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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

Mill Prioritisation Process (MPP) The PSEP revolves around six core principles:
The MPP is designed as a risk-based evaluation
method for assessing our suppliers, specifically • Ensuring legal compliance;
focusing on mills to determine their priority level. • Safeguarding critical conservation areas such as
The goals of the MPP include: HCV, HCS and Peatlands;
• Managing environmental impacts, including the
handling of waste and chemicals;
• Identifying which mills require engagement;
• Upholding respect for individuals and
• Enhancing engagement with high risk mills to
encourage improvements/mitigation plans; communities, which encompasses labour and
human rights;
• Deciding if a detailed strategy for engagement
is necessary. • Creation of shared value;
• Enhancing traceability.
To assess risk, we evaluate a series of factors through
the MPP, including the analysis of land use within a Through the PSEP, Apical conduct field visits to priority
50-km radius around a mill and non-spatial factors, suppliers to recommend improvement opportunities
such as qualitative assessments of a mill’s interactions and build strong relationships. During these visits, we
with local communities and small-scale farmers. offer comprehensive guidance to help our suppliers
All suppliers undergo the MPP evaluation, with those develop robust SOPs and sustainability frameworks.
deemed high risk and having a longstanding business We maintain regular communication with our suppliers
relationship with us being prioritised for the PSEP. to monitor progress and verify the implementation of
recommended action plans.
We conduct ongoing monitoring of our suppliers,
updating their risk status monthly. In 2023, we Collaborative Action Remote Engagement (CARE)
identified 41 mills that were found to have significant
actual and potential negative social and environmental In response to the travel restrictions imposed during
impacts. These risks include labor exploitation, illegal the COVID-19 outbreak, we introduced the CARE
burning, deforestation, peatland development, FFB programme in 2020 as a strategic extension of
sourcing from protected areas and social issues. Of the PSEP to maintain virtual engagement with our
these, 11% were selected for priority engagement suppliers. Since 2022 however, COVID-19 restrictions
under PSEP. were lifted, but CARE is still being used for low-risk
suppliers. Our sustainability team then conducts a
Priority Supplier Engagement Programme (PSEP) desktop review of these self-assessments, followed by
remote discussions with suppliers to update data and
As a follow-up to MPP, we have launched the PSEP in gain further insights into their practices. Based on this,
2015 to assess our high-risk suppliers. This initiative Apical develops targeted action plans to address any
aims to evaluate gaps and enhance compliance with our NDPE policy.
their commitment
and adherence to
our Sustainability
Policy and relevant
industry norms.

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