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Fresh fruit bunches (FFB), the raw material for the Traceability of Supplying Palm Oil Mills
production of CPO and PK, come from oil palm [103-1,103-2, 103-3]
plantations, which include third-party commercial
estates as well as independent and associated Palm oil traceability can be complex as it involves
smallholder farmers. Dealers or brokers who buy multiple players from growers, mills, to traders.
FFB from a variety of sources also form part of the Nevertheless, Apical remains committed to
supply chain. ensuring sustainability in the entire supply chain,
from cultivation to consumption.
Apical’s Sourcing Policy With increased traceability, we are able to identify
[308-1, 414-1] and engage with high-risk suppliers to support
the improvement of their practices. We will cease
Apical’s Sourcing Policy was developed working with suppliers if they do not comply with
in 2015, to support our Sustainability Policy our requirements.
and commitments to building a traceable and
transparent palm oil supply chain. The sourcing
policy includes the following:

No deforestation of high
conservation value (HCV) lands and
high carbon stock (HCS) areas

Protection of new peat areas,
regardless of depth

Drive positive socio-economy
impact for people and local Traceability to Mill
communities
A majority of our supplying mills are located within
the provinces of Riau, North Sumatera, Jambi,
and Kalimantan. This includes our major long-term
Suppliers found to have violated our Sustainability supplier Asian Agri. About 99.6% of our palm oil
and/or Sourcing Policy, either by Apical’s Grievance products are sourced directly from supplying mills.
Secretariat’s (GSR) grievance alerts and monitoring Only 0.4% of our palm oil products are sourced
system or whistle-blowers, will be handled through from a trading company.
our grievance procedures.
For supplying mills to be traceable, they are
required to provide accurate information on the
GPS coordinates of the mill’s location, the name
of the company and mill, and specific address.
The information is verified by our sustainability
consultants CORE (Proforest & Daemeter), using an
updated master database.

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