FGV Annual Report 2014

FGV’s palm oil production system is contributing towards mechanisms to reduce global warming based on standards set by the European Commission. Malaysian Sustainable Palm Oil (MSPO) certification MSPO is similar to the RSPO and ISCC but takes into consideration the national socio-economic agenda – focusing particularly on developing marginalised local communities – while adhering to all local, national and ratified international laws and treaties. FGV has been actively involved in developing the standard, and is among the few plantation companies to volunteer to pilot-test it. We expect the standard to be launched in 2015. Protecting the Environment and Conserving Biodiversity Biodiversity FGV has committed to not undertake any new developments in primary forests, on land containing one or more High Conservation Values (HCVs) and areas with significant peat. When there is suitable land for development, we ensure due protection is given to the existing biodiversity, cultural heritage and customary land use. At the same time, we uphold the principles of free, prior and informed consent with the local communities before developing the land. In line with our policy, we have not developed any new land with significant peat in 2014. We completed an overall HCV assessment at the landscape level of our plantations in East and West Malaysia to identify the presence of HCV elements around them. Although our estates do not contain HCVs, we recognise our role to address and communicate the concept to our employees and stakeholders, as many of our plantations are near forest reserves. Further protecting the nation’s flora and fauna, we regularly organise Conservation Awareness Programmes with the Wildlife Department and non-governmental organisations (NGOs) and are in the final stages of signing memorandums of understanding (MoUs) on several initiatives such as securing biodiversity corridors, Rafflesia conservation and sun bear research. Together with governmental institutions, NGOs and institutions of higher learning, we are also conducting research on effective conservation methods, especially for endangered plant and animal species. Climate Change and Management of GHG Emissions As planting on peat is perceived to contribute to GHG emission, FGV made a commitment on 16 June 2014 to not develop any new area areas significant in peat. Based on management’s agreement, there has not been any new land acquisitions that consist of significant amounts of peat since this commitment. Apart from the strict selection of areas for new planting, FGV is also committed to reducing GHG emissions through operational approaches such as methane capture, bio-composting and the cogeneration of electricity from methane released by palm oil mills effluent (POME). We have 16 biogas trapping plants in operation and eight more under construction. In 2014 alone, we managed to capture 68,695 metric tonnes of the carbon dioxide (CO2) equivalent from 10 plants. One of our biogas plants in Umas supplies electricity to rural communities, under a CSR project. Methane captured in the other mills is either converted into energy and channelled into the national grid or used as boiler fuel within the mills themselves. In 2015, we plan to calculate our GHG emissions footprint in all our mills with the aim of setting targets for reduction. Felda Global Ventures Holdings Berhad pg 106 SUSTAINABILITY REPORT