FGV Annual Report 2020

229 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders Key Interruption Indicators (KII) Following the Government’s Movement Control Order on 18 March 2020, FGV developed a methodology to track interruptions to critical operations and the status of infections among staff. This involved identifying and proposing indicators for business sectors to monitor. A total of six indicators were identified, known as 6 KII. They covered infections, operational shutdown, asset damage, supply chain and IT interruptions. Inputs from the 6 KII data gathering, reporting and monitoring by business sectors were presented to the COVID-19 Task Force as well as internally among each business sector. GGRM conducted a series of engagement sessions with business sectors to explain the use of the KIIs. It also analysed the KII data submitted by business sectors and provided an overview for reference by COVID-19 Task Force. COVID-19 Impact Analysis GGRM prepared various reports on the COVID-19 pandemic that were presented to the Group Management Committee, Board Governance & Risk Management Committee and the Board of Directors throughout 2020. The reports contained analysis and assessments of the risks and potential impact of the pandemic from four perspectives: global, Malaysia, the Malaysian palm oil industry, before focusing on the status and risks to FGV operations. The reports included recommendations on how best to mitigate the impact of the pandemic and navigate through this unprecedented global outbreak. Four COVID-19 Impact Analysis reports were issued every three months starting in April 2020. They provided insights into how the pandemic was developing from a macro perspective of the global and Malaysia’s situation, but also on how the palm oil industry and FGV – being the on of the country’s biggest CPO producers – were faring with the corona wave. Overall, these reports were cautious but reassuring. No doubt FGV was impacted by the pandemic but its core operations remained resilient, despite the shutdown of a few estates/mills in Sabah because of the high incidence of Covid-19 cases in the state in October 2020. As a food-producer, FGV was classified as an essential service by the Government and permitted to operate during the MCO. During this period, we had low density working conditions in our plantations, and also enforced strict social distancing SOPs, in compliance with MKN directives. As a result, FGV operations were largely uninterrupted during this challenging year that ended with a positive financial performance. Managing the COVID-19 Pandemic In 2020, the world faced a challenge like no other: the COVID-19 pandemic. FGV responded with a comprehensive action plan that was implemented across the Group. These include: COVID-19 Risk Assessment In view of uncertainties arising from the Covid-19 pandemic, FGV undertook a Group-wide risk assessment of the impact of the pandemic on our business operations. Accordingly, we initiated the process of requesting and guiding business sectors to identify and analyse the impact of interruptions due to the Government’s Movement Control Order on their operations and business performance. FGV then prepared and rolled out a baseline COVID-19 risk assessment template that indicated the many possible interruptions, and identified their causes, effects and corresponding mitigations that were to be validated by each of the business sectors. In Q2 2020, risk representatives started incorporating COVID-19 related risk and mitigations into their risk registers that were monitored by the Group Governance and Risk Management Division (GGRM). COVID-19 Task Force A COVID-19 focus group was set up in January 2020 and later formalised as a Task Force to prepare FGV’s response to the COVID-19 pandemic. The Task Force comprised: • Group Health & Safety • Group Governance & Risk Management • Group Human Capital • Group IT • Group Strategic Communication • Group Transformation • Facilities Management • FGV Security Services The Task Force saw to the development of COVID-19 specific policies, guidelines, a Pandemic Response Plan and SOPs which were then communicated to all sectors across FGV for adoption and implementation. Each Task Force member contributed to the formulation and implementation of COVID-19 related action plans that were relevant to their functions. Some of the key mitigating actions undertaken include: • Sharing of information and management directives via e-mail blasts to all employees on a regular basis. Additionally, wall posters, buntings, reception counter notices and LED boards, where applicable, were also used to guide and regulate movements of employees and visitors at various sites. • Markers on seating arrangements, lift transportation, online meeting platforms, corporate events protocol and QR attendance codes were some of the measures put in place to enforce physical distancing requirements; • Suspected or confirmed COVID-19 employees were required to observe home quarantine or observe any other health procedures as directed by the MKN/KKM; • Provision of key food supplies to workers in estates during the Movement Control Order; and • As part of FGV’s pro-active measure, a COVID-19 screening programme was carried out in phases to ascertain the health status of migrant workers. Businesses affected by the pandemic were encouraged to monitor and address interruptions to their business by using the prescribed Key Interruption Indicators (as described below) for data gathering, reporting and monitoring suspected cases and worksite shutdowns as and when they occur. The Task Force members from time to time updated each other on the latest pandemic related developments, internally and externally. The activities of the Task Force were also subject to guidance from the Senior Management and Board and ultimately directives from government authorities.