6 FGV HOLDINGS BERHAD GRI 102-14 STATEMENT FROM THE GROUP CHIEF EXECUTIVE OFFICER ON 28 JUNE 2012, FGV HOLDINGS BERHAD BECAME ONE OF THE LARGEST LISTED PALM OIL COMPANIES IN THE WORLD, PRODUCING THREE MILLION TONNES OF PALM OIL ANNUALLY, ONE-THIRD OF WHICH IS PRODUCED BY NEARLY 200,000 SMALL FARMERS. Compared with other big players, however, FGV was admittedly slow off the starting blocks, and faced great challenges trying to implement new thinking and standards across its operations. Improving the practices of the past is often easier said than done. Such was also FGV’s experience as we tried to roll out new initiatives across our 68 mill complexes and 202 estates, to restore operational integrity and introduce new thinking in line with the principles of the RSPO. As a result, FGV has suffered public admonishment culminating with the suspension of some of our operations by the RSPO’s Complaints Panel. That was a bitter pill to swallow at a time when new leadership was coming into the company and the Group was in the process of addressing several fundamental operational issues on the ground. Nevertheless, in November 2018, the Board made the commitment to right all wrongs and to make sure that FGV lives up to its stated ambitions. On the operational front, things are moving forward at a steady clip. However, with regard to the adoption and implementation of all the RSPO’s principles and criteria, while we have taken some important steps in the right direction, there is still much more to be done, not least of which is entrenching new thinking and changing mindsets across the Group. Unfortunately, just as we thought we had our path ahead clearly mapped out, the COVID-19 pandemic hit the world hard – a global health crisis that degenerated very quickly into an economic and financial meltdown. At the time of writing, the full scale of the COVID-19 fallout remains unclear and we are still mapping the impact of the crisis on our operations and our people. Despite continuing to run our estates and mills throughout the nationwide Movement Control Order, our people were able to avoid the risk of exposure with stringent safety measures implemented across all our operations. We continue to remain vigilant and will take all necessary steps to enhance controls should they be necessary. STRENGTHENING SUSTAINABILITY FGV’s operations stretch from Perlis in the far north of Peninsular Malaysia across the South China Sea to Sarawak and Sabah, employing 48,000 people. Among our employees are 31,000 migrant workers whom we have closely engaged with and are thus aware of the terms of their contracts, have access to their passports and live in appropriate accommodation. Yes, as a plantation company, our estate and mill workers are vital to our success and continued sustainability. We placed their human rights as a top priority in November 2018, reviewing and correcting several internal policies and processes to safeguard their interests. The listing marked the start of the Group’s aspirational journey to establish itself as an industry leader, with the noble intention of achieving operational excellence and topnotch sustainability credentials. DATO’ HARIS FADZILAH HASSAN Group Chief Executive Officer
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