Asia Pulp & Paper, tied to haze-linked suppliers, given temporary restrictions by SEC

The Singapore Environment Council has placed APP under a Notice of Temporary Restrictions on its green label. This action responds to fires on land managed by APP’s suppliers in South Sumatra, Indonesia, which are contributing to the current regional haze. It matters because the green label signals stronger environmental responsibility to consumers.

APP must now submit daily fire response reports. SEC will closely monitor fire prevention and suppression in concession areas managed by Bumi Mekar Hijau, Bumi Andalas Permai and SBA Wood Industries. The reporting must show that stronger monitoring and firefighting measures are actually operating effectively, not merely promised.

The restriction is temporary, but it creates a serious risk for APP’s certification. If the extra reports are inadequate, APP’s SGLS+ certificate may be suspended. APP would then have to stop using the SGLS+ logo on products associated with that certification, potentially affecting consumer purchasing decisions.

The Singapore Green Labelling Scheme+ is an environmental certification administered by the Singapore Environment Council. Launched in 2017, it helps consumers identify pulp and paper products linked to stronger environmental practices. It goes beyond the earlier Green Label, which focused on sustainable sources and manufacturing processes.

SGLS+ companies must improve peatland management and detect and suppress fires early. They must invest in firefighting equipment and assess fire danger daily through standard procedures. Certified companies must also pledge that their plantations use zero burning. SEC requires them to check supply chains and disclose whether they source wood, paper or pulp from certain companies served with prevention notices.

The scheme makes certification depend on both company practices and supply-chain oversight. That matters in this case because APP’s suppliers operate Indonesian concessions linked to current fires. SEC’s temporary restrictions test whether APP can demonstrate effective monitoring, prevention and suppression across those supplier-managed areas.

Singapore’s National Environment Agency issued legal notices to 10 companies in Indonesia during the ongoing haze. The notices asked the companies to stop burning on their land and submit plans to extinguish the fires. NEA issued notices to seven companies on Oct 16 and three more on Oct 19.

Four of the 10 companies were identified as APP suppliers: Bumi Andalas Permai, Bumi Mekar Hijau, SBA Wood Industries and Buana Megatama Jaya. The first three are named by SEC as suppliers whose concession areas face monitoring under APP’s temporary green-label restrictions. All four operate in Indonesia, according to the article’s account of the notices and supplier links.

The remaining six companies were Paramitra Mulia Langgeng, Sumatera Alam Anugerah, Hutan Lestari Raya, Bangkanesia, Mananjung Hayak and Baratama Putra Perkasa. All except Buana Megatama Jaya received similar notices during the 2015 haze crisis, and their cases remain open.

The immediate risk is suspension of APP’s SGLS+ certificate. SEC said this could happen if APP’s additional reporting does not demonstrate that strengthened monitoring, fire prevention and suppression measures are being implemented effectively in supplier-managed concession areas.

The key mechanism is certification control. APP must provide daily fire response information while SEC monitors the areas managed by Bumi Mekar Hijau, Bumi Andalas Permai and SBA Wood Industries. If the evidence is insufficient, SEC can suspend the certificate rather than allow the SGLS+ claim to continue without proof of effective action.

The product consequence is direct. APP would have to stop using the SGLS+ logo on products associated with the certification. The restriction could also influence purchasing decisions because SEC designed the Singapore Green Label to help consumers choose more environmentally responsible products. The article does not state whether products would be removed from stores this time.

APP can face restrictions because the environmental certification examines supply-chain responsibility. The three suppliers named by SEC provide wood fibre to APP and operate concessions in South Sumatra, Indonesia. Fires from suppliers’ land have been causing the current regional haze, so their practices affect the environmental claims attached to APP’s products.

The mechanism is oversight through SGLS+. Certified companies must check their supply chains and declare whether they source or purchase wood, paper and pulp products from companies served with prevention notices. APP must also report on fire prevention and suppression in concession areas managed by its suppliers. SEC can therefore test whether the certified supply chain is being managed responsibly.

This does not mean the article says APP directly started the fires. Instead, it shows why certification can impose duties beyond a company’s own land. If APP cannot demonstrate effective controls among relevant suppliers, its SGLS+ certificate may be suspended and associated products must stop using the logo.

The current restriction revisits APP’s earlier connection to the 2015 haze crisis. During that record-breaking episode, SEC suspended the green label on APP products after NEA listed APP among firms investigated under Singapore’s Transboundary Haze Pollution Act. That earlier response shows the environmental label can be withdrawn when fire links raise serious concerns.

The THPA targets people or companies responsible for causing or condoning fires. The article does not say that APP was found guilty under the Act. It says NEA investigated APP for links to regional forest fires that led to the haze. Singapore supermarkets then removed APP products, including Paseo paper products, from their shelves.

APP later received enhanced SGLS+ certification in May 2019. The present action is a temporary restriction rather than a stated suspension. SEC now requires daily reporting and strict monitoring, while NEA has issued notices to Indonesian companies and says it is investigating other companies responsible for the haze.

Transboundary haze is a regional layer of smoke and fine pollution carried across national borders from fires. Peatlands can burn for long periods, producing large amounts of smoke. When winds move that smoke, people in another country may experience unhealthy air even though the fires are elsewhere. This is why Indonesia’s fires can affect Singapore and the wider region.

The article describes fires in South Sumatra and says they are causing the current haze. It also highlights damage to people’s health and the environment. Smoke can reduce visibility and disrupt normal activity, while fire can damage forests, peatland and wildlife. Businesses may face weaker sales, supply disruptions or reputational pressure when customers connect products with fire risks.

The problem crosses borders, but responses can involve several governments and companies. NEA issued legal notices to Indonesian land companies, while SEC restricted APP’s certification in Singapore. The article says NEA is tracking hotspots and smoke and investigating other companies that may be responsible.