4 FGV HOLDINGS BERHAD STATEMENT FROM THE CHAIRMAN Our commitment to zero tolerance for corruption was crystalised when we became the first plantation company in Malaysia to implement the Anti-Bribery Management System (ABMS) across our entire operations. FGV made the deliberate decision to systematically and comprehensively embed the ABMS system in every facet and at all levels of our business. I was conscious that this should not be a box-ticking exercise and that it should extend into the far reaches of our organisation, instead of the handful of departments usually charged with procurement. Subsequently, FGV attained the internationally-recognised ISO 37001:2016 certification for its ABMS on 17 December 2019. To strengthen the Group’s understanding of and commitment to corporate governance and the principles of sustainability, we established an Independent Advisory Panel (IAP) that comprises three independentmembersand twonon-independentmembers. The panel, which convened for the first time in February 2020, advises FGV’s Board and offers recommendations on matters related to good governance and sustainability. As one of the non-independent members myself, I am pleased to report that all the members have a range of experience and expertise, including in strategy, finance and governance, environmental science and sustainable development. Your Board is confident that the panel will add great value to our efforts to steer FGV towards a better and stronger future. On a personal note, I am pleased and honoured that the IAP’s independent members, Dato’ Seri Ahmad Johan Raslan, Datuk Dr Glen Reynolds and Ms Rikke Jarvad Netterstrom, agreed to join us, to walk through this journey with us. ENTRENCHING THE VALUES OF SUSTAINABILITY IN 2018 AND 2019 In 2018 and 2019, FGV reviewed, revised and improved upon its existing policies and procedures, thus closing the gap between what our customers expected of us and what we had committed to. The greater challenge was implementing our commitment. We improved our labour practices and ensured our plantation workers’ rights from pre-employment to employment and post-employment, which included revising and translating employment contracts and developing a Communication Pack as a guide to the employment contracts. We also introduced the Suppliers’ Code of Conduct to ensure suppliers and contractors comply with Group policies and established 11 Community Learning Centres (CLCs) for children of plantation workers in Sabah who were not enrolled in formal education. STRENGTHENING HUMAN RIGHTS As a plantation company with 48,000 workers from at least six countries, FGV has put in place several measures to safeguard their rights and well-being. We ensure that they are not exploited in any way, even by third parties that we are required to work with in host countries. This is reflected in our materiality matrix, where Human Rights is in the top quadrant as one of our five most important pillars. Since mid-2016, our human rights and labour practices have been scrutinised by civil society organisations and regulators. I am grateful for this scrutiny because it has forced FGV to confront its weaknesses and enabled the current leadership to drive change. Our focus on improving our labour practices and employment guidelines has enabled us to progress at a faster pace. However, there is still some way to go before we can relegate the taint of the past to history as a lesson well learnt and never to be repeated. Meanwhile, we will continue to strive to protect the rights of all our workers and address existing gaps by engaging regulators such as the Roundtable on Sustainable Palm Oil (RSPO) and the Malaysian Palm Oil Certification Council, which operates the Malaysian Sustainable Palm Oil (MSPO) standard. We are also engaging with strategic partners such as the Human Rights Commission of Malaysia (SUHAKAM) and international organisations, namely the International Organization for Migration (IOM), Fair Labor Association (FLA) and Earthworm Foundation (EF). HEALTH AND SAFETY The well-being of all our 48,000 people is of paramount importance to us. As they strive to keep our operations going, we must reciprocate their dedication and ensure that they work in a safe and rewarding environment. Our plantation workers, who are mostly migrant workers, are the lifeblood of FGV. Without them, our plantation business cannot operate. We allocated RM349.5 million to improve housing and facilities across the board. As of December 2019, we have spent RM206.3 million and completed 319 out of 435 blocks of new housing for workers. In addition, we ensured that the workers’ safety training is conducted in the workers’ native languages and that they are provided with medical assistance when needed. In recognition of the current environment, we have also set up a COVID-19 Task Force to develop and implement risk mitigation protocols and processes across our operations. Thus far, we have successfully managed to isolate our workforce from infection. Our efforts also extend to the smallholders, both from the Federal Land Development Authority (FELDA) and independent smallholders, all of whom we have always worked closely with throughout this period. We are conscious that FELDA settlers provide us with one-third of our total production, allowing THE GREATER CHALLENGE WAS IMPLEMENTING OUR COMMITMENTS.
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