FGV Annual Report 2018

38 REMAINED FOCUSED ON VALUE CREATION FGV HOLDINGS BERHAD In the long-term, we target to reduce our GHG emissions by 25% by 2020 from our baseline year of 2014. The majority of our emissions is in the form of biogas, which naturally forms when POME decomposes in the absence of oxygen. The capture of biogas from POME is, therefore, a clear priority for us in mitigating and reducing our overall GHG emissions. To do so, we leverage on our 25 biogas plants to reduce the release of carbon dioxide (CO 2 ) whilst generating electricity for domestic use. This enables the production of cleaner energy and works towards lowering the dependence on fossil fuels, which emit higher GHG. UPHOLDING NO DEFORESTATION, PEAT AND EXPLOITATION (NDPE) COMMITMENTS We continue to uphold our pledge to our NDPE commitments throughout our plantations. In line with this, our efforts in this area reflect our commitment to SDG15: Life on Land, wherewe continue toprotect and conserve the ecosystemaround us by preventing land degradation. We have also committed to rehabilitate peatlands planted after 25 August 2016 and immediately cease all new developments on peatland regardless of when the land was acquired. Additionally, our pledge to avoid deforestation, conversion of HCV areas, new planting on peatland irrespective of its size and depth and development of areas classified as having High Carbon Stock (HCS) has been expanded to cover all areas covering previously acquired land, existing land and new land. In 2018, we updated the Peat Restoration Management Plan for our landbank in Kalimantan, Indonesia, following a consultation meeting with Indonesia’s Kementerian Lingkungan Hidup dan Kehutanan (KLHK) and Badan Restorasi Gambut (BRG). The KLHK had recommended that we restore the land’s peat hydrological function by maintaining the groundwater level at less than 0.4 metres from the soil surface in affected areas. Furthermore, while no new planting is allowed in peat areas, it has been agreed that present planting on peatland will be maintained for at least one cycle and follow the requirement on the groundwater level. Pursuant to the updated Plan, we have constructed and realigned all manual and automatic water level monitoring points and canal blocks in accordance to KLHK’s recommendations. We will continue to monitor the water levels and report to KLHK as required. RISK ENVIRONMENT AND MOVING FORWARD PLAN Challenges Moving Forward Ageing oil palm tree profile affecting overall palm oil yield Erratic weather conditions during the year Uncertainty over status of the Land Lease Agreement (LLA) Allocation of fund to support the continuous replanting programme of 15,000 Ha per annum to achieve the normalised age profile of 12.0 years. Focus efforts on Best Management Practices in the maintenance of estates infrastructure, innovative irrigation methods and closer tracking of weather conditions. • Continuous engagement with related parties to seek assurance on tenure of LLA. • Expansion of landbank focusing on brownfield areas. MANAGEMENT DISCUSSION & ANALYSIS NATURAL CAPITAL