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Apical Statement on the Greenpeace report ‘A Deadly Trade Off’

By October 14, 2016No Comments

Greenpeace’s investigative report ‘A Deadly Trade Off’, published 27 September 2016, mentions AAA/Apical’s link with ANJ and TH Plantations which were said to be violating Apical’s sustainability commitments. We have responded to Greenpeace’s queries before the report was published as posted below:

“Based on our records and preliminary investigations, Apical does not currently buy from any of the mills in the list you presented to us. We will investigate further when we have gathered more specific information from your report. We would want, for instance, to further clarify with these companies on ownership of other mills which we do not deal with, or are not aware of. Apical will not knowingly purchase from suppliers that do not conform to our rigorous standards. We pre-qualify new suppliers and require our suppliers to comply with our Sustainability Policy. We will not hesitate to cease doing business with serious repeat violators of our policy, and those who fail to take immediate remedial action on the violations.”

After reviewing Greenpeace’s report, Apical is now able to confirm that there is NO trade relation with ANJ mills since May 2015, and our refineries have not sourced any physical oils from mills of TH Plantation since December 2013.

To reinforce our full commitment to sustainability, Apical has launched its Sustainability Policy since 2015 focusing on three core policy commitments:

  • Protection of high conservation value (HCV) areas and high carbon stock (HCS) areas
  • Protection of peat regardless of depth
  • Driving positive socio-economic impact for people and communities.

Apical has put that into hardcore action through on-going supplier engagement for supply chain transformation, and clearly this is a substantial undertaking as palm oil supply chains across the industry tend to be complex and involve many thousands of suppliers, and we expect this work will continue for a number of years as we seek to establish a fully transparent and responsibly and sustainably managed supply base. Greenpeace’s report also highlights a challenge that many in the industry are now facing: it is easier to trace the physical supply we receive, but much more difficult to monitor the conduct of other mills and plantations within the same parent group as our suppliers, that we do not source any oils directly from. Nevertheless, our Sustainability Policy is clear that we will cease doing business with any suppliers who breach our policy and do not take immediate action to correct their violation. Besides that, regardless of remedial action, we will not do business with serious repeat violators of our policy.

All such cases as this follow our grievance process, which is explained on our Sustainability Dashboard. From there you can also access a grievance list that shows transparently the progress of our engagements with third-party suppliers. As part of our grievance process, we will engage with suppliers at company or group level if any of their mills are implicated. TFT and others help us by alerting us regularly to potential issues with suppliers at both mill and company level. We also continue to welcome feedback from other stakeholders, including NGOs, as we work towards a more sustainable palm oil industry.

At Apical Group, our commitment to sustainability stems right from the top. Apical’s President is supported by the Director of Sustainability and various business heads, to ensure sustainability is integrated within business and functional units, and embedded in the company’s core values and initiatives.

Sustainability topics are discussed at Board meetings held quarterly. We also have dedicated Sustainability teams based in Kuala Lumpur, Malaysia, and Pekanbaru, Dumai, Medan, Jakarta and Balikpapan in Indonesia. The Sustainability teams are tasked with implementing and monitoring our commitments through constructive stakeholder engagement and collaboration.

In addition, there is also a dedicated Social, Security and Licensing (SSL) department in each refinery we own, to handle social and licensing matters in compliance with national regulations as well as Apical Sustainability Policy. The team also oversees Corporate Social Responsibility (CSR) programmes to support better livelihoods in local communities.

Achieving sustainability goals requires more than just collaboration with our key stakeholders. Collaboration across industries and peer companies is also crucial and hence, we constantly look for and participate in new partnerships, relevant industry membership and certification schemes.

We participate in industry membership and certification schemes such as the Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), including the RSPO P&C Review Taskforce and the RSPO Indonesia National Interpretation Working Group, the International Sustainability and Carbon Certification (ISCC), and the Indonesian Sustainable Palm Oil (ISPO)

Dato' Yeo How

APICAL GROUP PRESIDENT

Di Apical Group, komitmen kami terhadap keberlanjutan didukung penuh dimulai dari jajaran managemen teratas. Presiden Apical didukung oleh Direktur Keberlanjutan bersama seluruh kepala bisnis, memastikan keberlanjutan terintegrasi dalam unit bisnis dan fungsional, dan tertanam dalam nilai dan inisiatif inti perusahaan.

Topik keberlanjutan dibahas pada rapat dewan yang diadakan setiap tiga bulan. Kami juga memiliki tim keberlanjutan yang berdedikasi berbasis di Kuala Lumpur; Malaysia, dan Indonesia; Pekanbaru, Dumai, Medan, Jakarta dan Balikpapan. Tim Keberlanjutan ditugaskan untuk menerapkan dan memantau komitmen kami melalui keterlibatan dan kolaborasi pemangku kepentingan yang konstruktif.

Selain itu, kami didukung penuh oleh departemen Sosial, Keamanan, dan Perizinan (SSL) khusus di setiap unit bisnis yang kami miliki, untuk menangani masalah sosial dan perizinan sesuai dengan peraturan nasional serta kebijakan keberlanjutan Apical. Tim juga mengawasi program Tanggung Jawab Sosial Perusahaan (CSR) untuk mendukung penghidupan yang lebih baik di masyarakat setempat.

Mencapai tujuan keberlanjutan membutuhkan lebih dari sekadar kolaborasi dengan pemangku kepentingan utama kami. Kolaborasi lintas industri dan perusahaan sejenis juga penting dan karenanya, kami terus mencari dan berpartisipasi dalam kemitraan baru, keanggotaan industri yang relevan, dan skema sertifikasi.

Kami berpartisipasi dalam skema keanggotaan dan sertifikasi industri seperti Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), termasuk P&C Review Taskforce RSPO dan National Interpretation Working Group RSPO Indonesia, International Sustainability and Carbon Certification (ISCC), dan Indonesian Sustainable Palm Oil (ISPO).

Dato' Yeo How

PRESIDEN APICAL GROUP