26 FGV HOLDINGS BERHAD SUSTAINABILITY AT FGV FGV remains committed to strengthening ties, building goodwill and investing in the communities in which we operate. Our community stakeholders are largely FELDA settlers and independent smallholders who are part of our supply chain, as well as the public at large, whom we regard as a business entity. GRI 103-1/2/3, GRI 203-2 ENRICHING OUR COMMUNITY STAKEHOLDERS FELDA settlers FGV and FELDA have an interdependent relationship that has benefitted both parties. While FGV relies on FELDA for plantation land, FELDA settlers supply approximately one-third of our fresh fruit bunches (FFB). FGV is committed to helping FELDA settlers build and develop sustainable communities. FGV sources its fresh fruit bunches from: Annual lease payments RM248 million FELDA is the largest shareholder in FGV, with 33.7% share Plantation income helps to support about 112,635 settler families FGV allocated RM5,000,000 to Yayasan Felda to fund various charitable causes and initiatives In 2019, we held six meetings with FELDA settlers and independent smallholders, involving more than 350 participants nationwide. These kept them engaged and aware of the palm oil industry’s developments, including challenges and regulatory developments. Educating FELDA settlers and independent smallholders is crucial to ensure they are able to fulfil our sustainability requirements and comply with the Group’s standards and guidelines. As an RSPO member, we aim to fulfil the RSPO Principles and Criteria (P&C) as we strive to meet all the requirements to produce certified sustainable palm oil (CSPO). We are responsible for encouraging and ensuring our supply chain is also in compliance with our group sustainability standards and requirements to produce certified sustainable palm oil. FGV contributes substantially to the development of FELDA settlers, who have benefitted from FELDA’s 33.7% share in FGV. In addition, FGV’s annual lease payments of RM248 million on the 351,000 Ha of land provide a secure and consistent income stream to FELDA, enabling it to focus on its social development programmes. We also distribute annual dividends to Koperasi Permodalan FELDA Malaysia Berhad, a cooperative formed in 1980 with the aim of advancing the economic status of FELDA settlers. These earnings and benefits enable FELDA to be internally funded and underpin its efforts to sustain the vibrancy of Malaysia’s smallholder plantations. Our plantation income helps to support about 112,635 settler families. It is estimated that an additional 300,000 people linked to the settlements earn their income from FELDA. Besides uplifting their socio-economic status, FGV has also contributed to their welfare via programmes such as providing training and development for the settlers’ children and developing infrastructure and facilities within the settlements. 30% 30% 40% FGV Estates FELDA settlers Other Suppliers/Outgrowers (includes independent smallholders, mini/private estates and cooperatives)
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