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Non-spatial parameters focus on identifying issues related to communities, smallholders, and ongoing
grievances that may occur in a mill’s FFB supply chain, based on publicly reported information from sources
such as the media and external reports.
All of our suppliers are assessed under the MPP. Mills with long-term business relations with Apical or
have been identified as having significant potential environmental and social impacts are prioritised for
engagement through our PSEP.
Risk levels of our suppliers are updated monthly based on the parameters of the MPP. As at 31 December
2020, there were 60 supplying mills identified as having significant potential environmental and social
impacts including deforestation, development on peatland, FFB sourcing from protected areas, violation of
human rights, illegal burning and worker exploitation. These mills were prioritised for engagement through
our CARE.

Priority Supplier Engagement Programme (PSEP)
The PSEP is designed to assess our high-risk suppliers, prioritised through our MPP. The assessment
criteria include suppliers’ level of compliance with Apical Sustainability Policy as well as relevant industry
standards.

The PSEP assessment focuses on six guiding principles

Monitoring legal Protection Environmental Respect of Creation of Traceability
compliance of key impact people and shared value
conservation management, communities,
value areas: including waste including labour
HCV, HCS and and chemical and human
peatland management rights

Apical conducts field visits for suppliers identified for PSEP as it enables personal interaction that
facilitates effective communication. Deeper engagement provides us with a better understanding of our
suppliers and their practices, which helps to identify gaps for improvement.

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