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SUSTAINABILITY REPORT 2020                          01   02  03  04  05   06
                                                                               Working with Suppliers

          WORKING WITH
          SUPPLIERS


          103-1, 103-2, 103-3, 102-9, 204-1







             Apical’s
             endeavour to

             make sustainable
             palm oil the norm
             requires our
             suppliers to be                      We proactively engage with our suppliers through various Anchor
                                                  programmes
             on board.
                                              We actively engage our suppliers and bring them along
                                              with  us  on  our  sustainability  journey  to  build  a  traceable
                                              and transparent palm oil supply chain. This strategy not
                                              only helps us to minimise supply chain risks and ensure
                                              our products are sustainably sourced, it also expands our
                                              suppliers’ access to global markets.


          Our Supply Chain Profile

          As a midstream processor, exporter and trader, Apical mainly procures Crude Palm Oil (CPO), Crude Palm
          Kernel Oil (CPKO) and palm kernel (PK) for our refineries and plants. Apical does not own any upstream
          assets or facilities such as plantations and mills. We rely on third party supplying mills to provide us with raw
          materials.
                                            In Indonesia

          420                    119                           100%


           direct CPO              direct CPKO                   of our procurement spend for our
           supplying mills         suppliers                     Indonesian operations is from local
                                                                 suppliers

          Note:                                                28% & 3%
          i.  CPKO suppliers are different from CPO mills as palm kernel will have to be
           processed at the kernel crushing plant before reaching our refineries.
          ii.  The figures above cover only our facilities in Indonesia. External suppliers for our   of our procurement spend is on
           facilities in Spain and China are not included in the figures above.  local suppliers for our operations in
                                                                 China and Spain respectively

                                                               Note: Local suppliers are defined as those based
                                                               locally, in the same region.

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