FGV Sustainability Report 2021

2021 initiatives In 2021, we instituted a significant number of climate action and environment protection initiatives across a wide range of areas. Plantation Business Energy Management Initiatives • Energy Management System • Energy Audits • Energy Management Programme • Energy Efficiency Investments in manufacturing facilities No Peat Policy • No new planting on peatlands • Retain undeveloped peatland as buffer to mitigate flooding • Maintain hydrological function of peatlands in existing plantations • Determine viability for replanting on cultivated peatland High Carbon Stock Approach (HCSA) • Implement HSCA in new areas earmarked for oil palm development Reducing GHG Emissions and Producing Renewable Energy • Reduce carbon emissions from mills • Generate renewable energy from methane capture and palm waste at mills Environmental management Practices • Commit to zero-burning policy • Maintain riparian reserves in river systems in plantations to ensure natural filtration of sediments in rivers and mitigate floods • Reduce usage of chemical fertilisers with the usage of microbes to enhance plant growth • Use of biomass (EFB, fronds, oil palm trunks)as organic fertiliser to substitute chemical fertilisers • Maintain High Conversation Value (HCV) areas • Enhance eco-system services by planting beneficial plants to attract natural predators • Widen river reserves in Lower Kinabatangan wildlife corridor Collaboration with MPOB to Test Environment Friendly Fuel • Participated in B20 diesel trial with MPOB Procurement of Vehicles that Meet European Emission Standards • 89.7% of FGV trucks comply with the standard Reducing Carbon Footprint • Systemic logistics planning through fleet optimisation and trip utilisation • Automated and integrated fuel efficiency system Specific to MSM, our sugar business subsidiary, GHG emissions reduction is also an embedded imperative. On-going operational measures, amongst others, cover the installation of back pressure turbines which enables naturally generated electricity to be produced based on the current power needs which reduces fossil fuel consumption and emission of heat and carbon dioxide into the environment. MSM is reducing carbon emissions from the sugar refining process by taking innovative steps to capture and utilise the carbon dioxide produced from the combustion of natural gas. Instead of being completely released to the atmosphere, a portion of the CO2 is redirected and utilised for production of limestone which is then used to remove impurities and colour from the sugar solution during sugar refining process. Logistics & Others Business Sugar Business 105 CLIMATE ACTION & ENVIRONMENT PROTECTION ADDITIONAL INFORMATION SUSTAINABILITY REPORT 2020/2021

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