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FGV achieves 81% traceability of FFB supply chain

KUALA LUMPUR: FGV Holdings Bhd has achieved 81% of traceability to plantation of its fresh fruit bunches (FFB) to date and putting it on track to achieve 100% by 4Q of next year.

In a statement issued on Thursday, it said the traceability is crucial for FGV to ensure the FFB sourced are not linked to deforestation, planting on peat and open burning.

It pointed out this was in line with FGV’s Group Sustainability Policy (GSP) and the “No Deforestation, No Peat and No Exploitation” (NDPE) commitment.

Group CEO Datuk Haris Fadzilah Hassan said: “While we are 100% traceable to the mills, tracing FFB to the plantations of origin presents a unique set of challenges attributed to the complexity of the supply chain in FFB traders’ network.

“This is due to the fact that FGV sources two-thirds of its FFB from external suppliers comprising Felda settlers, independent smallholders as well as FFB traders, while only one-third of FFB are sourced directly from our own estates.”

Haris Fadzilah said achieving TTP beyond 80% is a huge milestone for the group and the group was committed to ensure its achieve full traceability by next year.

As of October 2020,28% of its FFB supply are sourced internally from our estates, while 72% are sourced externally.

Of this external supply, 63% is supplied directly from Felda settlers, 2% from independent smallholders, 4%from private estates, 2% from cooperative, and 28% is supplied through FFB traders in Malaysia.

FGV explained its traceability and risk mapping programme is aimed to identify and verify the sustainability risks, including environmental as well as social and human rights risks, associated with external suppliers based on their specific geographical areas.

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