83 SUSTAINABILITY REPORT 2018/2019 05 S E C T I O N TRUST AND TRACEABILITY Identifying Independent Smallholders We compiled a list of independent smallholders based on the suppliers list and engaged with identified super dealers. We identified 980 independent smallholders who were directly registered with us and another 5,182 independent smallholders were identified through FFB suppliers. The process of MSPO certification was, however, limited by the MPOB’s own targeted numbers. To date, 2,368 independent smallholders on the FFB suppliers list have been submitted to the MPOB for its further action. Training the Dealer We had trained a total of 78 dealers in Lahad Datu, Kuantan and Kluang on MSPO standards and the required documents by December 2018. The training sessions were conducted in collaboration with MPOB officers for the ISHs who send their FFB to collection centres. Training the Trainer We trained selected mill representatives on MSPO Part 2 (Smallholder requirements) from November to December 2018 to assist FGV mill operators in advising FELDA ISHs on MSPO requirements and standards. The training covered MSPO standard requirements and physical assistance on the ground for ISHs. Collaborating with the MPOB In collaboration with the MPOB, FGV published the Buku Panduan Bergambar Pensijilan Minyak Sawit Mampan Malaysia (MSPO) Bahagian 2 Bagi Pekebun Kecil Persendirian – an MSPO pictorial guide to help ISHs improve their oil palm management skills through good agricultural practices to boost the quality of fruits and indirectly improve their livelihood. INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION FGV has been associated with the International Sustainability and Carbon Certification (ISCC) since 2011. It is the first biofuel standard to be recognised by the EU and the most widely acknowledged among the many biofuel standards available today. ISCC certification is vital for FGV, as independent third-party certification ensures compliance with high ecological and social sustainability, greenhouse gas emissions savings and traceability requirements throughout the supply chain. The number of FGV complexes with ISCC certification is dependent on market demand to accommodate the requirement for a sustainable biofuel market in Europe. FGV has had up to 15 certified mills in the past when the demand for palm-based biofuel (palm methyl ester) was high. As of December 2019, we have only been maintaining ISCC-compliant operations at eight mills due to reduced demand following the EU directive to minimise palm-based biofuels. Four mills were externally audited in Q1 2020 while the remaining four mills will be audited in Q2 2020. MSPO Certification for Independent Smallholders in FGV’s supply chain The MSPO Certification for Independent Smallholders Project was one of FGV’s initiatives to ensure sustainable certification and traceability throughout FGV’s supply chain. In 2019, FGV assisted more than 2,000 independent smallholders (ISHs) in obtaining MSPO certification in collaboration with the MPOB. We have successfully achieved 100% traceability of our palm oil to our mills through the following initiatives:
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