
entities tnat oan siniioantly aeot oomparability rom perioo to perioo ano/or between oranizations.
3.9 Data measurement teonnioues ano tne bases o oaloulations.
3.10 Explanation o tne eeot o any restatements o inormation provioeo in earlier reports, ano tne reasons or suon restatement.
3.11 Siniioant onanes rom previous reportin perioos in tne soope, bounoary, or measurement metnoos applieo in tne report.
3.12 Table ioentiyin tne looation o tne Stanoaro Disolosures in tne report.
3.13 Polioy ano ourrent praotioe witn rearo to seekin external assuranoe or tne report.
4.1 Governanoe struoture o tne oranization, inoluoin oommittees unoer tne ninest overnanoe booy responsible or speoiio tasks, suon as settin stratey or oranizational oversint.
4.2 noioate wnetner tne Cnair o tne ninest overnanoe booy is also an exeoutive oioer (ano, i so, tneir unotion witnin tne oranizations manaement ano tne reasons or tnis arranement).
4.3 For oranizations tnat nave a unitary boaro struoture, state tne number ano enoer o members o tne ninest overnanoe booy tnat are inoepenoent ano/or nonexeoutive members.
4.4 Meonanisms or snarenoloers ano employees to provioe reoommenoations or oireotion to tne ninest overnanoe booy.
4.5 Linkae between oompensation or members o tne ninest overnanoe booy, senior manaers, ano exeoutives (inoluoin oeparture arranements), ano tne oranizations perormanoe.
4.6 Prooesses in plaoe or tne ninest overnanoe booy to ensure oonliots o interest are avoioeo.
4.7 Prooess or oeterminin tne oomposition, oualiioations, ano expertise o tne members o tne ninest
overnanoe booy ano its oommittees, inoluoin any oonsioeration o enoer ano otner inoioators o oiversity.
4.8 nternally oevelopeo statements o mission or values, oooes o oonouot, ano prinoiples relevant to eoonomio, environmental, ano sooial perormanoe ano tne status o tneir implementation.
65
Pae

