Friday 29 Mar 2024
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KUALA LUMPUR (July 1): FGV Holdings Bhd has aborted its plan to jointly develop a model to ensure palm oil sustainability with US consumer goods giant Procter & Gamble (P&G) and five other organisations.

This follows the expiry of the memorandum of understanding (MoU) entered into between FGV together with P&G, as well as World Resources Institute (WRI), Malaysia Institute for Supply Chain Innovation (MISI), Wild Asia, Proforest Initiative and sustainable development consulting firm Daemeter.

The MoU, signed on Dec 31, 2015, was to facilitate collaboration in developing the Smallholder Supply Chain Risk Assessment Model (SHRAM).

“The MoU had expired on Dec 29, 2018, but there was an intention to thereafter expand the exercise via a Memorandum of Collaboration (MoC), rather than extend the existing MoU,” FGV said.

The group however, said one of the parties to the MoU subsequently informed it has decided to put on hold the activities until further notice, and it was later decided that the matter will no longer be pursued.

The expiration of the MoU would not have any financial impact on the company and its subsidiaries, 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.

Shares of FGV closed up two sen or 1.79% at RM1.14 today, giving it a market capitalisation of RM4.16 billion. After falling some 23% over the last 12 months, the stock had grewn some 59% year-to-date.

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