FGV Annual Report 2015

158 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 The Environmental, Social and Governance (ESG) Journey International Sustainability and Carbon Certification (ISCC) ISCC is a system for certifying the biomass and bioenergy industries, oriented towards the reduction of greenhouse gas emissions, sustainable use of land, protection of natural biospheres, and social sustainability. Since it’s introduction in 2011, FGV pursued the ISCC certification to meet the requirement for sustainable biofuel market in Europe. Although we had certified up to 15 mills in the past, we restricted our ISCC certification to only 3* mills in 2015. This is mainly due to lower demand for palm oil as a feedstock for biofuel in EU. We may increase ISCC certification when there is additional demand in market. Malaysian Sustainable Palm Oil (MSPO) Certification FGV has been working closely with Stakeholders and other members in the industry in developing MSPO, the first Malaysian palm oil sustainability certification scheme. The MSPO certification will be an alternative to the other sustainability certification schemes and benefits producers especially smallholders due to cheaper cost involved in MSPO certification without compromise on rigour. We are also among the first few plantation companies to be certified to MSPO in 2015. Currently we have 3 mills complexes certified to MSPO and may increase when situation warrants. Governance Our journey towards sustainability continues by working closely with relevant agencies in developing and enhancing sustainability standard. We are among the pioneers contributed to the success of the Rountable on Sustainable Palm Oil (RSPO) which now has been used by many palm oil companies around the globe as the golden standard for sustainable palm oil production. FGV is also involved in drafting and testing the viability of the Malaysian Sustainable Palm Oil (MSPO). We are constantly improving ourselves and the standard within the landscape in which we operate by being active member in numerous working groups and technical committees. Our sustainability governance is cascaded from the highest level through the Steering Committee that is represented by Head of Clusters, CEOs, the Sustainability Department and Corporate Communications teams to the Working Committee at the regional level. This Steering Committee sets objectives in relation to matters of sustainability while the working Committee implements them at the ground level. The sustainability of our businesses is interdependent with the sustainability of the ecosystem surrounding our operations. In ensuring that environmental sustainability remains at the fore, Good Agricultural Practices (GAP) and Good Management Practices (GMP) are implemented in all our farming operations. When it comes to land clearing for new planting or replanting, FGV advocates zero burning policy, an approach to overcome smoke pollution and improve soil health by returning all organic matter to the soil. Note: * This data has been independently audited. Read the Independent Assurance Report on pages 361 to 363.