INTERIM REPORT

Interim Report on APRIL's implementation of SFMP 2.0

03 February 2017

2017 Interim Report

This report provides information to the independent Stakeholder Advisory Committee (SAC) on APRIL’s SFMP implementation between July 1, 2016 – March 31, 2017.

This is an interim report to bridge the gap between the first full report on APRIL’s SFMP 2.0 implementation, issued December 2016 (covering the period from June 3, 2015 to June 30, 2016) and the next proposed full report, which will cover the period from January 1, 2017 to December 31, 2017 and be completed in 2018.

08 January 2018

2016 Interim Report

In January 2016 a team from KPMG Performance Registrar Inc. (KPMG PRI) carried out a specified auditing procedures engagement on APRIL Group’s implementation of key Sustainable Forest Management Policy (SFMP 2.0) commitments related to the implementation of a moratorium on mixed hardwood logging and fiber sourcing for the Kerinci pulp and paper mill.

As an interim initiative, this report addresses progress in implementing three key commitments made in SFMP 2.0 that relate to the phasing out of mixed hardwood (MHW) fiber from APRIL’s supply chain.

KPMG PRI’s specified auditing procedures covered the period from May 15, 2015 (the date that the moratorium on harvesting of mixed hardwoods was implemented) through to January 8, 2016 (the date up to which data was available at the time the work was completed and 8 days after the date by which APRIL’s mill was committed to utilize any MHW harvested prior to May 15, 2015).