Flour Mills of Nigeria Plc (FMN), a prominent Food and Agro-allied Group in Nigeria, known for its renowned brand ‘Golden Penny,’ has published its Sustainability Report for the year 2021/2022.
The report, titled ‘Building a Sustainable Future, Scaling Impact,’ offers valuable insights into how the Group has significantly contributed to achieving food self-sufficiency in Nigeria and promoting local content development. To achieve its sustainability objectives, FMN has established four key strategic pillars, known as FMN ‘Tropos,’ covering Governance, Social, Financial, and Environmental aspects.
Regarding Governance, FMN has emphasized adherence to best practices and principles. In the Social domain, the company has been attentive to aspects like diversity and inclusion, labor conditions, occupational health and safety, and customer well-being. FMN’s Financial Commitments focus on creating economic value for local communities, both in Nigeria and across the continent, while their Environmental Commitment centers on reducing the adverse effects of their operations on the environment. This involves analyzing and reporting key environmental factors such as Greenhouse gas emissions, water usage, land utilization, ecological sensitivity, and solid waste management.
Key Highlights from FMN’s 2021/2022 Sustainability Report:
1. FMN has crafted and implemented a comprehensive sustainability strategy aligned with the United Nations Sustainable Development Goals (SDGs) and core ESG domains of Governance, Planet, People, and Prosperity, as well as the Nigeria Exchange Group’s (NGX) Sustainability Disclosure Guidelines.
2. Over the past three years, FMN has observed significant increases in the economic value it generates, distributes, and retains. This figure rose from N706.7 billion in FY 21 to N1.108 trillion in FY 22.
3. FMN’s investments in local content development through procurement and backward integration have been steadily increasing. During the reporting year, the total amount paid to suppliers surged from N552.5 billion in 2021 to N649.9 billion.
4. The Group has collaborated with World Connect to support the education and empowerment of students across various Nigerian states, offering grants for entrepreneurship and vocational skills.
5. FMN received the Sustainability, Enterprise, and Responsibility Awards (SERAS) for the best company in supply chain management during the 20/21 Financial year, thanks to its effective supply chain strategies.
6. The Group actively participated in recycling efforts, recycling 2,068 metric tons and 780 metric tons of packaging materials at its Morpack Lagos and Kano offices, respectively. Additionally, six sites within the Group renewed their Environmental Audit Reports (EAR) during the financial year, showcasing their commitment to environmental compliance.
7. FMN obtained ISO 27001 Information Security Management System (ISMS) certification, becoming the first indigenous FMCG organization in Nigeria to achieve this certification.
8. A customer satisfaction survey conducted in FY 21/22 revealed that 97% of FMN’s customers were satisfied with the quality of their products, with 80% rating the products as excellent or very good.
9. FMN maintained a clean record of compliance with product safety and quality regulations and standards agencies during the reporting year, incurring no fines or penalties.
10. Through the Flour Milling Association of Nigeria (FMAN), the Group witnessed a significant 251% increase in the number of wheat farmers during the financial year. Moreover, a new record was set for the highest yield of wheat by a female farmer.
11. FMN continued to expand its operational sites and capacity to support the growth of Nigeria’s food and agro-allied sector and promote shared value creation.
Mr. Boye Olusanya, the Group’s Managing Director, commented on the report, emphasizing their commitment to transparency and people-driven business practices. He highlighted the importance of local content development for sustainable growth and self-sufficiency.
Flour Mills of Nigeria Plc is dedicated to conducting its business operations in a manner that preserves and sustains natural ecosystems, ensuring benefits for current and future generations.