SUBJECT
In June 2023, a Swedish NGO, (Sveriges Natur) published an article ‘The illegal palm oil’s way to Sweden’. The report claimed that a list of 20 mills used by consumer brands including Swedish manufacturing companies purchasing vegetable oils that are illegally sourced from the Tesso Nilo Nature Reserve in Riau, Indonesia. Out of the 20 mills mentioned, 5 mills are Asian Agri mills that supply CPO to Apical.
PROGRESS
June 2023
Apical conducted an internal investigation and identified the following:
- Of the five (5) Asian Agri mills mentioned in the report (Ukui 1, Ukui 2, Bungo Tebo, Peranap and Penarikan), all mills are RSPO certified and have valid certificates and licenses to operate
- Ukui 2 implements an Identity Preserved module which means that it only receives its FFB from identified and certified sources. Ukui 2 is traceable to 2 estates and 6 smallholder scheme plots. Details are listed on the RSPO website
- All mills have achieved NDP IRF ‘delivering’ status for Deforestation Free for FFB from directly managed production
- All mills have achieved NDP IRF ‘delivering’ status for Peat allocated category for FFB from directly managed production
- Apical has 100% traceability for all 5 mills
- Asian Agri has investigated and confirmed that no FFB sourced is from Bukit Kusuma or any illegal sources
September 2023
Apical considers this case as closed.
