FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 63 REPORTING ON WHAT MATTERS The following activities were undertaken in 2016 by the SED Summary of SED activities in 2016 Certification and Due Diligence • Certified 58 mill complexes as of April 2016 prior to FGV's voluntary withdrawal of RSPO certifications • Five (5) mills are ISCC certified in 2016 • Three (3) MSPO certifications • Tree Planting event with Sabah Forestry Department in Sahabat 54 • Heart Of Borneo Conference and Memorandum of Agreement (MoA) signing ceremony with Sabah Forestry Department in Kota Kinabalu • Obtained separate FGV RSPO membership • Conducted Smallholder Forum on Sustainability - Ke Arah Menghadapi Cabaran Global • Series of sustainability awareness to Joint Consultative Committee and smallholders • RSPO public consultation to Stakeholder in Kalabakan, Kechau and Lepar Utara • Biodiversity, High Conservation Value Emission Reduction working groups • Stakeholder meeting with Tanjung Sosor community regarding HCV clearance in PT Citra Niaga Perkasa (PT CNP) • Stakeholder meeting with government agency, DOE and Wildlife Department • Stakeholders community meeting with Begahak Community in Sabah • Post HCV and Social Impact Assessment (SIA) assessment for Yapidmas (Golden Land) • Environment Impact Assessment (EIA) for new development in Pahang • New Planting Procedure (NPP) assessment for new development in Pahang • SIA and HCV internal assessment in FGV Plantation Malaysia Sdn Bhd (FGVPM) • Internal biodiversity assessment for FGVPM estate in Peninsular Sustainability Regulation • Facilitated the execution of FGV-TFT action plan in relation to social issues improvement project • Monitor and provided advice on FPIC issues for the use of land for oil palm • Liaison with external parties as to facilitate the implementation of the human rights frameworks defined in the UDHR and the ILO's Core Conventions to ensure that the working conditions in FGV are non-exploitative Sustainability Technical • Study on stream water quality in oil palm growing regions in FELDA • Collaborated in JV research with University of Technology Malaysia (UTM) on mill sustainability index and water footprint study • Developing four (4) new procedures on zero burning, peat management and HCV management • Rehabilitated & released 10 sun bears back into the wild through Sun Bear Conservation Programme (SBCP) • Established four (4) Citizen Action Groups (CAG) to engage local communities in managing environment/HCV elements better • Ground-breaking ceremony of the Rafflesia Research Conservation & Interpretation Centre (RCIC) • Published FGV's Second Sustainability Report in December 2016 Sustainability Engagement • Organised the Labour Issue Workshop on Oil Palm Plantation in December 2016 which was participated by various key industry players, NGOs and government organisations • Engaged with customers during RT14 Annual Event at Bangkok, Thailand in November • Participated in Procter & Gamble (P&G)'s Palm External Advisory Programme • Organised briefings and site visits for our customers, business partners and foreign embassies Labour Compliance • Installed 1,150 safety boxes for passport keeping project in five (5) estates • Translated employment contract into five (5) different languages Further supporting our sustainability disclosure is the publication of our second Sustainability Report produced in 2016 which provides detailed and comprehensive information about our sustainability performance indicators and our initiatives. The Sustainability Report, that covered two-year period, is available online at http://www.feldaglobal.com/sustainability/overview/. SUSTAINABILITY STATEMENT OUR COMMITMENT AND APPROACH

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