The Supplier Evaluation and Risk Assessment (SERA) system not only outlines what suppliers must do to comply with APP regulations but also sets a standard when recruiting new suppliers. All suppliers must comply with the Forest Conservation Policy and adhere to the Responsible Fibre Procurement and Purchasing Policy (RFPPP).

APP requires all suppliers – both current and potential supplier - to comply with its Forest Conservation Policy (FCP). APP has developed guidance for suppliers in the form of the Responsible Fibre Procurement and Purchasing Policy (RFPPP) which provides an overarching framework for the specific processes and criteria which suppliers will be evaluated against in order to be considered compliant with the FCP. 

To facilitate implementation of the RFPPP across its fibre supply chain, APP developed the Supplier Evaluation and Risk Assessment (SERA) tool .
For new suppliers, SERA acts as an initial screening to evaluate the level of risk within a supplier’s operations. Once accepted as a supplier, the long-term suppliers will be subjected to annual SERA evaluations to ensure continued compliance to the FCP. 
SERA evaluates suppliers against 12 indicators:
1. Company, or any of its associated companies in the pulpwood industry, converting natural forest after February 1st 2013. 
2. Country/region
3. Tree species
4. Third-party certification/verification
5. Chain of Custody system
6. Legality Compliance
7. Protection of High Conservation Values/High Carbon Stock
8. Species protection as listed on the IUCN Red List of Critical Endangered Species and CITES
9. Company’s repect for traditional civil and human rights
10. Compliance with ILO Core Conventions 
11. Company’s respect for health and safety of forest workers
12. No introduction of genetically modified organisms (GMOs)
APP will only accept wood from suppliers that have not converted any forest area identified as HCS as of February 2013
Results from the risk assessment are used to categorise potential suppliers into “significant risk” or “negligible risk”. If a potential supplier is categorised as “significant risk”, they will be required to implement corrective actions (CARs) within an agreed period of time. If a supplier is unable to fulfil the required corrective actions within the time period allotted, they will not be accepted as an APP supplier.
The summary of the risk assessment report of all potential suppliers will be uploaded on the FCP monitoring dashboard for public notification for a period of 14 calendar days before APP makes a decision on whether or not to accept the potential supplier into its pulpwood supply chain.
Note: JSC (Joint Steering Committee) is a committee that makes the final decision on accepting suppliers based on the SERA process and outcomes. JSC consists of the Sustainability Division Head, the Forestry Operational Division Head, the Procurement Division Head, and the Managing Director.
This process applies to all pulpwood/chipwood suppliers and traders providing either one time or continuous supply to APP.
One time supply: supply is limited to specific approved harvesting location based on the agreed Annual Work Plan (annual allowable cut). 
Continuous supply: supply from one concession continuously (usually more than 1 rotation). 



APP sources fiber globally and has developed stringent  measures to ensure that all suppliers meet legal and environmental policy requirements in line with the FCP and the RFPPP.

To implement this commitment, we ensure that the legal origin and chain of custody of the raw materials (pulp, pulpwood and wood chips) are verified before they enter the mill.

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Responding to calls from stakeholders in 2012, we carried out an independent assessment to clarify APP’s link with pulpwood suppliers in Indonesia, which was completed in 2014. In June 2018, APP decided to commence the second assessment with an expended scope which was completed in March 2019.

The recent assessment’s scope was extended to all industrial forest plantation companies in Indonesia in order to shed light on APP’s relationship with these forest plantation companies, to ensure there is no link with companies who were in breach of APP’s zero-deforestation commitment.

To ensure that this process was credible and carried out transparently, APP engaged an independent auditor from one of the Big Four accounting firms to perform the assessment, with oversight from Earthworm Foundation (formerly known as The Forest Trust).

Through this assessment process, it was concluded that;

1. The companies identified as APP Partners are consistent with the ones that we have declared in APP FCP Monitoring Dashboard (

2. The companies that were identified as being involved in deforestation practices are no longer supplying to APP

3. Other companies that were alleged to have relationship to APP have been identified as having no relationship to APP supply chain

For a detailed summary report, please click here.

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