Traceability is an essential element of our business where the chains of the supply run across various sectors. Without traceability, it is difficult to ensure that our end-products are sustainable, which is becoming an increasingly important consideration for our customers, especially those seeking sustainability status for the entire delivery.
FGV is working on establishing the traceability of its raw materials to ensure that raw materials are derived from sources in a sustainable manner. The Group, therefore, conducts proactive communications, both formal and informal, with our Stakeholders to encourage better decision making, as well as to identify risks and opportunities in their relationship with us. We endeavour to work closely with the value chain partners to ensure that traceability and transparency are embedded in their practices to create a more sustainable value chain. In line with that, we are in the process of developing our own computerise traceability system called Traceability of Product (FGV-ToP).
FGV-ToP is part of an overall Sustainable Palm Oil Management System (SPOMS) that also includes Audit Integrated System (FGV-AIMS). This FGV-ToP has gone live effective from January 2017. It becomes particularly challenging to us as we purchase FFB for our mills from third parties in addition to the FFB from our own estates and smallholders. While we are able to trace all our FFB and PK up to supplying mills, tracing to the plantation of origin has been difficult for external crops. To facilitate better traceability of our products, we are working with our business partners to develop a model to identify sustainability risks associated with a specific geographical area.