Page 69 - 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

We assess new mills in our supply chain Sustainable Living
for environmental concerns, including
deforestation, through our MPP and spatial Village (SLV) Programme
analysis. Suppliers must prove compliance with
environmental laws. Mills flagged as high-risk TRANSFORMATIVE INCLUSIVE
undergo further assessments through Apical’s PARTNERSHIPS + PROGRESS
PSEP and CARE programmes, with the latter
enabling low-risk suppliers to self-assess online.
The sustainability team reviews these assessments,
helping suppliers develop action plans to meet
our NDPE policy.

During PSEP visits, we guide suppliers in
identifying and managing high conservation areas
using the HCV approach and geospatial analysis.
We also support the implementation of the HCS
approach, validated through field testing and
scientific consultation.
Introduced in 2020, our SFA helps suppliers assess The SLV is our landscape initiative through
their compliance with our NDPE policy, requiring partnership with local government and
those in violation to take corrective actions. Failure community to promote positive human-forest
to adhere could lead to reassessment of our relationships. This SLV programme was initiated
partnership. We also back conservation initiatives at priority landscapes, namely Aceh Singkil.
targeting biodiversity, HCV areas and riparian Aceh Singkil plays a crucial role in protecting the
zones, in line with Principle 7 of the RSPO P&C
2018. Leuser Ecosystem, consisting of 2.6 million ha
of tropical forest and home to various Sumatran
We commit to protecting species listed under animal species such as the orang utan, rhinoceros,
the IUCN Red List and Indonesia’s National Law, Sumatra tiger, and the elephant. In Singkil, illegal
condemning illegal hunting across our supply land conversion to oil palm poses a challenge to
chain, with exceptions only for local subsistence this vital ecosystem’s sustainability.
hunting that does not significantly impact species
populations. Our approach to protecting and conserving
forests in Aceh Singkil focuses on enhancing
In 2023, Apical has no verified grievances related community resilience and livelihood options.
to deforestation in our supply chain. Since We advocate sustainable agricultural practices
December 2015, the total deforested area by all for 1,000 independent smallholders and
suspended suppliers reached 65,194 ha.
protecting the ecosystem’s forests by leveraging
technology for forest monitoring. Additionally,
we have established a response team to protect
these forests actively. We are also collaborating
with partners to ensure a sustainable and
Apical2030 Target deforestation-free supply chain at the landscape
Partner with suppliers to level.
protect and/or conserve
Please refer to page 107 to read further about
150,000 ha of forest our SLV programme.
and peatland by 2030

68 SUSTAINABILITY REPORT 2023 APICAL GROUP 69