FGV Annual Report 2020

SUPPLIER ASSESSMENT & EVALUATION PROCESS The appointment of suppliers is based on open tenders to ensure a fair procurement process. Prior to the appointment of suppliers, FGV conducts a pre-qualification exercise to ascertain the suppliers’ suitability. Suppliers are required to comply with the SCOC that spells out FGV’s sustainability requirements and expectations. To monitor the performance of suppliers, FGV uses a vendor management system known as e-Daftar, an online system that is connected to FGV’s SAP system. The system, which incorporates FGV’s policies and requirements, is compulsory for all suppliers’ registrations. The system allows FGV to monitor the status of suppliers (i.e. active and inactive). Blacklisted suppliers are put on a watchlist. By referring to e-Daftar, FGV is able to avoid engaging with blacklisted and inactive suppliers. In the event of minor non-compliances, FGV will provide guidance to the suppliers with an improvement plan to ensure better sustainability practices. Supplier Code of Conduct In 2020, FGV revised the Supplier Code of Conduct (SCOC) as part of the implementation of the FGV Action Plan with FLA. The SCOC outlines the principles and standards with the suppliers are required to comply pertaining to sustainability practices; business ethics and integrity, safety, health and environment, and labour practices. Non-compliance to the SCOC will result in the application of the FGV’s Supplier Delinquency Guidelines, with the possibility of the offending supplier/vendor being suspended or terminated and blacklisted should they fail to demonstrate willingness to rectify gaps in their practices. Responsible Sourcing Between 2019 and 2020, FGV conducted eight (8) familiarisation sessions for our FFB suppliers to create awareness on the GSP. Following the adoption of the revised GSP in November 2020, we managed to conduct an additional six (6) sessions in 2020. In total, FGV saw over 200 participants throughout the awareness raising initiative. 109 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders