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| RGE's group of companies infographic (Source: rgei.com) |
Table of Content
For generations, we have been extracting resources from Mother Earth, often without giving much back. As this unsustainable consumption continues to degrade our planet, a shift toward greener practices is not just preferable, but essential.
One corporation has been making impressive strides in this regard: Royal Golden Eagle (RGE). By aligning their growth with sustainable development, RGE is touching lives every day, in more ways than one.
Royal Golden Eagle
RGE (Royal Golden Eagle) touches lives in various ways every day. The viscose fiber in the comforter that kept you warm as you slept could be sourced from Sateri. Your clothing could be made from Asia Pacific Rayon's (APR's) viscose rayon. The soap you used in your shower may contain oleochemicals from Apical.
The tissue you used to wipe your face, and the paper for your shopping list, may contain pulp from APRIL. The liquid packaging for your morning orange juice may be made from paperboard. Your breakfast toast's chocolate spread could have included palm oil, and the pharmaceuticals you took could contain specialty cellulose from Bracell. Pacific Oil & Gas might have provided the fuel that powered your home. RGE create the raw materials used to produce some of the world's most popular brands, encouraging a more sustainable living in various aspect.
RGE was founded over 55 years ago by Sukanto Tanoto, a visionary entrepreneur. What started as a humble plywood business has grown into one of the world's largest manufacturers of sustainably produced resources. This rapid expansion continues today.
RGE's work ranges from upstream processes, including sustainable resource development and harvesting, to downstream, where RGE's companies create diverse value-added products for the global market. RGE's commitment to sustainable living underpins all their operations, and they strive to adhere to their "5Cs" business philosophy:
Everything we do must be good for the Community, good for the Country, good for the Climate, good for the Customer, and only then will it be good for the Company.
The assets held by RGE companies exceed 30 billion US dollars. Their companies are either the world's number one, or in the top three, in industries like pulp and paper, dissolving pulp, viscose fiber, and palm oil.
With over 60,000 employees, RGE have operations in Indonesia, China, Brazil, Spain, and Canada, and they continue to grow. In Indonesia, Apical is becoming one of the world's largest palm oil processors. APRIL is constructing a state-of-the-art paperboard facility to produce biodegradable packaging and to fuel a circular economy through paper upcycling initiatives.
In China, RGE expanding their operations in Jiangsu and Guangdong provinces, launching a range of consumer products as they continue to expand their downstream operations. In Brazil, Bracell has constructed the world's largest and greenest dissolving pulp mill and is starting construction on a new plant to manufacture tissue. In Spain, BioenergÃa Ibérica has partnered with energy company Repsol to build southern Europe's largest second-generation biofuels plant to produce sustainable aviation fuel.
In Canada, preparation continues for the construction of a Woodfibre LNG export facility. RGE is fully committed to realizing the United Nations' Sustainable Development Goals in everything they do.
In this article we will dive deeper into RGE's sustainable practices in pulp and paper.
Sustainable Practices in Pulp and Paper
Integrated Operations and Value Chain Optimization
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Sustainable Fiber Plantation
The process starts with the cultivation of trees in sustainable fiber plantations. APRIL Group is committed to using plantations that adhere to responsible and sustainable forestry practices. They comply with a zero-burn policy and strive for net positive impact on the environment, planting more trees than they harvest.
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Pulp Mill
After the trees are harvested, they are transported to the pulp mill, where they undergo a process of debarking, chipping, cooking, bleaching, and finally drying to produce pulp.
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Paper Machines
The next step in the process is the paper machines. The pulp is combined with water and other chemicals and is then spread out onto a moving wire mesh. Water is then drained away, and the leftover pulp is pressed and dried to form paper.
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Intermediate Roll Storage
Once the paper is produced, it is wound onto large rolls and transported to intermediate roll storage. Here, the rolls are cataloged and stored until they are needed for the next step in the production process.
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Sheeter
The paper rolls are then sent to a sheeter, a machine that cuts the large rolls of paper into smaller, more manageable sizes. This is typically done according to the specifications of the final product or the requirements of customers.
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Warehouse
After the paper has been cut into the desired sizes, it's moved to a warehouse. Here, it's packaged, labeled, and stored until it is ready to be shipped to customers.
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Container Yard
When an order comes in, the packaged paper products are moved from the warehouse to the container yard. Here, they are loaded into shipping containers in preparation for transportation.
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Port
Finally, the containers are loaded onto ships at the port, which will transport the products to their final destinations across the globe.
