KUALA LUMPUR: FGV Holdings Bhd has reinforced its commitment to sustainable practices with the first production of its European Union Deforestation Regulation (EUDR)-compliant crude palm kernel oil (CPKO).
This achievement marks another significant milestone for FGV as one of the first Malaysian companies to produce EUDR-compliant CPKO, the company said in a statement.
Primarily used in food and personal care products, including non-dairy ice cream, margarine, chocolate, confectionery, soap and detergent, CPKO is now produced in compliance with stringent EUDR standards.
The EUDR is a legislative framework aimed at ensuring products imported into the European Union 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.
Group Chief Executive Officer Datuk Nazrul Mansor said FGV 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.
“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,” he said.
FGV has focused on sourcing its fresh fruit bunches from 3 key sources: its estates, the Federal Land Development Authority’s (FELDA) 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 among the smallholders, which in turn will generate better economic opportunities for them, and further enhance collective sustainability efforts of the Malaysian palm oil industry,” Nazrul said.
Earlier in July, FGV launched its enhanced Sustainability Framework, advancing its commitment to the environmental, social and governance (ESG) goals.
— BERNAMA
