FGV Sustainability Report 2021

RENEWABLE ENERGY The Group produces renewable energy for two (2) purposes, namely internal consumption and sale to the grid. With growing emphasis on operational and energy efficiency, FGV mill complexes are increasingly using renewable energy as their primary source of energy. FGV subsidiaries are also exploring renewable energy as the most cost effective option to operate energy efficient facilities and equipment. Our repurposing of biomass and biogas from operations to produce renewable energy while also contributing to reducing GHG emissions, discussed earlier under Climate Action, is a principal part of our waste-to-wealth circular economy strategy which furthers our sustainability agenda through the adoption of green waste management approach to produce green energy as a substitute for fossil fuel. FGV supplies electricity generated from biogas to the National Grid through Feed-In-Tariff as well as to local grids for rural electrification. In 2021, a total of 21,717,667KWh of renewable energy was generated with 113,059 MT CO2e reduction from monitored biogas plants. Renewable energy & energy management Our repurposing of biomass from operations to produce renewable energy while also contributing to reducing GHG emissions, is a principal part of our waste-to-wealth circular economy strategy which furthers our sustainability agenda through the adoption of green waste management approach to produce green energy as a substitute for fossil fuel. FGV pioneered the world’s first palm-based bio-compressed natural gas (Bio-CNG) plant. The plant produces Bio-CNG from palm oil mill effluent (POME). This project is a collaboration between FGV Palm Industries Sdn Bhd (FGVPI), Sime Darby Energy Solutions Sdn Bhd (SDES) and the Malaysian Palm Oil Board. Bio-CNG is an economically viable and sustainable alternative to natural gas and it is forecasted to have good prospects in the energy sector. At the national level, FGV’s noble efforts had been recognised with three consecutive prestigious National Energy Awards from 2018 to 2020. FGV won the National Energy Awards (NEA) 2020, under the Renewable Energy (Cogeneration) Category for IPP Sahabat Mill. OPERATIONAL EFFICIENCY We continually manage our energy consumption across all aspects of our operations by using self-generated biogas to power our palm oil mills and channelling exhaust steam back to the heating process in our Sugar business through to replacing conventional lighting with LED lighting systems in our consumer products business. Initiatives under our Logistics and Others (LO) business include: Route Optimisation for FGV trucks has contributed to reduced mileage through routing and scheduling optimisation directly reducing the carbon emissions from the reduced and shortened trips Automated centralised control utilising Controller Area Network (CAN bus), every fleet vehicle is installed with a controller area network (CAN Bus) which allows the fleet vehicles to be monitored and controlled remotely allowing for automatic engine shutdown of vehicles that are idling for 10 minutes. This has reduced emissions from fuel combustion and operating costs from effective fuel consumption. Climate Action & Environment Protection 112 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS

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