FGV Annual Integrated Report 2019

80 FGV HOLDINGS BERHAD MANAGEMENT DISCUSSION & ANALYSIS STATEMENTS AND ANALYSIS CONTINUOUS ENHANCEMENT OF SUSTAINABILITY INITIATIVES To enhance personnel skill and knowledge, the Sustainability Division participated in a number of training and awareness programmes carried out internally and externally. Team members participated in International Sustainability Carbon Certification training in Jakarta, as well as in the MSPO and RSPO Principles and Criteria Calibration Workshop. We have established a Sustainability Synergy Committee comprising the heads or representatives of the various sectors and divisions within FGV Group to embed sustainability principles and practices throughout FGV, as well as to ensure effective implementation across the board. Our commitment to sustainability extends to our supply chain and as such FGV has adopted a Supplier Code of Conduct (SCOC), outlining the principles and standards relating to sustainability; business ethics and integrity; safety, health and environment; and human rights and labour, among other things. With the SCOC, any supplier or contractor wishing to enter into a business partnership with FGV is required to commit to and apply the stipulated principles and standards. Thus, to ensure a smooth transition into the enhancements we have made to our various sustainability-related polices, FGV is in the process of conducting a socialisation programme. This will involve engagement sessions with various stakeholders, including suppliers and contractors, to raise awareness about the revised GSP, the SCOC, the Guidelines and Procedures for Responsible Recruitment of Foreign Workers and other relevant codes and procedures. These sessions will also be used to convey our expectations for compliance with the principles and standards. The socialisation programme, which started in July 2019, is expected to be completed by June 2020. FGV ’ s sustainability initiatives and our progress can be found in the FGV Sustainability Report 2018/2019, which is available on our website at www.fgvholdings.com TRACEABILITY The Group has taken steps to identify and trace the source of palm products from our external sources in order to mitigate any risk associated with the source. We are now 100% traceable to our mills. This is essential to ensure that FFB sourced by FGV is not linked to deforestation, planting on peat or open burning, which will breach FGV’s GSP and the No Deforestation, No Peat, No Exploitation (NDPE) commitment. By the end of 2019, we managed to trace 80% of FFB to our plantations. We also identified our top dealers and approached them to communicate our GSP and NDPE commitments as well as to measure their sustainability risk levels using the Global Forest Watch Pro (GFW Pro) platform. This platform is an open-source web application to monitor global forests in near real-time. It measures global deforestation rates and is able to detect illegal land-clearing activities encroaching into protected areas. Our target is to assess 100% of our suppliers’ sustainability risks by 2021. To help our customers trace their source of purchases, we also created the FGV-Top platform to enable them to find out details of the mills such as their certification, geo-location and production per month. BRIDGING THE GAP FGV’s Chairman, Datuk Wira Azhar Abdul Hamid, continues to actively participate in supporting the Group’s progress by going on the ground to visit various operating units and accompanying Senior Management during their investor activities. In 2019, the Chairman visited our subsidiary, Asian Plantations Limited, and also got a first-hand look at some of our newest agricultural initiatives. Beyond this, the Chairman held a town hall session to assure the employees that the Board remains committed to transforming FGV into a top-performing company. Board Visits: • Board Visit to Model Mill Kilang Sawit Besout, Perak • Board Visit to Model Estate Ladang Tembangau 06, Pahang • Board Visit to FGV operations in Johor – FGV Johor Bulkers Sdn. Bhd., FGV Transport Services Sdn. Bhd., Pasir Gudang Depot, Delima Oil Products Sdn. Bhd., MSM Malaysia Holdings Berhad – MSM Sugar Refinery (Johor) Sdn. Bhd. and FGV Fertiliser Sdn. Bhd.