SUSTAINABILITY INTEGRATION INTO FGV OPERATIONS Sustainability has become a business imperative, particularly in agribusiness, where exposure to Environmental, Social, and Governance (ESG) risks is intensifying. Issues like labour shortages, climate variability, and increasing regulatory scrutiny, including the European Union Deforestation Regulation (EUDR), present complex and urgent challenges. However, sustainability goes beyond managing risks. It is central to nation-building and creating shared value. By embedding sustainable practices into our operations, we enhance rural livelihoods, foster innovation, and position Malaysia as a global leader in sustainable agribusiness. In 2024, FGV introduced an enhanced Sustainability Framework, a comprehensive blueprint structured around five core pillars: Economic Growth, Governance, Social, Environment, and Innovation & Technology. This framework incorporates sustainability-related indicators to measure and track progress, addressing the evolving expectations of stakeholders, customers, and investors while aligning with international requirements. Under the guidance of the Board Sustainabilty Committee (BSC), we have aligned our operations with market standards, including the MSPO and the RSPO certifications while also addressing critical regulatory requirements like the EUDR. Enhanced ESG reporting mechanisms have further strengthened transparency and accountability by integrating key sustainability metrics into our financial and integrated reports. Environment One of the most pressing threats to agribusiness, and humanity as a whole, is climate change. To mitigate its impacts, we continue to prioritise our climate action agenda, focusing on our Group-wide greenhouse gas (GHG) emission reduction ambition. In addition, we have adopted the Energy Audit Conditional Grant (EACG) programme and trialled B100 biodiesel for our transport fleet. These initiatives align with Malaysia’s 12th Malaysia Plan and the National Energy Transition Roadmap (NETR), underscoring our commitment to reducing carbon emissions and advancing the nation’s energy transition goals. Social Social sustainability has been a key focus, particularly in respecting human rights across our value chain. This year, we rolled out a third party grievance mechanism, Suara Kami covering all our estates and mills. In addition, we provided online training for management, on-site training for workers, and distributed educational materials to raise awareness of the Suara Kami Helpline, ensuring grievances are addressed effectively and promptly. We continue to enhance worker welfare by reviewing recruitment policies and upgrading housing and facilities. This includes improving internet access in our remote estates to support better connectivity for both work-related needs and personal well-being. Governance Our sustainability efforts have delivered measurable results with a strong emphasis on transparency. An 83.4% score on the Sustainability Policy Transparency Toolkit (SPOTT), up from 76.7% in 2023, reflects our commitment to governance and sustainability practices. By embedding sustainability into every facet of our business, FGV continues to drive meaningful impact for stakeholders while securing long-term resilience and competitiveness. LOOKING AHEAD The road ahead is not without its challenges. Global market uncertainties, climate change, and evolving regulatory landscapes create complexities that demand adaptability and resilience. To ensure long-term growth, FGV must move beyond its traditional reliance on plantations as remaining static is not an option. We are actively exploring innovative opportunities that align with our sustainability framework, positioning our business for the future. The progress we have made this year gives me confidence that we are moving steadily on our journey towards greater excellence. With stronger performance and a clear focus on sustainability, we are well-prepared to navigate these challenges and capitalise on emerging opportunities. FGV Chairman officiating the Rancangan Perumahan Tersusun (RPT) for our field workers in Sarawak. 24 FGV Holdings Berhad | Annual Integrated Report 2024 Message from the Chairman
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