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Global Sawit Semesta

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:

  1. PT Rudning Putra Persada (PT RPP) is not a supplier of PT GSS;
  2. Ibu Nasti in Runding, Subulusalam and PT. Bangun Sempurna Lestari are not suppliers of PT GSS;
  3. 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;
  4. 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.

Di Apical Group, komitmen kami terhadap keberlanjutan didukung penuh dimulai dari jajaran managemen teratas. Presiden Apical didukung oleh Direktur Keberlanjutan bersama seluruh kepala bisnis, memastikan keberlanjutan terintegrasi dalam unit bisnis dan fungsional, dan tertanam dalam nilai dan inisiatif inti perusahaan.

Topik keberlanjutan dibahas pada rapat dewan yang diadakan setiap tiga bulan. Kami juga memiliki tim keberlanjutan yang berdedikasi berbasis di Kuala Lumpur; Malaysia, dan Indonesia; Pekanbaru, Dumai, Medan, Jakarta dan Balikpapan. Tim Keberlanjutan ditugaskan untuk menerapkan dan memantau komitmen kami melalui keterlibatan dan kolaborasi pemangku kepentingan yang konstruktif.

Selain itu, kami didukung penuh oleh departemen Sosial, Keamanan, dan Perizinan (SSL) khusus di setiap unit bisnis yang kami miliki, untuk menangani masalah sosial dan perizinan sesuai dengan peraturan nasional serta kebijakan keberlanjutan Apical. Tim juga mengawasi program Tanggung Jawab Sosial Perusahaan (CSR) untuk mendukung penghidupan yang lebih baik di masyarakat setempat.

Mencapai tujuan keberlanjutan membutuhkan lebih dari sekadar kolaborasi dengan pemangku kepentingan utama kami. Kolaborasi lintas industri dan perusahaan sejenis juga penting dan karenanya, kami terus mencari dan berpartisipasi dalam kemitraan baru, keanggotaan industri yang relevan, dan skema sertifikasi.

Kami berpartisipasi dalam skema keanggotaan dan sertifikasi industri seperti Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), termasuk P&C Review Taskforce RSPO dan National Interpretation Working Group RSPO Indonesia, International Sustainability and Carbon Certification (ISCC), dan Indonesian Sustainable Palm Oil (ISPO).

Dato' Yeo How

PRESIDEN APICAL GROUP

At Apical Group, our commitment to sustainability stems right from the top. Apical’s President is supported by the Director of Sustainability and various business heads, to ensure sustainability is integrated within business and functional units, and embedded in the company’s core values and initiatives.

Sustainability topics are discussed at Board meetings held quarterly. We also have dedicated Sustainability teams based in Kuala Lumpur, Malaysia, and Pekanbaru, Dumai, Medan, Jakarta and Balikpapan in Indonesia. The Sustainability teams are tasked with implementing and monitoring our commitments through constructive stakeholder engagement and collaboration.

In addition, there is also a dedicated Social, Security and Licensing (SSL) department in each refinery we own, to handle social and licensing matters in compliance with national regulations as well as Apical Sustainability Policy. The team also oversees Corporate Social Responsibility (CSR) programmes to support better livelihoods in local communities.

Achieving sustainability goals requires more than just collaboration with our key stakeholders. Collaboration across industries and peer companies is also crucial and hence, we constantly look for and participate in new partnerships, relevant industry membership and certification schemes.

We participate in industry membership and certification schemes such as the Tropical Forest Alliance 2020, Roundtable on Sustainable Palm Oil (RSPO), including the RSPO P&C Review Taskforce and the RSPO Indonesia National Interpretation Working Group, the International Sustainability and Carbon Certification (ISCC), and the Indonesian Sustainable Palm Oil (ISPO)

Dato' Yeo How

APICAL GROUP PRESIDENT