SUBJECT
On 19 September 2022, Rainforest Action Network released the “Carbon Bomb Scandals: Big Brands Driving Climate Disaster For Palm Oil”. The report claimed, a new investigation exposes consumer goods companies still buying illegal palm oil from protected wildlife reserve in Sumatra’s Leuser Ecosystem (Rawa Singkil Wildlife Reserve). The report states that Global Sawit Semesta mill sources non-compliant Fresh Fruit Bunches that came from Mr Mahmudin’s allegedly illegal plantation inside the Rawa Singkil Wildlife Reserve and were delivered via a palm oil broker called CV Natama Prima.
PROGRESS
September 2022
Apical carried out investigation on the allegation and engaged with PT Global Sawit Semesta (GSS) for clarification.
October 2022
Based on investigation covering traceability data, supplier Weighbridge information and field verifications, the information below was obtained:
- PT Rudning Putra Persada (PT RPP) is not a supplier of PT GSS;
- Ibu Nasti in Runding, Subulusalam and PT. Bangun Sempurna Lestari are not suppliers of PT GSS;
- Mr. Mahmudin in Trumon, South Aceh
- PT Natama Prima (or “collection point A” as shown in Annex 1 of PT GSS Clarification Letter) is a supplier of PT Global Sawit Lestari (PT GSS), an Apical supplier.
- PT Natama Prima sourced from 3 estates (Mahmudin 1,2,3), which are located on legally-permitted (APL) and non-forested areas. PT GSS had verified the locations physically at sites, and overlaid the GPS locations with Spatial National Map of Indonesia. It is clean and clear for smallholder estates.
- The Mahumudin oil palm plantation, entrance, and “collection point B” (claimed illegal, as shown in Annex 2) presented in the report is located at a different location (away to the south);
- A Weighbridge ticket showing FFB delivery from PT Natama Prima to PT GSS does not form a valid basis to assume any FFB delivery from collection point B to another collection point A (PT Natama Prima), then to PT GSS. No evidence was presented in the report to verify this claim. Additionally, the travel distance between collection point B and PT GSS is 96km.
- Based on investigation, PT GSS confirms that the collection point B (illegal source) is not a supplier of PT GSS;
- PT GSS has taken immediate action to cease sourcing from all the Mr. Mahmudin’s estates.
The investigation demonstrates due diligence carried out by PT GSS on FFB sources, and the alleged illegal FFBs is not part of the PT GSS supply chain.
Apical has informed its suppliers not to source from this alleged illegal source, and we will continue monitoring the actions implemented to ensure all FFB must come from traceable and NDPE compliant sources.
January 2023
An independent field verification was conducted in August & September 2022 by an expert (Daemeter Consulting) based on the Accountability Framework initiative (AFi) principles to ensure continuous improvement and supply chain NDPE compliance.
April 2023
Apical maintains a no sourcing position from Mr. Mahmudin directly or indirectly. Several meetings were held with RAN to clarify matters. Apical will take on further engagement with Mr. Mahmudin to support NDPE compliance.
May 2023
Apical conducted a field verification on 30 April 2023 with PT Global Sawit Semesta, its dealer and an NGO to investigate the grievance issues of Mr. Mahmudin’s estate that was allegedly overlapping with Rawa Singkil protected area and issues of other illegal sources. Apical maintains it’s position of no sourcing from Mr. Mahmudin directly or indirectly.
August 2023
During the field visit in April, Mr. Mahmuddin was not available to meet the field verification team. A contact of Mr. Mahmuddin confirmed that CV Natama Prima and GSS was no longer a buyer of Mr. Mahmuddin’s FFB.
Apical continues to engage with PT. GSS to monitor its traceability systems.
Apical continues to support the protection of the Leuser Ecosystem through its sustainability initiatives in Aceh Singkil in collaboration with local NGOs and the Aceh local government.
December 2024
After thorough consideration, Apical management has decided to stop sourcing from PT. GSS as of end of November 2024. With the decision in place, we consider this case closed and encourage PT GSS to further strengthen their traceability systems to ensure that it mitigates the risk of any FFB sourced from illegal areas, before any consideration is made for future sourcing by Apical.
