FGV HOLDINGS BERHAD | SUSTAINABILITY REPORT 2022/2023 79 PROTECTING THE ENVIRONMENT CLIMATE CHANGE Climate change is a critical global concern that affects supply chains, businesses and daily life, manifesting through extreme weather events and temperature fluctuations. This year, temperatures are expected to rise, underscoring the global shortfall in meeting the 2015 Paris Agreement target to limit global warming to below 1.5°C. According to CICERO, Norway’s climate research institute, global emissions are expected to rise by 0.5% and 1.5% in 20231. Despite advancements in clean energy adoption, reducing reliance on coal, oil and gas remains imperative for further progress. FGV strives to be a carbon neutral company, actively mitigating the adverse impacts of climate change on our operations. We persist in implementing efforts to meet our net-zero targets by 2050, adopting strategies to navigate climate change challenges and ensuring the long-term sustainability of our business organisation. We aspire to halve our GHG emission intensity by 2030 to zero by 2050 aggregated across all our commodities. WHY IT IS IMPORTANT OUR APPROACH We remain guided by our Climate Action Plan, which directs our efforts towards a Just Transition. This approach enables us to achieve sustainable development and climate goals while minimising negative impacts. The Climate Action Plan empowers us to address important aspects of climate change mitigation throughout our operations. PROGRESS AND ACHIEVEMENTS Climate Action Plan Climate change remains a significant threat to humanity. As a leading palm oil producer in Malaysia, FGV is committed to combatting global warming. Our commitment includes implementing the Sustainability Framework, emphasising environmental responsibilities. CONTRIBUTION TO THE UNSDGS SDG target How we support the SDG FGV is committed to addressing SDG 13 which focuses on climate action and urges actions to limit and adapt to climate change. FGV pledges its commitment to becoming a net-zero emissions business by 2050. In support of this commitment, FGV has adopted a comprehensive climate action plan that encompasses six key strategic factors: climate governance and risk management, carbon management, operational efficiency, waste management, water management and climate awareness. This plan reflects FGV’s dedication to taking proactive steps to mitigate the impacts of climate change and aligns with the urgent call for global climate action outlined in SDG 13. At FGV, sustainability is integral to our operations, and we believe that profit and growth are interconnected. In September 2021, FGV achieved a significant milestone by becoming the first food and agriculture company in Malaysia to formalise its commitment. This was accomplished through the signing of the United Nations (UN)-endorsed Science Based Target initiative (SBTi) Business Ambition for 1.5 Celsius pledge. This initiative advocates for the reduction of global warming to limit the temperature to below 1.5 Celsius, marking FGV’s dedication to environmentally responsible practices in the realm of food and agriculture. To meet this commitment, FGV has formulated an integrated climate action plan that incorporates six pivotal strategic factors in our sustainability journey:
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