In line with the APP Sustainable Roadmap Vision (SRV) 2030, PT. Indah Kiat Pulp & Paper Tbk (“IKPP”) is committed to implementing sustainable development and supporting the implementation of responsible Environment, Social and Governance (ESG) in its operations. This commitment is outlined in various policies and integrated management systems, in accordance with applicable laws and regulations and standards. To fulfil this commitment, IKPP has implemented an Environmental Management System, managing the environmental impacts of land, water and air so that they can be reduced and mitigated, thereby improving better environmental performance.
Environmental Management System
In an effort to improve environmental performance, IKPP has implemented the ISO 14001 Environmental Management System as a basis for managing environmental risks and impacts that occur during its processes and operations to comply with applicable laws and regulations and other requirements.
IKPP management is committed to fully supporting and being responsible for the implementation of the environmental management system to manage environmental issues throughout IKPP processes and operations as follows:
- Identify environmental issues that have a significant impact on the environment including documents, land, water and air throughout all processes and operations
- Setting goals and targets, providing resources including determining roles and responsibilities and creating environmental programs to reduce and mitigate environmental impacts
- Evaluate environmental programs that have been implemented, monitor and carry out measurements required by regulations, monitor environmental performance through audits and take corrective action to achieve sustainable environmental improvements.
Internal communication within the company is carried out to all employees regarding the importance of complying with applicable regulations related to company processes and operations. External company communications are carried out to related parties in accordance with applicable IKPP company’s regulations
To increase awareness of environmental impacts related to its processes and operations, IKPP requires its workers to take part in the New Employee Orientation (NEO) program organized by the Human Resources (HR) Academy, where one of the materials presented is environmental management in operational areas. Periodic refreshment training is provided to workers, covering Environment, Health and Safety material. IKPP is also committed to improving competency and meeting training needs in accordance with regulations required, including in the field of environmental management, such as Water Pollution Control Manager (Manajer Pengendalian Pencemaran Air/MPPA), Person in Charge of Air Pollution Control (Penanggung Jawab Pengendalian Pencemaran Udara/PPPU), Person in Charge of Hazardous Waste Management (Penanggung Jawab Pengelolaan Limbah B3/PPLB3), Life Cycle Assessment (LCA), ISO Management System and other competency improvements in accordance with the requirements needed for the implementation of IKPP processes and operations.
To fulfil this commitment, IKPP makes efforts to implement environmental programs in a sustainable manner. These programs are prepared taking into account the targets and deadlines of the SRV 2030 (including: 30% reduction in carbon intensity, 50% increase in renewable fuel, 25% reduction in energy intensity, 30% reduction in water intensity, 30% more COD emissions lower than government regulations, zero waste to land fill and Government requirements based on applicable regulations).
Action plans for carrying out each program are evaluated periodically to ensure that environmental program achievements run effectively. One example of a program implemented is Program Penilaian Peringkat Perusahaan dalam Pengelolaan Lingkungan Hidup/PROPER (Public Disclosure Program for Environmental Compliance), which is organized by the Ministry of Environment and Forestry of the Republic of Indonesia. IKPP succeeded in achieving compliance with environmental regulatory requirements. The assessment is carried out every year and the process are updated every time there are new regulations from the Government.
Several environmental certificates have been obtained, such as ISO 14001, ISO 50001, Green Industry Certificate, from the Ministry of Industry of the Republic of Indonesia, the certificate shows that IKPP is doing its best to handle environmental problems in its daily operations.
Waste Water Management
IKPP is committed to fulfilling the statutory requirements regarding waste water quality which must be met before being discharged into the environment. In line with this commitment, IKPP strives to continuously achieve the target of 30% Chemical Oxygen Demand (COD) emission limits lower than the quality standards of government regulations that apply in SRV 2030. One of the efforts made is by setting objectives and targets for each related unit. IKPP management will evaluate the achievement of KPI targets and improve wastewater quality on a regular basis.
To reduce the amount of waste water, IKPP has made several efforts by implementing the 3R (Reduce, Reuse and Recycle) concept, including:
- Reusing water in pulp and paper production machines using a close loop system so as to reduce the use of raw water from Fresh Water Treatment.
- Reusing waste water in the Log Washing process to be reused in the Log washing process.
- Recycle domestic wastewater that has been treated at the Sewage Treatment Plant (STP) to be reused as raw water for the production process.
- Reusing RO Reject water as feed in treated water.
- Reuse Backwash water from the Demin Plant in treated water.
