FGV Annual Report 2020

Traceability to Mills In 2020, we are proud to note that we successfully maintained 100% Traceability to Mills that was achieved in 2019. Enhanced FGV Traceability of Product System (FGV ToP system) In 2020, as part of our traceability initiatives, we have enhanced FGV-ToP System, a computerised traceability system that enables customers to obtain details such as the certification, geo-location and production per month at a FGV mill in an interactive manner. FGV ToP is part of an overall Sustainable Palm Oil Management System (SPOMS) that includes an Audit Integrated Management System (FGV AIMS). With the enhancement, the system will provide comprehensive information of FFB/CPO/PK/PKO movements together with attributes such as instant traceability compliance status. This system covers all palm oil related products from FGV subsidiaries. It will also enable customers access to some information that will be presented in a user-friendly manner. Financial Year Target Our Performance FY2019 • 50% traceability of external indirect suppliers • Sustainability risk mapping for all traceable suppliers. • 68% of the external indirect suppliers are traceable • 100% sustainability risk mapping has been done on all traceable suppliers. FY2020 • 75% traceability of external indirect suppliers • Sustainability risk mapping for all traceable suppliers. • 76% of the external indirect suppliers are traceable • 100% sustainability risk mapping has been done on all traceable suppliers Future Priorities In 2021, we plan to expand TTP of our FFB to Tier 2 and Tier 3 suppliers in plantations. By 2023, FGV’s goal is to expand the Group Sustainability Policy (GSP) to all its supply chain partners, and for FGV products to be fully compliant with the CSPO conditions required by the international marketplace. FGV is in the process of appointing a vendor to develop a system that is scheduled to go live in 2021. Traceability to Plantations In 2020, we have achieved 81% traceability to plantations, covering FFB suppliers . We will continue our efforts to improve the traceability to plantations notwithstanding the complexity of the FFB traders’ network, our third-party suppliers. To address this challenge FGV works closely with our value chain partners to ensure that traceability and transparency are embedded in their practices as well. As a regular practice, our sustainability team engages with our FFB suppliers and communicates with them our sustainability commitments. It also updates and validates FGV’s traceability data. In 2020, against a 75% traceability target set , we achieved 81% (2019: 80%). FGV targets to achieve a 100% Traceability to Plantation for external indirect suppliers by 2021 . 111 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders