PROMOTING ECONOMIC GROWTH SEC 2 32 PROMOTING ECONOMIC GROWTH Financial Year Target Our Performance 2021 • 100% traceability of external suppliers • Sustainability risk mapping conducted on all traceable suppliers • 98% are traceable to plantation • Sustainability risk mapping conducted on all traceable suppliers 2022 • 100% traceability of external suppliers • 99% are traceable to plantation • 99% TTP achieved, an improvement compared to 98% in 2021 • Sustainability risk mapping conducted on all traceable suppliers FY2023 • 100% traceability of external suppliers • 100% are traceable to plantation (Tier 1 & 2) • Assessment in progress & expected results in April • Sustainability risk mapping conducted on all traceable suppliers We actively engage with our suppliers and value chain partners. Despite being able to efficiently trace FFB and PK up to supplying mills, it can be challenging to trace FFB for external crops. To this end, we are collaborating with our partners to develop a system that will identify and disclose sustainability risks in specific areas. Additionally, our FGV-ToP system, which includes the Audit Integrated System (FGV-AIMS), is part of our overall palm oil management system that provides comprehensive information on FFB/CPO/PK/PKO movements, certification status, geo-location, and monthly production at FGV mills. The system also reflects all palm oil related products from FGV subsidiaries, with selected information being disclosed to our customers and suppliers. Managing NDPE risks of indirect FFB suppliers • All suppliers commit to FGV’s SCOC and GSP which cover safeguarding the environment and adopting responsible practices in their operations. • Conducted supplier assessments to evaluate the level of compliance with our NDPE commitments. In 2023, we assessed the risk level within a 50km of 145 FFB collection centres through the Global Forest Watch (GFW) Pro platform. This amount accounts for 100% of our suppliers under the FFB dealer network. • Executed the new supplier agreement for our suppliers to disclose all their sources of FFB • Verified sources for their compliance with our commitment and we will only accept suppliers who adhere to sustainable practices. Traceability-of-Products (FGV-ToP) In 2023, no collection centres posed high NDPE risks but we have discovered several collection centres and suppliers from the dealers’ networks are exposed to the risk of deforestation in their surroundings. Some of the collection centres were exposed to peatland risks. In view of these risks, we have: • Notified the findings to implicated parties and issued reminders to not source FFB from suppliers exposed to the identified risks • Established a system to collate details of FFB sources in Tier 2 from the Tier 1 suppliers
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