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

          WORKING WITH
          SUPPLIERS





          We provide detailed guidance on the development   Traceability Outreach Programme (TOP)
          of Standard Operating Procedures (SOPs) and
          sustainability management systems. After the PSEP   TOP was launched in 2017 to provide knowledge
          visits, we proactively maintain working relationships   and simplified solutions for suppling mills on
          with the suppliers to ensure recommended   aspects including the collection and management
          action plans are implemented. Where necessary,    of traceability data of their FFB suppliers.
          Apical provides assistance and guidance for
          other social and environmental matters. Since the   The programme uses an ‘outside-in’ approach as
          introduction of PSEP in 2015, our sustainability   we view suppliers as co-contributors to improving
          team has visited 45 mills. Due to ongoing COVID-19   traceability of the palm oil industry. The TOP seeks
          pandemic, Apical introduced CARE as a temporary   to verify and incorporate the data collected to build
          replacement for PSEP.                     an interactive mapping platform to assist suppliers
                                                    in identifying and managing landscape level issues
          Conducted 45 PSEP visits                  based on the location of their FFBs source.
           since 2015 to improve compliance with    412
           our policy requirements
                                                      supplying mills engaged through TOP in 2020
          Collaborative Action through Remote
          Engagement (CARE)                         Shared Value Programme (SVP)
          Through CARE, selected suppliers are required to   Apical’s SVP was designed in partnership with
          perform a self-assessment verification to determine   Earthworm Foundation, Proforest and Daemeter.
          their compliance risks in the supply chain.   Our SVP strives to support continuous improvement
                                                    among our priority suppliers through the delivery of
          The verification process is conducted through an
          online platform which allows our sustainability   workshops. The workshops cover issues specific
                                                    to our suppliers’ location, latest market trends, and
          team to conduct desktop analysis before engaging   benefits of international certification schemes such
          with the selected suppliers remotely. Following the
          verification process, Apical develops action plans   as RSPO and ISCC.
          for suppliers with gaps in sustainability practices,   SVP participants gain insights into the importance
          including aligning with our NDPE commitments.  of palm oil traceability, responsible sourcing from
          14                                        smallholders, Indonesia’s regulatory updates on
                                                    peat, mill operations and plantations, HCV and

           suppliers engaged through CARE in 2020   HCS requirements, environmental management
                                                    and monitoring, as well as issues on labour rights.
















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