FGV Annual Report 2020

During the year, we were reminded of these challenges with the re-suspension of the RSPO certification of FGV’s Serting Complex, the suspension of ongoing RSPO certification processes for FGV’s uncertified complexes, as well as the Withhold Release Order (WRO) issued by the United States Customs and Border Protection (CBP) against palm oil and palm oil products made by FGV and its subsidiaries and joint ventures, on account of gaps in our labour practices. Although these are setbacks to FGV, we remain determined to do what is necessary to address these challenges and to ensure that FGV is in full compliance with international human rights standards. It became clear that we needed to work faster to effect on the ground changes to positively impact migrant workers, and we established a Foreign Workers Working Committee, which I chair. Datuk Wira Azhar Abdul Hamid Chairman The Committee has adopted a holistic approach that involves a range of undertakings including upgrading existing homes, building new ones, as well as building clinics, schools, shops and houses of worship. Our goal is to provide our workers with living quarters that are better than the industry standard. In addition, our affiliation to the Fair Labor Association (FLA) underlines our commitment to enhancing our labour practices by implementing various initiatives including strengthening processes relating to the recruitment ofmigrant workers, strengthening grievance mechanisms, improving monitoring and remediation systems, developing capacity building programmes and enhancing stakeholder engagements. While upholding labour standards has been a key priority, we attach equal importance to other aspects of sustainability such as climate action as well as environmental protection and conservation. Our renewable energy initiatives and wildlife conservation activities continue to be high on FGV’s agenda. All these efforts are a reflection of our resolve and commitment to internationally recognised sustainability and human rights principles, as promulgated under the Universal Declaration of Human Rights (UDHR), the United Nations Guiding Principles on Business and Human Rights, relevant International Labour Organization (ILO) conventions and the Sustainable Development Goals (SDGs). We will continue to devote our energy and resources to ensure that we stay true to these commitments. IN APPRECIATION On behalf of the 2020 Board, I wish to take this opportunity to extend my sincere gratitude and appreciation for the support we have received from our diverse stakeholders who had placed their confidence in FGV as a public listed company. To all our shareholders, I thank you for your loyalty and for standing by FGV while we navigated choppy waters to bring this large ship back on course. The management and staff have played a pivotal role in this regard, and I thank them for their dedication and commitment to execute the BP21 strategies formulated by the Board to achieve this. Our business depends on a strong and stable smallholder supply chain that accounts for two thirds of FGV’s harvests. I wish to thank FELDA settlers and Independent Smallholders for their contributions in making FGV the world’s largest CPO producer. I also wish to put on record our appreciation to Federal and State Governments, the Ministries, government agencies, partners, industry organisations, the media, and the financial and investment community for their guidance and unstinting support. I am confident FGV has a bright future ahead, and look forward to seeing the Group realise the aspirations and goals in the next phase of its growth. RSPO certified MSPO certified 33 68 mills mills 33 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders