FGV HOLDINGS BERHAD | SUSTAINABILITY REPORT 2022/2023 35 PROMOTING ECONOMIC GROWTH OUR INITIATIVES RSPO FGV remains committed to ensuring that all its 66 mills and supply bases are RSPO-compliance since 2010. The RSPO certification is premised on principles and criteria that promote sustainable palm oil cultivation, oil processing and product manufacturing based on a variety of economic, environmental and social indicators. As of the end of 2023, 30 of FGV’s mills and its supply bases are RSPO-certified, while the rest of the uncertified mills have undergone and completed all required preparation and are ready to commence the certification process. FGV expects to achieve RSPO certification for all its remaining uncertified mills within 24 months upon the removal of the deferment by the RSPO for FGV to certify its uncertified mills. MSPO The MSPO is Malaysia’s national certification scheme for Malaysian palm oil plantations, independent and organised smallholders, as well as other palm oil processing facilities. MSPO sets out a comprehensive set of sustainability-focused criteria and indicators, many of which are recognised internationally by environmental and ethical standards bodies. In 2023, we maintained the MSPO certification for all of FGV’s 66 mills and its supply base, and we will continue to ensure we comply with sustainable practices through regular monitoring, evaluation and performance improvement. Moreover, we have initiated capacity-building programmes to raise awareness of the significance of smallholders in our supply chain. In 2023 we engaged with our smallholders on the criteria outlined by the Malaysian Palm Oil Certification Council (MPOCC) and the Malaysian Palm Oil Board (MPOB) for MSPO certification. Their feedback enabled us to identify the need for technical support during the certification process, farm management training, and financial assistance to cover certification costs. ISCC FGV aims to foster sustainable growth and income generation through aligning our operations with the ISCC. Adhering to the rigorous standards set by ISCC, we ensure that our operations meet ESG criteria. This includes respecting the rights of communities in the areas where we operate. Furthermore, we actively engage with these communities, investing in their development needs. We plan to subscribe to the ISCC (Waste & Residue) certification scheme for all FGVPI mills. In 2023, FGV Refineries Sdn Bhd-Tawau Oil Products, FGV Biotechnologies Sdn Bhd as well as eight palm oil mills, Maokil, Bukit Sagu, Palong Timur, Lepar Hilir, Lepar Utara 06, Serting, Keratong 9 and Serting Hilir received ISCC certification. This demonstrate our commitment to sustainability and responsible business practices. GGL GGL is an international certification programme for sustainable biomass based on UN SDG Agenda 21 and the sustainability criteria from the Renewable Energy Directive (2009/28/EC). A verification based on these principles with a positive result will lead to the source being accepted as input under the GGL scheme requirements. FGV has shown its commitment on sustainable biomass production by subscribing to the GGL certification scheme for all its mills (FVPI). Currently, all palm kernel shell (PKS) produced by FGVPI mills are accepted as GGL certified materials. The two FGV’s leased warehouse facilities in Tanjung Beruas Port, Malacca and Pasir Gudang Port, Johor have also been certified for exporting GGL certified materials. GOING FORWARD FGV remains committed to furthering and strengthening the sustainability ecosystem within its areas of operations. To further enhance the value of sustainability practices and create more opportunities for its stakeholders, programmes have been drawn out to encourage the participation of stakeholders in FGV’s journey on sustainability. FGV will continue to explore other avenues to ensure the potential of its sustainable commodities are realised and maximised, thus creating a balanced and harmonious business environment for FGV and its stakeholders.
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