FGV Annual Report 2020

217 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders In 2020, the Board Governance & Risk Management Committee undertook the following principal activities in discharging its responsibilities: Summary of Work of the Board Governance & Risk Management Committee Area of Focus Matters Considered Governance, Ethics and Integrity a. Revision of Group LOA, Group Human Capital Policies, Whistleblowing Policy, Group Sustainability Policy, Group Procurement Policy and External Gift, Entertainment and Hospitality Policy. b. Received updates on Online Integrity Pledge rolled out across FGV Group including numbers of respondents. c. Briefed on the status of whistleblowing which include number of cases, type of cases, lessons learnt and list of improvements. d. Assessed the effectiveness of the Management of Classified Document Policy. e. Establishment of External Tender Participation Policy. f. Revision of Anti-Bribery Management Systems Manual as well as Corporate Governance and Business Integrity Blueprint: FGV Anti-Corruption Plan. g. Received updates on key highlights of the meeting between the MACC and FGV Chief Integrity and Governance Officer. h. Received updates on integrity compliance analysis 2019 and recommended actions. i. Reviewed the status of compliance to MCCG 2017. j. Reviewed reports on planned governance activities for the year and completed initiatives. Risk Management Sustainability Reviewed statements included in FGV’s Annual Integrated Report 2019 a. Assessed and deliberated on the Group’s risk status through FGV Group Quarterly Risk Report covering the Group’s top 10 risks, Risk Profile Monitor, key risks beyond the risk register-strategic, reputational and emerging risks, and key risk management and governance activities. b. Reviewed reports on COVID-19 Impact Analysis. c. Reviewed reports on the planned risk management activities for the year and completed initiatives. a. Quarterly report on sustainability updates and key initiatives. b. Reports on US Customs and Border Protection (US CBP) Withhold Release Order (WRO) against FGV, its subsidiaries and joint venture companies on palm oil and palm oil products. c. Reports on RSPO and MSPO certifications. d. Reports on the traceability source of fresh fruit bunches. a. Reviewed the Report on the Board Governance & Risk Management Committee, the Statement on Risk Management and Internal Control, CGOS, Corporate Governance Report and Sustainability Statement to be included in FGV’s Annual Integrated Report 2019 and recommended the same to the Board for approval. The Chairman of the Board Governance & Risk Management Committee updated the Board on matters deemed to be of major importance deliberated at the Board Governance & Risk Management Committee meetings and its recommendations. The copies of confirmed minutes of each Board Governance & Risk Management Committee meeting were also circulated to the Board for noting at the next practicable Board meeting. Among the significant matters considered by the Board Governance & Risk Management Committee during 2020 were the following: Key Matters Reported to the Board Significant matters FGV Group Quarterly Risk Report COVID-19 Impact Analysis Reports How these matters were addressed by the Board Governance & Risk Management Committee • Deliberated on key risks horizon associated with the Group’s business and operations covering Group top 10 risks and mitigations. Informed the Board on risks that require closer attention and of the prevailing risk profile and outlook. • Reviewed all four reports and deliberated on the assessment of the risks from four perspectives: globally, Malaysia, palm industry and FGV operations; potential impacts of the pandemic and mitigations. • Acknowledged the extent of potential risk exposures arising from this unprecedented global pandemic outbreak. 1 2