Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 77 In 2022, 28% of our FFB supply was sourced internally from our own estates, 45% came from Federal Land Development Authority (FELDA) settlers and another 27% was received from private estates that supplied directly to our mills as well as from dealer networks, mainly coming from smallholder farms. We recognise the critical role played by smallholders in the palm oil industry and are committed to providing them with the support they need to grow their businesses sustainably. We have built strong partnerships with these communities, supporting them with technical assistance and resources to improve their productivity and livelihoods. We recognise that traceability is a challenge given the complexity of the FFB dealers’ networks and our third-party suppliers. Nevertheless, FGV is committed to maintaining strict and transparent supply chain practices. To mitigate this issue, we collaborate extensively with our value chain partners to ensure that traceability and transparency are also ingrained in their procedures. Our Sustainability and Trading teams work with our FFB suppliers to ensure continuous improvement and adherence to our sustainability commitments. GOING FORWARD Traceability is an essential part of the plantation business, as consumers and stakeholders demand more transparency and accountability in supply chains. Moving forward, we will implement digital systems to trace products from estates to the market. This will enable us to identify potential bottlenecks and inefficiencies in the supply chain. We will also enhance our data collection to identify potential risks or issues and employ proactive measures to improve our collaboration with other plantation businesses, suppliers and customers. Furthermore, we will engage with stakeholders to identify areas for improvement and to build trust with them. Sustainability Review Through R&D and commitment to responsible practices, FGV is advancing towards a better future. Traceability to Mills (%) 100 2021 2022 100 100 2020 Since 2019, we have maintained 100% Traceability to Mills. Traceability to Plantations (%) 76 98 99 2020 2021 2022
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