In pursuit of a sustainable and deforestation-free supply chain, Apical Group has revised and enhanced its Sustainability Policy and developed its new Human Rights Policy. Guided by our 5Cs business philosophy, these policies represent a significant leap in our journey to fuel transformative change towards sustainability in our operations and supply chain, which includes environmental, social and ethical practices.
The transition from our 2014 Sustainability Policy to these updated versions reaffirms our unwavering commitment to responsible corporate citizenship and dedication to becoming the most reliable integrated processor of sustainable vegetable oil and value-added downstream products. We firmly believe that transparency, continuous improvement, and a commitment to human rights are non-negotiable cornerstones within the palm oil sector, and our enhanced policies are a reflection of these fundamental principles:
- Apical2030 Sustainable Strategic Roadmap:
At the heart of these policy updates lies the Apical2030 framework, introduced in 2022. Apical2030 presents a forward-looking roadmap with ten time-bound targets, organised around four strategic pillars: Transformative Partnerships, Climate Action, Green Innovation, and Inclusive Progress. Apical2030 is alligned with Apical’s 5Cs business philosophy and the company’s commitment to Environmental, Social, and Governance (ESG) objectives.
- Setting Clear Targets for Bold Action
Our revised Sustainability Policy is a testament to our unwavering commitment towards a sustainable and deforestation-free supply chain. The Policy takes a comprehensive approach to addressing gaps and sets clear, actionable targets that we will achieve with utmost determination. Most importantly, we have introduced a cut-off date as of December 2015 for No Deforestation, No Peat, and No Exploitation (NDPE) compliance.
- Expanding commitments and Focusing on Key Areas
The revised Sustainability Policy 2023 is enhanced with a focus on our governance commitments, that comprehensively cover all aspects of our operations and supply chain to ensure that we maintain responsible practices. We are proud to highlight that the Sustainability Policy 2023 further strengthens our commitments to human and labour rights, indigenous people, local communities and land rights, biodiversity protection, community livelihood, smallholder partnerships, and climate action, reflecting our commitment to sustainability and responsible business practices:
- NDPE commitment:
The Sustainability Policy has been updated to strengthen Apical’s NDPE commitments to environmental protection, preservation and sustainable practices. The cut-off date for suppliers to comply with NDPE is December 2015.
- Climate Action:
Apical’s commitment to combat climate change in reducing greenhouse gas emissions and achieving net-zero in line with the 1.5°C global warming target, as set out in the Paris Agreement, is reinforced in the revised policy underscored by Apical2030 strategic sustainable roadmap.
- Biodiversity Conservation and Protection:
Apical is dedicated to landscape and multi-stakeholder initiatives that promote biodiversity and ecosystem resilience. Our primary goal is to safeguard and enhance biodiversity in both the landscape and within our supply chain.
- Protection of Fundamental Human Rights:
Apical is committed to upholding and protecting international human rights standards across our operations and supply chain.
- Smallholders Inclusivity:
The 2023 policy places a stronger focus on supporting smallholders with dedicated programmes for sustainable management, good agricultural practices, and improved livelihoods which reflects Apical’s commitment to fostering inclusive growth.
- Responsible Supply Chain Management:
Apical is placing greater emphasis on accountability in our supply chain. We diligently ensure that our suppliers adhere to our commitments, local laws, and regulations. We remain firmly committed to upholding transparency and traceability in all our operations.
- Keeping Pace with Emerging Legislation:
The policy aims to proactively align with emerging international sustainability regulations, including supporting suppliers in meeting new requirements related to ESG principles. Apical is fully committed to supporting and complying with the European Union Deforestation Regulation (EUDR) which will be enforced on 30 December 2024. The revised Sustainability Policy and new Human Rights Policy will play a pivotal role in meeting the EUDR requirements through our ongoing efforts in our commitment to a sustainable and deforestation-free supply chain, which is embedded in our robust Apical Sustainability Implementation Framework (A-SIMPLE Framework), continuous efforts in supplier engagement, ensuring traceability and transparency, satellite monitoring, responsible sourcing, and third party verifications for assurance.
- Clear Implementation Plan:
Our policies clearly outline the scope of our commitment to responsible practices, instilling confidence in our customers that we are dedicated to upholding the highest standards.
- NDPE commitment:
- Human Rights Policy:
Our new Human Rights Policy represents a major milestone in the company’s steadfast determination to uphold fundamental human rights of workers and communities across our global operations and supply chains. By doing so, we continuously strive to establish ourselves as an ethical and responsible corporate citizen that values and prioritises human rights.The Human Rights Policy aligns to international human rights standards, including the International Bill of Human Rights, the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work, and the United Nations Guiding Principles on Business and Human Rights and is guided by the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises as well as the ten UN Global Compact principles.This policy complements the Sustainability Policy and reaffirms Apical’s dedication towards addressing human rights within our operations and supply chain.
- Clear Implementation Plan
To deliver on our commitments as outlined in the Sustainability Policy 2023 and the new Human Rights Policy, we have strengthened the A-SIMPLE Framework by embedding a robust time-bound implementation action plan:
- Setting Commitments: Align with Apical2030 roadmap and targets, suppliers’ acknowledgement, strengthening A-SIMPLE framework, review of policies and procedures
- Risk Profiling: Supplier screening which includes spatial and non-spatial analysis
- Prioritisation: Adopt a risk-based approach by prioritising supplier engagement based on supplier risk profiling
- Supplier Engagement: Perform both broad-based and deep supplier engagement approach via Apical’s Anchor Programmes which includes deforestation-free due diligence and 3rd party verification
- Cease, Prevent, or Mitigate and Remediation: Implementation of an effective grievance mechanism that aligns with the UNGPs, to resolve grievances
- Transformation: Continue conducting social impact assessment, deploy Sustainable Living Village (SLV) programme, Smallholder Inclusion for better Livelihood & Empowerment (SMILE) programme and Community Livelihood Empowerment & Action (CLEAN) Programme, and implementation of forest protection and emission reduction initiatives, among others
- Monitoring and Tracking of Implementation Programme: NDPE Compliance, 3rd party satellite monitoring, independent data verification
- Disclosure and reporting: Our sustainability progress will be communicated transparently through Apical’s annual Sustainability Reports and Apical’s Progress Dashboard.
Apical Group’s revised Sustainability Policy, new Human Rights Policy and the implementation of Apical2030, reaffirms our commitment to sustainable practices, ethical conduct, environmental stewardship, and upholding human rights. These changes mark a pivotal moment in Apical’s journey towards becoming the most reliable integrated processor of vegetable oil.
For more information, please visit Apical Sustainability Policy (English) | Apical (apicalgroup.com) and Human Rights Policy (English) | Apical (apicalgroup.com).