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Our
                               About This   President’s   About    2023    Apical2030   Approach to   Transformative
                                Report  Statement  Apical  Highlights  Highlights  Sustainability  Partnerships

          APICAL GROUP
          SUSTAINABILITY REPORT 2023
          OUR APPROACH TO

          SUSTAINABILITY





          SUSTAINABILITY FRAMEWORKS
          There are four major frameworks that support Apical's sustainability approach. This provides guidance to how we
          engage with our suppliers, stakeholders and communities while in parallel, protecting and conserving biodiversity
          and  the  environment.  Collaboration and transparency are the cornerstones of these frameworks as they
          outline steps to align sustainability priorities to international standards and frameworks, implement grievance
          processes, establish monitoring protocols and provide disclosures on levels of compliance through sustainability
          reports.
                    1                                        3
                              Traceability Verification   NDPE Implementation
               A-SIMPLE       Guidance               Reporting Framework    DFDD
               Framework                                                    Implementation
                              (More information can be   (More information can be
                              found in the Transformative   found in the Transformative   Framework
                              Partnerships Chapter in pages   Partnerships Chapter in page
                              57-58)                 59)
                                      2                                           4

          A-SIMPLE FRAMEWORK                         b.   Risk  Profiling:  Supplier  screening,  certification,
                                                        risk and impact assessments
          In  2020,  Apical  launched  the  A-SIMPLE  Framework
          to implement our sustainability practices and   c.   Prioritisation: Adopt a risk-based approach by
          policies throughout our operations and supply chain.   prioritising supplier engagement based on supplier
          The framework enables our suppliers to achieve   risk profiling
          compliance against NDPE commitments to reduce
          supply  chain  risks.  In  turn,  we  fulfil  the  expectations   d.   Supplier Engagement: Perform both broad-
          of our stakeholders and meet our customers’ demand   based and deep supplier engagement approach
          for products that are both sustainably sourced and   via  Apical’s  Anchor  programmes  which  includes
          produced. The core principle of the framework   deforestation-free due diligence and third party
          lies in proactive engagement with our suppliers to   verification for NDPE compliance and beyond
          continuously improve their operations and achieve
                                                     e.   Cease,  Prevent,  or  Mitigate  and Remediation:
          value in all segments of the supply chain.
                                                        Implementation  of  an  effective  grievance
          In line with our enhanced Sustainability Policy and our   mechanism that aligns with the UNGPs and
          new Human Rights Policy published in 2023, we have   international best practice for resolution
          strengthened our A-SIMPLE Framework embedding a
          robust time-bound implementation action:   f.  Transformation: Continue embarking on our
                                                        strategic projects, conducting social impact
          a.  Setting Commitments: Align with Apical2030   assessments,  deployment  of  Sustainable
            roadmap and targets, policy commitments,    Living Village (SLV) programme, Smallholder
            suppliers’  acknowledgement,  strengthening  Inclusion  for  better  Livelihood  &  Empowerment
            A-SIMPLE framework, review of policies and   (SMILE)  programme,  Community  Livelihood
            procedures, awareness and communication to   Empowerment & Action (CLEAN) programme, and
            stakeholders                                implementation of forest protection and emission
                                                        reduction initiatives, among others

          30  SUSTAINABILITY REPORT 2023                                                                                                                                             APICAL GROUP  31
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