Carbon Management We are conscious that we operate in an industry that is associated with GHG emissions. In mitigation, FGV has renewed our commitment to climate action through the development of our inaugural integrated climate action plan. The FGV Climate Action Plan sets out our response - as a company - to the climate crisis. The plan comprises six focus areas - climate governance, carbon management, waste management, water management, operational efficiency and climate awareness - which outlines our mitigation and adaptation efforts in support of the global climate goals. In addition, to our sustainability commitments, NDPE is also mandated on our suppliers. We practice a strict zero burning/ open burning policy across the Group which also extends to our suppliers. Land development and preparation are executed by mechanical means. Residue and debris left are allowed to decompose and optimised as organic fertilisers which also contribute to reducing our GHG emissions. Similarly, we optimise palm residues such as empty fruit bunches, palm fronds, trunks which are also used as organic fertilisers. In support of the global climate goals, we have an ambition to become a net-zero business. In 2021, we formalised our commitment to sciencebased targets and net-zero by signing the United Nations-backed Business Ambition for 1.5 °C campaign through SBTi, which calls for limiting global warming to 1.5 °C. FGV is the first food and agriculture company in the country to do so. The commitment to science-based targets requires us to halve our greenhouse gas emissions by 2030 and hit net zero emissions by no later than 2050. FGV will also need to set up short and mid-term targets to ensure effective emissions tracking and consistent annual reduction. Our transition to clean energy as per our commitment to science-based targets will involve all emission scopes including our scope 2 emissions. Although this is challenging as our national energy mix is still highly dependent on fossil fuel - almost 90% of our energy are coal and petroleum-sourced. With the recent heightened commitment to climate action by the government, we are confident that the transition to clean energy will be accelerated. At FGV, reducing our operations’ impact on the environment is a constant focus. One core area in this endeavour is our efforts to manage our energy consumption while at the same time transitioning to the use of green energy. FGV has, for some years, been using green energy derived from oil palm by-products to fuel our palm oil mills. Join the Companies Taking Action We need a race to the top, led by pioneering companies. This will empower peers, suppliers and customers to follow suit and drive governments to take bolder action. The change has already begun and action is gaining pace. Over a thousand companies worldwide are leading the zero-carbon transition by setting emissions reduction targets grounded in climate science through the Science- Based Targets initiative (SBTi). Hundreds of them have raised their ambition by committing to Business Ambition for 1.5°C. 2,643 Companies taking action 1,317 ambitions for 1.5°C 1,226 with science based targets Source: Science-Based Targets initiative Climate Action & Environment Protection 110 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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