Page 60 - APICAL_SR2023

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

MANAGING SUPPLY CHAIN RISK THROUGH We also utilise RADD, a tool for detecting deforestation
TECHNOLOGY in real-time using satellite imagery. Organisations like
GRI 3-3, 308-2 WRI have used RADD for forest management and to
combat illegal deforestation.
Digital transformation and innovation are crucial
for Apical in enhancing supply chain transparency Through the combined application of GLAD and
and achieving our NDPE commitments. These RADD, Apical’s satellite monitoring efforts enable
advancements aid in the verification of supplier data precise monitoring of land use and deforestation
and assessment of their potential environmental activities within our supply chain, almost in real-time.
impacts. Due to the resource-intensive nature of our The reliability of these tools allows us to identify
operations, managing environmental impacts is a core
focus. We employ various technologies to put our deforestation quickly and confidently, prompting
commitments into action. engagement with suppliers to address any land clearing
over one hectare. They also offer critical insights to
Supply Chain Mapping stakeholders in the palm oil sector committed to
sustainable and ethical sourcing practices.
We use Geographic Information System (GIS)
technology to monitor our palm oil supply chain
and supplier risk profiling. This allows us to pinpoint ENGAGEMENT THROUGH OUR ANCHOR
suppliers who breach our Sourcing Policies and/or PROGRAMMES
Sustainability commitments. Non-compliant suppliers GRI 2-24, 308-1, 308-2, 414-1, 414-2
are required to follow procedures as outlined in our
Anchor Programmes. Additionally, we share the results Apical recognises that a transparent and sustainable
of our list of supplying mills and their GPS coordinates, palm oil supply chain relies on strong engagement
on our website every quarter. and partnerships with suppliers. Through collaborative
programmes like PSEP, SVP, TOP and SFA, Apical
Satellite Imagery
drives suppliers to adhere to responsible practices.
Apical leverages on satellite technology to monitor By working together, Apical and its suppliers can build
land use change to detect deforestation in critical a more sustainable future.
areas of our supply chain. We utilise a forest
monitoring platform known as GFW Pro, created by Supplier Onboarding Process
the World Resources Institute, to monitor our supply
chains more effectively, uphold our deforestation-free As part of the onboarding process, all suppliers are
pledges and ensure compliance with regulations. required to formally declare their adherence to our
Sourcing Policy in writing. We conduct thorough due
The GFW Pro system is regularly updated with mill diligence of all our palm oil suppliers in Indonesia
locations that our suppliers must report. It features before integrating them into our supply chain.
various alert mechanisms capable of immediately This strategy employs our MPP and New Supplier
identifying areas of deforestation. Among these, Screening (NSS) processes to categorise suppliers
Apical predominantly uses Global Land Analysis
(GLAD) alerts for our weekly updates and ability to based on their risk profiles, determining which will
compare new satellite images with historical data. be prioritised for further involvement through our
Since 2019, GFW Pro and GLAD alerts have been Anchor Programmes. Suppliers identified as high
instrumental in automating our transparency efforts risk according to our risk assessment criteria will be
and refining our decision-making process. prioritised for engagement.

60 SUSTAINABILITY REPORT 2023 APICAL GROUP 61