Efficient energy management is crucial for our operational sustainability, cost reduction, and emissions reduction. In our resource-intensive sector, minimising energy waste in mills and plantations enhances efficiency, lowers costs, and builds long-term resilience. This commitment to responsible energy use ensures compliance with regulations and adherence to relevant guidelines, accelerates our transition to renewables, and reinforces our carbon neutrality ambition. We manage energy consumption through a structured, multi-pronged approach to optimise energy use, integrate renewable energy, and ensure compliance with regulatory requirements under the Energy Efficiency and Conservation Act (EECA), the Malaysian Sustainable Palm Oil (MSPO) and the Roundtable on Sustainable Palm Oil (RSPO) standards. Aligned with best practices and Energy Management Gold Standard (EMGS) benchmarks, our approach is guided by our related Energy Management Policy and supports our long-term sustainability goals. Electric Vehicle (EV) Wheelbarrow for Fresh Fruit Bunch (FFB) Collection As part of our ongoing efforts to reduce Scope 1 emissions from fuel consumption and machinery use, we have begun exploring the use of electric vehicle (EV) wheelbarrows for FFB collection. This initiative aims to cut diesel consumption, lower operational emissions, and promote sustainable practices within our plantations. Energy Audits and Efficiency Initiatives In 2024, FGV completed energy audits across four business units to identify opportunities for improving energy efficiency, reducing costs, and supporting carbon reduction goals. Based on the audit outcomes, we rolled out targeted initiatives such as enhancing process automation to minimise energy waste and piloting renewable energy solutions, including solar photovoltaic (PV) and biogas utilisation. We also introduced energy-saving measures across our mills and plantations, including the installation of energy-efficient equipment and lighting systems. Rooftop solar panels have been deployed at downstream facilities to reduce electricity costs and lower greenhouse gas (GHG) emissions from grid dependency. WHY IS IT IMPORTANT? WHAT IS OUR APPROACH? Energy Management Our energy management strategy is a holistic, multi-phased commitment to sustainability, driving both immediate efficiency gains and longterm environmental leadership. This includes energy audits, infrastructure upgrades, and comprehensive employee training to ensure regulatory compliance, and significantly reduce our carbon footprint. Looking ahead, we aim to scale renewable energy use, invest in cutting-edge technologies such as artificial intelligence (AI)-driven optimisation and the Internet of Things (IoT). Our goal of carbon neutrality will be achieved through strategic investments in waste-to-energy systems and the adoption of a circular economy model. WHAT IS OUR OUTLOOK? Disclosures 2022* 2023* 2024* Total energy consumption (MWh) 149,106.81 151,019.53 270,526.94 Shell Recovery Rate (SRR) (%) 1.34 1.32 1.22 Surplus electricity generated from biogas exported to grid (MWh) 23,864.32 27,787.32 33,438.75 * The 2022 and 2023 data were estimated based on electricity expenditure, while the 2024 data reflects actual electricity usage. PERFORMANCE OUTCOMES WHAT VALUE WAS CREATED IN 2024? 148 FGV Holdings Berhad | Annual Integrated Report 2024 Environment
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