Social-environmental sustainability

As a leading global manufacturer of paper products, APP recognizes the dual responsibility of good stewardship. First, we must be good stewards of the investment made in our company by its shareholders, employees and customers. These investments go well beyond financial transactions they are investments of loyalty and trust in our good business judgment and our good work.

Second, we also must be good stewards of the entire technology, natural and human resources we require to conduct our business. That is why APP is committed to responsible Best Practices in all of its production facilities, and to Sustainable Forest Management for all of its fiber sources.

APP’s vision is to become the 21st century's premiere, world-class pulp and paper manufacturer-a company dedicated to providing superior value to customers, shareholders and employees alike. We can make our vision real only by adhering to responsible practices that ensure the sustainability of all our resources and the well-being of the communities in which we do business.

Whether in the forest or in the factory APP is committed to sustainable and socially responsible development.

Sustainable development as defined by World Bank is "a process of managing a portfolio of assets to preserve and enhance the opportunities people face". Sustainable development includes economic, environmental, and social sustainability, which can be achieved by rationally managing physical, natural, and human capital.

Corporate Social Responsibility as defined by World Bank is the commitment of business to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their quality of life, in ways that are both good for business and good for development.

Indonesia

Note on the relationship between APP and the Sinarmas Forestry

APP encompasses all of the pulp and paper mill operations in Indonesia. The Sinarmas Forestry companies are the exclusive fiber supplier to APP mills. The forestry companies are an integral part of APP’s fiber supply chain into the future.

About sustainable growth, forest conservation, conservation assessment and management, ensuring a legal wood supply, community role in conservation, community relation, forestry R & D, forest fire prevention and protection, policy documents, report downloads and sustainability report access this link: www.asiapulppaper.com.

China

Resource Creation

China is a developing country challenge of economic development and environmental protection. With its national conditions, China places great emphasis on sustainable economic development. Environmental protection is a fundamental national policy.

In light of this situation and insufficient raw materials in the future, the best solution for Chinas paper making industry is to create resources. Effective measures must be taken to realize a green recycling operation mode of paper plantation, pulp and paper integration, through harvesting fast-growing paper plantations, to carry out resource rebuilding projects and to improve waste paper recycling.

Environmental Protection

Paper making enterprises are traditionally seen as exploiting resources and pollute the environment as paper is perceived to just come from trees and paper making generates waste water. However, it is the birth of paper enables the brilliance in human civilization to be passed on and shared with future generations.

As one of the top ten world paper making enterprises, APP is committed to exploring mutual developments in paper making and the environment, as well as practicing the recycling economy method of paper plantation, pulp and paper integration, with the aim of mutual benefits for human civilization and the natural environment.

At present we are proud to say that APP is the most outstanding enterprise among Chinese paper making enterprises in terms of environmental protection and resource application. We are the first to carry out the recycling economy method of paper plantation, pulp and paper integration. We execute stricter standards in eliminating paper making pollution in comparison to those of the state and other developed countries.

APP has accumulated unique experience in resource application, ecological protection, pulp and paper making and environmental coordination, as well as improvement of scientific research management and sustainable development. We hope more people can share our experiences and propose better suggestions, making the paper making industry a true environmentally-friendly industry.

Social Responsibility

The development of an enterprise is attributed to the support of society. As the largest paper group in China and the only enterprise with a top 10 ranking for the Enterprise of Overseas Ventures, APP has never neglected its plans to repay society with gratitude. It sets part of its income to help the needy, and to promote the development of socially beneficial activities, as a Repayment Plan that APP adheres to.

As of May, 2008 has pledged to donate more than RMB 460 million toward various Chinese beneficial activities.

For more details about these actions in China, access http://en.app.com.cn.

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