FGV Annual Report 2014

high-yielding plant materials as well as technological advances to enhance operations. Our seeds are of such high quality that we are the market leader in Malaysia for more than 5 years. We have also invested in the latest technologies to assist us in selecting materials with specific traits; and use in-vitro propagation for mass production in our state-of-the-art laboratories. We have more than 100 researches working on R&D applications for both upstream and downstream. As we strive to maintain a sustainable business, we take into consideration our stakeholders’ views and incorporate these into our goals. In 2014, we published our first Sustainability Report in which we outlined issues that are material to FGV as well as our targets for each in order to create greater transparency and clarity. The report enables our stakeholders to better understand our priorities and performance in view of our sustainability agenda. As for Corporate Social Responsibility (CSR) activities, our contribution is channelled through Yayasan Felda that was formed in 1998. The Foundation strives to achieve these goals through its four areas, namely access to education, access to kidney dialysis, pursuit of R&D and provision of welfare to the general public. For 2014 alone, we allocated RM22,781,890.00 to various programmes through Yayasan Felda. Roundtable on Sustainable Palm Oil (RSPO) certification Our overall sustainability management system is guided by the Principles and Criteria (P&C) of RSPO, which have been developed as a result of multi-stakeholder input defining sustainable palm oil production. Although there are always opportunities for improvement, we believe that this standard currently represents the most responsible way to grow oil palm. As a founding member of the RSPO, FGV has played an active role in promoting sustainable practices via the guidelines since its inception in 2004. In terms of our own adherence to the P&C, we can proudly state that FGV was among the first agricultural companies to obtain the mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification – this was for 2,290 smallholders in 2011. To date, we have certified 39 of our 70 mills which together has the capacity to supply about 1,238,602 metric tonnes of certified sustainable palm oil (CSPO) and 350,588 metric tonnes of palm kernel (PK). In the process of certifying our mills, we also certified about 40,000 associated smallholders. Although we had initially targeted to complete auditing our mills by 2017, we made such rapid progress that we are on track to complete the task by 2015. Apart from the mill and FFB certifications, we also certified four of our kernel crushing plants, one refinery and a biodiesel plant to RSPO’s Supply Chain Certification System (SCCS). 1,400,000 1,238,602 603,117 CPO PK 350,588 144,964 154,989 541,333 1,200,000 1,000,000 800,000 600,000 400,000 200,000 Certified Status Of RSPO Certification To 2017 (MT) Audited 2014-2017 0 International Sustainability and Carbon Certification (ISCC) In addition to the RSPO certification, the Group is diligently pursuing the International Sustainability and Carbon Certification (ISCC), which is the first international certification system that can be used to prove sustainability and greenhouse gas (GHG) savings for biomass and bioenergy. ISCC is oriented towards reducing GHG emissions, the sustainable management of land, the protection of natural biospheres and social sustainability. To date, we have obtained ISCC for 15 mills and a biodiesel plant. The achievement signifies that, apart from being sustainable, Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 105