Felda Global Ventures Holdings Bhd (FGV) generic photo. FGV billboard seen along the Kesas highway. (Photo by M. Hafidz Mahpar for Star Online)
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has signed a memorandum of understanding (MoU) with US consumer goods giant Procter & Gamble (P&G) and five other organisations to develop a model to ensure palm oil sustainability.
In a filing with Bursa Malaysia, the leading global palm oil producer said it had on Wednesday signed the MoU with P&G, World Resources Institute, Malaysia Institute For Supply Chain Innovation, Wild Asia, Proforest Initiative and sustainable development consulting firm Daemeter to collaborate in developing the Smallholder Supply Chain Risk Assessment Model (SHRAM).
“The MoU sets out the understanding and intention of the parties during this interim exploratory period. It shall remain valid for three years or such extended period as agreed in writing by the parties,” FGV said.
The consumer goods industry is among the biggest users of palm oil, and multinationals such as Unilever, Nestle and P&G have expressed their commitment to ensure there is no deforestation involved in their sourcing of raw materials such as palm oil, palm kernel oil and their derivatives.
P&G, whose brands include Pantene, Olay, Vicks, Pampers, Ambi Pur and SK-II, uses derivatives and by-products of palm oil in its products. It is working with suppliers to ensure they meet its supply chain traceability and no-deforestation requirements.
FGV is 33.66% owned by statutory body Federal Land Development Authority (Felda).
FGV shares closed unchanged at RM1.74 on Wednesday.
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