The need for organisation to behave in a socially responsible manner is becoming a general requirement by the society. one of the most important initiatives taken during the year is our admission to the roundtable on Sustainable Palm Oil ("RSPO"). The principal objective of the RSPO is to advance the production, procurement and use of sustainable oil palm products through the development, implementation and verification of credible global standards and the engagement of stakeholders along the supply chain.

In an age of increasing social and environmental consciousness, RSPO certification is a seal of approval that the palm oil is produced without undue harm to the environment or society. It is awarded only after strict verification on the production process to stringent international standards by accredited certifying bodies and can be withdrawn at any time on infringement of the rules and standards. There are already growing indications that buyers are prepared to pay a premium for responsibly produced products and the first quarter 2010 results proved that sales of RSPO-certified sustainable palm oil continue to grow significantly.

The Group takes pride in being a "Green" company even before the movement became a popular buzzword. The Group has set high standards of control to ensure that its activities, processes and products are compatible with the environment. Besides controlling air and noise pollution, every effort is made to ensure the proper disposal of scheduled wastes to Kualiti Alam Sdn Bhd.

The Group has also focused on research and development to improve the efficiency and effectiveness of agronomic practices in its plantation business. This has resulted in the roll-out of programmes for judicious fertiliser applications, weed and pest control initiatives as well as water management and plant disease mitigation.

In view of the growing encroachment of residential development, we have taken a proactive stance in addressing the issue of pollution. Consequently, a raft of measures has been introduced and these include more effective control mechanisms for effluent discharges, air emissions, scheduled waste disposal and noise mitigation. Through such efforts, we have maintained the effluent discharge level consistently well within the regulatory requirements. Waste water from the sugar refineries is subjected to anaerobic and aerobic processes before it is discharged. To ascertain the water quality, samples are analysed by an independent laboratory as well as the Department of Environment on a monthly basis.

With the conversion of the old boiler to a newer and more economical system as well as the switch from diesel to natural gas as a source of fuel, we have achieved the dual objectives of improving boiler efficiency and reducing emissions in the form of dust particulates and gaseous pollutants. Recently, the Group has installed a Secondary Dust Collection System for the boilers to reduce dust fall-out at one of the sugar refineries.

Corporate responsibility as a way of life will continue to be a cornerstone of the Group's operating philosophy. each year, we expend time and resources to explore ways in which we can play a more meaningful role in the society. You can expect more from us in years to come.