Corporate Governance Overview Statement The Board embraces transparency and accountability in the boardroom and promotes these critical components throughout the Group. The Board is satisfied that each Director has devoted sufficient time to effectively discharge his or her responsibilities. The Board considers each Non-Executive Director (NED) independent in character and judgement. The current composition of Directors features a diverse blend of skills, experience, and knowledge that enables them to provide effective oversight, strategic guidance, and constructively challenge, examine, review, and decide on Management’s proposals as well as empower the Group Chief Executive Officer (GCEO) to implement strategies approved by the Board. SUSTAINABILITY GOVERNANCE FGV’s approach to sustainability is guided by our commitment to achieving strategic goals and leveraging synergies to create value for our stakeholders. This commitment has translated into initiatives and sustainable business practices that are embedded in our business strategy. We recognise that as global sustainability standards continue to evolve, the need to integrate robust ESG practices into our operations is increasingly imperative. We believe we are at the forefront of this shift with the enhanced Sustainability Framework which consists of five main pillars: Economic Growth, Governance, Social, Environment and Innovation and Technology. Our commitment to driving FGV’s sustainability agenda from the top is reaffirmed by the establishment of the enhanced Group Sustainability Framework. This has enabled us to engage with sustainability issues among the Board and the Senior Management team and monitor the progress of the Group’s sustainability agenda as predicated on the five overarching pillars cited above. Specific focus areas under the enhanced Sustainability Framework, include business development and product quality, traceability, responsible sourcing, and supply chain management, human rights and labour standards and climate action. The Framework has considered evolving global ESG trends along with sustainability regulations and standards worldwide. This proactive approach has enabled FGV to stay ahead of regulatory changes and market demands ensuring long-term business resilience and sustainability. The palm oil industry faces various challenges, one of which is climate change. Climate change has caused yields in palm oil to vary from previous years. The Company aims to address this by implementing innovative management techniques to ensure that plantation yields are able to meet market demands. To ensure the development and implementation of our sustainability initiatives, the Board takes the leading oversight role, supported by the Board Sustainability Committee (BSC). The Board is responsible for approving public disclosures related to the Group’s sustainability efforts, ensuring that all initiatives are well coordinated and transparently communicated to stakeholders. The enhanced Sustainability Framework will guide the Group’s actions and decisions in implementing its sustainability commitments and contributing to the country’s sustainability agenda. The Framework is also aligned with the government’s commitment to becoming a carbon nation with the sustainability commitments reflected in the national action plans and policies, including the 12th Malaysia Plan, National Action Plan, National Renewable Energy Policy, and National Policy on Biological Diversity. BOARD CHARTER The Board Charter outlines the Board’s strategic intent, authority and Terms of Reference (ToR) and serves as a primary source of reference and induction literature. The Board Charter clearly specifies the issues and decisions reserved for the Board. For individual Directors, the Board Charter details the expectations regarding their commitment, as well as their roles and responsibilities as Directors. While appropriately delegating its authority to Board Committees or Management, the Board retains its responsibility and maintains collective oversight at all times. It ensures that the Company’s affairs are not managed exclusively by the Board Committees in a manner that would constitute a breach of duty, with Directors remaining accountable for exercising of such powers. PRINCIPLE A 186 FGV Holdings Berhad | Annual Integrated Report 2024
RkJQdWJsaXNoZXIy NDgzMzc=