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| APRIL's flagship brand PaperOne (Source: aprilasia.com) |
Economic Contributions and Social Responsibility
The companies' sustainable practices have significant economic impacts, contributing to regional GDP growth and employment, as well as working towards national economic recovery, especially in regions like Riau Province for APRIL.
This year, APRIL Group has reportedly contributed IDR484.3 trillion (USD 32.1 million) to Indonesia's Gross Domestic Product (GDP) during the period of 2016 to 2022.
In 2022, this contribution was equivalent to 0.55% of Indonesia's total GDP, underscoring the significant role that APRIL Group plays in the country's economy. The operations of APRIL Group, centered in Pangkalan Kerinci, Pelalawan Regency, Riau, served as the source of this GDP contribution.
Moreover, APRIL Group's pulp and paper mill and plantation operations have created significant employment opportunities. The data provided states that in 2022, these operations led to jobs for 257,436 people across the country, with 146,986 of those positions filled in Riau Province alone. Job creation is a crucial aspect of economic development, as it leads to income generation and improved livelihoods for individuals and communities.
Furthermore, the operations of APRIL Group have played a critical role in Riau Province's economic recovery, particularly in Pelalawan District. The company's activities have served as a key driver for the Gross Regional Domestic Product (GRDP) growth in the area, helping it recover from the economic impact of the COVID-19 pandemic. The GRDP is a measure of all goods and services produced within a region of a country, much like the GDP but at a regional level.
Adherence to Global Certification Standards
Both APRIL and Asia Symbol comply with global certification standards such as the Forest Stewardship Council (FSC) and Program for the Endorsement of Forest Certification (PEFC), ensuring that their sourcing and processing adhere to the highest environmental and social standards.
The FSC certification ensures that the wood and pulp products originate from well-managed forests that adhere to strict environmental, social, and economic standards. Meanwhile, The PEFC focuses on promoting sustainable forest management through independent third-party certification.
Collaborations and Partnerships for Sustainable Development
Both companies actively collaborate with governments, NGOs, and other businesses to promote sustainable development within the industry. This includes partnerships for education, community development, and conservation projects.
For example, APRIL group collaborated with Waste4Change, a waste management company in Indonesia targeting young individuals who are active on social media platforms. This collaboration aimed to launch a powerful social media campaign that encouraged paper upcycling practices and promotes sustainability among millennials and Gen Z in Indonesia.
To celebrate the annual National Waste Awareness Day on February 21, APRIL Group encourages residents and employees in their Riau Complex to participate in a paper upcycling initiative. They are urged to sell their paper waste, including cardboard and office paper, back to APRIL.
Through this initiative, APRIL collaborates with the Bank Sampah Andalan Lestari community to transform the collected waste paper into handicraft products. These products will help generate income for needy communities in the area. By engaging in this partnership, APRIL promotes waste reduction, paper upcycling, and supports sustainable living for local communities.
Climate Change Mitigation
Both APRIL Group and Asia Symbol are committed to ambitious targets for reducing their carbon footprints. They utilize biomass and other renewable energy sources to minimize their reliance on fossil fuels, thereby decreasing greenhouse gas emissions.
In terms of forest management, APRIL Group prioritizes a zero-burn policy, peatland protection, and reforestation, all of which contribute to the conservation of carbon-rich forest areas and reduce emissions from deforestation. Meanwhile, Asia Symbol focuses on responsible sourcing, ensuring that the wood used in its products comes from certified suppliers, further diminishing the environmental impact.
Also in May 2013, APRIL Group announced a multi-year ecosystem restoration program known as Restorasi Ekosistem Riau (RER). This program focuses on the restoration and protection of critical peatland ecosystems, which act as significant carbon sinks, thus mitigating climate change.
Both APRIL Group and Asia Symbol are attuned to the global call for action on climate change. Their sustainability initiatives align with international frameworks and agreements that aim to mitigate the effects of global warming.
For example, their commitments to reduce carbon footprints, protect peatland ecosystems, and promote responsible sourcing resonate with the goals outlined in the Paris Agreement. By striving to limit global warming to well below 2 degrees Celsius above pre-industrial levels, both companies are playing an active role in achieving this critical international target.
Moreover, the efforts of APRIL Group and Asia Symbol in areas such as reforestation, energy efficiency, and community engagement directly contribute to several of the United Nations' Sustainable Development Goals (SDGs). Specifically, they support Goal 13 (Climate Action), Goal 15 (Life on Land), and Goal 7 (Affordable and Clean Energy), among others.
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