Traceability

Traceability

Traceability is an essential element of our business and is instrumental in fulfilling our commitment to responsible sourcing. In FGV we are committed to ensure that our products are not linked to any deforestation, planting on peat and exploitation of human rights, which is in line with FGV’s Group Sustainability Policy (GSP).

1.  Traceability in Oil Palm

In order to ensure our palm products are sourced from responsible sources, we started to trace our raw materials in 2017. Our traceability covers Traceability to Mills (TTM) and Traceability to Plantations (TTP). 

We consider mills traceable when details such as their name, parent company’s name, address /GPS coordinate and volume supplied are known. Our TTM has been at 100% since 2019 for all our midstream and downstream facilities which includes FGV Refineries Sdn Bhd, FGV Kernel Products Sdn. Bhd., FGV Biotechnologies Sdn Bhd and Delima Oil Products Sdn Bhd. Where most of our supply are from our own internal sources, our downstream and midstream facilities only sourced less than 1% from third party mills in 2021.

Due to the complexity in FFB supply chain that involves multiple category of players/levels, our requirement for TTP varies between supplier category. The suppliers are considered as traceable to plantation when details as follows are available:

Element/Information Third-party Estate Smallholders* Dealer/Cooperative/Collection centres**
Supplier name
Parent’s company name NA
GPS Location of supplier
(location of village/sub district is sufficient)
Size of land X
Volume supplying to mill

NA : Not Applicable
*This requirement is for independent  smallholders supplying to FGV mills.  Information for scheme/plasma smallholders are available at https://felda.gov.my/peneroka/lokasi-rancangan
** For Dealer/Cooperative/Collection centres  receiving FFB from estates, full information of the estates as mentioned in table above (Third-party estate) is required where sources are from smallholders, names and quantity received are sufficient.

Of all the 67 palm oil mills operated by FGV, only one mills sources 100% of FFB from our own plantation. The remaining 66 palm oil mills received a mixture of FFB from internal and external sources.

As at end 2021, we achieved 98% TTP and we are committed to attain 100% TTP by the end of 2022. Considering the significant contribution from the smallholders, we are committed to assist them on technical grounds to improve their productivity.

Palm Oil Traceability Dashboard (January 2021 – December 2021)

Upstream

Traceable to mill
Traceable to plantation

Crude Palm Oil

Palm Kernel Oil

Upstream

Crude Palm Oil

Palm Oil Mill

81%

Palm Kernel Oil

Palm Oil Mill

81%

Downstream

Crude Palm Oil

FGVR & DOP

96%

100%

Traceability In The Operational Units

Refineries – CPO (4 plants)

  Traceability to Mill Traceability to Plantation
Percentage of Internal CPO
Kuantan Oil Products 100% 96.5% 98.9%
Sahabat Oil Products 100% 96.4% 100%
Tawau Oil Products 100% 81.9% 94.4%
Delima Oil Products 100% 99.4% 100%

 

FGVBSB

99%

100%

Traceability In The Operational Units

Biodiesel (FGVBSB – 1 plant)

  Traceability to Mill Traceability to Plantation Percentage of Internal CPO
FGV Biotech 100% 98.7% 100%

Total Downstream

97%

100%

Palm Kernel Oil

FGVR

98%

100%

Traceability In The Operational Units

Refinery – PKO (FGVR – 1 plant)

  Traceability to Mill Traceability to Plantation Percentage of Internal CPO
Kuantan Oil Products 100% 96.5% 98.9%

 

FGVKP

98%

100%

Traceability In The Operational Units

Kernel Crushing Plant (FKP – 4 plants)

  Traceability to Mill Traceability to Plantation Percentage of Internal PK
Semambu 100% 97.7% 100%
Pasir Gudang 100% 99.6% 99.6%
Pandamaran 100% 98.7% 100%
Sahabat 100% 95.1% 100%

 

Total Downstream

98%

100%

FGVR : FGV Refineries Sdn Bhd FGVBSB : FGV Biotechnologies Sdn Bhd DOP : Delima Oil Products Sdn Bhd
FGVKP : FGV Kernel Products Sdn Bhd FGVPM : FGV Plantations (Malaysia) Sdn Bhd  

Traceability in Rubber

FGV sources cup lump as the raw materials for its milling process from FGV’s Group estates, FGV associate (FELDA), private/external organizations and traders. The four rubber processing mill in Malaysia produce Standard Malaysian Rubber (SMR) for end users in local and international markets.

Considering rubber may have some similar sustainability concerns as oil palm, FGV continued to expand traceability in rubber sector in early 2020. As of December 2021, we are 97% traceable to plantation/collection centre. We expect to achieve 100% TTP traceability by end of 2022.

Rubber Traceability Dashboard (January 2021 - December 2021)

Traceability-of-Product (TOP)

While we are able to trace all our FFB, CPO and PK up to supplying mills, tracing FFB to the plantations of origin has been challenging for external crops. To facilitate better traceability of our products, we are working with our business partners to develop a model to identify and manage sustainability risks associated with high risk suppliers (if any).

In promoting greater traceability, we have developed a computerised traceability system called Traceability of Product (FGV-ToP), which is part of an overall sustainable palm oil management system. FGV-ToP System which provides comprehensive information of FFB/CPO/PK/PKO movements together with instant traceability compliance status and attributes such as the certification, geo-location and production per month. This system will provide the information in a user-friendly and interactive manner. This system covers all palm oil related products from FGV subsidiaries with some information being accessible to customers and suppliers.

Strategic Partnership with MIMOS and ASB

Due to the complexity of our FFB supply chain, we have established Traceability & Validation Task Force (TVTF) in association with Asia Business School (ASB) with the help of our value chain partner to assist in tracing our FFB in the dealers’ networks. Apart from tracing the source of FFB, the TVTF also provided training on NDPE and will be assessing suppliers’ compliance to FGV’s Group Sustainability Commitments.

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    FGV Holdings Berhad

    Group Governance & Risk Management Division
    Complaint Management & Detection Department
    Level 13 West, Wisma FGV, Jalan Raja Laut, 50350 Kuala Lumpur
    Tel: 1800-88-8717
    E-mail: alert@fgvholdings.com