Value Creation Is The Bedrock Of Our Business 76 FGV HOLDINGS BERHAD Sustainability Review Traceability is paramount in our Plantation Sector. It allows us to trace and track our suppliers and assess them against our sustainability commitments, especially our No Deforestation, No Planting on Peat and No Exploitation (NDPE) policy. It will also enable us to identify high-risk suppliers and work closely with them to implement strategic mitigation measures. As a leading palm oil producer, FGV’s commitment to traceability is an essential element of our business. We operate with high levels of traceability and transparency to ensure our products do not come from sources that pose any risk of sustainability-related noncompliances such as exploitation of workers and violation of human rights, deforestation, planting on peat or open burning. To achieve our goal of complete traceability throughout the supply chain, we continue to implement the necessary monitoring mechanisms. We have rolled out a new set of supplier agreements for our FFB suppliers to disclose all their sources of FFB and to ensure compliance with FGV’s Supplier Code of Conduct (SCOC). To this end, we will continue to conduct the socialisation of FGV’s GSP to suppliers who work with us. At the same time, our Trading team is dedicated to ensuring that only suppliers who comply with our policies are used by FGV. TRACEABILITY IN OUR PLANTATION BUSINESS As part of our efforts to ensure that our products are not linked to any risk of sustainability-related non-compliances including exploitation of workers and human rights, deforestation, planting on peat or open burning, FGV has implemented a strong traceability system, backed by appropriate policies and procedures. This transparency helps us identify potential risks and resolve them immediately through continuous improvements. We started to trace our raw materials in 2017. Our traceability covers Traceability to Mills (TTM) and Traceability to Plantations (TTP), and this information is communicated to the general public through the Company website and FGV’s Traceability of Products (ToP) platform. PROGRESS AND ACHIEVEMENTS PILLAR 1: PROMOTING ECONOMIC GROWTH More information on FGV’s Traceability of Products can be found on our website, www.fgvholdings.com. TRACEABILITY, RESPONSIBLE SOURCING AND SUPPLY CHAIN MANAGEMENT WHY IT IS IMPORTANT Ensuring a responsible and sustainable supply chain is crucial for our long-term growth in the highly regulated palm oil industry that is subject to global scrutiny. Traceability and responsible sourcing enable us to fulfil our commitment to sustainable business practices, which encompass environmental protection and respect for human rights. Tracing the sources of our supply and the origins of raw materials allows us to be transparent in upholding good business ethics across our supply chain. We are able to identify and mitigate sustainability risks with the implementation of robust systems and processes to ensure sustainability in our operations. In addition, traceability can provide FGV with access to bigger markets by demonstrating our commitment to deliver products that are sourced responsibly. We will continue to communicate with our suppliers to better understand their operations and challenges in order to make informed decisions and grow responsibly.
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