PROMOTING ECONOMIC GROWTH SEC 2 30 PROMOTING ECONOMIC GROWTH TRACEABILITY, RESPONSIBLE SOURCING & SUPPLY CHAIN MANAGEMENT FGV is cognisant that our business can impact communities and the environment surrounding our operational areas. Therefore, it is essential for us to embrace responsible and sustainable practices. This enables us to be committed to the traceability of our supply chain and responsible sourcing in our endeavour to grow sustainably. Upholding traceability, responsible sourcing and supply chain management are crucial to building trust and safeguarding ethical business practices. It also ensures that the activities of our extensive network do not generate adverse impacts on the environment and the local communities. WHY IT IS IMPORTANT OUR APPROACH We stand guided by stringent ethical standards, demonstrating our dedication to growing responsibly and contributing to a sustainable community. It is also important to note that our efforts are geared towards environmental protection and upholding human rights. We are guided by the Group Governance and Integrity Framework, which encompasses a set of robust policies, guidelines and frameworks. This enables us to inculcate a strong culture of good governance, ethics and integrity in our organisation. The framework includes: 1 Sustainable Development Goals (SDGs) 3 No Deforestation, No Peat and No Exploitation (NDPE) 4 FGV Supplier Code of Conduct (SCOC) 5 Roundtable on Sustainable Palm Oil (RSPO) 6 Malaysian Sustainable Palm Oil (MSPO) 7 International Sustainability & Carbon Certification (ISCC) FGV Group Sustainability Policy (GSP) 2 CONTRIBUTION TO THE UN SDGs SDG target How we support the SDG Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. FGV filters non-compliant FFB suppliers using the Supplier Code of Conduct (SCOC) and monitors our suppliers’ continuous compliance using the External Sourcing Supplier Checklist (ESSC) to avoid sourcing from non-sustainable sources. FGV’s GSP ensures traceability in all the sourcing activities of our raw materials, maintaining transparency and sustainable practices across our value chain. In upholding responsible sourcing practices, we emphasise implementing stringent pre-qualification processes to assess suppliers’ credentials. Once appointed, our suppliers must comply with FGV’s SCOC. While we strive to fully embed sustainability into our supply chain, we understand the challenges faced by our suppliers in adopting sustainable practices. As such, we provide guidance and improvement plans where applicable to suppliers with non-significant compliance cases. However, we avoid engaging blacklisted or non-committed suppliers. We evaluate our suppliers’ performance against the level of compliance with the FGV’s GSP and Sustainable commitment, identify high-risk suppliers, and collaborate on remediation efforts. FGV expects its suppliers to adopt sustainability practices to ensure transparency and compliance to regulations.
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