FGV Annual Report 2020

TRACEABILITY AND RISK MAPPING PROGRAMME Traceability and Validation Task Force In 2020, FGV established a traceability and risk mapping programme for external suppliers. This programme aims to identify and verify the sustainability risks, including environmental as well as social and human rights risks, associated with external suppliers based on their specific geographical areas. In 2020, we established the Traceability and Validation Task Force (TVTF) in collaboration with MISI, MIMOS and Procter & Gamble. The task force is entrusted to trace, assess and verify for compliance third party FFB supply chain against FGV’s GSP and assist the independent smallholders in improving their farming practices. The task force set out to trace the source of FFB from independent suppliers to 32 mills, and also verify the compliances with FGV’s GSP. As at end of 2020, it had traced 1,600 independent smallholders supplying to 10 mills to their farms, inclusive of their NDPE compliance details. FELDA settlers & independent smallholders account for 47% of total external supply in FGV’s supply chain. TRACEABILITY IN OUR PLANTATION BUSINESS We practise three (3) types of traceability: Traceability to Mills (TTM), Traceability to Plantations (TTP) and Traceability of Products (ToP). Our traceability initiatives are to ensure that FFB sources are not linked to activities-related to deforestation, planting on peat and open burning, in line with the GSP’s NDPE commitments. Since 2019, FGV has been publishing the FGV traceability dashboard on the company website. The dashboard updates customers on the TTM and TTP status of our plantation subsidiaries, namely FGV Plantations (Malaysia) Sdn. Bhd., FGV Refineries Sdn. Bhd., FGV Kernel Products Sdn. Bhd., FGV Biotechnologies Sdn. Bhd. and Delima Oil Products Sdn. Bhd. Sustainability Matters In addition, the task force requires FGV to validate data provided by mills and super dealers and sustainability risk mapping for large suppliers from commercial plantations. Crude Palm Oil Crude Palm Oil Palm Kernel Oil Palm Kernel Oil PALM OIL MILL FGVR & DOP FGVR: FGV Refineries Sdn. Bhd. FKP: FGV Kernel Products Sdn. Bhd. FGVBSB : FGV Biotechnologies Sdn. Bhd. FGVPM : FGV Plantations (Malaysia) Sdn. Bhd. DOP : Delima Oil Products Sdn. Bhd. FGVR FGVBSB FKP PALM OIL MILL 19% 19% 81% 100% 100% 100% 100% 80% 78% 69% 78% 81% Traceable to mill Traceable to plantation Traceable to plantation Non-traceable to plantation UPSTREAM Total Downstream Total Downstream 100% 80% 100% 78% FGV Traceability Dashboard CPO CPKO 110 FGV HOLDINGS BERHAD Annual Integrated Report 2020