Smallholders Through our Group Sustainability Policy (GSP), we work to improve smallholder livelihoods, support sustainable agricultural practices, and ensure fair inclusion in the palm oil supply chain. We provide practical guidance on Good Agricultural Practices (GAP), such as pest control, soil improvement, and fertiliser management, to help smallholders increase yields and productivity. To maintain sustainability standards, we monitor compliance and conduct regular reviews to identify and address any gaps. These efforts strengthen smallholder resilience, foster sustainable development, and connect them to premium markets. WHAT IS OUR APPROACH? Smallholders form an integral part of the palm oil supply chain, contributing significantly to national production and rural economies. As Malaysia’s largest off-taker of smallholders’ fresh fruit bunches (FFB), we support both FELDA settlers and independent smallholders, who rely on palm oil as their primary source of income. By fostering fair market access, strengthening rural economies, and encouraging sustainable agricultural practices, we ensure smallholders can thrive alongside industry advancements. This commitment aligns with our broader sustainability goals of driving inclusive growth and ensuring long-term resilience across our value chain. WHY IS IT IMPORTANT? In the coming months, we aim to address critical challenges faced by smallholders, such as limited awareness of sustainable farming practices and the use of substandard materials. Through initiatives like Direct FFB Supplier Programme, we will provide smallholders with technical support, training, and access to affordable resources. These efforts are intended to improve smallholders’ yields and enable them to meet sustainability standards, strengthening their role in the palm oil value chain. Over the next two to three years, the focus will shift to enhancing traceability and transparency across our supply chain through the launch of a digital platform. This initiative will support smallholders in meeting global sustainability requirements while fostering deeper integration into the value chain, creating equitable opportunities for growth. WHAT IS OUR OUTLOOK? WHAT VALUE WAS CREATED IN 2024? Direct FFB Supplier Programme The Direct FFB Supplier Programme, led by our Group Sustainability Division in collaboration with FGV Trading, FGV Agri Services (FGVAS), and FGV Fertiliser (FGVF), is designed to support smallholders in aligning with sustainability standards and strengthening their role in the palm oil supply chain. The programme introduces smallholders to our sustainability policy, highlights the importance of certifications, and fosters understanding of labour standards and sustainable transaction networks. Highlights: • Conducted 13 sessions across all FGV Palm Industries regions, engaging 341 suppliers between September and December 2024. Engagement with Direct FFB Suppliers in Lundu, Sarawak. 144 FGV Holdings Berhad | Annual Integrated Report 2024 Social
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