Food security and sustainability FGV, being a major food producer has an integral role to play in strengthening food security and ensuring the sustainability and resilience of our country’s food chain. As the COVID-19 pandemic emerged, we took immediate steps to bolster the sustainability of our supply chain so as to ensure adequate supply of food continue to be available and accessible in the midst of the movement control orders. FGV is committed to supporting the national food security agenda. As a further step to strengthening food security, FGV has established an end-to-end digital grocery marketplace, GOGOPASAR, to ease access and overcome mobility restrictions. The digital platform is a strategic complement to our supply chain, infusing it with greater sustainability and it is a critical business requirement for operations in the new normal. The various agriculture-based businesses under our Integrated Farming initiative is another aspect of our contribution to enhance Malaysia’s food security by reducing our reliance on food import. These businesses will also play important roles as FGV strives to diversify our earnings base and dilute its present reliance on palm oil. As a responsible food producer, we constantly strive to innovate and fulfil our customers’ expectations for nutritious and healthy products. This view extends throughout all our businesses. Our subsidiary, Delima Oil Products Sdn Bhd, has introduced healthier Premeo plant-based animal fat and dairy fat replacers. Being palm-derived, the replacers come from a sustainable source and, through innovative R&D, the replacers are healthier being naturally cholesterol-free, rich in Vitamin E, and contain no trans-fat. FGV Integrated Farming Holdings Sdn Bhd, the subsidiary operating our expanding animal feed and animal nutrition business, has launched its ALMA range of high-quality animal feed which is free of antibiotics and include healthy formulations for beef and dairy cattle feed, goat and sheep feed, chicken and native chicken feed, natural mineral feed and additional feed for livestock. Significantly, ALMA animal feed products contain ingredients which are approved by the US Food and Drug Administration (FDA). GHG emissions and renewable energy At FGV, we have an enduring commitment to reducing GHG emissions, conscious of its harmful effects to our environment and the existential threats of global warming. The industry has long captured and converted methane gas emitted from palm oil mill effluent (POME) into biogas for internal consumption to power palm oil mills. Capturing methane and converting it to biogas for combustion to produce energy, significantly reduce the climate change impacts of palm oil production. For emphasis, as a greenhouse gas (GHG), methane is 21 times more potent than CO2. FGV is at the forefront in this space as we are among the first palm oil companies with 28 biogas plants and first to develop a palm based Bio-Compressed Natural Gas (Bio-CNG) plant in 2015. To underscore the revenue generation potential, we are targeting revenues approximating to RM14 million from sale of bigoas-generated electric power to Tenaga Nasional Berhad (TNB) - a validation of our waste-to-wealth strategy, one among many others I might add. We have signed on to the United Nations-backed Science Based Target initiative (SBTi) Business Ambition for 1.5°C pledge, being the first Malaysian food and agriculture company to do so which, in our context, calls for the halving of our greenhouse gas emissions by 2030 and achieving net-zero by no later than 2050. To deliver on this pledge, we have developed a group-wide climate action plan and put in place a variety of mechanisms to monitor and reduce our GHG emissions. For instance, we have implemented a Continuous Emission Monitoring System which is a full monitoring system for emission released by mills that can be accessed in real-time by the Department of Environment. GCEO’s Statement 12 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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