Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 103 Sustainability Review Our subsidiaries and business sectors have undertaken the following initiatives to reduce costs and improve energy efficiency. Below are several initiatives undertaken by our Sugar Sector: ENERGY EFFICIENCY We will continue to implement energy-saving initiatives and explore cleaner energy alternatives to reduce our environmental footprint. This will include installing solar PV panels at appropriate operation centres. By implementing strategic measures, we believe we can contribute significantly towards the nation’s low-carbon transition. CARBON MANAGEMENT At FGV, our climate action is focused on Carbon and GHG Inventory, followed by GHG Management. We are committed to reducing FGV’s GHG emissions by half in the short term (by 2030) and to zero in the medium- to long-term (by 2050), based on the baseline data in 2019. Our GHG Inventory and Management cover the emissions from all of our 20 business units in three business sectors (Plantation, Sugar and Logistics & Others). This starts with the identification of emission sources in each business unit, the collection of input and output data and the GHG emissions calculation based on the 2006 Intergovernmental Panel on Climate Change (IPCC) and the GHG Protocol Corporate Accounting and Reporting Standard. In addition, we have been implementing various strategic initiatives to reduce our carbon footprint, including establishing an Environmental Policy Statement to enhance the Group’s commitment to climate action and the environment. We also have eight mills that are ISCC-certified to meet the demand for sustainable biofuel in Europe. Total Carbon Emissions Avoidance (MT CO2e) 104,333 117,246 2020 2021 2022 149,253 We capture methane gas released from our wastewater treatment plants for POME and utilise it to reduce GHG emissions. We have been monitoring the emissions avoidance of our biogas operations from the utilisation of captured methane. In 2022, we recorded a 27% improvement in emissions avoidance as compared to 2021. Energy Audit A full thermal and electrical energy audit is currently being conducted at MSM Prai from December 2022 until April 2023. We will be able to identify areas where energy efficiency can be improved after the completion of the audit. We also have plans to develop Sustainable Energy Management Systems (SEMS) by 2024 and obtain the Energy Management Gold Standard 1-Star rating awarded by the ASEAN Energy Management Scheme (AEMAS). In 2022, we initiated this effort to optimise the use of steam at MSM Johor to increase boiler efficiency. Optimising the Utilisation of Steam Solar Energy MSM Prai and MSM’s Sungai Buloh Warehouse will have solar photovoltaic (PV) systems installed by the end of 2023, providing an estimated minimum capacity of 2.095 MWp and 0.547 MWp, respectively. Biomass Since 2021, we have been considering the feasibility of installing a biomass plant on the premises of MSM Johor as an alternative energy source to reduce our dependency on natural gas. EFB pellets are being considered as biomass fuel to minimise any possible environmental impacts.
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