FGV HOLDINGS BERHAD | SUSTAINABILITY REPORT 2022/2023 91 including boiler and engine operators, chargemen, engineers, safety officers and plant managers. Over 100 individuals have been employed in these plants, positively impacting the livelihoods of the local communities. In relation to our initiatives in biogas, Keratong 9 Feed-In-Tariff Biogas Plant has been successfully commissioned and operating since October 2022 until now, producing 2.0 MW of renewable electricity to the National Grid. This initiative is a significant milestone for the Group, adding 12 MW of installed power capacity for FiT and Rural Electrification Projects. In 2023, a total of 28,519,314 MWh of electricity was exported to TNB from eight biogas FiT power plants, both internally and externally. We are actively advancing our green technology initiatives in line with the government’s renewable energy agenda. To further lower our carbon footprint, waste materials from our plantations such as Empty Fruit Bunches (EFB), and Palm Kernal Shells (PKS) are utilised to produce green energy through biomass and biogas. Shredded EFB serves as a solid fuel for operating steam boilers, resulting in substantial cost savings and reduced waste at our mills. Furthermore, it contributes to energy generation, supplying electricity to the national grid, local communities and FGV-owned businesses. Currently, FGV is in discussions for potential collaborations with local manufacturers to supply EFB or shredded EFB as raw materials for producing EFB pellets. This alternative renewable energy solution transforms agricultural waste into sustainable energy, reducing coal consumption as well as carbon dioxide and methane emissions. In 2023, a total of 28,519,314 kWh of renewable energy was generated, contributing to the avoidance of 21,617.6 MT CO2e emissions across 28 biogas power plants. Enhancing Operational Efficiency We also continue to manufacture Fortified Organic Fertiliser (FOF) through the use of compost, resulting in a more valuable and environmentally friendly fertiliser. This innovative approach has the potential to contribute to cost savings in plantation fertilisers and a reduction in carbon emissions. We are currently in the process of evaluating the commercial viability of FOF. We generate electricity internally using the Steam Turbine Generator at MSM refineries, aiming to decrease dependence on TNB for electricity supply. Concurrently, we are actively exploring strategies to lower our electricity consumption. Our objectives involve increasing awareness, cutting costs within our business, lowering carbon emissions and portraying an environmentally conscious image to the public and our stakeholders. To achieve these goals, we have identified potential initiatives that fall within the medium to high investment range. However, these initiatives require the adoption of additional energy efficiency measures. PROTECTING THE ENVIRONMENT At FGV, we strive to optimise our energy management to reduce costs and lower our carbon footprint. To this end, we collaborate with government agencies, such as the Malaysian Green Technology and Climate Change Centre (MGTC), to explore and implement initiatives across various business operations. NEW INITIATIVES We are actively implementing measures to decrease our energy consumption and improve energy efficiency. This includes utilising self-generated biomass to power our mills, redirecting exhaust steam to enhance the heating process in our Sugar business and replacing conventional lighting with energy-efficient LED lights in our consumer products business. Furthermore, we are focused on enhancing operational efficiency through: In addition, we continue to reduce our usage of natural resources, improve operational efficiency and promote sustainable energy management within our operations. Our energy management system ensures that energy is being used efficiently, meeting our goals and continuously improving energy consumption and performance. The following are initiatives we implemented during the year to reduce costs and improve energy efficiency: Optimising routes and schedules for FGV trucks to reduce mileage and lower carbon emissions from fewer and shorter trips Employing the Controller Area Network (CAN bus) in every fleet vehicle to monitor and control emissions and fuel consumption. This includes features such as automatic engine shutdown after 10 minutes of inactivity Reducing fuel consumption by utilising the eDO and Smart Fuel card to streamline processes for order pickups and refuelling. The eDO, a mobile application, keeps truck drivers updated on delivery orders, while the Smart Fuel card enables refuelling at all petrol stations Minimising carbon dioxide emissions by investing in trucks with Euro 5 emission standards. Currently, over 90% of FGV’s fleet vehicles including tankers and cargo vehicles, comply with Euro 5 standards. It is recommended that fleet vehicles be replaced after a decade of operation. 1 2 3 4
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