FGV promotes sustainability goals and creates long-term value

SERDANG, July 14, 2015 – FGV Holdings Bhd has launched its enhanced sustainability framework to support the country’s efforts to transform the palm oil industry and ultimately the country’s overall sustainability goals.

The expanded sustainability framework builds on FGV’s existing sustainability commitments and includes five pillars: economic growth, corporate governance, social, environmental, and innovation and technology.

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“The framework is a testament to the company’s commitment to inclusive economic growth, social responsibility and environmental protection.

“We believe that collaboration can have a positive impact on the palm oil industry and related sectors and provide the impetus for building a better future for the community and the country,” said group chairman Datuk Nazrul Mansor after launching the framework here today.

The opening was presided over by Deputy Prime Minister and Minister for Energy Transition and Water Transformation, Datuk Seri Fadillah Yusof.

At the same event, Fadillah also launched FGV’s groundbreaking four-month trial of B100 biodiesel in its fleet, becoming one of the few companies in Malaysia to test tankers running on this renewable fuel.

He also witnessed FGV submitting workers’ applications to join the National Union of Plantation Workers.

According to the agricultural group’s statement, the framework represents an important milestone in FGV’s ongoing commitment to the environmental, social and governance (ESG) agenda.

Key improvements include identifying specific focus areas under each pillar based on current global ESG trends.

These include, among others, operational excellence, human rights and labour standards, diversity, equality and inclusion, sustainability certification, traceability, responsible procurement and supply chain management, community engagement and development, climate action, renewable energy and energy management, and biodiversity and land management.

In line with the Sustainability Framework, FGV has improved its labour practices, including strengthening company policies and procedures, due diligence measures for the recruitment process, and providing improved infrastructure and facilities, including housing for workers.

In addition, the Company is developing plans to reduce greenhouse gas emissions to achieve the Company’s medium and long-term emissions reduction targets.

To reduce CO2 emissions, FGV also uses biomass from operations to generate renewable energy. FGV currently has two biomass power plants with a total installed capacity of around 20 megawatts (MW).

FGV has 28 biogas plants, of which 15.4 MW is subject to the feed-in tariff program (FiT).

As the largest owner of palm biomass feedstock from FGVs and smallholder land reserves in Malaysia, the Group is on track to become the largest bioenergy producer in the country and provide wider access to bioenergy solutions to stakeholders.

FGV continues to focus on conservation programs and has so far rescued 86 sun bears, of which 75 have been rehabilitated and released.

The programme also saw 16 gibbons released into the wild after successful reintroduction and 14 individual pangolin babies born in captivity. — Bernama