FGV Annual Report 2020

79 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders New Growth Area Financial & Capability Building Product & Market Penetration KEY OUTPUTS TRADE-OFFS outcomeS Financial Capital is the key to sustain the growth of our business as investments of this Capital are needed to ensure all other Capitals are used effectively for the smooth running and growth of our business activities. The Group’s business relies heavily on Natural Capital and the Group invests its Financial Capital to ensure the long-term sustainability of the palm oil business through the normalisation of our oil palm trees’ age distribution and responsible use of our land. The Group invests in Manufactured Capital to improve the performance of our mills and refineries, while investing in the development of new products and new business lines. This trade-off with our Intellectual Capital and Financial Capital to ensure the Group will be able to offset the cyclical nature of the business. The Group invests significantly in improving the value of our Intellectual Capital. The investment is important for innovations in our Natural Capital and Manufactured Capital to improve our operational efficiency. This trade- off is necessary to maintain our competitive edge and deliver long-term sustainable value. The Group continues to optimise its Human Capital and associated costs to add value to our Financial Capital. While this move may not benefit the Group’s short-term reputation, it is a necessary trade-off to secure the long-term future of the business. The Group’s relationship with stakeholders is important for our business. We invest in building relationships with stakeholders through engagement with our workers, vendors, trainers, business partners and regulatory bodies. By engaging with stakeholders, we create sustainable relationships that will support our Financial Capital and Human Capital. Revenue FFB production Oil palm trees’ average age FFB yield Dividend from joint ventures (JVs) and associates RM 14,076 RM 19.84 million million MT years MT/Ha million 4.29 14.8 16.96 • Rescued a total of 78 sun bears with 52 being successfully released to several locations including the National Park in Pahang and Terengganu • Developed seven (7) new products for downstream commercialisation • High-value multi crop cloning for integrated farming • New pesticide • New strategic crop • New products for specialty fats • 33 RSPO-certified complexes • 68 MSPO-certified complexes (we are fully MSPO-certified as at February 2020) • Now 100% traceable to our mills • Adopted the guidelines and procedures for responsible recruitment of foreign workers • 6,786 training man-days • Continued manpower and cost optimisation • Completed 387 blocks of housing for workers throughout Malaysia • CPO production 2.87 million MT • Oil Extraction Rate (OER) 20.32% • FFB processed 14.13 million MT • Oil & Fats sales volume 353,625 MT • Palm Methyl Ester (PME) sales volume 59,083 MT • Refined Sugar production 1.01 million MT • Bulking volume 8.22 million MT Better financial results and dividend from JVs and associates which benefits our shareholders. Through operational excellence and sustainability efforts within the operations could benefit Felda settlers and other stakeholders. Diversify CPO productions into various products that will benefit intellectual capital and financial capital. Ongoing transformational efforts to establish a sustainable innovative ecosystem which improves productivity, optimises efficiency of processes, and enhances quality of products and services. Cultivate a skilled and healthy workforce and develop an innovative work culture. Committed in ensuring socio- economic developments which includes Felda settlers and other stakeholders. liquid and dry storage’s information Communication technology Sales and Distribution Development of premium sugar products S U G A R B U S I N E S S L O G I S T I C S & O T H E R S B U S I N E S S