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PT Sawit Sumbermas Sarana Tbk (SSS)

SUBJECT

Greenomics report dated 4 June 2015 on PT Kalimantan Sawit Abadi (KSA) on forest clearance, impacting forested peat land and orang-utan habitat, and RSPO grievance raised by Environmental Investigation Agency (EIA) against PT Sawit Mandiri Lestari (SML). Both of the companies are subsidiaries of PT Sawit Sumbermas Sarana Tbk (SSS).

On 19 December 2016, Chain Reaction Research published a report “2016 Sustainability Benchmark: Indonesian Palm Oil Growers”. Allegations were made against PT SSS for clearing forests and/or peatlands.

PROGRESS

Apical met with the Management of PT SSS on 16 June 2015 to discuss the findings in the Greenomics report and advised them that all land clearing activities had to be suspended until proper HCS and HCV study are undertaken by an approved assessors on all concessions in Kalimantan.

The Sustainability Head of PT SSS met with EIA (Environmental Investigation Agency). PT SSS has agreed to carry out proper HCS and HCV assessments, including an orang-utan survey and a robust FPIC process, with participatory mapping with the local communities in their new concession (PT Sawit Mandiri Lestari). EIA requested their HCV assessment report to be peer reviewed.

Apical will continue to engage PT SSS in seeking their commitment to address all allegations against them in compliance with our sustainability policy.

Due to the failure of PT SSS to comply with Apical sustainability policy, we have ceased sourcing from PT SSS.