74 FGV HOLDINGS BERHAD ENVIRONMENTAL STEWARDSHIP Palm Kernel Shell (PKS) PKS is mainly used for biomass fuel for power generation and is in demand from international clients as a form of sustainable fuel for power plants. Sludge Palm Oil (SPO) SPO is mainly used for non-food palm-based products. In addition, it has been found that it has the potential to be used as jet fuel. We are currently exploring opportunities to add value to our product. GRI 103-1/2/3, GRI 303-4, GRI 303-5 WASTE MANAGEMENT The Group encourages a zero-waste management policy across our operations. At our plantations, we continuously identify new ways to manage our waste more efficiently. Utilisation of mill by-products Alongside crude palm oil and palm kernel, FGV, through its 68 mills, produces 14 types of renewable, biomass-based by-products for local and international markets. Some of the key by-products in use are: Empty Fruit Bunches (EFB) EFB is shredded and utilised as solid fuel for the operation of steam boilers, which delivers significant cost savings and eliminates waste from our mills. We also produce our own organic compost by enabling the aerobic decomposition of EFB mixed with POME. From our four projects, we have managed to produce 11,329 MT of organic compost since 2017, which we use in several of our oil palm estates. The organic compost has been proven to be beneficial to increased plant growth and yields as it helps to maintain soil moisture, prevents soil erosion and serves as an effective alternative source of weed control. EFB ash is also used as sustainable organic fertiliser. PKS (MT) Location of compost projects Mill State Maokil Johor Kalabakan Sabah Jengka 21 Pahang Sampadi Sarawak 2019 2018 2017 3,088 MT 4,082 MT 4,159 MT Amount of compost produced 2019 111,870 2018 150,011 2017 143,221
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