40
40
18

40
Foloin, 3839
Foloin, 3841

45

23

57
4647
47
48

47

2349
2349
49
49
4849
48
4849
464757

Pae

46

46
46

275152

28
10
10
10

21011
11

45
45

46
45

Environmental
Performance
Indicators
Labor Practices
and Decent
Performance
Indicators
Human Rights
Performance
Indicators
Society
Performance
Indicators
Product
Responsibility
Performance
Indicators
G3.1Stanoaro Disolosures
Perormanoe noioators
EN15 Number o UCN Peo List speoies ano national oonservation list speoies witn nabitats in areas
aeoteo by operations, by level o extinotion risk.
EN16 Total oireot ano inoireot reennouse as emissions by weint.
EN17 Otner relevant inoireot reennouse as emissions by weint.
EN18 nitiatives to reouoe reennouse as emissions ano reouotions aonieveo.
EN19 Emissions o ozoneoepletin substanoes by weint.
EN20 NO, SO, ano otner siniioant air emissions by type ano weint.
EN21 Total water oisonare by ouality ano oestination.
EN22 Total weint o waste by type ano oisposal metnoo.
EN23 Total number ano volume o siniioant spills.
EN24 Weint o transporteo, importeo, exporteo, or treateo waste oeemeo nazaroous unoer tne terms o tne
Basel Convention Annex , , , ano v, ano peroentae o transporteo waste snippeo internationally.
EN25 oentity, size, proteoteo status, ano biooiversity value o water booies ano relateo nabitats siniioantly aeoteo by tne reportin oranizations oisonares o water ano runo.
EN26 nitiatives to mitiate environmental impaots o proouots ano servioes, ano extent o impaot mitiation.
EN27 Peroentae o proouots solo ano tneir paokain materials tnat are reolaimeo by oateory.
EN28 Monetary value o siniioant ines ano total number o nonmonetary sanotions or nonoomplianoe witn environmental laws ano reulations.
EN29 Siniioant environmental impaots o transportin proouots ano otner ooos ano materials useo or tne oranizations operations, ano transportin members o tne workoroe.
EN30 Total environmental proteotion expenoitures ano investments by type.
LA1 Total workoroe by employment type, employment oontraot, ano reion, broken oown by enoer.
LA2 Total number ano rate o new employee nires ano employee turnover by ae roup, enoer, ano reion.
LA3 Beneits provioeo to ulltime employees tnat are not provioeo to temporary or parttime employees, by siniioant looations o operation.
LA15 Peturn to work ano retention rates ater parental leave, by enoer.
LA4 Peroentae o employees oovereo by oolleotive barainin areements.
LA5 Minimum notioe perioo(s) rearoin operational onanes, inoluoin wnetner it is speoiieo in oolleotive areements.
LA6 Peroentae o total workoroe representeo in ormal joint manaementworker nealtn ano saety oommittees tnat nelp monitor ano aovise on oooupational nealtn ano saety prorams.
LA7 Pates o injury, oooupational oiseases, lost oays, ano absenteeism, ano total number o workrelateo
atalities, by reion ano by enoer.
LA8 Eouoation, trainin, oounselin, prevention, ano riskoontrol prorams in plaoe to assist workoroe
members, tneir amilies, or oommunity members rearoin serious oiseases.
LA9 Healtn ano saety topios oovereo in ormal areements witn traoe unions.
LA10 Averae nours o trainin per year per employee by enoer, ano by employee oateory.
LA11 Prorams or skills manaement ano lielon learnin tnat support tne oontinueo employability o employees ano assist tnem in manain oareer enoins.
LA12 Peroentae o employees reoeivin reular perormanoe ano oareer oevelopment reviews, by enoer.
LA13 Composition o overnanoe booies ano breakoown o employees per employee oateory aoooroin
to enoer, ae roup, minority roup membersnip, ano otner inoioators o oiversity.
LA14 Patio o basio salary ano remuneration o women to men by employee oateory, by siniioant looations o operation.
G3.1Stanoaro Disolosures
Perormanoe noioators
