PT GSS sourced from third party supplier, PT Laot Bangko which allegedly clearing forest in Leuser Ecosystem
We identified supplies from PT Laot Bangko (PT LB) to our supplier PT. Global Sawit Semesta (PT GSS) through traceability data we received in Q4 2020. Through satellite monitoring, we discovered risk of forest clearing in the concession of PT LB. We have held off sourcing from these suppliers.
We have demanded cooperation from PT GSS to address the grievance matter and instructed stop work order to their supplier. A deadline by April 2021 was given for the supplier to stop work, and commit in writing to an action plan; which include their commitment to NDPE policy, conducting HCV/HCS assessments, and a recovery plan. Apical has ceased sourcing from PT Laot Bangko at a corporate group level including PT. Bima Golden Powerindo.
Apical has implemented an action plan:
- Instructed stop land clearing (completed)
- Ceased sourcing from affected suppliers (completed)
- Remote sensing verification on status of stop-land-clearing (completed)
- upplier commitment to an action plan including their commitment to NDPE policy, HCV/HCS assessments for peer review, and a recovery plan to be developed based on land use change and assessment results (completed)
- Published grievance update (completed, to be updated regularly)
- Strengthen supplier engagement and NDPE compliance in Aceh Landscape (July 2021 – 2022)
• Send a letter to PT GSS demanding PT GSS to engage and monitor progress of PT LB. T LB needs to publish their commitment letter, policy, action plan, and progress update; PT LB must adopt an Integrated HCV- HCS Assessment with the High Carbon Stock Approach and adhere to quality assurance requirements.
• Scoping & diagnostic of Aceh supply bases by independent body/NGO;
• Re-engagement with all of our suppliers (at group level) operating near or surrounding Leuser Ecosystem, instruct stop sourcing from grievance suppliers who failed to cooperate or commit to an action plan within three months or a specific timeline where required;
• Require collaboration from suppliers to ensure full traceability and NDPE compliance;
• Quarterly desktop analysis of Aceh landscape using in-house satellite monitoring, work with relevant stakeholders and NGOs;
• Publish quarterly satellite monitoring of Aceh suppliers and progress update;
- Work with NGOs and/or consultants to ensure effective policy implementation in Aceh sourcing areas
Update from suppliers:
- Based on satellite monitoring, PT LB has stopped land clearing since June 2021.
- In 7 June 2021, PT LB has committed in writing to an action plan including their commitment to NDPE policy, HCV/HCS assessments for peer review, and a recovery plan to be developed based on land use change and assessment results.
- PT LB has committed to a sustainability policy on 28 June 2021.
- PT LB has initiated a process of HCV/HCS assessment to be conducted by HCVRN-licensed assessor for peer review. PT LB has appointed a consultant and commencement of integrated HCV/HCS assessment in Sept 2021.
- PT GSS has committed to an action plan in July, to strengthen supply chain monitoring and traceability procedure to ensure that such violation will not repeated. To date, GSS has completed the action plan.
We will continue monitoring the latest development and progress of the case.
PT Laot Bangko has launched a website and published their sustainability policy. The policy can be found here.
The company has started working with consultant on the HCV/HCS assessment.
On PT GSS, Apical continue monitoring the progress to ensure all sources must come from traceable and NDPE compliant sources.
Since PT GSS has completed the action, the case has been closed. PT GSS will continue monitor the progress of PT LB and maintain ceased sourcing from PT LB including PT Bima Golden Powerindo. (updated on 22 Feb 2022)
In January 2022, a sustainability action plan was developed by PT. LB which includes the following:
- PT. LB to obtain new HGU boundary from the government – completed
- Commitment to stop land clearing – completed
- Development of an NDPE Policy – completed
- Conduct an integrated HCV/HCS assessment – completed
- Submit the integrated HCV-HCS assessment for HCVN peer review – completed
- Identify deforestation area within concession area – completed
- Identification of status for concession area (legal requirements and social conditions) – completed
- Development of management plan for recovery areas (in situ and ex situ) – completed
- Implementation of recovery plan – ongoing
- Monitoring and evaluation of the recovery plan activity – not started
From the 10 points of the action plan, as of September 2023, Apical acknowledges that 8 items have been completed while the implementation of the recovery plan has commenced. Apical is still in engagement with PT. LB on their recovery plans and implementation. We recognise their commitment to resolve this grievance with multiple actions being taken as part of their recovery plan.