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Fima Corporation Berhad

(21185-P)

SUSTAINABILITY & governance

34

Sustainability Governance

During the year, an internal Group Sustainability Committee made

up of representatives from the Boards of the Company and its

penultimate holding company, Kumpulan Fima Berhad (“KFima”)

and members of senior management was established to oversee

how the KFima Group’s sustainability programs support business

goals and aspirations, and monitor the progress thereof.

Quality & Standards

We have policies and procedures in place to ensure the safety

and quality of our products and services. We continually monitor

and review processes, putting in place systems to better manage

risk, increase productivity, sharpen our competitive edge and

make strategic choices that have a positive impact on society

and environment.

We continue with our practice of minimising environmental

impact, implementing appropriate energy-efficient processes

and technologies, seeking resource conservation and pollution

prevention as well as other measures towards reducing resource

depletion, greenhouse gas emission and waste generation. The

Group’s priorities include:

environment

The Group also stays current with new regulations, industry best

practices and marketplace conditions and the Group’s businesses

consistently strive to improve and refine their requirements and

standards throughout the entire supply chain.

The Plantation Division’s subsidiary in Indonesia, PT Nunukan

Jaya Lestari (“PTNJL”) is accredited with ISO 14001:2004

Environment Management System for the processes employed in

the production of its CPO, CPKO and palm kernel. The Indonesian

Sustainable Palm Oil (“ISPO”) audit on PTNJL has currently been

put on hold, albeit temporarily as authorities await a definitive

outcome of the ongoing land issue pertaining to PTNJL’s land

title before resuming the audit process for ISPO consideration.

Management does not believe this will have any material affect to

PTNJL’s operations in the near-term.

sustainability report

sustainable agricultural practices

Conservation areas

: Within our estates, areas alongside river

banks (riparian reserves) are set aside as conservation areas

wildlife corridors which include, among others, sanctuaries for

migratory birds and habitat for jungle flora and fauna. The riparian

reserves also help to slow down soil run-off and soil particles.

Soil Management:

We follow best industry practices e.g.

application of empty fruit bunches (EFB), establishing cover

crops such as Mucuna bracteata, Calopogonium mucunoides

and Calopogonium coeruleum, alone or in mixture, to improve

soil properties and lower carbon dioxide emissions. Vetiver grass

has been planted along the ponds, bunds and field drain to

reduce erosion and prevent landslips whilst at the same time help

clean the waste water. Vetiver grass is a deep rooted grass and is

known for its high tolerance of heavy metals, phosphates, nitrates

and agricultural chemicals.