CASE STUDY Apical: The Importance of Collaboration and Inclusivity in Traceable Palm Oil Supply Chains

BREMEN YONG, DIRECTOR OF SUSTAINABILITY, APICAL GROUP – APRIL 2020

While the importance of traceable palm oil is widely recognised, the industry has been perceived to be slow in transforming itself to address this issue. Among key challenges can be the reluctance of suppliers to disclose information that potentially puts them at a disadvantage in a competitive and price-driven market. Apical is one of Indonesia’s largest processors and exporters of palm oil and its derivatives, and we have adopted an inclusive approach by working with partners on supplier engagement.

We worked with a group of strategic partners and industry experts to set clear definitions on traceability, as well as develop a time-bound roadmap. Through our collaboration with CORE (Consortium of Resource-Experts – Proforest & Daemeter) and Earthworm (formerly The Forest Trust), as well as the risk assessment and supply chain monitoring tools provided by Global Forest Watch Pro and GLAD deforestation alerts, we were able to assess and identify the challenges and opportunities across the supply chain.

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