Apical: Navigating the Thorny Sustainability Challenge in the Palm Oil Industry

This case examines how Apical Group, a major palm oil processor with a 14% market share, integrates sustainability into its strategic management. Amid growing scrutiny over deforestation, environmental NGOs have intensified pressure across the palm oil value chain. In response, Apical has pursued environmental sustainability initiatives and collective industry action. However, widespread scepticism persists in the industry due to the high costs of sustainability and complex supply chain governance. This case explores Apical’s attempt to improve its own reputation and shape higher sustainability standards sector-wide, while navigating trade-offs between social performance and competitive advantage.