SINGAPORE - Apical, a leading vegetable oil processor, has secured its second consecutive win in the Sustainable Supply Chain Partnership category at the ESGBusiness Awards 2024, Wednesday (24/9/2024).

This award recognises initiatives that collaborate closely with suppliers to enhance social and environmental performance, promote responsible sourcing practices, improve transparency and support long-term sustainability across the supply chain.

Apical's strategy centres on close collaboration with suppliers, reinforced by robust governance practices, proactive engagement, compliance with regulatory standards, policies and a commitment to smallholder inclusivity.

By adhering to the No Deforestation, No Peat, No Exploitation (NDPE) policy within the palm oil industry, Apical's A-SIMPLE framework ensures effective implementation of its sustainability policy, promoting sustainable practices throughout its operations and supply chain.

At present, Apical has achieved a 93% verified score in the NDPE Implementation Reporting Framework (IRF) for the Crude Palm Oil (CPO) Delivering category within its Indonesian palm oil supply chain.

Apical collaborates closely with various stakeholders to systematically identify and implement sustainability commitments. The company has established partnerships with organisations such as the Roundtable on Sustainable Palm Oil (RSPO), the Palm Oil Collaboration Group (POCG), non-governmental organisations and local communities to steer positive environmental and social impacts throughout its supply chain.

Additionally, customers are actively engaged on Apical's sustainability progress and initiatives, as well as its adherence to new regulations such as the European Union Deforestation Regulation (EUDR). Apical is ready to supply EUDR-compliant palm oil to its customers in the European Union.

Apical empowers smallholders through two key initiatives: the Smallholder Inclusion for Better Livelihood & Empowerment (SMILE) programme and the Sustainable Living Villages (SLV) programme.

The SMILE programme enhances smallholders' livelihoods by boosting productivity through sustainable agricultural practices while promoting environmental stewardship in line with sustainable palm oil standards.

To date, Apical, in collaboration with Asian Agri and KAO Corporation, has engaged 3,436 independent smallholders, with 1,373 achieving RSPO certification.

The long-term SLV programme, initiated in Aceh Singkil, Aceh, and East Kutai, Kalimantan, aims to alleviate poverty and uplift communities through targeted initiatives tailored to each community's unique needs.

It focuses on four key priorities: enhancing community livelihood resilience, promoting forest protection and conservation, driving supply chain transformation, and fostering collaboration with local governments and relevant stakeholders. Currently, this programme is being implemented across nine villages in these two locations.

For Chandramohan Nair, Head of Sustainability at Apical Group, this achievement marks a significant milestone in the company’s sustainability journey.

“Sustainability has always been integral to our business and we are driving positive environmental and social transformation throughout our supply chain. It is a privilege to receive this award, which validates our collaboration and relentless pursuit of sustainable palm oil production and trade. We look forward to further advancing our sustainability commitments in partnership with stakeholders across the industry.”

Apical's triumph at the ESGBusiness Awards 2024 highlights its commitment to sustainable palm oil practices. This achievement reinforces the company’s vision of being a trusted processor of sustainable vegetable oil, in line with its 5Cs business philosophy: prioritising the community, country, climate and customers, all of which contribute to the company's success. (rls)