71 ANNUAL INTEGRATED REPORT 2021 ADDITIONAL INFORMATION HOW WE ARE GOVERNED REINFORCING SUSTAINABILITY SUSTAINABILITY HIGHLIGHTS “Janji...Gula Peket Hijau” campaign to promote societal unity 100% signing of Integrity Pledge within the Company Certificate of Collaboration with Penang DOE enabling green initiatives in preserving and conserving the environment Launch of Prodigy Programme as part of contribution to alleviate unemployment Place Winner in E-Waste Competition Mangrove Tree replanting programme 3rd Though Malaysia’s sugar consumption is recovering post pandemic, the way forward for FGV’s Sugar business is to reduce dependence on domestic market demand and look towards increased diversification and export. Export market is forecasted to expand by 150,000 MT providing a good opportunity to ramp up capabilities and production to execute strategic plans for more aggressive growth in the Value-Added Products (VAP) segment. A forthcoming challenge is the expected increase in production costs with bullish outlook on the price of raw sugar, natural gas and rising freight costs. Taking pre-emptive action, we have already secured most of Wholesale requirement of raw sugar for 2022 at acceptable price points. Other mitigation measures include strategic hedging and negotiating on win-win agreements with third-party suppliers of resources. In early 2022, the Russian invasion in Ukraine has caused a shock to the global energy supply. Brent Crude Oil prices have surged to new historical highs and the shortage could prevail in the mid term. As a mitigation strategy, the business has embarked on hedging of Brent-linked derivatives. OUTLOOK
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