FGV Annual Integrated Report 2019

50 FGV HOLDINGS BERHAD GREENHOUSE GAS EMISSIONS Currently, we have 30 biogas capturing plants in operation, of which 11 are certified as feed-in tariff projects, two are involved in a rural electrification project and one powers mill housing. One plant produces bio-compressed natural gas (Bio-CNG). These plants capture biogas mostly consisting of methane that otherwise would be released to the environment during the milling process. Through these initiatives, almost all the biogas that would otherwise be released to the environment is captured and used to generate energy or converted to carbon dioxide in flaring facilities, thereby reducing its global warming potential. SUSTAINABILITY AND OUR ESG IMPACT In 2019, FGV was assessed by the Zoological Society of London (ZSL) using the Sustainability Policy Transparency Toolkit (SPOTT) as well as by Forest Heroes under its Green Cats report. In both assessments, FGV’s 2019 scores improved significantly over the previous year. SUN BEAR CONSERVATION PROGRAMME (SBCP) We work closely with the Malaysian Nature Society (MNS), National Wildlife Rescue Centre (NWRC), which is under the Department of Wildlife and National Parks (DWNP), and Universiti Kebangsaan Malaysia (UKM) to rescue conflicted or displaced sun bears as part of the conservation effort. To increase the success rate of our sun bear rehabilitation efforts, we support an enrichment programme at the NWRC to improve the sun bears’ physical and nutritional states. To complement these efforts, research projects have also been undertaken to assess the behaviour of the sun bears in captivity to identify whether or not they are ready to be released. In 2019, the SBCP programme rescued 13 sun bears, rehabilitated 14 and released six. Our progress in this initiative over the last five years is recorded below: Status No. of Bears 2019 No. of Bears 2015 - 2019 Rescued 13 55 Rehabilitated 14 37 Released 6 39 Dead/Euthanised 2 4 Currently in captivity 11 11 SPOTT Assessment • FGV ranked 26 th out of 99 companies in the SPOTT Assessment that measures the transparency of palm oil companies against a maximum of 181 environmental, social and governance indicators across 10 categories, scoring 168% over the average score of all companies assessed in 2019. Green Tiger Index • In 2019, FGV scored 71 out of 100 points in Forest Heroes’ Green Tigers Index Rankings to move up to Green Cat category, an upgrade from its 2018 Red Cat category, with 39 points, higher than the average score of palm oil companies of 34 points. The report assesses companies’ efforts to adhere to deforestation standards and policies. Managing broader environmental impacts • To address broader concerns, we have extended our initiatives to include a five-year commitment to the Borneo Conservation Trust (BCT) and Sabah Wildlife Department (SWD) through which we participate in the Mega Biodiversity Corridor Conservation Project in the lower Kinabatangan Basin. • This project supports the re-establishment, restoration and protection of riparian zones that enable important wildlife corridors for Borneo pygmy elephants, Orangutans, proboscis monkeys and others. • FGV is also concerned with flora and is collaborating with the Forest Research Institute of Malaysia (FRIM) on the development of the Rafflesia Conservation and Interpretive Centre (RCIC). • Research activities (in-situ and ex-situ) and rafflesia species identification and inventory, including planting of tetrastigma (host plant for Rafflesia sp.), are carried out under this project. MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS