FGV Sustainability Report 2021

eDO and Smart Fuel card have digitalised the process of order pick-up and refuelling. eDO is a mobile application that provides truck drivers with delivery order updates relieving them of the need to travel to depots to obtain information. The Smart Fuel Card allows the drivers to refuel at any petrol station. Both initiatives reduce fuel consumption. Internal Regulatory and Standards for Maintenance. FGV has invested in procuring trucks with Euro 5 emission standards to reduce carbon dioxide emissions. To date, over 90% of fleet vehicles (tanker and cargo) meet Euro 5 standards. To ensure optimal operational efficiency, our internal standard also recommends replacement of fleet vehicle after 10 years in operation. Indeed, FGV has always actively promoted energy management to reduce our operating costs but more importantly, our carbon footprint. FGV is also collaborating with various government agencies such as the Malaysian Green Technology & Climate Change Centre (MGTC) to explore initiatives that can be implemented across our business operations. ENERGY AUDITS FGV conducted energy audits at FKP, MSM, FPM and FGVRI to explore energy savings to be accrued through user behavioural changes and efficient usage of equipment. These audits indicate that a reduction in energy consumption by up to 20% can potentially be achieved but with associated investments. Arising from the audits, FGV has decided on the energy conservation pyramid approach to identify and prioritise the implementation of energy saving initiatives. The energy conservation pyramid ranks energy saving initiatives against associated investment costs and complexity of implementation. Reduce energy consumption up to 20% FGV’s noble efforts had been recognised by being awarded the National Energy Awards (NEA) 2020, under the Renewable Energy (Cogeneration) Category for IPP Sahabat Mill The projects are able to generate up to 24 hours to suit the load and demand fluctuations for a rural mini grid In 2020, we identified several no-cost and low-cost initiatives to be implemented across all operations immediately. They include periodic monitoring of energy usage to verify energy supply quality and identify operational improvements that can be made to save energy. For example, sequencing of motors and other machinery to optimise energy output. To monitor the implementation of these initiatives, we have established an Energy Committee. We have also collaborated with Universiti Teknologi MARA (UiTM) to identify energy-saving opportunities presented by the elimination of wasteful and non-productive patterns of energy consumption and consequently reduce GHG emissions. This collaboration identified initiatives that could reduce energy consumption up to 20%. FGV will undertake feasibility studies and detailed cost-benefit analysis before deciding whether to implement the initiatives. 113 CLIMATE ACTION & ENVIRONMENT PROTECTION ADDITIONAL INFORMATION SUSTAINABILITY REPORT 2020/2021

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