FGV Annual Report 2015

152 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 PROTECTING ENVIRONMENT AND CONSERVING BIODIVERSITY Biodiversity Wild lives and its natural habitats are amongst the high conservation values (HCV) in a plantation environment that has to be managed well. This is very important to FGV as many of our oil palm plantations are in the fringes of natural and reserved forests that houses some endangered, rare and threatened species. Identifying and managing the significant wild life are very crucial aspect in our journey to sustainability. Our recent HCV assessment has indicated the presence of some endangered, rare and threatened aspects in and around our plantations. Amongst these, Rafflesia (Rafflesia spp) and the Malayan Sun Bear ( Helarctos malayanus ) gained significant attention due to the fact that Rafflesia spp is known to be the biggest flower whereas and Malayan Sun Bear as the smallest bear in the world. Realising this, FGV is in the process of establishing the Rafflesia Conservation and Interpretation Centre (RRIC) with Forest Research Institute of Malaysia (FRIM) and other relevant governmental and non-governmental agencies for the benefit of scientific and civil society. As for the Sun Bear, FGV has embarked on Sunbear Conservation Programme (SBCP) with National Wildlife Department (PERHILITAN), Malaysian Nature Society (MNS) and University Kebangsaan Malaysia (UKM). The SBCP entails rehabilitation of injured and orphaned, research and creating awareness amongst the public at large to avoid human-wildlife conflict. SBCP also includes the establishment of 5 citizen action group (CAG) that will engage all parties (FGV & local communities) in managing environment/HCV elements better. This CAG will be trained to identify issues of concern/conflict in a vicinity and the appropriate action Environmental The Environmental, Social and Governance (ESG) Journey to be taken in order to reduce such conflict with the help of local regulatory agencies. Our first CAG of 40 members was successfully established in Kuala Lipis, which is adjacent to the central forest spine of Peninsular Malaysia. This CAG will assist FGV in implementing its HCV management plan, with the participation of local communities. Pontian United Plantations (PUP), one of our subsidiaries in Sabah has always given tacit support to the enhancement of riparian reserves. They have in the past participated in major tree planting efforts with WWF and Sabah State Government through the Kinabatangan District Office. In 2015, PUP has embarked upon a demarcation exercise to re-establish the riparian reserves, alienating a minimum distance of 50 metre from our estates to the river bank. This exercise involves voluntarily abrogating approximately 20 hectares of productive and plantable land for the re- establishment of riparian reserves largely as a result of river bank erosion over the years. As part of our good agricultural practices, we have decided to remove the oil palm trees along the new wildlife riparian corridor to allow the penetration of sunlight into the lower ground to enhance the growth rate of the indigenous tree species. This 20 hectares will now be part of the existing 280 hectares of riparian reserve which we are presently managing as a wildlife corridor. Managing climate change and Greenhouse Gas (GHG) emission Planting on peat is perceived to contribute to GHG emission that is responsible for climate change. *In line with that we did not acquire any new land in 2015 that consist of significant amounts of peat. We are in the process of strengthening our commitment to “No new planting on peat, immaterial of depth and size” in the near future.