5 SUSTAINABILITY REPORT 2018/2019 STATEMENT FROM THE CHAIRMAN us to be the link between them and international markets. Their livelihoods are inextricably linked with ours; their well-being is our well-being. ENVIRONMENTAL STEWARDSHIP Of FGV’s total hectarage of 439,230 Ha, 351,230 Ha has been planted. Of this, 343,404* Ha are in Malaysia and 22,578 Ha (excluding landbanks under joint ventures) are in Indonesia. Of FGV’s 343,404* planted hectares in Malaysia, much of these areas are now in their second generation of planting. In Indonesia, FGV acquired PT Citra Niaga Perkasa (PTCNP), PT Temila Agro Abadi (PTTAA), PT Patisindo Sawit (PTPS) and PT Felda Indo Rubber (PTFIR). Due to the soil types in the area, FGV has suspended peat soil activities since 25 April 2017. FGV is now working with local communities to address persistent food security issues. In 2018 and 2019, the size of our High Conservation Value (HCV) areas grew by 257.41 Ha with our Tawai estates in Perak being the most recently assessed in 2018. We have 14 HCV locations in Malaysia and two in Kalimantan, Indonesia, where we conduct biodiversity assessments in all our operations once every five years to develop Environmental Management and Monitoring Plans. These assessments have enabled us to identify the rare and critically endangered wildlife species within our concessions and operational borders. Moving forward, FGV has also adopted the principles of the High Carbon Stock Approach (HCSA) as we strive for continuous improvement in all our operations. GROWING BEYOND OIL PALM As part of our strategy to become an integrated and sustainable agribusiness organisation, we have tapped into the palm-based circular economy and started selling energy derived from renewable sources in our plantations. The energy is derived from biogas and bio-compressed natural gas (bio-CNG). Renewable energy has tremendous potential as a viable substitute for fossil fuels, besides adding to our income streams. We have invested and will continue to invest in renewable energy technologies by building more biogas plants to capture methane at our mills. We currently have 30 biogas plants that capture methane at our palm oil mills, which have helped to reduce our carbon dioxide emissions by more than 100,000 tonnes. In 2018 and 2019 alone, we recorded a total reduction of 177,035 MT of CO2 emissions from 27 biogas plants that were monitored. Beyond our traditional oil palm business, FGV has also identified significant opportunities in the food sector that we consider to be strategic adjacencies to our existing operations. These include alternative crops and dairy farming, both of which have tremendous potential for growth. As we grow our presence as a significant player in the food production sector, FGV will ensure that all these new businesses are managed in a responsible and accountable manner, adhering to all our policies and guidelines. MOVING FORWARD As we move forward in a post COVID-19 world, the future we envisioned a few months ago has been reshaped. The ‘new normal’ that everyone has been talking about has forced disruption in the way we work and interact. Our responsibility to our stakeholders and our commitment to the principles of the United Nations Sustainable Development Goals (SDGs) have taken on new meaning, demanding greater focus on sustainable business practices. In these times and in the world beyond, FGV will work to our strengths, conscious of the new order and sympathetic to the needs of our stakeholders, our people and the planet. ACKNOWLEDGEMENT I wish to thank my colleagues on the Board of Directors, who have been dedicated and committed to driving change within the organisation as we move forward. I would also like to record my heartfelt appreciation to FGV’s Management and employees for facing the challenges we were confronted with head-on, not allowing the prospect of failure to diminish their fervour. To all stakeholders and partners, I thank you for your support throughout the years. We will continue to strengthen our relationships to create value for the sustainable growth of FGV. For more information, please see Management Discussion and Analysis in FGV’s Annual Integrated Report 2019. * This figure includes oil palm, rubber, timber, coconut, orchards, coffee, cocoa and nurseries.
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