FGV HOLDINGS BERHAD | SUSTAINABILITY REPORT 2022/2023 33 Rubber Business FGV is one of the largest Standard Malaysia Rubber (SMR) producers in Malaysia, with one factories in the country producing FGV-ENR and FGV-DPNR rubber products. Our raw material suppliers must also adhere to our SCOC and comply with our sustainability commitments. We have outlined the supply base in Malaysia, with more than 50% sourced domestically and we employ a traceability process that precisely identifies the region of origin for our rubber products. In 2023, we: PROMOTING ECONOMIC GROWTH Financial Year Target Our Performance 2021 • 100% Traceability of local supplies • Environmental Risk mapping of all traceable suppliers • 97% traceability of local supplies • 100% environmental risk mapping done for all traceable suppliers 2022 • 100% Traceability of local supplies • Environmental Risk mapping of all traceable suppliers • 83% traceability of local supplies. It decreased by 14% from before due to the complexity and adoption of new criteria for rubber traceability. • 100% environmental risk mapping done for all traceable suppliers 2023 • 100% Traceability of local supplies • Environmental Risk mapping of all traceable suppliers • 88% traceability of local supplies • 100% environmental risk mapping done for all traceable suppliers GOING FORWARD To continue progressing towards our current goals, we remain committed to intensify our efforts. The data for Traceability to Plantation for Tier 2 and 3 FFB suppliers will be collected progressively and assessed for progress annually. For Supply Chain Management, we will also increase efforts to enhance awareness and compliance among suppliers with the FGV Group Sustainability Policy (GSP) and No Deforestation, Peat & Exploitation (NDPE). Aside from the suppliers of Fresh Fruit Bunch (FFB), other types of products also needed to be taken into consideration. Overall, periodic/annual engagement with the supplier needs to be done to monitor and communicate their compliance and to drive them to adhere to Malaysian regulations. 1 Accomplished traceable 88% traceability up to Tier 2 suppliers, 12% closer to our target 2 Conducted an environmental risk assessment using the GFW Pro platform for known TTP facilities within a 50km radius revealed a potential conversion of 29 hectares of protected areas for rubber planting 3 Informed our suppliers of the outcome and requested that they communicate the message to all their primary sources 4 EcoVadis validation assessment is based on the YR 2023, and the rate is Bronze
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