Climate Change Data

FGV Holdings Berhad

Climate Impact & Sustainability Data (2018-2019, 2021-2023, 2022, 2023)

Reporting Period: 2018-2019

Environmental Metrics

Total Carbon Emissions:248,662 tCO2e/year (2017); 245,223 tCO2e/year (2018); 252,726 tCO2e/year (2019)
Scope 1 Emissions:11,178 tCO2e/year (2017); 16,257 tCO2e/year (2018); 19,026 tCO2e/year (2019)
Scope 2 Emissions:91,211 tCO2e/year (2017); 85,518 tCO2e/year (2018); 88,775 tCO2e/year (2019)
Total Energy Consumption:6,803,465 MWh/year (2017); 7,995,641 MWh/year (2018); 8,915,581 MWh/year (2019)
Water Consumption:18,107,241 m3/year (2017); 16,970,828 m3/year (2018); 18,453,672 m3/year (2019)
Waste Generated:748.06 tons/year (2017); 1,033.21 tons/year (2018); 1,469.74 tons/year (2019)

ESG Focus Areas

  • Corporate Governance
  • Trust and Traceability
  • Respecting Human Rights and Upholding Good Social Practices
  • Environmental Stewardship

Environmental Achievements

  • Reduced CO2 emissions by more than 100,000 tonnes through biogas plants; 177,035 MT CO2 reduction from 27 biogas plants in 2018-2019 alone.
  • Eliminated paraquat use in general weed control by 2018.
  • Increased HCV areas by 257.41 Ha.
  • 100% traceability of CPO to mills; 80% traceability to estates.

Social Achievements

  • Revised and translated employment contracts into 5 languages.
  • Established One-Stop Centres for migrant worker recruitment.
  • Built new housing for workers (319 out of 435 blocks completed).
  • Established 11 Community Learning Centres for children of migrant workers.
  • Became a Participating Company of the Fair Labor Association (FLA).

Governance Achievements

  • Established an Independent Advisory Panel (IAP) to enhance corporate governance and sustainability.
  • Received ISO 37001:2016 certification for Anti-Bribery Management Systems (ABMS).
  • Revised Group Sustainability Policy (GSP 3.0) with a reinforced component on human rights.
  • Developed the Established Suppliers Code of Conduct (SCOC).

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve RSPO certification of all 68 mill complexes by 2021.
  • Achieve 100% traceability of FFB to plantations by 2021.
Short-term Goals:
  • Reduce water intensity by 2% by 2020.

Environmental Challenges

  • RSPO suspension of Serting Mill Complex (later reinstated, then resuspended again).
  • Challenges in implementing RSPO principles and criteria across all operations.
  • Supply chain disruptions due to COVID-19 pandemic.
  • Regularisation of undocumented workers in Sabah delayed due to COVID-19.
  • Unfair and non-transparent recruitment practices.
  • Lack of full traceability of FFB & kernel supply.
Mitigation Strategies
  • Developed an action plan to address RSPO concerns and submitted progress reports.
  • Submitted an appeal against RSPO's decision.
  • Implemented stringent safety measures to protect workforce from COVID-19.
  • Requested extension of time for completion of initiatives due to COVID-19.
  • Adopted Guidelines and Procedures for Responsible Recruitment of Foreign Workers.
  • Established One-Stop Centres.
  • Developed FGV-ToP traceability system.
  • Developed a Social Compliance and Human Rights (SCHR) Action Plan.

Supply Chain Management

Responsible Procurement
  • Suppliers Code of Conduct (SCOC)

Climate-Related Risks & Opportunities

Physical Risks
  • Unpredictable climate patterns
  • Flooding
  • Fires
Transition Risks
  • Supply chain disruptions
Opportunities
  • Renewable energy generation

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 37001:2016 (ABMS), MSPO (all 68 complexes by Feb 2020), RSPO (33 complexes by Dec 2019), ISO 45001:2018 (FGV Kernel Products Sdn. Bhd.)

