FGV Annual Report 2015

47 WHO WE ARE & WHAT WE DO OUR STRATEGIC INTENT & PERFORMANCE HOWWE ARE GOVERNED CREATING SUSTAINABLE VALUE OUR NUMBERS ADDITIONAL INFORMATION DETAILS OF THE ANNUAL GENERAL MEETING ADDRESSING OUR RISKS & OPPORTUNITIES Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Sustaining Momentum As a founding member of the Roundtable on Sustainable Palm Oil (RSPO), FGV has kept social and environmental concerns close to heart. Transformation initiatives within the Group remain guided by the principle of sustainable benefits for people, profit and planet. To further strengthen our commitment towards sustainability, we have revised our Sustainability Policies to include new RSPO requirements pertaining to the ban on planting of oil palm in high carbon stock and high conservation value areas. Business Operations Review Palm Upstream More on this can be found in our Sustainability Report By the end of the financial year 2015, 56 of our mill complexes had attained RSPO certification, while 10 of them retained International Sustainability and Carbon Certification (ISCC) re-certification. The Palm Upstream Cluster expects to have its 71 mills fully audited by 2016, ahead of the 2017 target. We produced 1.47 million MT of certified palm oil this year, 52% higher than in 2014. But beyond compliance with international standards, sustainability is also a thread we have been weaving into our operations. Since 2007, Felda Palm Industries Sdn Bhd (FPI), our subsidiary, embarked on a renewable energy project to use palm oil mill effluent to produce biogas. Today, FPI has the largest number of biogas plants installed within our mills. Of the 25 biogas projects, 19 are completed, with 6 still under construction. 12 are certified with the remaining balance of 7 due to be certified in the near term. Our determination to extract further value has evolved FPI into pioneering techonology to develop the first commercial scale palm-based bio-compressed natural gas (Bio-CNG) in the world. The Bio-CNG plant based in Sg Tengi, Kuala Kubu Baru, Selangor, can produce some 80,000 million British thermal units (MMBtu) per annum. This alone equals the annual energy requirement of two factories. The Bio-CNG produced is an alternative to fossil fuels like Liquified Petroleum Gas (LPG) and Medium Fuel Oil (MFO). Commercial production is scheduled in April 2016, with its first delivery to a wheel manufacturer for passenger and light commercial vehicles. To put our business in perspective, the Group recognises that the near term outlook for the palm plantations market appears bearish. As we brace for the possible headwinds, we are cognisant of the long-term potential available to us. With our sights on long-term, sustainable performance, we will take the opportunity in today’s weak market to grow our footprint at lower costs. We will simultaneously use this time to entrench the best standards across the Group to create a sustainable business, positioning ourselves to meet the demands of the future. Certified Sustainable Palm Oil (CSPO) Production (’000 MT) No. of Complexes 2012 15 17 39 56 2013 2014 2015 2,500 2,000 1,500 1,000 500 0 60 40 20 0 70 50 30 10 Certified CPO (MT) No. Certified Complexes 545 610 971 1,472 Launching of the Bio-CNG plant by YB Datuk Amar Douglas Uggah Embas, Minister of Plantation, Industries and Commodities on 28 October 2015.