Responsible Business FGV Rubber Industries Sdn Bhd (FGVRISB) conducts sustainability assessments that are evaluated by EcoVadis, the world’s largest and most trusted provider of business sustainability ratings, with a global network of more than 90,000+ rated companies. The assessments enable us to reduce risk, drive performance, and improve environmental and social outcomes. The EcoVadis sustainability methodology evaluates how well sustainability principles are integrated into our business and management systems with performance being evaluated across 21 indicators in four themes: Environment, Human Rights, Ethics and Sustainable Procurement. For year 2021, based on 2020 evaluation data, FGVRISB received the bronze award for rubber industry (with industry participants from across the world) and we are aiming for the gold award by 2024. Financial year 2020 Financial year 2021 Target • 100% Traceability of local supplies • Environmental Risk mapping of all traceable suppliers Our Performance • 82% traceability of local supplies • 70% environmental risk mapping done for all traceable suppliers Target • 100% Traceability of local supplies • Environmental Risk mapping of all traceable suppliers Our Performance • 97% traceability of local supplies • 100% environmental risk mapping done for all traceable suppliers RUBBER BUSINESS FGV is one of the largest Standard Malaysian Rubber (SMR) producers in Malaysia and own four factories throughout the country and one each in Thailand and Cambodia. Our rubber products, namely FGV-ENR and FGV-DPNR are produced in Malaysia. Similar to our other businesses, raw material suppliers in the Rubber business are also bound by FGV’s SCOC to ensure compliance to our sustainability commitments. In the Rubber business, we have mapped out the supply base in Malaysia, where 83% are obtained from domestic sources, with a traceability process that can detail the region from which our rubber products originate. In 2020, FGV has embarked on a rubber supply traceability initiative for our local suppliers to ensure their supplies are not derived from deforested or protected areas. Our target is 100% traceability up to Tier 2 suppliers. We achieved 82% traceability at the end of 2020 and planned to achieve 100% by end 2021 - our actual performance at 97%, representing an increase of 14%, is close to our target. We have conducted an environmental risk assessment of the known TTP facilities within 50km radius using the GFW Pro platform and the result shows a possibility that 148 hectares of protected areas may have been converted for rubber planting. We have communicated this to our suppliers and requested them to convey this message to all their originating sources. 64 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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