Page 5 - APICAL_SR2023

Materiality
Assessment Appendix 1: Appendix 2: Appendix 3:
Climate Green Inclusive and Stakeholder GRI Content Assurance Glossary of
Action Innovation Progress Engagement Index Statement Terms

Sustainability remains central to our business strategy
as we drive growth and expand our market share.
Our ongoing expansion is built on a foundation of Achieved 99.7%
quality, productivity and cost efficiency, with a strong Traceability to Plantation (TTP) and
emphasis on maintaining cost competitiveness.
Our efforts to enhance productivity and reduce waste 93% for the Delivering Category
align with our broader sustainability agenda. No-Deforestation based on the
No Deforestation, No Peat and
We recognise the importance of meaningful No Exploitation Integrated
collaborations and inclusive dialogues among all our Reporting Framework
stakeholders to ensure we Evolve Together in shaping (NDPE IRF).
a traceable, sustainable and deforestation-free supply
chain.
As we navigate the ever-changing landscape and We also reached a milestone with the commissioning of
redouble our efforts to sustainability through our a biogas plant in collaboration with our sister company,
Apical2030 strategic roadmap, our inclusive approach Asian Agri, showcasing our innovative approach to
is indispensable in ensuring sustainable management waste management by converting plantation waste
of palm oil value chain. Let us continue to evolve into energy and reinforcing our commitment to
together by strengthening partnerships, utilising sustainable production practices.
innovative technologies and empowering smallholders
and communities to protect the planet, its people Under the Climate Action pillar, we have significantly
while generating value to Apical. enhanced our carbon emission data collection through
digitalisation. Furthermore, we are upgrading our
APICAL2030 PROGRESS systems and processes to improve carbon efficiency
through energy shifts. For example, we have
We are driven by our ambition to make positive impacts successfully transitioned from coal to natural gas at
in the palm oil sector, which we have encapsulated our Marunda sites. Additionally, we have conducted
within our Apical2030 roadmap. Apical2030 sets a Life Cycle Assessment (LCA) on sustainable aviation
forth time-bound objectives across four strategic fuel (SAF) to identify the main sources of emissions
pillars: Transformative Partnerships, Climate Action, in its production and are finalising LCAs on all our
Green Innovation and Inclusive Progress. Since the products by 2024 to support our customers'
launch of the Apical2030 sustainability framework, requirements.
I am pleased to report that our progress in each of the
four pillars throughout 2023 has been commendable, Under Green Innovation, we have doubled the usage
with achievements in each area. of biomass such as palm kernel shell, woodbark,
straw and rice chaff as biofuel throughout our refineries.
In the area of Transformative Partnerships, we have We are also looking forward to implementing a mini
achieved 99.7% Traceability to Plantation (TTP) and hydro project that utilises seawater to generate
93% for the Delivering Category No-Deforestation electricity at PT Kutai Refinery Nusantara, starting in
based on the No Deforestation, No Peat and 2024. These initiatives are aimed at boosting our use
No Exploitation Integrated Reporting Framework of renewable and clean energy.
(NDPE IRF).

APICAL GROUP 5