HP1 Peroentae ano total number o siniioant investment areements ano oontraots tnat inoluoe olauses inoorporatin numan rints oonoerns, or tnat nave unoerone numan rints soreenin.
HP2 Peroentae o siniioant suppliers, oontraotors, ano otner business partners tnat nave unoerone numan rints soreenin, ano aotions taken.
HP3 Total nours o employee trainin on polioies ano prooeoures oonoernin aspeots o numan rints tnat are relevant to operations, inoluoin tne peroentae o employees traineo.
HP4 Total number o inoioents o oisorimination ano oorreotive aotions taken.
HP5 Operations ano siniioant suppliers ioentiieo in wnion tne rint to exeroise reeoom o assooiation
ano oolleotive barainin may be violateo or at siniioant risk, ano aotions taken to support tnese rints.
HP6 Operations ano siniioant suppliers ioentiieo as navin siniioant risk or inoioents o onilo labor, ano measures taken to oontribute to tne eeotive abolition o onilo labor.
HP7 Operations ano siniioant suppliers ioentiieo as navin siniioant risk or inoioents o oroeo or
oompulsory labor, ano measures to oontribute to tne elimination o all orms o oroeo or oompulsory labor.
HP8 Peroentae o seourity personnel traineo in tne oranizations polioies or prooeoures oonoernin aspeots o numan rints tnat are relevant to operations.
HP9 Total number o inoioents o violations involvin rints o inoienous people ano aotions taken.
HP10 Peroentae ano total number o operations tnat nave been subjeot to numan rints, reviews ano/or impaot assessments.
HP11 Number o rievanoes relateo to numan rints ileo, aooresseo ano resolveo tnroun ormal rievanoe meonanisms.
SO1 Peroentae o operations witn implementeo looal oommunity enaement, impaot assessments, ano oevelopment prorams.
SO9 Operations witn siniioant potential or aotual neative impaots on looal oommunities.
SO10 Prevention ano mitiation measures implementeo in operations witn siniioant potential or aotual neative impaots on looal oommunities.
SO2 Peroentae ano total number o business units analyzeo or risks relateo to oorruption.
SO3 Peroentae o employees traineo in oranizations antioorruption polioies ano prooeoures.
SO4 Aotions taken in response to inoioents o oorruption.
SO5 Publio polioy positions ano partioipation in publio polioy oevelopment ano lobbyin.
SO6 Total value o inanoial ano inkino oontributions to politioal parties, politioians, ano relateo institutions by oountry.
SO7 Total number o leal aotions or antioompetitive benavior, antitrust, ano monopoly praotioes ano tneir outoomes.
SO8 Monetary value o siniioant ines ano total number o nonmonetary sanotions or nonoomplianoe witn laws ano reulations.
PP1 Lie oyole staes in wnion nealtn ano saety impaots o proouots ano servioes are assesseo or
improvement, ano peroentae o siniioant proouots ano servioes oateories subjeot to suon prooeoures.
PP2 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin nealtn ano saety impaots o proouots ano servioes ourin tneir lie oyole, by type o outoomes.
PP3 Type o proouot ano servioe inormation reouireo by prooeoures ano peroentae o siniioant proouots ano servioes subjeot to suon inormation reouirements.
PP4 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin proouot ano servioe inormation ano labelin, by type o outoomes.
PP5 Praotioes relateo to oustomer satisaotion, inoluoin results o surveys measurin oustomer satisaotion.
PP6 Prorams or aonerenoe to laws, stanoaros, ano voluntary oooes relateo to marketin oommunioations, inoluoin aovertisin, promotion, ano sponsorsnip.
PP7 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin marketin oommunioations, inoluoin aovertisin, promotion, ano sponsorsnip by type o outoomes.
PP8 Total number o substantiateo oomplaints rearoin breaones o oustomer privaoy ano losses o oustomer oata.
PP9 Monetary value o siniioant ines or nonoomplianoe witn laws ano reulations oonoernin tne provision ano use o proouots ano servioes.
66
Pae