Third-party Assurance: SIRIM QAS International Sdn. Bhd.

UN Sustainable Development Goals

  • 2, 4, 5, 6, 7, 8, 12, 13, 15, 16

Initiatives aligned with relevant SDGs through operations and outreach programmes.

Sustainable Products & Innovation

  • Biogas
  • Bio-CNG
  • Organic compost
  • Animal feed

Awards & Recognition

  • National Energy Award 2018 & 2019
  • ASEAN Energy Awards 2019
  • Bronze award in EcoVadis CSR Management System

Reporting Period: 2021-2023

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Water Management
  • Stakeholder Engagement
  • Supply Chain Sustainability
  • Traceability

Environmental Achievements

  • Reduced GHG intensity emission (tCO2e/tCPO) from 1.02 in 2021 to 0.85 in 2023
  • 100% Traceability to Plantation (TTP) achieved by the end of 2023
  • Capture methane gas released from 28 wastewater treatment plants to lower GHG emissions
  • No increase in peatland area since 2020 (3,751.95 ha)

Social Achievements

  • Conducted 22 series of stakeholder consultation programs in 2022 covering all FGV’s operations
  • Conducted 9 sessions of Independent Smallholder Consultation Program from 2022 to 2023, with 82% of smallholders participating in training programs
  • Engaged with 508 (58%) of Tier 1 FFB suppliers in 2023 through FGV Trading roadshow to assess sustainability compliance

Governance Achievements

  • Established an Environmental Policy Statement to enhance commitment to climate action
  • Implemented Group Sustainability Policy (GSP) Compliance Framework to manage non-compliant suppliers
  • Removed two high-risk suppliers from supply base following GSP Compliance Framework procedures

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emissions by half by 2030 (based on 2019 baseline)

Environmental Challenges

  • Fire incidents on and around premises (attributed to hot weather, dry season, and accidental/intentional burning)
  • Inconsistent supply of utilities affecting refinery water intensity
  • Operational factors affecting mill water intensity in Zones 1 and 2
  • Difficulties in obtaining feedback from all suppliers on External Supplier Sourcing Checklist (ESSC)
Mitigation Strategies
  • Continuous monitoring and improvement of water usage efficiency
  • Implementation of GSP Compliance Framework for non-compliant suppliers
  • Ongoing efforts to prevent fires
  • Communication with collection centers to avoid sourcing FFB from high-risk areas
  • Development and use of risk assessment toolkits (GFW Pro, RSPO Simplified HCV Approach)

Supply Chain Management

Supplier Audits: 508 suppliers (58% of Tier 1 FFB supply base) audited in 2023

Responsible Procurement
  • Group Sustainability Policy (GSP) Compliance Framework
  • Supplier Code of Conduct (SCOC)
  • External Supplier Sourcing Checklist (ESSC)
  • FFB Supplier Information System (FSIS)

Climate-Related Risks & Opportunities

Physical Risks
  • Fire

Reporting Standards

Frameworks Used: RSPO, MSPO, SBTi (planned submission)

Third-party Assurance: South Pole (2013)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Sustainability

Social Achievements

  • Enhanced labour practices through various efforts and programmes
  • Significant investment in conservation and climate action initiatives
  • Compliance with RSPO and MSPO sustainability standards

Governance Achievements

  • Established Board Sustainability Committee (BSC) on 1 September 2021
  • Established Sustainability Steering Committee (SSC)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC Framework

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Sustainability

Social Achievements

  • Enhanced labour practices through various efforts and programmes
  • Significant investment in conservation and climate action initiatives
  • Compliance with RSPO and MSPO sustainability standards

Governance Achievements

  • Establishment of the Board Sustainability Committee (BSC) on 1 September 2021
  • Revision of the COEC and COBP in FY2023 to include reporting of violations

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC Framework

Certifications: RSPO, MSPO