21 SUSTAINABILITY REPORT 2018/2019 01 S E C T I O N Sustainability Compliance and Certification Sustainability Technical Sustainability Regulation Our Sustainability Compliance and Certification Department (SCCD) plays a central role in FGV. It advises the relevant departments and units on all sustainability matters to ensure compliance with relevant standards and requirements of international and local bodies, particularly on Roundtable on Sustainable Palm Oil (RSPO) requirements. As FGV’s main contact point for all RSPO matters, the SCCD is responsible for addressing issues raised by the RSPO’s Complaints Panel, and continually responds promptly to all issues by developing clear action plans and progress reports. Some of the measures taken to address RSPO’s concerns include full-scale audits of employment practices, implementing Standard Operating Procedures across FGV’s operations and improving communication with internal and external stakeholders. These are further discussed in the Trust and Traceability section in this report. The SCCD also manages the RSPO auditing and certification process for all complexes in FGV and supports FELDA settlers in preparing for certification audits. In addition, it conducts roadshows to promote RSPO benefits to FELDA settlers, monitors and advises on sustainability issues related to estate workers and social compliance, as well as preparing and monitoring the implementation of action plans related to labour issues. This unit establishes methodology to measure, monitor and improve the performance of key sustainability areas. It also compiles data and liaises with external parties on sustainability reporting and programmes, besides participating in environmental education and research. Sustainability Regulation ensures that our policies and procedures are in line with relevant international standards as well as applicable laws and regulations, and monitors issues related to our policy of NDPE. UNITS UNDER SUSTAINABILITY Group Sustainability Policy We view our efforts to advance the sustainability agenda as a journey and we remain committed to ensuring that sustainability is deeply embedded in every part of our value chain. At the heart of this is our revised Group Sustainability Policy (GSP) 3.0, which is a reflection of FGV’s reinforced commitment to sustainability. This was adopted by FGV’s Board of Directors on 29 May 2019. Our revised policy applies to the whole Group, where FGV has management control, as well as our supply chain. It provides guidance to our people, contractors and suppliers on our commitments and expectations around a number of sustainability topics: Respecting Human Rights Protecting the Environment Promoting Sustainability • enhancing livelihoods • meeting labour standards • upholding the principle of Free, Prior and Informed Consent (FPIC) • exercising non-discrimination and gender equality • NDPE • responsible use of agrochemicals • responsible management of water and waste • no open burning • addressing climate change • supply chain management • traceability • responsible sourcing • due diligence • grievance mechanisms • reporting In keeping with FGV’s increased dedication to an open consultative process, consultations were held internally and externally during the formulation of our revised GSP. Among the organisations that were consulted were the Human Rights Commission of Malaysia (SUHAKAM), International Organization for Migration (IOM), Tenaganita, Institute of Malaysian and International Studies (IKMAS) of Universiti Kebangsaan Malaysia (UKM), Malaysian Nature Society (MNS) and Malaysian Palm Oil Board (MPOB). As a result of these consultations, our revised GSP now includes a strengthened component on human rights and references key international human rights instruments, including UN Guiding Principles on Business and Human Rights and applicable international human rights treaties. A comprehensive socialisation exercise on GSP 3.0 is currently underway to ensure that our revised policy is fully understood and applied effectively by all entities within FGV as well as by our contractors and suppliers. This is expected to be completed by June 2020. It is hoped that with strong awareness and understanding of the GSP, the Group will be able to view the business through a clearer sustainability lens and be better equipped to address sustainability risks and opportunities to create trust and long-term value. SUSTAINABILITY AT FGV Sustainability Engagement Apart from overseeing stakeholders management, this unit develops communication plans related to sustainability management and programmes, and monitors sustainability projects’ progress, budget expenses and governance.
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