FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 124 HOW WE ARE GOVERNED 3. Sustainability a. Received quarterly updates on sustainability. b. Received progress updates on RSPO certification. c. Reviewed the Group Sustainability Policy. Further details on the sustainability updates presented to the Board Governance & Risk Management Committee are provided in the Sustainability Statement on page 60 of this Annual Integrated Report 2016. 4. Reviewed statements included in the Company's Annual Integrated Report 2015 Reviewed the Report on the Board Governance & Risk Management Committee, the Statement on Risk Management and Internal Control and the Statement on Corporate Governance to be included in the Company's Annual Integrated Report 2015 and recommended the same to theBoard for approval. TheStatement onRiskManagement and Internal Control was reviewed reflecting on the reports of the external and internal auditors on the risks and control environment of the Group and related matters that have been brought to the BoardGovernance & RiskManagement Committee and the Board during the related financial year. MATTERS CONSIDERED BY THE BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE The Board Governance & Risk Management Committee Chairman updated the Board on matters deemed to be of major importance deliberated at the Board Governance & Risk Management Committee meetings and its recommendations. The copies of confirmed minutes of each of the Board Governance & Risk Management Committee meeting were also circulated to the Board for noting at the next practicable Board Meeting. Amongst the significant matters considered by the Board Governance & Risk Management Committee during the year 2016: PERFORMANCE REVIEW On an annual basis, the Board shall evaluate the Board Governance & Risk Management Committee's performance and extent to which the Board Governance & Risk Management Committee has met the requirements of its Terms of Reference, including the term of office and performance of the Board Governance & Risk Management Committee and each of its members. This performance assessment may constitute a part of the annual Board effectiveness assessment, pertaining to the assessment of Board Committees. This Report is made in accordance with a resolution of the Board of Directors and approved at the Board Meeting dated 29 March 2017. Significant matters How these matters were addressed by the Board Governance & RiskManagement Committee Roundtable on Sustainable Palm Oil (RSPO) certification • Considered the impact of FGV's withdrawal from RSPO certification on FGV Group's reputation and image. • Endorsed management proposal for separate RSPO membership for FGV. Revised Risk Management Framework • Deliberated on recommendations to enhance the Group’s Risk Management Framework to instil a stronger risk culture. • Considered a two-year implementation roadmap with initiatives to inculcate a more robust risk framework, controls and processes. CORPORATE GOVERNANCE STATEMENT