FGV Annual Report 2020

85 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders Our Risks and Opportunities Phase 1 Review of Material Matters We reviewed our sustainability matters by conducting a workshop with representatives from each business function/unit to discuss the scope and relevance of each material matter. The discussion took account of both internal and external factors in the business landscape. This year, we developed a new list of sustainability matters with some omissions, revisions and new additions. We have removed Economic Performance and introduced Data Security and Protection instead. Additionally, we revised some sustainability matters to enhance their scope and focus areas, namely for Operational Excellence, Community Engagement and Development, Business Development and Product Responsibility and Biodiversity and Land Management. Sustainability Impact Assessment The magnitude of each sustainability matter is assessed through our impact assessment. Similarly, we gathered representatives from each business function/unit to rate sustainability matters pertaining to them. To ensure integration between our risk and materiality assessments, each likelihood and consequence of the sustainability matter is determined using our ERM risk parameters. Additionally, to ensure a holistic assessment/perspective, each sustainability matter was assessed based on financial, regulatory, operational, customer satisfaction, employee satisfaction and reputational impact across a specific timeframe. Harmonising Outcome from Stakeholder Engagement and Impact Assessment Following the stakeholder engagement exercise, (Please refer to pages 82 to 84) and Sustainability Impact Assessment, the outcomes and findings of both exercises are tabulated and analysed. The final outcomes are then presented in our materiality matrix and the top sustainability matters are determined. We identified 16 sustainability matters in 2020. Review and approval by the Board of Directors The outcome of the materiality assessment is finalised and presented to the Board of Directors for resolution and approval. Phase 2 Phase 3 Phase 4 INTRODUCTION With increasing competition and changes in the business dynamics, FGV conducts studies on the risks and opportunities in the operating landscape and marketplace to achieve our business strategies. Every year, we undertake a risk and materiality assessment to determine the scale of their impact on our multiple businesses. Stakeholder feedback is an important consideration and leveraged within this process to obtain a more realistic and holistic perspective of the prevailing operating landscape and challenges. OUR APPROACH AND PROCESSES RISK ASSESSMENT FGV carries out quarterly Group wide risk assessments to identify its key business risks. Our approach, framework and further details on our risk management processes are disclosed in the Statement on Risk Management and Internal Control on pages 231 to 239. MATERIALITY ASSESSMENT We also conduct an annual materiality assessment to determine the materiality of economic, environmental, social and governance risks (known as sustainability matters) that are relevant to our business. Our materiality assessment is guided by our Enterprise Risk Management (ERM) Framework as well as Bursa Malaysia’s Sustainability Reporting Guide (2 nd Edition) and Bursa Malaysia’s Toolkit, including Toolkit on Stakeholder Engagement and Toolkit on Materiality Assessment. In 2020, the assessment covered four (4) phases.