FGV Annual Report 2020

Sustainability Matters During the year, FGV’s energy consumption was unaffected by the COVID-19 pandemic. We were operating as usual during the Movement Control Order (MCO) announced by the local government that saw the shutdown of some businesses. FGV shares the global concern about climate change and we are committed to playing our part in the global community to achieve SDG 13 on Climate Action as well as supporting Malaysia’s Nationally Determined Contribution (NDC) to the Paris Agreement to reduce GHG emissions by 45% by 2030 based on the 2005 baseline year. We have incorporated climate action measures into our business strategy and action plans, and will continue to adapt the way we conduct our businesses to advert the adverse impacts of climate change. One of our early landmark initiatives includes the International Sustainability and Carbon Certification (ISCC) of our mills to meet the demand for sustainable biofuel in Europe. We have had as many as 15 ISCC-certified mills when the demand for palm-based biofuel (palm methyl ester) was high. We are currently maintaining eight (8) mills under the ISCC certification. In addition, we capture methane gas released from our wastewater treatment plants at our mills and utilise it to generate renewable energy. In 2020, we operated 28 biogas plants that made FGV one of the plantation companies with the most number of biogas plants in the world. Since the start of our biogas plant operation, we have been closely monitoring the emission reduction through methane capture and utilisation. In 2020, we have increased the emission reduction by 8% compared to the reduction in 2019. SUSTAINABILITY MATTER: CLIMATE ACTION FGV moves up SPOTT Ranking The Sustainable Palm Oil Transparency Toolkit (SPOTT) tracks the sustainability performance of plantation companies. At FGV, we believe our SPOTT ranking is an opportunity to reflect on how we can improve our governance and management of sustainability in the Group. In 2020, FGV ranked 23 rd out of 100 companies in the SPOTT Assessment that measures the transparency of palm oil companies against a maximum of 181 environmental, social and governance indicators across 10 categories. We scored 168% over the average score of the companies assessed. In 2020, FGV was assessed by Zoological Society of London (ZSL) that showed progression compared to previous year - increase by +10.8. Year on Year Results 59.1 % 2019 69.9 % 2020 FGV’s Carbon Emission Reduction Monitored in 13 Biogas Facilities 2019-2020 ( MT CO2e) 2019 96,393 2020 104,333 142 FGV HOLDINGS BERHAD Annual Integrated Report 2020