FGV Sees EUDR Delay As Opportunity To Boost Sustainability Efforts With Smallholders

From Nur Athirah Mohd Shaharuddin

SUNGKAI, Nov 8 (Bernama) -- FGV Holdings Bhd sees the delay in the European Union Deforestation Regulation (EUDR) enforcement as an opportunity for the company to work on the necessary things with smallholders.

Group chief sustainability officer Nurul Hasanah Ahamed Hassain Malim said FGV will engage with smallholders in every region in phases to provide the programme and create awareness on the importance of sustainability.

“We have identified which states to go first (Johor and Pahang)… one year delay may be enough to engage, create awareness and identify those who are willing to onboard with us.

“But to get the whole supply chain, smallholders to come on board, one year is not sufficient, we need a longer time,” she told a press conference on the sideline of the media familiarisation programme, ‘A Journey Through Sustainability with FGV’.

Nurul Hasanah said the company’s current strategy is to identify those who are keen and willing to come on board with FGV and prioritises that group of smallholders.  

She said FGV is encouraging smallholders to adopt environmentally sustainable practices to access larger and new markets as required by market demand such as European Union Deforestation Regulation (EUDR).

“Our (palm) oil market is not just in Malaysia, we have to go out to the international market. From what we see, the international market requires compliance with sustainability standards especially the environment.

“They are very concerned about deforestation, planting on peatland and emphasising climate agenda…so, this is an element that the market needs,” she told reporters on the sidelines of the media familiarisation programme called “A Journey Through Sustainability with FGV” here recently.

She added that the standard has been translated into our local regulation, which is the Malaysian standard for Sustainable Palm Oil Production (MSPO).

Nurul Hasanah explained that to comply with the EUDR, smallholders must provide specific information to buyers. Without this data from buyers, FGV finds it difficult to engage in business transactions with smallholders.

“If you follow these requirements, the price may increase slightly. If the smallholder markets in a separate market, the price is quite different,” she said.

Group director of the plantation division Borhan Bachi said the company will shift to electric vehicle (EV) power barrow by the first quarter of 2025 to replace the conventional oil palm collection method using the power barrow engine.

He said the shift will be done gradually with 50 EV power barrows in its oil palm estate.

Borhan noted that the switch to EV power barrows not only supports the company’s environmental, social, and governance (ESG) principles but would also reduce maintenance costs.

"Based on our testing with the EV power barrow, the 48-volt battery can last up to 8 hours," he added.

-- BERNAMA