Making a mark: (From left) FGV group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim, chairman Tan Sri Rastam Mohd Isa, Fadillah, Felda chairman Datuk Seri Ahmad Shabery Cheek and FGV chief executive officer Datuk Nazrul Mansor at the launch of FGV’s Sustainability Framework 2024, held in conjunction with the Felda Settlers’ Day 2024.
SERDANG: With concerns over both the country’s social and environmental sustainability ever growing among the public, one agribusiness and food company FGV Holdings Bhd is hoping to lead the way forward to a greener future.
Through the launch of its FGV Sustainability Framework 2024 on Sunday (July 14), the company is looking to change the narrative for Malaysian palm oil industry by promoting economic growth while also respecting human rights and protecting the environment.
Building upon its existing sustainability commitments, FGV’s newly enhanced framework comprises five pillars, which centres around economic growth, governance, social, environment, as well as innovation and technology.
On the environmental side, FGV announced it would begin its ground-breaking four-month trial of B100 biodiesel on its fleet of tankers, making it one of the few companies in Malaysia to test tankers running on renewable fuel.
A derivative of crude palm oil (CPO), the biodiesel is an eco-friendly alternative to diesel and is made of palm methyl ester, which is commonly used in personal care products, like soap and shampoo.
Setting key ESG practices in place
Processed at FGV’s own factory in Kuantan, Pahang, FGV’s B100 biodiesel blend is expected to produce at least 80% lower emissions compared to diesel, according to FGV group chief executive officer Datuk Nazrul Mansor.
“The mileage of the B100 is about the same as diesel and while the performance of tankers using B100 is slightly reduced, we are able to save the environment, which is invaluable.
“Testing currently involves five tankers but if cost is not a question and trials are successful, we plan to eventually transition all of our over 700 tankers to using B100 for the sake of the environment and the future,” he told reporters after the framework’s launch during Felda Settlers’ Day 2024 celebration on July 14.
On the social and governance side, FGV also announced enhancements to its labour practices, including strengthening the company’s policies and due diligence measures for the recruitment process.
“Since 2016, we have ensured that we only practise the highest standard of labour practices, which we will continue to improve including ensuring that our foreign workers are not subjected to recruitment fees that are typically collected by irresponsible agents.
“We do this by always having personal interviews with any of our foreign workers coming to Malaysia to ensure that they were not unjustly charged recruitment fees when coming to work in Malaysia,” Nazrul said.
In addition to this, he said FGV would also look to improve the free housing and facilities currently provided to its workers through a RM1.2bil allocation.
“Their quality of water and living conditions remain of utmost importance and we will continue to help address any complaints in working or living conditions through our existing grievance management system which is done through an application.
Deputy Prime Minister Datuk Seri Fadillah Yusof (3rd from right), FGV Holdings Bhd chairman Tan Sri Rastam Mohd Isa (3rd from left), Felda chairman Datuk Seri Ahmad Shabery Cheek (2nd from left) posing during the launch of the B100 biodiesel renewable fuel trial run for FGV tankers during the Felda Settlers’ Day 2024 celebration that was held at the Malaysia Agro Exposition Park Serdang (Maeps), on July 14—SHAARI CHEMAT / THESTAR
“All of our workers are connected to the application, where they are able to air their grievances to an independent channel called ‘Suara Kami’, which are then handled almost instantaneously.
“For now, we will continue to ensure and maintain that all our workers have necessary places for worship as well as recreational spaces,” he said.
Nazrul also noted that FGV has allocated an additional RM112mil to reimburse all of their current and former foreign workers for any unjust costs they might have been incurred with.
Environmental custodians
In line with the company’s commitment to the Science Based Targets initiative (SBTi), FGV also announced that it was currently developing greenhouse gas (GHG) reduction plans to meet the mid-and long-term targets for the company’s emission reduction.
This includes utilising its position as the largest owner of palm biomass feedstock in Malaysia to potentially become the largest bioenergy producer locally through its two biomass power plants and 28 biogas plants to generate renewable energy.
It also renewed its commitment to its wildlife conservation programmes that to date has rescued 86 sun bears, 75 of which have been rehabilitated and released along with 16 gibbons, as well as the birth of 14 individual baby pangolins in captivity.
Governmental support
Officiating the framework’s launch was Deputy Prime Minister Datuk Seri Fadillah Yusof who praised FGV for taking the initiative to advance the country towards a more sustainable future.
“FGV’s new sustainability framework clearly shows its commitment towards supporting our aspirations and national agenda in the field of sustainability.
“Businesses like FGV remain as both the main drivers of our economy while also playing a key role in advancing social and environmental sustainable practices, and the Malaysian government reassures our commitment to support any businesses that wish to adopt sustainable practices.
“We are convinced that strong cooperation between government and businesses will remain as the key to achieving our shared national development and sustainable goals,” he said in his speech at the event before launching FGV’s B100 biodiesel trial.
Fadillah also witnessed the submission of FGV’s workers’ membership forms to the National Union of Plantation Workers (NUPW), which were inline with the company’s commitment to respect workers’ rights.
The Felda Settlers’ Day 2024 celebration was held at the Malaysia Agro Exposition Park Serdang (Maeps) was held for three days from July 12 to July 14 and saw the attendance of thousands of visitors as they visited various booths at the event from food to textiles and even a mini-zoo.
