Climate change is a growing concern worldwide, and reducing carbon emissions is crucial in mitigating it. Carbon neutrality can be achieved by balancing carbon emissions with carbon removal through nature-based solutions like reforestation or technological solutions like carbon capture and storage. However, the palm oil industry remains a significant source of carbon emissions, highlighting the need to achieve carbon neutrality in this sector to combat climate change.
Carbon Neutral Genesis met with FGV Holdings Berhad (FGV), one of the world's largest crude palm oil producers, on March 06, 2023, to discuss collaborating towards carbon neutrality and sustainability in the industry. FGV impressed us with its commitment to sustainable practices and its integrated climate action plan, which includes a focus on reducing carbon emissions from palm oil cultivation. Our collaboration with FGV working on sustainability and reducing carbon emissions will be a valuable partnership.
We discussed the implementation of carbon capture and storage (CCS) to achieve carbon neutrality and promote sustainability in the palm oil industry during the meeting. This approach requires capturing and storing carbon dioxide (CO2) emissions before releasing them into the atmosphere. It can effectively capture up to 90% of the CO2 emissions generated from burning fossil fuels in palm oil processing activities. Additionally, FGV is taking efforts to implement renewable energy projects by using biomass from its palm oil mills to produce biogas fuel for national, rural grid connections and bio-compressed natural gas (bio-CNG).
As a sustainability project developer, we stress the importance of partnerships, stakeholder engagement, consumer awareness, and education to attain our common objectives. We look forward to continuing discussions with FGV and other palm oil industry stakeholders to promote positive transformation and establish a more sustainable future.
Introducing FGV Holdings Berhad
FGV Holdings Berhad (formerly known as Felda Global Ventures Holdings Berhad) is a Malaysia-based agri-business with operations in several countries, including Indonesia, Thailand, Cambodia, Pakistan, Turkey, France, Spain, and the USA. It was initially incorporated as a commercial arm of the Federal Land Development Authority (FELDA) in 2007 to oversee investments in the upstream and downstream palm oil businesses as well as other agri-businesses. FGV is one of the world's largest producers of crude palm oil (CPO) with a workforce of more than 45,000 people.
FGV's primary focus is on three core business sectors: plantation, sugar, and logistics. The company manages a total land bank of 439,275 hectares in Malaysia and Indonesia, with its Palm Upstream business being the largest revenue generator. It produces approximately 3 million metric tonnes (MT) of CPO annually from 197 estates in Malaysia and 5 estates in Indonesia. The company currently operates 68 mills across Malaysia, processing over 14 million MT of Fresh Fruit Bunches (FFB) annually, with two-thirds of the FFB sourced from FELDA settlers and independent smallholders. FGV is the only palm plantation company in the world with 28 biogas plants and was the first to develop a palm-based Bio-CNG plant in collaboration with Malaysian Palm Oil Board (MPOB) in 2015.
FGV takes the Group’s sustainability efforts seriously to fulfil the needs of all stakeholders – the environment, workers, businesses, and the local community – and adheres to internationally recognised human rights principles and standards. To fulfil these commitments, the company draws on the United Nations Guiding Principles on Business and Human Rights (UNGPs), the International Labor Organisation (ILO) Declaration on Fundamental Principles and Rights at Work, and other relevant ILO Conventions. Furthermore, FGV pledges to the No Deforestation, No Peat and No Exploitation (NDPE) policy. The company is committed to contributing to the achievement of the United Nations Sustainable Development Goals (SDGs) as part of its commitment to be a responsible corporate citizen.
Leveraging its 50 years of industry expertise, FGV is dedicated to promoting sustainability and exploring opportunities to generate additional value through the circular economy.
