FGV Annual Report 2020

Consumer Products Portfolio Our consumer products portfolio guarantees the continuous uptake of CPO for palm-based downstream activities, which include the conversion of CPO and Palm Kernel (PK) into value added products such as oleochemicals, biodiesel, oils, fats and FMCG. Our flagship household brand SAJI leads the domestic refined cooking oil segment with a marketshare of 40%, while our SERI PELANGI margarine has a market share of 42%. FGV’s specialty fats and FMCG product lines continue to grow with our range of instant noodles, mayo, creamers, sauces, vanaspati, and many others, which are amongst the preferred choice for millions of households in Malaysia. Through our strategic joint venture with Procter & Gamble in Malaysia, we aim to optimise our oleochemicals business with strong research and development initiatives. In spite of the COVID-19 movement restrictions that hampered efforts to build customer relationships and test new products, FGV successfully launched three (3) new consumer products; SAJI Coconut Milk, Rice, and Sugar plus three (3) new industrial products; PREMEO Frying Oil, Animal Fat Replacer, and Dairy Fat Replacer. Future Priorities Moving forward, we plan to build our network of local and international distributors to strengthen existing markets and penetrate new ones. At the same time, we will intensify our product enhancement and improvement activities in anticipation of demand for targeted products and markets. Currently, many of our products are kept in the FGV warehouse in Shah Alam prior to distribution. To help reduce FGV’s carbon footprint, we are exploring direct transportation of products from factories to distributors who will serve as catchment areas in their neighbourhood. FGV has strengthened its governance, ethics and integrity performance that has been the key driver of FGV’s business transformation. Over the years, FGV has been relentless in its goal to instill a culture of integrity across the organisation. This responsibility has been entrusted to the Group Governance and Risk Management (GGRM) Division. GGRM has established a robust governance and integrity framework and instituted several measures to lift the standards of governance and promote ethical behaviour across the Group. Since obtaining the ISO 37001:2006 Anti-Bribery Management System certification in December 2019, FGV has been running awareness programmes on the organisation’s zero tolerance for any form of corruption or abuse of power. FGV has since strengthened the whistleblowing mechanism, and in 2020, published the FGV Anti-Corruption Action Plan (FGVACP) that is developed in accordance to the National Anti-Corruption Plan and the newly introduced Section 17A Corporate Liability provision of Malaysian Anti-Corruption Commission (MACC) Act 2009. In addition, over 90% of FGV employees completed the Online Integrity Pledge that was introduced in 2020. FGV has also been implementing various governance and integrity programmes across its operations. To ensure their effectiveness, we have appointed governance champions in subsidiaries and departments. Governance champions are responsible for making sure programmes planned at Group level are implemented, monitored and reviewed at their respective workplaces. As governance champions, their performance will be evaluated as part of the Integrity KPI, which is part of their annual staff evaluation process. This is expected to incentivise them to take this role seriously, in addition to their scope of work at their respective departments. In 2020, to ensure business continuity and mitigate business risks posed by the COVID-19 pandemic, FGV formed a COVID-19 Task Force chaired by the Group Chief Executive Office. Futher details of this COVID-19 Task Force are disclosed in Section 5 of this report. SUSTAINABILITY MATTER: GOVERNANCE, ETHICS AND INTEGRITY 115 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders