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SUSTAINABILITY REPORT 2020                          01   02  03  04  05   06



          APPENDIX: MATERIALITY AND
          STAKEHOLDER ENGAGEMENT





          Materiality Assessment
          102-46, 102-47, 102-49, 103-1
          In 2019, we conducted a materiality assessment to ensure we are addressing and reporting on the
          issues that are important to our stakeholders and our business. The process involved gathering quantitative
          and qualitative feedback from key internal and external stakeholders. External stakeholder groups
          engaged as part of the assessment include suppliers, customers, non-governmental organisations (NGOs),
          banks and others.
          Our materiality review process comprised the following stages:


           Conducted a                      Conducted        Consolidated
           benchmarking                     interviews with   the information
           exercise and     Conducted       a selection      gathered and     Facilitated a
           desktop research   an internal   of internal      analysed the     working session
           to identity      and external    and external     results to produce   with key persons
           emerging and     stakeholder survey   stakeholders to   a preliminary   from Apical to
           any new issues   to prioritise and   gather additional   list of material   review, test and
           that may have    rank the short-list   context and   issues prioritised   validate the final
           risen since      of material issues.  insights into issues   by internal   list of material
           Apical’s previous                that are facing   and external    issues.
           materiality                      the industry and   perspectives.
           assessment.                      Apical.


          The 20 material issues remain unchanged from the previous reporting in 2019, as we did not conduct
          materiality assessment in 2020. We made continuous improvement in the material issues identified in 2019,
          particularly in facilities in Indonesia.


          Material Issues                                                          Priority
          Emissions reduction:                                                      High
          Managing and reducing GHG emissions and maximising of energy efficiency
          Grievance handling:                                                       High
          Ensuring that proper grievance handling and mechanisms are in place
          Product quality and safety:                                               High
          Ensure goods brought to market do not cause harm to the user and that they comply
          with laws and regulation
          Protection of forests and biodiversity:                                   High
          Working with our suppliers to prevent deforestation and protection of biodiversity,
          HCS, HCV and peatland areas
          Rights of indigenous and local communities:                               High
          Respecting community rights by freely informing communities of licences,
          government and company policies regarding land development, as well as ensuring
          FPIC and compliance with local and national laws on land offers



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