Shaped By High Standards Of Governance 158 FGV HOLDINGS BERHAD Integrity in Corporate Reporting and Meaningful Relationship with Stakeholders Principle C: • In 2022, FGV received batches of migrant workers, which reduced the labour shortage to 13% from 32% recorded the year before. In total, FGV plantation workforce increased to 29,929 workers and we target to achieve optimal worker strength in 2023. We will expand our recruitment hubs and continuously improve living standards for our plantation workers. • FGV revised and strengthened the Guidelines and Procedures for Responsible Recruitment and Employment of Migrant Workers to align with international standards, and ensure the application of No Recruitment Fees policy. • FGV actively engaged with the government for updates on the opening of foreign recruitment to fill the gap. • FGV mobilised of general workers to cover the shortage of harvesters and promoted the 3R Programme (Recruit, Retain, Repatriate) for new and existing workers. • We also continued to intensify our recruitment efforts through due diligence assessments on recruitment agencies to evaluate on their commitment to labour and human rights. Our response Prolonged Labour Shortage WRO issued by the US CBP • FGV appointed an ELEVATE to conduct an independent assessment of FGV’s operations against the 11 ILO Indicators of Forced Labour. • We continuously engaged with the US CBP to provide updates and development on our initiatives to improve labour practices. • In 2022, ELEVATE has completed its onsite assessments, which comprised of unannounced visits and audits of 25 estates and three mills across FGV’s operations in Malaysia. Based on the outcome of ELEVATE’s assessment, FGV is currently implementing a remediation plan and anticipate submitting the final report to the US CBP soon. RSPO Certification • As of the end of 2022, 30 out of FGV’s 67 mills and its supply base have been RSPO-certified, while the rest of the uncertified mills have undergone and completed all required preparation and are ready to commence the certification audit. • We are currently working to recertify the Serting Mill and continue to ensure that 100% of our mills are RSPO-certified. Fair Labor Association (FLA) • Following the second year of FGV’s affiliation, the FLA conducted an Independent External Assessment (IEA) between November 2021 and January 2022, which involved a review of FGV’s management systems and field operations. • The assessment was based on the FLA’s Workplace Code of Conduct (WCOC), which is derived from international labour standards and global labour practices. In total, the FLA assessed nine sites comprising of three mills and six estates and the FLA did not identify non-compliances to the FLA forced labour benchmarks and found no evidence of child labour. • The IEA report also indicated that FGV made progress in its Top Management’s commitment, policy alignment with international and national standards, and engagement with civil society organisations, particularly at the headquarters level. Our response Sustainability Issues • Bursa Securities granted FGV a third six-month extension until 3 August 2022 for the Company to comply with the Public Shareholding Spread Requirement. • FGV submitted an application to Bursa Securities to apply for a further extension of time for FGV to comply with the Public Shareholding Spread Requirement. FGV would evaluate and explore a corporate exercise entailing the issuance of new Islamic Preference Shares in FGV as part of the rectification plan for FGV to comply with the Public Shareholdings Spread Requirement. • Bursa Securities granted FGV a further six months until 2 September 2023 to comply with the Public Shareholding Spread Requirement. Compliance with the Listing Requirements on Public Shareholding Spread Our response
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