OUR SUSTAINABILITY JOURNEY SEC 1 8 During the review period, we identified a deforested area of 25 hectares associated with an indirect fresh fruit bunch (FFB) supplier. This discovery was made through the Global Forest Watch Pro platform that can trace and monitor deforestation activities, which we use to monitor areas owned by our suppliers in line with our NDPE policy. Despite attempts to engage with the FFB dealer collaborating with this supplier for corrective action, there was no response. Consequently, FGV has discontinued all business transactions with the FFB dealer, demonstrating our seriousness to promote adherence to sustainability standards across our supply chain. FGV is also committed to a diverse and inclusive workplace. The Gender Equality and Women Empowerment (GEWE) committee is instrumental in promoting gender equality, emphasising women’s representation at senior levels within the organisation. In conjunction with International Women’s Day in March 2023, FGV organised a panel discussion on Women’s Empowerment and Gender Equality in the Palm Oil Sector with LeadWomen as a supporting partner. The event gathered over 100 participants from various sectors including government agencies, corporate sectors, civil society organisations, UN agencies as well as the diplomatic corps. During the event, FGV also officially announced its commitment as a signatory to the Women’s Empowerment Principles (WEPs) to further promote women’s rights within its operations. Participants were introduced to the Anti-Sexual Harassment Act 2022 and the relevant international standards relating to gender equality in the palm oil sector, particularly the RSPO Principles and Criteria and the WEPs. JOINT LEADERSHIP STATEMENT OUR COMMITMENT TO SOCIETY At FGV, our operations are deeply interwoven with a steadfast commitment to society. As Malaysia’s largest offtaker of palm fruits produced by smallholders, our operations transcend the traditional boundaries of commercial enterprise. Annually, we produce three million tonnes of Crude Palm Oil (CPO) where two-thirds originate from fruits procured directly from smallholders. This commitment to purchasing such volumes underscores our deep-rooted connections with these communities and reflects the positive effect we can have on their economic upliftment. The remaining one-third of our CPO production, derived from our own plantations, is also important as it not only constitutes the margin-earning segment of our business but also serves a higher purpose. These earnings are strategically utilised to offset the elevated social costs we willingly incur, ensuring that our commitment to the community remains unwavering. This effectively makes FGV a business with the stripes of a social enterprise. While this approach may put us at odds with the goal of a business to maximise profit, this distinction sets FGV apart from its peers, and we believe it is something that our investors must be well aware of. In addition, our engagement with the settlers of FELDA often goes beyond transactional interactions. We recognise the intrinsic value of our smallholders and we continue to support them through consultation sessions to understand how we can help them further. This is particularly important in ensuring our smallholders are implementing sustainable practices in order to obtain MSPO certification. Through the Independent Smallholders Consultation programme that we started in 2022 in collaboration with the Malaysian Palm Oil Board (MPOB) and the Malaysian Palm Oil Certification Council (MPOCC), we have found that smallholders require technical support, training and financial support to meet MSPO certification requirements. Thus, from 2022 to 2023, a total number of 721 smallholders attended our smallholder training programme which provided technical advice and updates on the palm oil industry’s development, challenges, and regulatory requirements. Beyond our socio-economic contributions, FGV’s operations also play a pivotal role in ensuring national food security. Palm oil, a versatile and essential commodity, finds its way into various products, from food items to biofuels. By consistently producing vast quantities of high-quality CPO, FGV bolsters Malaysia’s position as a key player in the global food and agri-commodities landscape. Our dedication to sustainable practices ensures that as we contribute to national food security, we do so responsibly, preserving the environment and ensuring the well-being of future generations.
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