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

          WORKING WITH
          SUPPLIERS





          Engagement Through Our Anchor Programmes   Mill Prioritisation Process (MPP)
          [103-2, 103-3, 308-2, 414-2]
                                                    The MPP is a risk-based supplier assessment
          Building a transparent and sustainable supply chain   to identify priority mills for in-depth engagement
          cannot  be achieved  through traceability  alone.     through our other Anchor Programmes. It serves as
          Our Anchor Programmes helps us to prioritise     the basis for:
          and engage with suppliers to ensure they meet
          the commitments and standards set out in our
          Sustainability Policy. They include the Priority    Identifying which mills to engage
          Supplier  Engagement  Programme  (PSEP);
          Traceability Outreach Programme (TOP); Shared
          Value Programme (SVP); Suppliers Self-Assessment
          (SFA) and the Strategic Engagement Programme      Transforming high-risk mills through
          (STEP). In 2020, we introduced a new virtual      assessment activities on the field such
          engagement programme called the Collaborative     as PSEP where our team conducts
          Action through Remote Engagement (CARE) due       field visits for enhanced interaction and
          to the COVID-19 pandemic.                         communication
          We only procure from suppliers who agree to
          comply with our Sourcing Policy through a written   Determining whether a deep or broad
          declaration. These suppliers are required to      engagement strategy is required
          provide information on their own supply chain
          for Apical to perform risk analysis based on
          geospatial and non-spatial indicators. We screen
          100% of our palm oil suppliers in Indonesia prior
          to their inclusion into our supply chain. Suppliers
          identified as high risk will be prioritised for
          engagement.

          As of end 2020, 100%

           of supplying CPO mills have been engaged
           through at least one of our Anchor Programmes
                                                        We assess our suppliers’ risk through MPP


                                                    The MPP process involves analysing geospatial
                                                    and non-spatial parameters to identify potential
                                                    sustainability  risks associated with the supplying
                                                    mills. Geospatial parameters identify risks linked to
                                                    fire, deforestation, protected areas, and peatlands
                                                    within a 50km radius of a supplying mill.









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