Strengthening Customer Trust Through Certification

10 March 2025

KUALA LUMPUR: FGV Holdings Berhad (FGV), a prominent leader in the food and agri-product sector, has made significant strides in its commitment to sustainability by adopting the Malaysian Sustainable Palm Oil (MSPO) certification label for its SAJI cooking oil products. This initiative not only highlights FGV’s dedication to sustainable palm oil production but also opens up new market opportunities—particularly for consumers who prioritise ethically and sustainably produced goods.

The MSPO certification represents a comprehensive national framework for palm products in Malaysia, ensuring adherence to strict sustainability principles established by the government and aligned with international standards. These principles encompass a wide range of critical issues, including environmental protection, human rights, good governance, and wildlife conservation. To maintain compliance, oil palm plantations, smallholders, and palm oil mills are required to meet specific sustainability standards relevant to their respective operational categories.

FGV has implemented robust measures to meet MSPO standards, including sustainable land management practices, community engagement programmes, and initiatives for wildlife protection. Since 2015, FGV has been committed to the Sun Bear Conservation Programme, which has since expanded to include the conservation of elephants, pangolins, and gibbons. To date, FGV has rescued 94 sun bears, with 72 successfully rehabilitated and released, and has rewilded 20 gibbons. The pangolin conservation programme, focusing on captive breeding, has achieved 18 successful births of baby pangolins.

In August 2024, FGV announced its support for the tiger conservation initiative at the 2nd Tiger Summit in Pahang. This initiative includes critical measures such as tiger breeding and rewilding, aimed at preserving and restoring the tiger population in Malaysia.

Currently, all of FGV’s oil palm plantations, mills, and downstream facilities are 100% MSPO-certified. Traceability is a vital aspect of FGV’s commitment to sustainable palm oil production. To enhance traceability, FGV has developed the FGV Traceability of Product (FGV TOP) system, which provides detailed information about FGV’s palm oil supply chain. This system allows FGV to monitor the provenance of supplied raw materials, ensuring that every link in the supply chain adheres to sustainability standards and ethical business practices. Since 2019, FGV’s traceability to mills (TTM) has reached 100% for all its midstream and downstream facilities. As of 2023, FGV’s traceability to plantations (TTP) stands at 100% for tier 1 and tier 2 suppliers.

FGV’s sustainability efforts extend beyond certification; they also encompass comprehensive support for smallholders and FELDA settlers. Through consultation and capacity-building programmes, FGV empowers local communities, improves livelihoods, and ensures the long-term viability of palm oil production.

In January 2025, FGV and the Malaysian Palm Oil Board (MPOB) signed a Memorandum of Collaboration (MoC), marking a significant milestone in the collaboration between the corporate and government sectors to improve people’s livelihoods. This partnership aims to empower smallholders by providing technical support, guidance on best agricultural practices, and assistance in meeting sustainability standards such as MSPO.

As part of this collaboration, FGV plans to launch the ‘Kebun Angkat’ initiative, which aims to offer smallholders tailored technical support and advice on good agricultural practices. Through this initiative, various independent smallholders will receive guidance on Good Agricultural Practices (GAP), including the use of high-quality planting materials, soil health assessments for optimal fertiliser application, and more. These efforts aim to increase both the productivity and quality of fresh fruit bunch yields, ultimately enabling better livelihoods and access to premium markets for smallholders.

Between 2022 and 2024, FGV conducted 22 sessions of the Independent Smallholders (ISH) programme, engaging over 1,000 independent smallholders and dealers across Malaysia. These sessions covered topics such as FGV’s sustainability commitments, the MSPO certification scheme, traceability, the 11 International Labour Organization (ILO) Indicators of Forced Labour, and FGV’s sourcing criteria for fresh fruit bunches (FFB). The ISH programme will continue into 2025, reaffirming FGV’s dedication to supporting smallholders and promoting sustainable practices within the industry.

With a firm commitment to sustainability certifications such as MSPO, FGV is planning to implement a range of future sustainability initiatives. These initiatives aim to further enhance environmental stewardship, climate action, social responsibility, and economic viability, promising a more sustainable future for the industry.

By integrating rigorous sustainability standards with community empowerment, FGV continues to drive positive change within the industry and significantly contribute to Malaysia’s global reputation as a responsible and ethical palm oil producer. I'm Furthermore, FGV is a committed member of the Roundtable on Sustainable Palm Oil (RSPO), with 30 of FGV’s mills and supply bases currently certified.