Page 32 - APICAL_SR2020
P. 32

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

          WORKING WITH
          SUPPLIERS





          Maintained 100%                        Working Towards 100% Traceability

           traceability to supplying mills       to Plantation Level
           since 2015
                                                 Achieving traceability to plantation (TTP) is an ongoing
                                                 process as some of the commercial mills we source
                                                 from purchase their FFB from aggregators, which adds
                                                 an additional layer of complexity to the upstream supply
          41%                                    chain.

                                                                       Estimated percentage
                Supplying                                              of palm oil supplied
                   Mills                           FFB Sources         to our refineries*

                           59%                     Estate                  54.04%
                                                   (<25 and >25 ha)

                                                   Smallholders
                                                   (Organised as
          Suppliers’ FFB source                    cooperatives, groups    16.20%
          ■  Own Estate        ■  Third-party Plantations  or linked to mills)
                                                   Dealers
                                                   (Sourced from           29.76%
                           29%                     independent
                                                   smallholders)


                 Volume                          Plantations are required to be in close proximity to
                                                 mills as FFB needs to be processed within 24 hours
                                                 of harvest to maximise yield and the quality of oil
          71%                                    extracted. Achieving traceability to a mill thus provides
                                                 an indication of the approximate location of their FFB
                                                 suppliers.
                                                 We have improved our TTP year-on-year. In 2016,
          Suppliers’ FFB source
          ■  Own Estate        ■  Third-party Plantations  we recorded 27% TTP. In the last five years, Apical
                                                 expanded the coverage of our TTP. Although we were
                                                 not able to meet our target to achieve 100% TTP by
                                                 2020, we remain committed to our goal and have
          The names and coordinates of all
          supplying third-party mills are published   revised our target to 2022.
          on   their  respective  Traceability
          Declaration Document (TDD), which is
          updated quarterly and can be assessed
          on our website.





           30
   27   28   29   30   31   32   33   34   35   36   37