30 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Linking Material Matters to Risks and Strategy Material Matters What It Means to FGV Link to Key Risks How We Responded in 2021 Upholding Human Rights & Labour Standards Respecting and protecting human rights of our workforce by ensuring fair treatment and upholding established international labour standards Labour Risk Pandemic Risk Sustainability Risk • Enhance stakeholder engagement by developing an effective and efficient Communication Plan • Strengthen responsible recruitment and management of migrant workers by revising contracts with recruitment agencies Operational Excellence Improvement of production yield and enhancement of operational, leveraging on innovation, Research & Development (R&D) as well as the sustainable environmental and climate conscious policies and practices without compromising human rights & labour standards Trading & Market Risk Labour Risk Sustainability Risk Cyber Security Risk • Collaborate with other R&D institutions/ agriculture companies to hasten R&D outcomes for more resistant planting material • Strengthen implementation of Good Agriculture Practice (GAP) and Moisture Conservation Practices during replanting activities Sustainability Certification Compliance with recognised sustainability standards such as the Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria and Malaysian Sustainable Palm Oil (MSPO) Certification Scheme for purposes of certification and alignment of practices with the most widely accepted sustainability standards for the palm oil industry Sustainability Risk Trading & Market Risk International Trade Risk • Strengthen traceability information, aiming for 100% traceability to plantations Governance, Ethics & Integrity Compliance with regulatory requirements and good corporate governance principles Corruption Risk • Enhance the Group’s governance by instituting comprehensive and more stringent policies and procedures across the Group • Promote high integrity work culture Occupational Health & Safety Initiatives to ensure a safe and healthy working environment to our workforce and external stakeholders such as suppliers, vendors and service providers Regulatory Risk Health & Safety Risk • Reduce rate of occupational accidents and diseases by adopting Government’s Occupational Safety and Health Master Plan 2020 • Provide effective communication on health and safety procedures • Conduct Health and Safety Audits such as Work Performance Information and Management System Audits Climate Action Initiatives to mitigate and adapt to the adverse impacts of climate change to business operations, and implementing best climate governance measures to ensure business continuity Weather & Climate Risk • Pledge to reduce Greenhouse Gas (GHG) emissions by 45% by 2030 through GHG Inventory • Conduct Energy Audits through analysing energy patterns and utilisation rate Traceability, Responsible Sourcing & Supply Chain Management Establishment of traceability system and procurement process to ensure responsible and sustainable practices in palm oil value chain Trading & Market Risk Sustainability Risk Cyber Security Risk • Improve efficient supply chain management, aiming at reducing operating costs • Strategic sourcing with better negotiated transactions and improved internal processes Further details of the Group’s key risks (indicated with red icon), can be found in the Statement on Risk Management and Internal Control on pages 141 and 142.
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