Industrial wastewater quality monitoring is monitored online and connected to the KLHK server where measurement data is reported continuously in real time.
To prepare for emergency wastewater management conditions, IKPP has a team that is competent in readiness to handle incidents and emergency response conditions. The Non-Conformity Report (NCR) concept is applied to investigate and determine effective actions in handling an environmental incident. There are procedures for managing incident handling and emergency response systems, including Emergency Response Preparedness procedures. This procedure includes a system for investigating and determining corrective actions to be taken if an environmental incident occurs. This procedure also regulates the flow of information and reporting in accordance with the emergency response team structure, so that handling can be carried out effectively and efficiently.
The emergency response team is provided with training that is carried out periodically, including simulations of incident handling and emergency response in areas with a high potential for environmental incidents. Preventive measures are also part of incident handling procedures.
Water Risk Management
The pulp and paper production process require large amounts of water, therefore reducing water consumption at IKPP is a sustainable process. IKPP makes efforts to ensure that water availability can continuously meet production needs and maintain its sustainability in the environment.
To achieve the 2030 SRV target, IKPP is committed to implementing several initiatives to achieve efficiency in water consumption. This is in line with efforts to fulfill the target and deadline of 30% reduction in water intensity in SRV 2030. IKPP carries out risk and opportunity analysis of the water management process, namely carrying out initiatives to improve operational processes including reducing water consumption, production efficiency, and mitigating water scarcity, so as not to impact the company or the surrounding environment.
To manage water availability, IKPP has attempted to do the following:
- Maintain the volume of water use in accordance with the applicable water withdrawal permit
- Build a lagoon to be used as a reservoir for river water and rainwater as a raw water reserve during the dry season.
- Save water usage by reusing process water that has been treated in the Settling Tank for pulping, showering and washing processes
- Optimization of blow down water disposal in the boiler to efficiently use make up water.
- Optimizing the return of condensate water from the paper machine to the boiler.
- Carrying out reforestation on riverbanks and initiating the creation of bio pores and infiltration wells within the factory and in the built areas
- Conduct regular inspections of water facilities to maintain and ensure there are no leaks.
Management of Hazardous and Toxic Waste (B3)
To implement the 3R principle (Reduce, Reuse, Recycle) IKPP continues to strive to reduce the volume of B3 waste with process innovation to reduce the amount of sludge generation (fibre loss). As part of efforts to fulfil targets and deadlines that are in line with SRV 2030, namely that no B3 waste is disposed of in the landfill, IKPP controls the amount of waste produced. The amount of waste managed is monitored through the B3 waste balance calculation method, use of chemicals, and selection of safe types of chemical packaging
The management of the B3 waste produced is managed in accordance with applicable laws and regulations. Efforts made to optimize pulp and paper production operations include:
- Utilize sludge produced in the Waste Water Treatment Plant (“WWTP”) area to substitute raw materials for medium and liner paper which has obtained a utilization permit from the Ministry of Environment and Forestry.
- Utilize WWTP sludge to substitute boiler fuel which has obtained a utilization permit from the Ministry of Environment and Forestry.
- Utilizing WWTP sludge as compost for Industrial Plantation Forests.
- Collaborate with chemical vendors for returnable packaging.
GHG Emission Reduction Program
IKPP supports the SRV 2030 objectives and targets in an effort to reduce Green House Gas emissions by 30%. This is in line with IKPP management's commitment to anticipating the risk of climate change throughout the company's operational processes through implementing sustainable energy conservation by reducing energy use, increasing Operating Equipment Effectiveness (OEE), improving maintenance programs, taking energy efficiency measures, and adopting new technologies.
Efforts made to reduce this risk include:
- Reduce coal consumption, increase biomass use, and increase production efficiency.
- Improve the performance of the Recovery Boiler process to process by-products such as black liquor into an energy source to replace the use of fossil fuels in factories.
- Increasing the efficiency of power plants, production machines with best practices, maximizing heat recovery, and machine run ability improvement, including by: increasing the condensate return rate, improving pipe and tank insulation, improving the electrical network system, installing inverters, reducing steam and electricity losses, improving utility and production performance.
- Solar panel installation which is planned to be installed in 2024.
- Use of Hydrogen (H2) which is a by-product of the chemical plant production process for fuel in the Lime Kiln process since 2019 and its use is increasing gradually to reduce natural gas consumption.
- Monitoring and evaluating the carbon footprint of IKPP paper products by a third party, namely the Carbon Reduction Institute (CRI).
