61 SUSTAINABILITY REPORT 2018/2019 04 S E C T I O N GRI 203-2 ENVIRONMENTAL STEWARDSHIP FGV is committed to reducing our environmental impact across our value chain. As a business that is highly dependent on natural resources, we are ever more cognisant of the need to protect and conserve the natural environment as well as contribute to climate action. We strive to implement good business practices and initiatives and work with our business partners and suppliers to progressively improve our environmental performance in our supply chain. Our policy adopts the following practices: 1. No new planting on peatland regardless of depth 2. No development in areas of natural forest, high carbon stock (HCS) or high conservation value (HCV) 3. No open burning in all our premises 4. No use of agrochemicals categorised as World Health Organization Class 1A or 1B or that are listed by the Stockholm or Rotterdam Conventions In May 2019, we further enhanced our NDPE policy to cover matters pertaining to social equity, rights of local people and workers’ rights. We also continue to uphold our commitment to restore peatlands that were previously developed without causing social conflict and to cease all new developments on peatland. In January 2018, a stop work order for Asian Plantations Limited was issued with regards to development in a potential HCS area. A third-party HCS assessor was hired to assess the land and it was discovered that there were some pockets of HCS forest in the area that was originally proposed for new planting. As such, the stop work order remains in force and there has been no new planting. In July 2018, an appeal was received by RSPO Indonesia from the local community requesting for the Plasma Transmigration Programme (PTP) to continue at our PT TAA and PT Citra Niaga Perkasa (PT CNP) plantations. The PTP is a smallholder cooperative scheme developed by the Indonesian government in 1987 that mandates that at least 20% of newly planted areas be reserved for smallholders. Following consultations with RSPO and the Head of the Regency, FGV has committed to developing an action plan to manage this issue and comply with Indonesian law to allow the development of the respective lands and honour the agreement with the local communities. As of December 2019, we have 2,568 smallholders taking part in this programme and a total planted area of over 1,565 Ha under Plasma. Plasma Programme PT CNP PT TAA Total Planted area (Ha) 1,006 559 1,565 Number of Plasma smallholders 1,688 880 2,568 In our previous report, we highlighted an issue that occurred on 24 August 2017 that alleged that PT Temila Agro Abadi (PT TAA) had cleared natural peat forest. While this was found to be untrue after engaging a third-party assessor to verify the complaint, we have continued to liaise with all relevant stakeholders on the matter. On 19 October 2019, the RSPO Complaints Panel (CP) finally delivered its decision on this issue and has directed FGV to undertake the following: 1. Carry out a new soil survey by an external expert, upon approval and confirmation by the CP, to verify the actual area and boundary of peat within PT TAA’s area. 2. Provide necessary updates to the local communities on the process and mitigation plan. GRI 307-1 NODEFORESTATION, NOPEAT ANDNOEXPLOITATION (NDPE) COMMITMENT FGV is deeply committed to implementing our No Deforestation, No Peat and No Exploitation (NDPE) Policy and protecting High Carbon Stock (HCS) areas throughout our supply chain. This includes our own operational areas within Malaysia and abroad.
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