6 FGV HOLDINGS BERHAD ABOUT FGV VALUE CREATION As PRIDE also encapsulates prioritising the safety and wellbeing of our employees, a host of new measures were introduced during the ongoing pandemic to escalate safety protocols at the workplace and ensure all employees received the vaccination shots during the year. I am proud to report that as at 21 March 2022, 98% of FGV’s employees are fully vaccinated. ESCALATING SUSTAINABILITY COMMITMENTS FGV intends to change the narrative for Malaysian palm oil by taking a holistic view and approach towards sustainability, and ensure that Environmental, Social and Governance (ESG) considerations continue to take the centre stage in all our undertakings. This is key to advocating the sustainable benefits of palm oil at a global level, and helping the industry gain international acceptance and support as the way forward to meet the needs of a growing world population. It must also be mentioned that our dedicated efforts to inculcate a more proactive and responsible culture within the Group have led to improvements in our SPOTT rankings. FGV has risen to 19th position from 23rd, which shows improved transparency in disclosures related to ESG issues. The main priority for FGV’s sustainability drive in 2021 was the lifting of the Roundtable on Sustainable Palm Oil (RSPO) certification suspension and the United States (US) Customs and Border Protection (CBP) Withhold Release Order (WRO). An independent assessor has been appointed to assess our operations against forced labour and provide feedback and guidance to FGV in managing the issue. Strengthening oversight on the Group’s Sustainability Policy, a Board Sustainability Committee (BSC) was established in September 2021, chaired by myself, and comprises four other members of the Board. A key highlight for the BSC during the year was the emphasis on FGV’s commitment in reducing climate emission to 1.5°C towards becoming a net-zero business by 2050, as part of FGV’s formal pledge to the Business Ambition for 1.5°C campaign, led by Science-Based Target initiative (SBTi) in partnership with the United Nations (UN) Global Compact. In living up to this commitment, we launched an inaugural climate awareness and education campaign called SMART4Climate. It kicked off on 8 October 2021 with a national essay writing competition titled ‘Write4Climate’, organised in collaboration with the Ministry of Environment and Water. The competition was open to secondary school students aged 13 to 17 and members of the public aged 18 and above, aiming to advocate climate change awareness among young Malaysians. Participants were free to choose a topic relevant to the theme ‘Malaysia’s Role in Keeping the World Below 1.5°C’ and submit essays in English or Bahasa Malaysia. The event attracted over 170 participants and we trust that the act of writing about such a critical issue will empower them to become catalysts of change in contributing to the national climate agenda. FGV’s Chairman Address 2021 Making Dynamic and Responsible Strides I believe that concerted action through participation helps change mindsets, thus recommended our Group Strategic Communications Division to organise a Pertandingan Inovasi & Rekacipta for all FGV employees late last year. The competition calls for video entries on how to implement innovation at the workplace environment towards enjoying time and cost saving, while improving productivity. 21 videos have been received and the winners have been announced in our internal bulletin, CASSIA. Towards the end of the year, as devastating floods swept across Malaysia, FGV also reached out to ease the burdens of hundreds of flood victims through contributions in cash and kind. We are grateful that our business zakat contributions through the FGV Welfare Fund allowed us to provide meaningful assistance to communities in their time of need. In total, we contributed around RM15 million for Corporate Social Responsibility (CSR) related activities that benefitted underprivileged individuals, 200 asnaf, 300 flood victims, and for flood relief efforts and upliftment of FELDA regions. Please refer to Sustainability Report for more details. EMBEDDING GOVERNANCE During the year, we ensured that our governance and risk management were constantly reviewed and kept updated to ensure prudent oversight. Focus was directed towards maintaining and enhancing the Group’s Anti-Bribery Management System (ABMS) in compliance to Section 17A of the MACC Act. As we had new members during the year, the Board underwent a mandatory awareness programme for on-boarding on governance and integrity, with specific emphasis on Corporate Liability. An assurance of our commitment was made through an Integrity Pledge. Following suit, 100% of FGV employees had also renewed their Integrity Pledge online in 2021. For employees, a continuous series of awareness sessions were carried out in 2021 across multiple sites of all Sectors, including FGV’s international subsidiaries. In addition, sessions on corruption risks awareness was carried out for FGV’s local and international companies and corporate centres. Further details on FGV’s Governance and Risk Management Initiatives can be found in the Corporate Governance Overview Statement on page 103 and Statement on Risk Management and Internal Controls on page 140. ECONOMIC OUTLOOK AND PROSPECTS FOR 2022 After a challenging year hampered by labour shortages, prolonged pandemic-related operational disruption, and RSPO certification suspensions, 2022 brings optimism for resolutions as well as steadfast growth on Malaysia’s Gross Domestic Product, forecasted to grow to 6% from 3.5% in 20211. MANAGEMENT DISCUSSION & ANALYSIS 1 Source: IMF World Economic Outlook (October 2021)
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