EVOLVING TOGETHER
Evolving Together is the theme for Apical’s 2023 sustainability report. Meaningful and consistent progress on our sustainability agenda happens through transforming how we conduct business with the support and inputs from stakeholders, including suppliers and communities. Strengthening partnerships, utilising innovative technologies, and empowering smallholders enable us to push boundaries on what we can achieve to protect the planet and our people, while also generating value for Apical.
PRESIDENT'S
STATEMENT
“I am pleased to present Apical Group’s Sustainability Report 2023. Our commitment to sustainability is unwavering, serving as the cornerstone of our mission to deliver traceable and sustainable products to our customers and as catalyst for participative change in the entire value chain. It is this dedication that positions us uniquely, offering a competitive edge as we seek to broaden our market presence. Despite the ever-changing business landscape and its inherent challenges, our resolve towards a traceable, sustainable and deforestation-free supply chain will remain steadfast.”
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| Target | Progress | Status |
|---|---|---|
| 100% NDPE Compliant by 2025 |
|
• |
| 100% Traceability Verification by 2025 | Verified 72% of our suppliers | • |
| Protect and/or conserve 150k ha forest and peatland |
SLV @Aceh:
|
• |
| Collaborate with suppliers to promote clean energy through 20 biogas plants |
|
• |
| Target | Progress | Status |
|---|---|---|
| Reduce 50% GHG emission intensity in our production against 2020 baseline by 2030 Net Zero by 2050 |
|
• |
| Target | Progress | Status |
|---|---|---|
| Derive 38% of total energy use from renewable and clean energy sources Improve water use intensity by 30% through circular solutions |
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• |
| Target | Progress | Status |
|---|---|---|
| Support 30 villages through Sustainable Living Village (SLV) by 2030 |
|
• |
| Support 5,000 Independent Smallholders (ISH) to achieve certification by 2030 |
|
• |
OUR APPROACH TO
SUSTAINABILITY
Apical thrives in a dynamic palm oil landscape environment. We stay ahead of the curve by actively engaging stakeholders and embracing best practices. This includes implementing frameworks such as NDPE and TCFD/ISSB for climate-related disclosures and developing a comprehensive Human Rights Policy that is complementary to our enhanced Sustainability Policy 2023. We transparently communicate these policies to stakeholders, maintaining our open dialogue and working collaboratively to address their needs and concerns. These efforts align seamlessly with our 5Cs business philosophy, prioritising Community, Country, Climate, Customer and ultimately, Company value creation. Our commitment to responsible governance strengthens our relationships and fosters long-term success.
Sustainable development is a collaborative effort. At Apical, we collaborate closely with our stakeholders, especially our suppliers, to achieve our sustainability goals. We have implemented several impactful initiatives, such as enhancing supply chain traceability, adopting sustainability management practices and achieving NDPE compliance. We are always committed to further supporting our suppliers in their sustainability journey.
To deepen our engagement with suppliers, these are the four key targets that we are progressing towards:
Collaborate with suppliers to achieve a 100% NDPE compliant supply chain by 2025
Collaborate with suppliers to promote clean energy through 20 biogas plants
Engage 100% of suppliers for traceability independent verification by 2025
Partner with suppliers to protect and/ or conserve 150,000 ha of forest and peatland by 2030
The impacts of climate change on our global systems are increasingly apparent over the past few years – extreme weather events of high severity have affected food security. Apical is aware of the role we can play to reduce the impact of our business to climate change. Recent actions such as Scope 3 measurement and assessment were conducted in 2023, and are linked to the two targets that were established - a medium-term target and a long-term target – to mitigate emissions from its operations and value chain. The targets were designed with Indonesia’s Nationally Determined Contributions, our peers, stakeholders and customers.
To reduce 50% GHG emission intensity in our production against 2020 baseline by 2030
Achieve net zero by 2050
Our final target to achieve net zero by 2050 has been developed with reference to requirements stipulated by the Science Based Targets initiative (SBTi).
Establishing sustainable systems for production and consumption is important to Apical. We have adopted an approach that promotes continuous improvement known as “Kaizen” to effectively manage our energy utilisation, water consumption and waste generation. Enhancing our equipment and process efficiency will lead to cost savings and the reduction of waste generation. Examples of such actions include the transition of energy with the substitution of coal with alternative renewable energy sources within our facilities.
The Green Innovation targets aim to track our progress in effectively utilising technology and our resource management capabilities. The targets supplement our Climate Action initiatives to create a synergy between our strategies for the climate and environment.
To derive 38% of total energy use from renewable and clean energy sources
Improve water use intensity by 30% through circular solutions
We aim to enhance the welfare of the communities in which we operate by introducing localised initiatives that address the needs and livelihood of the community. Investing in local communities together with our stakeholders, including our suppliers, provides opportunities for Apical to develop positive relationships that could generate mutual benefits. The goals are focused on community empowerment and improving livelihoods.
Supporting communities through 30 Sustainable Living Village by 2030
Supporting 5,000 independent smallholders to achieve certification by 2030
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