The Forest Stewardship Council (FSC) announces the suspension of the memorandum of understanding signed with Asia Pulp and Paper (APP) until the end of March 2025. This decision is directly linked to the announcement that Jackson Wijaya, already the beneficial owner of Domtar, will also become the sole beneficial owner of APP. This transfer of ownership, approved by the European Commission last December, raises questions about the legal and environmental impact of this concentration, in a context where the links between APP and the Domtar group (which has integrated Paper Excellence - with Fibre Excellence based in France - and Canada's Produits forestiers Résolu) have fuelled debate for several years.
Long-standing controversies over commercial and environmental practices
In 2007, FSC halted APP's certification due to destructive forestry practices, including deforestation and conflicts with local communities in Indonesia. At the same time, Paper Excellence, founded in 2006 and owned by the Wijaya family, made a number of acquisitions in North America and Europe, while retaining its FSC and PEFC certifications. However, an international investigation carried out in 2023 by the International Consortium of Investigative Journalists (ICIJ) as part of the Deforestation Inc. project revealed structural links between APP and Paper Excellence, even though they are officially separate companies.
A global system called into question
According to the survey, APP and Paper Excellence operate in tandem to influence the global paper market while circumventing competition rules. The accusations are based on internal documents, commercial exchanges and testimonies from former executives. The practices denounced include the use of Paper Excellence's FSC certifications to legitimize activities linked to APP, as well as exchanges of information contrary to competition law.
Concerns shared by NGOs and public institutions
WWF and other NGOs have expressed serious reservations about the impact of this concentration under the control of the Wijaya family. These groups are asking the FSC to rigorously apply its policy of association and to examine the certifications of entities linked to APP, including Domtar and Resolute Forest Products.
In France, the Fibre Excellence subsidiary has also been the subject of media and institutional investigations, although it has denied any link with APP and continues to promote its role in the European industry.
Major challenges for markets and certifications
The temporary suspension of APP's Memorandum of Understanding with the FSC highlights the growing complexity of forest and paper supply chains. While the FSC has yet to conclude its independent legal assessment, the implications for the FSC and PEFC certifications of Paper Excellence, Domtar and their subsidiaries are crucial. These certifications play a key role in accessing environmentally sensitive markets, particularly in Europe and North America.
Focus on practices in Europe
In Indonesia, APP has been facing accusations of deforestation and ecosystem destruction for decades, while in Europe, Paper Excellence is pursuing massive investments to modernize its infrastructure. In France, for example, Fibre Excellence recently invested in its Tarascon and Saint-Gaudens plants (read New start for Fibre Excellence Provence pulp mill ).
These actions may strengthen its industrial legitimacy, but they do not dispel lingering suspicions about its links with APP.
