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Goodhope

SUBJECT

Greenpeace published reports, “A Deadly Trade-off” on 27 September 2016 and “Dirty Bankers” on 17 January 2017 accusing one of our suppliers, Goodhope in violation of sustainability commitments on deforestation, development on peat, and exploitation of local community.

Two of their companies mentioned in the reports were PT Nabire Baru and PT Sariwana Adi Perkasa in Papua. Apical did not source from any of the reported companies, though at the group level we did source from Goodhope in 2016.

PROGRESS

22 September 2016: Apical made written request to Goodhope seeking for clarification on alleged violations. Goodhope replied in denial of the allegations, and confirmed that they are operating in compliance with the RSPO Principles and Criteria and sustainability good practices.

17 November 2016: Goodhope provided further updates and informed that a joint visit was conducted by the RSPO Secretariat and third party verifier and audit findings have indicated no evidence of violations against their sustainability commitments. Goodhope confirmed that they have ceased land development activities in PT Nabire Baru.

25 January 2017: Goodhope clarified their position against the allegations made in the Greenpeace report, “Dirty Bankers”.

4 April 2017: Apical has engaged Goodhope through its Strategic Engagement Program (STEP) in consistent with its commitment to transform the supply chain and support suppliers where necessary in dispute resolution.

Goodhope has committed to a time-bound action plan in 2017:

  1. Settlement of Complaints and adoption of NDPE policy
    1. Launching its new Sustainability Policy in May 2017
    2. Settlement of Complaints through the RSPO Complaints procedure, Dispute Settlement Facility and through engagement with relevant stakeholders
  2. Deforestation & legality
    1. Moratorium of land clearing and new plantings since October 2015
    2. High Carbon Stock Assessment (HCSA) by Ata Marie, listed HCSA Assessor
    3. HCV Reassessment by Ata Marie/Ekologika
    4. Legal review by independent party
  3. Social issues
    1. Direct negotiation with disgruntled community groups
    2. Working with Dispute Settlement Facility of RSPO
    3. Completion of NPP for PT NB
    4. BRIMOB to vacate the plantation immediately
  4. Peatland development
    1. Detailed soil survey by well recognized and credible soil scientist/expert
    2. Field studies and Interim report
    3. Independent review of soil survey

7 April 2017: Received “Goodhope response to the Greenpeace Palm Oil Bulletin”

29 April 2017: Received “Goodhope’s Response to NPP Queries & Comments”

5 May 2017: Goodhope launched its latest Sustainability Policy and Policy Implementation Plan

8 May 2017: The RSPO issued stop-work order to Goodhope on all of its operations in Papua.

18 May 2017: Goodhope provided Monthly Update and Progress on action taken in addressing the grievance matters. For more information, please click here.

21 June 2017: Goodhope provided Monthly Update and Progress on action taken in addressing the grievance matters. For more information, please click here.

8 August 2017: Met up with Goodhope, presentation on HCV assessment by Ekological, HCS assessment by Ata Marie, and Peat assessment results. Attended by Aidenvironment and PUSAKA.

Apical will take a proactive role in engaging Goodhope on remedial action, and propose additional action steps where necessary in addressing the issues. We will continue monitor the progress of implementation.

We have been engaging with Goodhope and they attended our Shared Value Programme which serves to keep our suppliers abreast with industry standards and requirement to halt deforestation as well as to build their capacity to adopt more sustainable practice.

Goodhope has proactively update Apical on progress of the action taken to resolve the issue. The monthly updates can be found here.

31 January 2019: RSPO Complaint Panel in a letter has dismisses the complaint against PT Nabire Baru which was lodged in April 2016. For more information, please click here.

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

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