FGV Annual Report 2020

218 FGV HOLDINGS BERHAD Annual Integrated Report 2020 Governance at FGV: Accountability Significant matters Online Integrity Pledge US Customs and Border Protection (US CBP) Withhold Release Order (WRO) against palm oil and palm oil products made by FGV, its subsidiaries and joint ventures RSPO and MSPO certifications Traceability of fresh fruit bunches Group Policies Anti-Bribery Management Systems (ABMS) Manual How these matters were addressed by the Board Governance & Risk Management Committee • Recommended to the Management to consider executing the employees’ corruption-free pledge every six months via online submission. • Examined the WRO issued by the US CBP against palm oil and palm oil products made by FGV, its subsidiaries and joint ventures and its potential impact to FGV’s operations. • Closely monitored efforts to engage with the relevant stakeholders in addressing this matter. • Recommended measures to mitigate this matter including the establishment of a Foreign Workers Working Committee, chaired by the Chairman of FGV to adopt a more holistic approach to address matters relating to migrant workers. • Suggested practical approaches to remedy and address the issues raised by the certification bodies that could affect RSPO and MSPO certifications. • Monitored the progress of certification to ensure consistency with the time bound plan. • Recommended approaches to overcome obstacles in certification programmes in order to ensure progress in achieving RSPO and MSPO certifications. • Examined the Group’s traceability initiatives and risks related to the sourcing of fresh fruit bunches. • Guided on steps to mitigate these risks. • Monitored the traceability and risk mapping programme which seeks to support suppliers in addressing sustainability issues by constantly engaging with them and communicating FGV’s commitment to NDPE and the Group Sustainability Policy. • Advised on the importance of engaging with FFB top suppliers for FGV to eliminate or mitigate risks of non-compliance to relevant sustainability policies and principles. • Recommended the proposed revision of Group LOA, Group Human Capital Policies, Whistleblowing Policy, Group Sustainability Policy, Group Procurement Policy and External Gift, Entertainment and Hospitality Policy for the Board’s approval. • Reviewed the revised ABMS Manual taking into consideration the requirements stated in ISO 37001:2016 and made recommendations for the Board’s approval. • Evaluated the proposed FGV Anti-Corruption Plan and made recommendations for the Board’s approval. 3 Whistleblowing • Reviewed and deliberated on the number of whistleblowing cases, their respective categories, lessons learnt and recommendations from investigations cases. • Recommended the approval of the revised Whistleblowing Policy to further strengthen the whistleblowing mechanism and related processes. 4 5 6 7 8 9 10 P E R FORMANC E R EV I EW During the financial year, the Board evaluated the Board Governance & Risk Management Committee’s performance and the extent to which the Board Governance & Risk Management Committee met the requirements of its Terms of Reference, including the term of office and performance of the Board Governance & Risk Management Committee and each of its members. This performance assessment constituted part of the annual Board effectiveness assessment, pertaining to the assessment of Board Committees. This Report was made in accordance with a resolution of the Board of Directors approved on 31 March 2021. Group Sustainability Report • Deliberated on sustainability key initiatives, among others, on the strengthening of labour practices in FGV, the progress of sustainability certifications (MSPO/RSPO), expansion of FGV traceability initiative and engagement with various stakeholders including customers, civil society organisations, government agencies, international bodies and community representatives on matters pertaining to sustainability. • Reviewed FGV Sustainability Report 2018/2019.