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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
          TRANSFORMATIVE PARTNERSHIPS








           Pillar        Transformative   Progress in 2023                          Status
                         Partnerships
                         Targets

           Transformative   Partner with   SLV at Aceh                              In Progress
           Partnerships  suppliers to     •  Identified 13,485 ha of forest to be protected in
                         protect and/or     6 Villages in Aceh Singkil
                         conserve 150,000   SLV at East Kalimantan
                         ha forest and peat   •  Identified 10,000 ha of forest in 3 Villages
                         areas by 2030

                         Collaborate      1 biogas plant commissioned in December 2023   Complete
                         with suppliers to   together with our supplier, Asian Agri
                         promote clean
                         energy through 20
                         biogas plants


          6A. WORKING WITH SUPPLIERS                 Anchor Programmes. Suppliers that are found to
                                                     be in violation of our Sourcing Policy are subject to
                                                     the Grievance Mechanism. We are in the process of
          MANAGEMENT APPROACH
          GRI 3-3                                    revising our Sourcing Policy to ensure it aligns with our
                                                     enhanced Sustainability Policy 2023 and Human Rights
          In  2015,  Apical  implemented  its  Sourcing  Policy  to   Policy 2023. The revision is expected to be completed
          responsibly source from traceable, legal and NDPE   by 2024.
          compliant supply chain. The policy is guided by several
          key principles:                            INCLUSIVITY IN PARTNERSHIPS
                                                     GRI 3-3
            •  Prohibiting  deforestation  of  HCV  and  HCS   Apical recognises that building a traceable,
             areas;                                  deforestation-free palm oil supply chain requires
                                                     collaboration. We believe all participants, from farmers
            •  Ensuring  the  protection  of  peatlands,   to  consumers,  have  a  role  to  play  in  achieving  this
             irrespective of their depth; and        shared goal. Our strategy for managing Apical’s value
                                                     chain  through  close  collaboration  with  our  suppliers
            •  Promoting  positive  socio-economic  benefits   is based on two foundational frameworks, A-SIMPLE
             for individuals and communities.
                                                     framework and NDPE IRF. They underscore our
                                                     dedication to fostering inclusive partnerships with our
          This policy applies to all Apical’s operations, joint   suppliers. These partnerships are aimed at aligning
          ventures, subsidiaries and direct and indirect suppliers   our joint efforts towards our sustainability goals and
          in  our  palm  oil  supply  chain.  We  enforce  this  policy   advancements.
          through our A-SIMPLE Framework and Supplier



          52  SUSTAINABILITY REPORT 2023                                                                                                                                             APICAL GROUP  53
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