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PT Syaukath Sejahtera

SUBJECT

Rainforest Action Network (RAN) on 21 September 2020 published a report that one of our supplying mills, PT Syaukath Sejahtera (PT SS) sourced from PT Tualang Raya (PT TR), that is allegedly engaged in deforestation activities.

PROGRESS

22 September 2020

Apical seeks clarification from PT SS and highlighted the alleged deforestation by their supplier for immediate action. PT SS has halted sourcing from PT TR with immediate effect until resolution of the matter.

PT SS has agreed to implement an action plan to develop a NDPE policy, and to submit traceability information of its supply chain to Apical to conduct risk assessment to identify if any of its suppliers are operating illegally or have committed deforestation in the Leuser Ecosystem. Apical will support PT SS to map out and monitor its supply chain to ensure it eliminates and avoids any sources linked to deforestation.

We will continue to make progress updates on the resolution of this matter.

20 October 2020

A meeting was held between Apical and PT SS on the progress of action plan agreed by both parties. Based on the discussion, PT SS agreed to develop the policy and completed the traceability information by end of this year.

22 October 2020

Another discussion with PT SS on the NDPE policy. Apical provides feedback to PT SS on the draft of the NDPE policy.

16 December 2020

PT SS has developed and started implementing a group Sustainability Policy. The company also has provided Apical with traceability data as required in the action plan. Based on traceability data provided, we have found no issue in PT SS supply chain.

We consider this case closed but Apical will continue monitoring our supplier.