FGV Annual Integrated Report 2019

49 ANNUAL INTEGRATED REPORT 2019 03 S E C T I O N Intercropping on Marginal Land FGV continues to find ways to maximise the use of our landbank to generate revenue. The Group has established a pineapple seed garden at FGV Maokil 7, Johor, that leverages on marginal land that does not generate value for three years following the replanting of oil palm. SUSTAINABILITY ENVIRONMENTAL STEWARDSHIP Taking care of our environment is a key priority for FGV. Considering that our primary business activity is highly dependent on the use of land, we take great care to manage our impact on the environment and surrounding areas. We minimise our footprint on the environment by contributing to conservation efforts and finding ways to limit emissions and waste. As such, new developments by FGV will not encroach into areas that are environmentally sensitive or under protection, such as primary forests, wildlife reserves, peatlands or land containing any high conservation value (HCV) elements. Beyond this, we invest significantly in awareness and education programmes while also going to the ground to get involved in conservation efforts first-hand. 2019 UPSTREAM HIGHLIGHTS STRENGTHEN STANDARDISE SUSTAIN • Using mechanisation, big data and efficient technology BETTER EFFICIENCY LOWER COST HIGHER PRODUCTIVITY HIGHER YIELD MORE PROFIT These efforts include: Managing human-wildlife conflict • Due to our plantations being in close proximity to natural forests, we have categorised our plantations as ‘Wildlife Managed Areas’ and have developed guidelines to manage the potential for human-wildlife conflict. • The guidelines call for the identification of important wildlife presences in and around plantations, the conservation of important wildlife species, the implementation of an action plan and monitoring programme and creating awareness about important wildlife in the surrounding communities. • The scope of these guidelines is aligned with Malaysian Sustainable Palm Oil (MSPO) and Roundtable on Sustainable Palm Oil (RSPO) requirements for certification, which require that rare, threatened and endangered species need to be conserved and protected through a Wildlife Management Plan. Robust Work Processes Quality People Technology • Good Agricultural Practices • Good Management Practices • Standard Operating Procedures • Quality of processes and products • Having the right people, right skills and competency AREAS THAT MEMP ADDRESSES Model Estate & Mill Project (MEMP) In 2019, FGV embarked on an important initiative that will strengthen our processes, improve our efficiency and bring down costs of our operations going forward. The implementation of the MEMP will incorporate best practices across the entire work flow to obtain the most value from our work methods, our people and technology. We have since implemented MEMP at four sites and produced good results, and we plan to replicate it at four more sites in 2020. 3S APPROACH MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS