FGV Annual Report 2020

Withhold Release Order Issued by the US Customs and Border Protection In September 2020, the US Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on palm oil and palm oil products made by FGV, its subsidiaries and joint ventures based on information that reasonably indicates the use of forced labour. FGV is committed to taking all necessary steps and measures towards the revocation of the WRO. FGV has communicated with the CBP via a conference call to seek clarification on the allegations of forced labour in FGV’s plantations. The CBP, however, did not reveal any information about its findings except that its research had identified 11 International Labour Organisation (ILO) indicators of forced labour in FGV’s practices. The CBP did not disclose any further information about the nature or locations or any incidence linked to such indicators. Therefore, FGV has decided to take a systematic approach in ensuring that the rights of its workers are respected and protected. In the meantime, the FGV Board of Directors formed a Foreign Workers Working Committee headed by the Chairman. The Working Committee is tasked to ensure that best labour practices are observed in accordance with international labour regulations across all business operations in the Group. This project involves upgrading of existing housing, new housing and providing better access to healthcare, education and essential supplies. Ethical and responsible recruitment of workers Recognising the vulnerability of migrant workers during the recruitment process, we have taken steps to protect the rights of our migrant workers through the adoption of the Guidelines and Procedures for the Responsible Recruitment of Foreign Workers in 2019. Under the Guidelines, FGV is committed to paying official costs associated with the recruitment of migrant workers, which include airfare and costs for work permits, visas, medical check-up and insurance. FGV has also revised its contract with recruitment agencies to require them to ensure that no fees are charged to the workers. FGV is currently reviewing the Guidelines as part of its ongoing efforts to align FGV’s policies with international standards and best practices. Effective 2020, FGV recruits migrant workers mainly from India and Indonesia through legal channels and processes recognised and approved by the authorities of Malaysia and the source countries. During the reporting year, FGV had 13,178 Indonesian workers and 4,150 Indian workers, who collectively form the majority of FGV’s plantation workforce. All these workers were employed directly by FGV. We keep close watch for indicators of forced labour. We monitor through on-going engagements with our workers, agents as well as our established grievance mechanisms that help us respond to risks of forced labour in our operation and supply chain. 123 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders