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Palma Serasih Group

SUBJECT

On 8 March 2019, Mighty Earth released the Rapid Response Report 13. The report alleged PT Global Primatama Mandiri (PT GPM), a subsidiary of Palma Serasih Group of clearing a total of 102 ha of forest in the PT GPM concession between 4 January 2019 and 7 February 2019.

Based on our supply chain alert system in August 2020, there was a potential forest clearing happening inside PT Nusantara Agro Sentosa (PT NAS). It indicated about 262 ha of clearing conducted between Jan 2020 to 31 August 2020.

PROGRESS

March 2019

Apical demanded clarification from Palma Serasih Group with regards to the allegations made in the report.

As no response received, Apical has issued two reminders to Palma Serasih.

April 2019

Apical had a meeting Palma Serasih Group to discuss on the allegation. Palma Serasih informed that they conducted HCV assessment from August 2016 to December 2016 by third party consultant, PT Gagas Dinamiga Aksenta. Based on the HCV report, the alleged land clearing is outside of the HCV areas.

Apart from the HCV, they also conducted a survey of Population and Habitat of Orangutan by Borneo Orangutan Survival Foundation in May 2016. They also clarified that its operational activities has obtained all the legality / permits required.

Apical recommended for Palma Serasih to conduct HCS and they’re currently looking into this.

We will monitor the progress.

July 2019

Apical has temporarily ceased entering new contract with Palma Serasih until they addressed the issue.

March 2020

Apical had several engagement with Palma Serasih on the deforestation issues at GPM. We highlighted the need for land clearing moratorium and HCS assessment to be conducted. After series of meeting, Palma Serasih has agreed to stop land clearing but not committed to conduct HCS assessment.

April 2020

Apical emphasized again the importance of HCS Assessment to be conducted PT GPM in preventing any deforestation. Palma Serasih agreed to conduct HCS assessment once the Covid-19 outbreak is cleared.

June 2020

Based on the commitment by Palma Serasih, Apical has now resume sourcing from the company.

September 2020

Apical requested for clarification on our internal monitoring system that found a potential forest clearing happening inside PT Nusantara Agro Sentosa (PT NAS).

Palma Serasih informed that the clearing was not in a forest area. However, management of PT NAS has stopped all he clearing since 13 September 2020. It is now in the midst of conducting HCS assessment by independent consultant. The land clearing will stop until the assessment completed and accepted by management.

Jan 2021

Received another report that PT NAS has continue to clear the land despite commitment earlier that clearing has stopped while conducting HCS assessment. According to Palma Serasih, HCS assessment has completed in October 2020 in both PT NAS and PT GPM. They clarified that the clearing was not in HCS area. Apical requested for the report to be shared, however, Palma Serasih need to seek approval from management.

Feb 2021

Palma Serasih agreed to share the HCS report but required NDA to be signed by both parties. At the same time, Apical highlighted the importance for Palma Serasih to develop NDPE policy. Palma Serasih need to discuss internally on the suggestion.

April 2021

Palma Serasih informed that they are still studying on the NDPE policy in a group level as suggested by Apical. Palma Serasih shared the HCSA report of both PT GMP and PT NAS for Apical to review.

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