FGV Holdings Berhad announced that it has managed to achieve its first production of European Union Deforestation Regulation (EUDR) compliant Crude Palm Kernel Oil (CPKO).

CPKO, which is primarily used in food and personal care products, including non-dairy ice cream, margarine, chocolate, confectionery, soap and detergent, is now produced in compliance with stringent EUDR standards. The EUDR is a legislative framework aimed at ensuring that products imported into the European Union (EU) are free from deforestation and forest degradation activities.

"At FGV, we 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," said Dato' Nazrul Mansor, Group Chief Executive Officer of FGV.

FGV said it has focused on sourcing its Fresh Fruit Bunches (FFB) from three key sources: its own estates, FELDA's 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.

Key enhancements involve specific focus areas under each pillar, addressing current global ESG trends such as operational excellence, human rights and labour standards, diversity, equity and inclusion, sustainability certification, traceability, responsible sourcing and supply chain management, community engagement and development; climate action, renewable energy and energy management, and biodiversity and land management.