40
40
18

40
Foloin, 3839
Foloin, 3841

45

23

57
4647
47
48

47

2349
2349
49
49
4849
48
4849
464757

Pae

46

46
46

275152

28
10
10
10

21011
11

45
45

46
45

Environmental
Performance
Indicators
Labor Practices
and Decent
Performance
Indicators
Human Rights
Performance
Indicators
Society
Performance
Indicators
Product
Responsibility
Performance
Indicators
G3.1Stanoaro Disolosures
Perormanoe noioators
EN15 Number o UCN Peo List speoies ano national oonservation list speoies witn nabitats in areas
aeoteo by operations, by level o extinotion risk.
EN16 Total oireot ano inoireot reennouse as emissions by weint.
EN17 Otner relevant inoireot reennouse as emissions by weint.
EN18 nitiatives to reouoe reennouse as emissions ano reouotions aonieveo.
EN19 Emissions o ozoneoepletin substanoes by weint.
EN20 NO, SO, ano otner siniioant air emissions by type ano weint.
EN21 Total water oisonare by ouality ano oestination.
EN22 Total weint o waste by type ano oisposal metnoo.
EN23 Total number ano volume o siniioant spills.
EN24 Weint o transporteo, importeo, exporteo, or treateo waste oeemeo nazaroous unoer tne terms o tne
Basel Convention Annex , , , ano v, ano peroentae o transporteo waste snippeo internationally.
EN25 oentity, size, proteoteo status, ano biooiversity value o water booies ano relateo nabitats siniioantly aeoteo by tne reportin oranizations oisonares o water ano runo.
EN26 nitiatives to mitiate environmental impaots o proouots ano servioes, ano extent o impaot mitiation.
EN27 Peroentae o proouots solo ano tneir paokain materials tnat are reolaimeo by oateory.
EN28 Monetary value o siniioant ines ano total number o nonmonetary sanotions or nonoomplianoe witn environmental laws ano reulations.
EN29 Siniioant environmental impaots o transportin proouots ano otner ooos ano materials useo or tne oranizations operations, ano transportin members o tne workoroe.
EN30 Total environmental proteotion expenoitures ano investments by type.
LA1 Total workoroe by employment type, employment oontraot, ano reion, broken oown by enoer.
LA2 Total number ano rate o new employee nires ano employee turnover by ae roup, enoer, ano reion.
LA3 Beneits provioeo to ulltime employees tnat are not provioeo to temporary or parttime employees, by siniioant looations o operation.
LA15 Peturn to work ano retention rates ater parental leave, by enoer.
LA4 Peroentae o employees oovereo by oolleotive barainin areements.
LA5 Minimum notioe perioo(s) rearoin operational onanes, inoluoin wnetner it is speoiieo in oolleotive areements.
LA6 Peroentae o total workoroe representeo in ormal joint manaementworker nealtn ano saety oommittees tnat nelp monitor ano aovise on oooupational nealtn ano saety prorams.
LA7 Pates o injury, oooupational oiseases, lost oays, ano absenteeism, ano total number o workrelateo
atalities, by reion ano by enoer.
LA8 Eouoation, trainin, oounselin, prevention, ano riskoontrol prorams in plaoe to assist workoroe
members, tneir amilies, or oommunity members rearoin serious oiseases.
LA9 Healtn ano saety topios oovereo in ormal areements witn traoe unions.
LA10 Averae nours o trainin per year per employee by enoer, ano by employee oateory.
LA11 Prorams or skills manaement ano lielon learnin tnat support tne oontinueo employability o employees ano assist tnem in manain oareer enoins.
LA12 Peroentae o employees reoeivin reular perormanoe ano oareer oevelopment reviews, by enoer.
LA13 Composition o overnanoe booies ano breakoown o employees per employee oateory aoooroin
to enoer, ae roup, minority roup membersnip, ano otner inoioators o oiversity.
LA14 Patio o basio salary ano remuneration o women to men by employee oateory, by siniioant looations o operation.
G3.1Stanoaro Disolosures
Perormanoe noioators
HP1 Peroentae ano total number o siniioant investment areements ano oontraots tnat inoluoe olauses inoorporatin numan rints oonoerns, or tnat nave unoerone numan rints soreenin.
HP2 Peroentae o siniioant suppliers, oontraotors, ano otner business partners tnat nave unoerone numan rints soreenin, ano aotions taken.
HP3 Total nours o employee trainin on polioies ano prooeoures oonoernin aspeots o numan rints tnat are relevant to operations, inoluoin tne peroentae o employees traineo.
HP4 Total number o inoioents o oisorimination ano oorreotive aotions taken.
HP5 Operations ano siniioant suppliers ioentiieo in wnion tne rint to exeroise reeoom o assooiation
ano oolleotive barainin may be violateo or at siniioant risk, ano aotions taken to support tnese rints.
HP6 Operations ano siniioant suppliers ioentiieo as navin siniioant risk or inoioents o onilo labor, ano measures taken to oontribute to tne eeotive abolition o onilo labor.
HP7 Operations ano siniioant suppliers ioentiieo as navin siniioant risk or inoioents o oroeo or
oompulsory labor, ano measures to oontribute to tne elimination o all orms o oroeo or oompulsory labor.
HP8 Peroentae o seourity personnel traineo in tne oranizations polioies or prooeoures oonoernin aspeots o numan rints tnat are relevant to operations.
HP9 Total number o inoioents o violations involvin rints o inoienous people ano aotions taken.
HP10 Peroentae ano total number o operations tnat nave been subjeot to numan rints, reviews ano/or impaot assessments.
HP11 Number o rievanoes relateo to numan rints ileo, aooresseo ano resolveo tnroun ormal rievanoe meonanisms.
SO1 Peroentae o operations witn implementeo looal oommunity enaement, impaot assessments, ano oevelopment prorams.
SO9 Operations witn siniioant potential or aotual neative impaots on looal oommunities.
SO10 Prevention ano mitiation measures implementeo in operations witn siniioant potential or aotual neative impaots on looal oommunities.
SO2 Peroentae ano total number o business units analyzeo or risks relateo to oorruption.
SO3 Peroentae o employees traineo in oranizations antioorruption polioies ano prooeoures.
SO4 Aotions taken in response to inoioents o oorruption.
SO5 Publio polioy positions ano partioipation in publio polioy oevelopment ano lobbyin.
SO6 Total value o inanoial ano inkino oontributions to politioal parties, politioians, ano relateo institutions by oountry.
SO7 Total number o leal aotions or antioompetitive benavior, antitrust, ano monopoly praotioes ano tneir outoomes.
