FGV Annual Integrated Report 2019

2 FGV HOLDINGS BERHAD We have applied the Precautionary Principle to assess potential environmental risks to avoid known and unforeseen negative environmental impacts. For a holistic view of our business, this AIR should be read together with the information available on our website at: OUR MATERIAL MATTERS This AIR is based on our material matters, which were determined in 2018 and revalidated in 2019 to ensure that the matters continued to be applicable and relevant. This ensures that our strategy, performance and prospects are illustrated in the correct context. Our response to material matters in the financial, social, economic, environmental and governance aspects of our business have also been considered. In developing this AIR further, we have included qualitative and quantitative performance measurements as well as other factors that may have affected business sustainability. Additionally, we have included issues presented to our Board of Directors, as well as reported risks and stakeholder interests. REPORTING INTEGRITY Following good governance practices, we have ensured that the information presented in this AIR is reliable, consistent and complete. To uphold report quality, this AIR has been reviewed by the Reporting Committee to ensure its compliance with the IIRC Framework and its fair representation of the performance of the Group against targeted value-creation outcomes. The report has further been reviewed by the Audit Committee and together with the Audited Financial Statements 2019, submitted to the Board for its final approval. The external auditors have further supported our assurance by providing external assurance on our Financial Statements. They have read all other information and considered whether it is materially consistent with the Financial Statements or their knowledge obtained in the audit. The external auditors have also provided a limited assurance review on our Statement on Risk Management and Internal Control (SORMIC). FORWARD-LOOKING STATEMENTS Where necessary, we have used forward-looking statements related to our Group’s plans, objectives, strategies, future operations and performance. Such statements should not be taken as guarantees of the Group’s future results as we remain subject to various possible scenarios of risks, uncertainties and assumptions. Actual results and outcomes may significantly differ from forward-looking statements. We make no express or implied representation or warranty that the results targeted by these forward-looking statements will be achieved. The Group is also under no obligation to update these forward-looking statements or the historical information included in this AIR. REPORTING SCOPE AND BOUNDARIES This AIR contains information on the value-creating activities that are material to the Group. Hence, the report has been confined to developments throughout FY2019, from 1 January 2019 to 31 December 2019. Unless otherwise stated, it covers all of FGV Holdings Berhad’s businesses in Malaysia and the other countries we operate in. This includes operations over which we have full control, subsidiaries and joint ventures. We also report on other developments or information that may transcend our reporting boundaries but are considered highly material to the Group’s performance. This AIR reports on a like-for-like basis without any major restatements. We have also embedded our sustainability disclosures throughout this AIR to demonstrate how they support value creation and how important sustainability is to the Group. Further, this report includes all risks and opportunities material to our sustainability but does not estimate or forecast future impacts of our sustainability- related material matters. This is FGV’s Annual Integrated Report (AIR) for the year ended 31 December 2019 (FY2019), which is FGV’s 5 th AIR. It is a culmination of our efforts to prioritise transparency and accountability in continuing to create sustainable value for our stakeholders. ABOUT THIS REPORT This report reflects the integrated approach we take in operating our business. The Six Capitals, as identified by the International Integrated Reporting Council (IIRC), have served as essential guides to help us achieve our strategic objectives. The capitals represent stores of value and each of them—Financial Capital, Natural Capital, Manufactured Capital, Intellectual Capital, Human Capital and Social & Relationship Capital—is important in how it impacts our business. By reporting in terms of the Six Capitals, our stakeholders will be better informed and have a broader view of how the business strives to create net positive value. This approach also allows for more concise reporting and frames topics in the context of value creation over time. To produce this report, we have followed the IIRC Framework and adhered to local reporting requirements, i.e. the Malaysian Code on Corporate Governance 2017 (MCCG 2017) and the Main Market Listing Requirements (Listing Requirements) of Bursa Malaysia Securities Berhad (Bursa Securities). We have also strived to achieve Global Reporting Initiative Standards benchmarks on sustainability reporting. OUR REPORTING SUITE FGV’s 2019 reporting suite comprises the following: www.fgvholdings.com Annual Integrated Report 2019 Audited Financial Statements 2019 Sustainability Report 2018/2019 OUR ORGANISATION