FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 60 REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT OUR COMMITMENT AND APPROACH TONE FROM THE TOP In 2016, the BGRMC Chairman, at the Management's recommendation, had recommended to the Board the establishment of the SED. Pursuant to the decision, in May 2016, the company has increased its commitment to sustainability by transforming its sustainability unit into a full fledged department in the Corporate Centre. The SED comes under the purview of the Chief International Business Officer who manages sustainability issues at Group level. The Department's main functions include: • Developing, implementing and monitoring environmental strategies, policies and programmes that promote sustainable development for FGV. • Review the business operations, carry out environmental audits and assessments, identify and resolve environmental problems and ensure the necessary changes are implemented, to enable FGV maintain its licence to operate and drive business growth. • Conducting Stakeholder engagement and reporting of environmental performance to internal and external Stakeholders Whilst all matters related to sustainability is handled by the SED, specific issues identified or reported by any Stakeholder will be dealt through Sustainability Response Team (SRT). The progress in attending to these issues at the SRT will be discussed at the Executive Committee meetings on quarterly basis and escalated to the BGRMC which reports directly to the FGV Board. The BGRMC Chairman receives quarterly updates from SED on sustainability matters mainly in the progress of the RSPO Certification and escalates to the Board to fulfill part of the Board's role in reviewing the adequacy and integrity of the Group's internal control systems and compliance with applicable laws and regulations. REPORTING STRUCTURE OF SUSTAINABILITYMATTERS BOARD GOVERNANCE RISK MANAGEMENT COMMITTEE GROUP PRESIDENT/CHIEF EXECUTIVE OFFICER INTERNATIONAL BUSINESS DIVISION SUSTAINABILITY & ENVIRONMENT DEPARTMENT SUSTAINABILITY ENGAGEMENTS UNIT SUSTAINABILITY TECHNICAL UNIT CERTIFICATION & DUE DILIGENCE UNIT SUSTAINABILITY REGULATIONS UNIT LABOUR & SOCIAL COMPLIANCE UNIT •Stakeholders management •Devise communication plan relating to sustainability management and programmes •Establish methodology to measure, monitor & improve the sustainability performance in key areas •Data compilation and sustainability reporting •Liaison with external parties (smallholders, Non Governmental Organisations) for sustainability programmes •Participate in environmental education & research •Manage all sustainability matters to ensure compliance with relevant standards and comply with both international & local requirements •Manage RSPO auditing & certification of all complexes in FGV •Supports FELDA settlers in preparing for certification audits •Conduct roadshows to promote benefits of RSPO to smallholders •Ensure all RSPO Principle & Criteria are in compliance with the applicable laws & regulations •Monitor issues related to free, prior and informed consent for the use of land for oil palm •Monitor and advise on sustainability issues related to estate workers and social compliance •Prepare and monitor the implementation of action plans related to labour issues