Value Creation Is The Bedrock Of Our Business 102 FGV HOLDINGS BERHAD Sustainability Review SPOTT RANKING PILLAR 3: PROTECTING THE ENVIRONMENT In 2022, FGV produced Fortified Organic Fertiliser (FOF) by using compost to create higher value, eco-friendly fertiliser. This approach could potentially help save plantation fertiliser costs and reduce carbon emissions. Additionally, we are in the midst of studying the commercial viability of FOF. We also experienced a significant increase in Shell Recovery Rate (SRR) in 2022 as compared to 2021 as there were improvements in mill operations: OPERATIONAL EFFICIENCY Year 2020 2021 2022 SRR (%) 1.01 1.14 1.34 We understand that it is vital to carefully manage our energy resources across our operations to control and reduce our energy consumption in view of the rising costs of electricity. Our initiatives to cut back on energy include utilising self-generated biogas to generate power for our mills, directing exhaust steam back to the heating process in our Sugar business and replacing conventional lighting with LED lights in our consumer products business. Other initiatives to improve our operational efficiency include: • Reducing mileage through route optimisation for FGV trucks via routing and scheduling, resulting in lower carbon emissions from fewer and shorter trips • Reducing emissions and fuel consumption through the use of the Controller Area Network (CAN bus) which is installed in every fleet vehicle, enabling monitoring and control of vehicles such as automatic engine shutdown after 10 minutes of inactivity. • Reducing fuel consumption through the use of the eDO and Smart Fuel card which digitalise the processes of order pickups and refuelling. The eDO is a mobile application that provides truck drivers with delivery order updates, while the Smart Fuel card allows refuelling at any petrol station. • Reducing carbon dioxide emissions by investing in trucks with Euro 5 emission standards. Currently, more than 90% of FGV’s fleet vehicles (tanker and cargo) meet the Euro 5 standards. It is also recommended that fleet vehicles be replaced after 10 years of operation. As always, FGV is committed to its energy management efforts to reduce operating costs as well as its carbon footprint. To this end, FGV continues to collaborate with various government agencies, such as the Malaysian Green Technology and Climate Change Centre (MGTC), to explore initiatives that can be executed across its business operations. FGV’s noble efforts were recognised at the: National Energy Awards (NEA) 2022 under the Renewable Energy on Grid National Grid for Triang Biogas Power Plant FGV generates electricity in-house via the Steam Turbine Generator at MSM refineries to reduce its reliance on electricity supply from TNB and continues to explore initiatives to reduce its electricity consumption. We also strive to increase awareness, reduce costs in our business, lower carbon emissions and present an environmentally aware image to the general public and our stakeholders. To this end, we have identified potential medium to high investment initiatives. However, these initiatives require the implementation of other energy efficiency measures. ENERGY EFFICIENCY
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