FGV Annual Report 2020

Sustainability Matters Affiliation to the Fair Labor Association (FLA) As part of FGV’s commitment to uphold labour standards, we became a participating company of the Fair Labor Association (FLA) in October 2019. FGV is currently implementing a long-term and comprehensive Five-Year Labour Rights Action Plan under its affiliation to the FLA that comprises a number of initiatives to further strengthen various aspects of our labour practices such as our recruitment process human rights training programmes, working and living conditions, as well as grievance mechanisms, among others. This action plan was adopted and published on 31 March 2020 in consultation with the FLA and with various other stakeholders including civil society organisations. Working with FLA, FGV is also enhancing its labour standard compliance monitoring mechanism. A workshop was conducted in November, where gaps in FGV’s internal monitoring were identified. FLA has made several recommendations to strengthen the current system which FGV is committed to implement. FGV’s GSP demonstrates the Group’s commitment against child labour. FGV is strengthening its procedures and mechanisms to protect child rights whilst ensuring that they have access to a proper education. Despite the unprecedented challenges posed by the COVID-19 pandemic, FGV remained committed to realigning its priorities and implementing the action plan to ensure business resiliency. Achieving the objectives of our affiliation to the FLA is a top priority for FGV, as we reaffirm our commitment to responsible and sustainable business practices, as well as to respecting human rights and upholding labour standards. FGV’s affiliation to the FLA is subject to a rigorous validation exercise and public reporting. FLA’s report on FGV’s progress on the implementation of the action plan is published on FLA’s website. FGV-FLA Action Plan to enhance labour practices The FGV-FLA Action Plan seeks to align FGV’s practices with the FLA’s Principles of Fair Labor and Responsible Sourcing for Companies with Agricultural Supply Chains. These principles are based on international human rights standards and instruments including the International Bill of Human Rights as well as the International Labour Organisation (ILO) standards, particularly the ILO Declaration on Fundamental Principles and Rights at Work. The principles also uphold and promote the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD-FAO Guidance for Responsible Agricultural Supply Chains. Under this plan, FGV affirms its commitment to: • prevent forced labour and child labour • strengthen responsible recruitment and management of migrant workers • strengthen grievance mechanisms • improve monitoring systems and remediation • enhance stakeholder engagement • promote gender equality and women empowerment • provide training on compliances with international human rights and labour standards • review FGV’s labour related policies OUR EMPLOYEES At FGV, we value our employees as the backbone to our growth and development. We seek to embed the culture of respecting one another in the organisation to inculcate a sense of belonging to create a harmonious work environment for our employees and workers. In 2020, FGV has 15,660 employees working in different capacities at the Corporate Centre and subsidiaries. In addition, we employ 31,837 workers in our plantation, and they are made up of 14% Malaysians and 86% migrant workers from Indonesia, Bangladesh and India. As a responsible employer, FGV upholds the principles of fair labour and non-discrimination and is committed to equality, talent development and employee welfare. FAIR & EQUAL RECRUITMENT & HIRING PROCESS During the year, our hiring process was adjusted due to the COVID-19 pandemic that saw increased in online activities to limit the health risks to both the recruiter and candidates. Job applications were submitted in soft copy and online interviews were held. Reporting for duty was a digital interaction with the direct report, on-boarding sessions were also held virtually. Online recruitment was more efficient and cost effective, as it was conducted remotely without either party having to leave their respective work spaces. As a multinational organisation, FGV embraces diversity. We are committed to providing equal opportunity in recruitment and career growth regardless of race, culture, age and gender. In 2020, FGV hired 723 new employees. 120 FGV HOLDINGS BERHAD Annual Integrated Report 2020