- Replacing old electric motors with high efficiency motors, replacing conventional lamps with Light Emitting Diode (LED) lamps, regularly replacing refiner blades and repairing steam pipe insulation.
- Carry out routine maintenance on equipment to reduce emissions such as Multi Cyclone and Wet Membrane.
- Carry out the Renewable Energy Certificate (“REC”) procurement process which will later function to reduce carbon emissions from State Electricity Company (Perusahaan Listrik Negara/”PLN”) external scope.
To monitor the implementation of these efforts and programs, IKPP sets objectives and targets which are evaluated regularly.
Non-GHG Air Emissions Program
IKPP is an integrated pulp and paper factory which during its operational process produces air emissions which have an impact on the environment. All emissions produced are monitored manually and automatically. Manual monitoring is carried out periodically to measure the quality of emissions by an external laboratory.
Automatic monitoring, IKPP uses a Continues Emission Monitoring System (CEMS) which monitors emissions in real-time and continuously. All quality parameters, including non-GHG air emissions such as SOx, NOx, dust/particulates, and opacity, are accurately identified with CEMS technology. IKPP carries out maintenance on CEMS equipment including regular calibration to ensure the equipment functions optimally.
In an effort to reduce non-GHG air emissions, IKPP is gradually replacing fossil fuels with renewable biomass fuels which produce lower SOx and NOx emissions. Emission control equipment has been operated to reduce non-GHG air emissions, namely a scrubber system that can absorb non-GHG gases in the pulp production area. Another technology applied is an electrostatic deposition tool called an Electrostatic Precipitator (ESP). ESP captures particulate matter from the combustion process in the furnace before it escapes into the atmosphere.
IKPP sets objectives and targets in line with SRV 2030 to improve the quality of non-GHG emissions in accordance with applicable regulations contained in the Environmental Monitoring Plan (EMP). IKPP continues to strive to apply the latest technology for emission control which can improve IKPP's environmental performance.
Renewable Energy Program
IKPP is committed to sustainability in reducing its carbon footprint, which is demonstrated by a comprehensive decarbonization work plan. IKPP independently meets its energy needs using renewable energy by operating electricity and steam generators. This effort eliminates the need for REC or other Virtual Power Purchase Agreement (VPPA). IKPP's renewable energy sources include the use of tree bark, black liquor, palm shells, empty fruit bunches, palm fibre, biogas, biodiesel and saw dust as biomass.
This renewable energy program is an effort to achieve a 30% reduction in carbon footprint in line with SRV 2030. The program for implementing renewable energy includes:
- Gradual installation of solar panels on the roof top of the company's operations to support electricity needs.
- The use of electricity originating from PLN already uses a REC mechanism to reduce carbon emissions.
- Substitute the use of fossil fuels with a gradual increase in the ratio of renewable energy sources.
Environmentally Friendly Purchasing Policy
In implementing its sustainable development commitment, IKPP ensures that the procurement of all production raw materials and supporting materials meets product requirements and applicable laws and regulations.
To fulfil environmentally friendly purchasing commitments, IKPP is making the following efforts:
- Ensure that the primary pulp raw material source meets environmental requirements in accordance with Fibre Procurement and Processing Policy (FPPP).
- Chemicals including more energy efficient operational equipment comply with regulations and other requirements designed to protect the surrounding environment.
- Purchase production support equipment and include energy efficiency commitments in the Purchase Order document
- Ensure the sustainability of the supply chain for raw materials and production support.
- Have an SOP for the procurement department where energy efficiency is one of the factors considered in the procurement of goods (tender process).
Information and commitment regarding environmentally friendly purchasing is conveyed during the purchasing process to the supplier concerned.
Environmental Program for Suppliers
Along with the increasing of natural resource exploitation that impacted on resources availability. IKPP has responsible to support sustainability development, IKPP collaborates with suppliers in managing the supply chain for raw materials and material support.
Efforts made by IKPP include:
- Evaluate wood material suppliers for the availability of raw materials for pulp production and chemicals for the pulp and paper production process.
- Commitment to energy efficiency is one of the consideration factors in procuring production equipment.
- Make efficient use of pulp and chemical raw materials in the production process.
- Has a Programme for the Endorsement of Forest Certification (PEFC) and Timber Legality Verification System (Sistem Verifikasi Legalitas Kayu/SVLK) certificate which can ensure that the main raw material supply for pulp comes from legal plants and the source can be traced.