80 FGV HOLDINGS BERHAD TRUST AND TRACEABILITY GRI 102-12/13 CERTIFICATION In the pursuit of sustainable development, FGV strives to strengthen its sustainability credentials through the Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO) certifications as well as the International Sustainability and Carbon Certification (ISCC). We remain deeply committed to expanding our capacity and to continuing to create value for our stakeholders. While MSPO certification is mandatory, FGV strives to ensure that all its complexes are RSPO-certified while cultivating good sustainability practices across the Group. The RSPO is an international non-profit organisation that was established in 2004 to lead the palm oil industry towards sustainable practices with other stakeholders in the global supply chain. The RSPO defines the criteria utilised by industry players to ensure sustainable production of palm oil. One of its key aims is to monitor and evaluate the economic, environmental and social impact of the cultivation, distribution and use of palm oil in world markets. Although RSPO membership is not mandatory, most palm oil companies strive to meet the RSPO’s set of environmental and social criteria in order to produce Certified Sustainable Palm Oil (CSPO). The set of criteria was designed to minimise negative environmental and social impact in areas where palm oil is produced. The RSPO certification process requires members to meet RSPO requirements, namely the RSPO Principles & Criteria (RSPO P&C) through a multi-stakeholder approach to validate their sustainability claims. As one of the first agricultural companies to obtain the RSPO mill certification in 2010, FGV is on track with its Time-Bound Plan to have all its 68 complexes certified by 2021. External audits for 25 complexes and the process of tendering for the remaining complexes have been completed. The achievement of 100% RSPO-certified mills will mark a major milestone in FGV’s sustainability journey and form a solid foundation in FGV’s commitment to sustainable development. As of December 2019, FGV has 33 mills that are RSPO-certified with certified quantities of 454,918 MT of CSPO, 112,398 MT of Certified Sustainable Palm Kernel and 54,045 MT of Certified Sustainable Palm Kernel Oil. RSPO Complaints Panel directives In November 2018, the RSPO Complaints Panel (CP) suspended Serting Complex’s RSPO certification. In response, FGV, in consultation with the RSPO, developed an action plan to address the concerns raised and numerous actions were implemented. Three quarterly progress reports were submitted to the RSPO in March, June and September 2019*, respectively. Meanwhile, FGV’s action plan was made public. These measures resulted in the reinstatement of the RSPO’s certification of the Serting Complex on 5 August 2019. However, on 13 January 2020, the CP decided to resuspend the certification for the Serting Complex and to suspend FGV’s ongoing certification processes. The decision was based on the verification audit in October 2019, which was conducted by independent auditors appointed by RSPO. RSPO * To read about the progress reports, please go to https://www.fgvholdings.com/sustainability/reports-updates/ RSPO 33 complexes certified as of December 2019 MSPO 68 complexes certified as of February 2020
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