FGV Annual Report 2020

Sustainability Matters MSPO CERTIFICATION The Malaysian Sustainable Palm Oil (MSPO) is a certification scheme for Malaysian palm oil plantations, independent and organised smallholders as well as other palm oil processing facilities. It is regarded as a more viable route for Malaysian smallholders to participate in a certification scheme that abides by internationally recognised sustainability principles. In 2017, the Government announced that MSPO is mandatory from 2020 onwards. By February 2020, all FGV’s 68 mills and 189 estates were MSPO certified. To ensure the high standards of our supply chain, FGV is engaging with smallholders to improve their agricultural practices. This will help them in the MSPO Certification and enable FGV to achieve 100% tracebility to plantations of the smallholders supplying FFB to FGV. SUSTAINABILITY MATTER: BUSINESS DEVELOPMENT & PRODUCT QUALITY As a responsible and sustainable business, FGV prioritises continuous business development as part of value creation while adhering to high standards of product quality to gain consumer acceptance and brand equity. At FGV, the business development and product quality driven by the Group’s Plantation and Sugar Businesses is being expanded to other agricultural products as the Group moves towards establishing itself as a global agribusiness player in the near future. In 2020, the Group’s business development and product quality functions continued to remain under the purview of FGV’s Plantation business. FGV’s business development and quality assurance activities are focused on enlarging our market share and ensuring our products gain customer acceptance as well as comply with the regulatory requirements of their respective markets. To enlarge our business footprint, FGV appoints regional distributors in existing and new markets. Prior to their appointment, we evaluate the distributor’s financial and ethical standing and their distribution capabilities in terms of reach and competencies. We explore the prospects for new products produced by FGV subsidiaries or sourced from OEM suppliers. FGV also evaluates the market size and potential, product fit and consumer acceptance, and the performance of distributors. Since FGV specialises in food products, it upholds strict standards of hygiene across the entire manufacturing spectrum. This is affirmed by its food safety and quality certifications that include: • Food Safety System Certification 22000 (FSSC) – food safety certificate • ISO 9001:2015 – quality management certificate • HALAL – Halal Management System certificate In 2020, FGV moved forward with e-Commerce as an alternative sales and marketing platform with launch of Kedai FGV and GOGOPASAR. As part of continuous improvements to product quality, FGV has in place a customer and consumer complaints and feedback management system. MSPO Certification Status of FGV Mills 2018 2019 2020 Cumulative % of Certified Mills 12 % 81 % 100 % 114 FGV HOLDINGS BERHAD Annual Integrated Report 2020