Singapore has imposed temporary restrictions on Asia Pulp & Paper’s (APP) enhanced environmental certification after three of the Indonesian pulp and paper group’s wood-fibre suppliers were linked to fires associated with transboundary haze.

The move comes as Singapore expands enforcement action against Indonesian companies, with 10 firms now targeted under its Transboundary Haze Pollution Act.

The Singapore Environment Council (SEC), which administers the Singapore Green Labelling Scheme, announced the restrictions on October 18. APP must strengthen fire monitoring, prevention and suppression measures at concessions operated by PT Bumi Andalas Permai, PT Bumi Mekar Hijau and PT Sebangun Bumi Andalas (SBA) Wood Industries, all of which supply wood fibre to the group.

The restrictions do not amount to a suspension of APP’s certification. Under the measures, the company must submit daily reports on fire-response activities at the affected concessions. The SEC said the certificate could be suspended if the reporting does not demonstrate that fire prevention and suppression measures have been strengthened effectively.

Products covered by a suspended certificate would no longer be allowed to carry the scheme’s green-label logo.

APP said on October 20 that the restrictions were not a suspension of its Singapore Green Labelling Scheme Plus (SGLS+) certification and that it must continue daily reporting until further notice.

Singapore expands enforcement to 10 Indonesian companies

The certification restrictions come amid a wider response to fires in Indonesia that have sent smoke across national borders and affected air quality in Singapore and neighbouring countries.

Singapore’s National Environment Agency (NEA) issued Preventive Measure Notices to seven Indonesian companies on October 16 over fires in Sumatra. Three additional companies — PT Baratama Putra Perkasa, PT Buana Megatama Jaya and PT Mananjung Hayak — were subsequently targeted over indications that smoke from fires on their concession land in Kalimantan could have reached Singapore.

The notices require the companies to deploy firefighting resources, extinguish or contain fires on land they own or occupy, refrain from burning and submit plans to prevent fires from recurring.

The notices do not constitute a finding that the companies are legally responsible for haze pollution in Singapore. However, failure to comply with the law’s requirements could lead to prosecution and financial penalties.

Under Singapore’s Transboundary Haze Pollution Act, companies found to have caused or contributed to haze pollution can face fines of up to S$100,000 per day of haze. Failure to comply with preventive measures notices can attract additional fines of up to S$50,000 per day, with total fines capped at S$2 million.

Singapore’s Coordinating Minister for National Security, K. Shanmugam, said the government will use available legal and regulatory measures against companies linked to the fires, including those without a direct presence in Singapore.

The Singapore Exchange has also sought information from seven listed agricultural companies about their operations and possible links to the fires.

Certification puts supply-chain controls in focus

Introduced in 2017 following the severe 2015 haze crisis, the SGLS+ scheme applies enhanced environmental requirements to pulp and paper products. These include peatland management, fire prevention, compliance with zero-burning commitments and disclosure across the supply chain.

The scheme currently covers approximately 58 pulp and paper products, including printing and hygiene papers.

APP previously faced restrictions on its green label during the 2015 haze crisis. At that time, Singapore retailers including NTUC FairPrice, Sheng Siong and Prime Supermarket withdrew APP paper products from their stores. The company subsequently regained certification under the enhanced scheme in May 2019.

The current restrictions do not mean APP products are banned from sale in Singapore, and no new retail withdrawals have been confirmed as part of this action. However, a future suspension could affect the environmental labelling of products covered by the certification.