Value Creation Is The Bedrock Of Our Business 62 FGV HOLDINGS BERHAD Group Business Review In the year under review, the Renewable Energy Division continued to support the Group’s commitment to the ScienceBased Targets initiative (SBTi) and net zero ambition. Our biogas FiT power plants offer an efficient form of renewable energy through the conversion of biogas to bioenergy from Palm Oil Mill Effluent (POME), which reduces the emission of harmful methane gas to the atmosphere. Besides its circular characteristics, this process embodies an ideal example of waste-to-wealth. In 2022, our total carbon emissions avoidance from our biogas power plants improved from 117,246 MT CO2e to 149,253 MT CO2e as a result of upgraded monitoring systems at the plants which were able to measure carbon emissions more accurately. A total of 53,025 MWh of electricity was exported to Tenaga Nasional Berhad (TNB) from our eight biogas FiT power plants. In addition, we completed the commissioning of the 2.0 MW Keratong 9 plant in Pahang which is now pending approval by the Sustainable Energy Development Authority (SEDA). The plant is expected to be commercially operated in 2023. As part of the renewable energy initiative, we are currently negotiating with local manufacturers to supply EFB and shredded EFB as raw materials to produce EFB pellets. EFB pellets are an alternative renewable energy solution that converts agricultural waste into sustainable energy while reducing coal consumption, as well as carbon dioxide and methane emissions. FGV has also embarked on producing Fortified Organic Fertiliser, which utilises our compost to produce higher value, less polluting fertiliser that could potentially contributes to saving in plantation fertiliser cost as well as reducing carbon emissions. Outlook Overall, the outlook for renewable energy using plantation by-products is positive, as there is growing interest in renewable energy sources and a need to reduce dependence on fossil fuels. FGV has solidified its position as a leader in the Malaysian palm oil industry by effectively managing its by-products and developing a sustainable and efficient method for producing bioenergy. Through its Renewable Energy Division, FGV is committed in contributing to a cleaner and more sustainable future. Going forward, the Division will continue to drive efforts to maximise the utilisation of waste products from our mills. We will also support FGV Group’s decarbonisation efforts through secondary product sales and supplying biogas fuel to FiT and Bio-CNG projects, as well as EFB oil recovery projects via Build, Own, Operate (BOO) arrangements with the ultimate goal of increasing our revenue over the long run. NAVIGATING CHALLENGES Response Outcome Manpower shortages at estates, particularly for harvesting and upkeep works • Intensifying ethical recruitment exercises • Increase collaboration with recruitment agencies in various source countries such as India, Bangladesh and Indonesia • In 2022, the percentage of labour shortage decreased to 13% from 32% in 2021 Challenge WRO issued by the US CBP on the allegation of labour rights continues to affect access to the international market • Deploying the Remediation Plan as recommended by the appointed Independent Reviewer • Focusing on additional measures and improvements to existing policies and procedures on the welfare and rights of workers • Ongoing, as this matter is subject to the discretion of the US CBP in modifying the WRO Increased prices and shortages of raw materials raising logistic and production costs • Alternative sourcing of suppliers for raw materials • Deploying trading initiatives to minimise the global impact • Raw materials were secured affordably, and supplies were maintained without disruptions to operations More information on Renewable Energy and Energy Management can be found in the Sustainability Review on pages 101 to 104.
RkJQdWJsaXNoZXIy NDgzMzc=