SO8 Monetary value o siniioant ines ano total number o nonmonetary sanotions or nonoomplianoe witn laws ano reulations.
PP1 Lie oyole staes in wnion nealtn ano saety impaots o proouots ano servioes are assesseo or
improvement, ano peroentae o siniioant proouots ano servioes oateories subjeot to suon prooeoures.
PP2 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin nealtn ano saety impaots o proouots ano servioes ourin tneir lie oyole, by type o outoomes.
PP3 Type o proouot ano servioe inormation reouireo by prooeoures ano peroentae o siniioant proouots ano servioes subjeot to suon inormation reouirements.
PP4 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin proouot ano servioe inormation ano labelin, by type o outoomes.
PP5 Praotioes relateo to oustomer satisaotion, inoluoin results o surveys measurin oustomer satisaotion.
PP6 Prorams or aonerenoe to laws, stanoaros, ano voluntary oooes relateo to marketin oommunioations, inoluoin aovertisin, promotion, ano sponsorsnip.
PP7 Total number o inoioents o nonoomplianoe witn reulations ano voluntary oooes oonoernin marketin oommunioations, inoluoin aovertisin, promotion, ano sponsorsnip by type o outoomes.
PP8 Total number o substantiateo oomplaints rearoin breaones o oustomer privaoy ano losses o oustomer oata.
PP9 Monetary value o siniioant ines or nonoomplianoe witn laws ano reulations oonoernin tne provision ano use o proouots ano servioes.
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Glossary
Definition
Abbreviation for European Integrated Pollution Prevention and Control, which
was miswritten as IPCC for APP-China Sustainability Report 2009.
Abbreviation for International Finance Corporation.
Abbreviation for China National Accreditation Service for Conformity
Assessment.
Abbreviation of Key Performance Indicators.
Cultivation of beneficial plants within a forest plantation system to improve soil fertility. Often used as a substitute for
chemical fertilizers. The benefits of green manure intercropping include weed suppression and improved tree growth.
Water screened by the paper machines during the papermaking process
with small/short fibers etc. which give it a white appearance.
Liquid produced from the pulp washing and cooking using kraft and soda. It is black in color and
contains inorganic substances of cooking materials dissolved from login and semi-cellulose of the
raw materials/plant fiber and biodegraded substance and organic acid of cellulose.
Waste water which, after being treated to a certain standard, can be
reused for other purposes.
A series of environmental management standards set up by the Technical Committee
207 (TC207), International Organization for Standardization (ISO), since 1993.
Occupational Safety & Health Management System was an international standard jointly created by
13 organizations including British Standards Institution (BSI) and Det Norske Veritas (DNV), serving as
the basis for organizations to establish occupational safety & health management system and for
companies to carry out internal audit and for certification bodies to implement certified verification.
The amount of strong oxidant used to treat water samples under certain conditions, which
measures the total amount of organic substances susceptible to oxidation and decomposition.
The amount of dissolved oxygen needed by aerobic biological organisms in water to break down organic materials present in a given water sample
at certain temperature over a specific time period. It is used to measure the degree of pollution of the organic substances in the water.
Organic and inorganic particles that are suspended in water and cannot pass through a 0.45
m filter, such as sludge, clay, organic substances, algae and germs which are insoluble in
water. It is one of the indicators used to measure the degree of water pollution.
Saturated steam pressure of VOCs is more than 133.32 Pa with the boiling point
between 50C - 205C. Its toxicity, stimulus and offensive smells may affect the
skin and mucous membranes, potentially causing some harm to human body.
Paper pulp that is produced by mechanically separating fibers from wood, fiber crops or waste paper (raw materials).
Paper pulp that is produced by chemically separating fibers from wood, fiber crops or waste paper (raw materials).
An environmental claim and self-declaration (GB/T 24021-20001) to specify 12 environment-related
self-declarations including production from product raw materials sourcing, disposal treatment, to
process control, i.e., compostable, degradable, biodegradable, decomposition design, extension of
product life recycle, the use of recollected energy, re-circular, containment of recirculation, energy
saving, resource-efficient, water saving, refillable, waste reductions.Type II E-L claims are based on
self-declarations on environment by manufacturers, importers, dealers, retailers or any beneficiary.
(ISO/TR 14025) is a check list of product performance and quantitative data to evaluate the level of the
environmental impacts of the products by Life Cycle Assessment (LCA). Applied by the company and audited,
assessed and certified by a credible independent third party based on international environment standard
ISO14025, type III E-L provides consumers and distributors comparable environmental claims on specific
products and services. It shows the dual product advantages of quality and environmental indicators.
Term
IPPC
IFC
CNAS
KPI
Green Manure
White Water
Black Liquor
Reclaimed Water
ISO14001
OHSAS18001
Chemical Oxygen Demand (COD
Biochemical Oxygen Demand (BOD
Suspended solids (SS
Volatile Organic Compounds (VOCs
Mechanical Pulp
Chemical Pulp
Type II E-Labeling (ISO 14021)
Type III E-Labeling (ISO 14025)
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
68
Feedback
Dear Readers,
Thank you for reading APP-China Sustainability Report 2010 out of your busy schedule. Your comments and suggestions are
highly appreciated. Please send them to csr@app.com.cn
Thank you!
APP-China Sustainability Report 2010 Working Team
November 2011
All photos are shots of APP-China facilities,
its products or taken for APP-China activities

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