FGV Holdings Berhad (FGV) further cements its commitment to sustainable practices with the first production of its European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO). As one of the first Malaysian companies to produce EUDR-compliant CPKO, this achievement marks another significant milestone for FGV, which is one of the world’s largest producers of crude palm oil (CPO).
“At FGV, we understand the critical role that businesses must play in addressing the pressing environmental and social challenges. Our production of EUDR-compliant CPKO marks a major advancement for our operations and underscores our dedication to meeting stringent global environmental and social standards,” said Datuk Nazrul Mansor, group chief executive officer of FGV.
CPKO, primarily used in food and personal care products, including non-dairy ice cream, margarine, chocolate, confectionery, soap and detergent, is now produced by FGV in compliance with stringent EUDR standards.
The EUDR is a legislative framework aimed at ensuring that products imported into the European Union (EU) are free from deforestation and forest degradation activities. FGV’s ability to produce EUDR-compliant CPKO for clients worldwide showcases its dedication to upholding global sustainability standards and regulatory compliance.
Datuk Nazrul continued, “This achievement will positively impact our bottom line over time and reflects our proactive approach to environmental stewardship and our commitment to sustainable palm oil production.”
FGV has focused on sourcing its Fresh Fruit Bunches (FFB) from three key sources: its estates, FELDA’s settlers, and independent smallholders who are already in line with EUDR, Malaysian Sustainable Palm Oil Certification (MSPO) or Roundtable on Sustainable Palm Oil (RSPO) traceability requirements.
“We aim to expand the network of our business partners from amongst the smallholders, which in turn will generate better economic opportunities for them, and further enhance collective sustainability efforts of the Malaysian palm oil industry,” concluded Datuk Nazrul.
Earlier in July, FGV launched its enhanced Sustainability Framework, advancing its commitment to the environmental, social and governance (ESG) goals. The framework builds on its sustainability commitments and comprises five pillars: Economic Growth, Governance, Social, Environment, and Innovation and Technology.
Key enhancements involve specific focus areas under each pillar, addressing current global ESG trends such as operational excellence, human rights and labour standards, diversity, equity and inclusion, sustainability certification, traceability, responsible sourcing and supply chain management, community engagement and development; climate action, renewable energy and energy management, and biodiversity and land management.
