FGV Annual Report 2015

36 Felda Global Ventures Holdings Berhad Annual Integrated Report 2015 Dear Stakeholders, At the root of attaining sustainable development for the future, there is a crucial need for us to empower our employees and Stakeholders at every level and process, because value creation is a continuous process that is shared by us all. In an effort to capture the many facets of creating sustainable value, the Board and I are pleased to declare that this is the year we move into integrated reporting. With our intent to move toward a more transparent manner of governance, we initiate our first Annual Integrated Report (AIR) which suitably encapsulates the way we are weaving integrated thinking into everything we do. With our eye on being a global sustainable agri-business powerhouse by 2020, our reporting must also reflect the improvements we are effecting internally. An AIR will serve to underscore and reinforce the way we are using transparency and integrated thinking to dictate the decisions and actions we take. We are aware that the performance and success of our Company does not solely rest with financial or economic outcomes. Rather, non- financial attributes like social, environmental markers and governance are also a big part of what constitutes success. This mentality underlines the sustainability efforts within and we hope to use integrated reporting as an effective tool to represent this. As a business, our natural, financial, manufactured, human, network and intellectual capital are intricately interconnected and dependent. It is thus critical that we use integrated reporting to capture these relationships more effectively, and to reflect the way we use these assets to enhance value for our respective Stakeholders. We hope that our venture into integrated reporting will break through the existing boundaries of conventional reporting. Done right, we will create a report that gives Stakeholders a balanced and holistic view of our Company’s financial, social, economic and environmental performance. Where traditional annual reports give specific focus to the year under review, we endeavour to broaden this scope and give you a 360˚ vantage point of our Company. The AIR will report on the aspects that affected the Company in 2015, and are likely to do so in the short, medium and long term from both an internal and external perspective. An integrated approach will guide our Stakeholders to further understand the interconnectivity of each part of our comprehensive value chain. The Board and I believe that integrated thinking is a critical management tool especially in the challenging times we are presently facing. The year 2015 was a tough year for most in the commodity sector. We are not immune to these headwinds, but our Company remains resilient thanks to the transformative efforts put in place in previous years. Upstream palm plantations is a crucial part of our business, and this sector has been subject to the volatile nature of crude palm oil prices. 2015 presented the weakest Crude Palm Oil (CPO) prices yet since the end of the commodity boom back in 2012. Chairman’s Statement YB Tan Sri Haji Mohd Isa Dato’ Haji Abdul Samad Chairman As we expand our business locally and internationally, we remain committed to being a more competitive and sustainable entity. We will continue empowering sustainable value to each Stakeholder across our value chain.