FGV Annual Report 2015

18 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 How We Manage Our Capitals FGV seeks to operate and grow inclusively, responsibly and sustainably. The strategic decisions we make in allocating resources to run our business and advance our growth projects are based on integrated criteria (the six capitals). These criteria take cognisance of the resources and the relationships we depend on to create sustainable value for our Shareholders and, in turn, our Stakeholders. 1 Natural capital Our value proposition requires that we secure sufficient FFB, sugar and rubber as well as water, land and energy. These natural capital inputs are critical to our ability to operate and are assessed when allocating capital and considering/ weighing potential investment opportunities. More on this can be found on page 42 under Palm Upstream Cluster P. 42 2 Human capital The skills, experience, productivity, diversity and excellence of our people are what enable us to operate our facilities safely, reliably and efficiently, and to deliver our growth projects on time and within budget. In making our investment decisions, we assess whether we have the necessary skills in place, and whether we are able to secure additional specialised and local skills, if needed, to deliver on our objectives. More on this can be found on page 21 under GSB, pages 154 to 157 under The ESG Journey P. 21 P. 154 3 Social capital Developing and enhancing markets for our products and maintaining quality relationships with all our Stakeholders, particularly our business partners, suppliers, customers, employees, regulatory authorities, governments and local communities. These are fundamental to creating, sustaining and enabling an environment for investment. We assess the strength of these markets and relationships, when evaluating investment opportunities. More on this can be found on page 151 under The ESG Journey P. 151 4 Intellectual capital Our intellectual capital inputs include all our knowledge-based assets such as our Research & Development, technology patents, copyrights, software, licences, procedures and protocols. As a key competitive advantage that underpins our international growth ambitions, we assess the extent to which our proprietary or licensed technologies, in combination with our expertise, provide sufficient advantage to generate the returns on investment we seek. More on this can be found on page 60 under R&D and Agri-Services Cluster P. 60 5 Manufactured capital Our ongoing capital investment in our plants and equipment enables us to operate these assets safely and reliably for an extended period of time. We assess whether we have sufficient financial capital to maintain and enhance our existing assets, while also investing in our growth projects around the world. More on this can be found on page 48 under Palm Downstream Cluster & page 56 on Sugar Cluster P. 48 P. 56 6 Financial capital Our financial capital inputs are used to run our business and fund our growth projects. Sources of financial capital include debt and equity financing as well as cash generated by our operations and investments. The extent to which we can efficiently leverage our financial strength, or are able to raise the necessary capital at the best possible rates, is one of the key considerations in making investments to sustain and grow our business. More on this can be found on page 169 under CFO Statement P. 169