FGV Annual Report 2020

81 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders OPERATING ENVIRONMENT • Climate action and environmental protection • Population growth • Higher consumer spending • Environmental regulations • Human Rights requirements STRATEGIC IMPLICATIONS • Affecting the soil and water quality degradation due to droughts. • Contributing to global warming and will decrease palm oil production from 41% to 10%. • Impacting the demand for consumer food products by Food and Beverages companies and disruption to the supply chains. • Increasing trend for healthier eating habits and home-food consumption at reasonable price. • Increasing expectation and demand from stakeholders for organisations to continue operating in an environmentally, socially and economically responsible manner. • Companies are placed under intense scrutiny by regulators, investors and other stakeholders to adopt and implement sustainable practices. • Affects operations if changes in policies are not in favour of FGV. ACTION PLAN • At FGV, climate action and environmental management is a priority, and details of actions taken can be found in Section 4 of this report. • FGV is planning to increase its presence in FMCG industry. The Group is being restructured, with Consumer Food Products as a strategic revenue stream. With this new direction, we also envisage playing our part to reduce Malaysia’s hefty food import bill. • FGV’s Plantations, Sugar and Logistics & Others Business are bound by a variety of regulatory and legal compliances. Details of our legal compliances and measures taken can be found in Section 4 of this report. U n p r e d i c t a b l e W e a t h e r P a t t e r n M e g a t r e n d i n 2 0 3 0 R e g u l a t o r y R e q u i r e m e n t