FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 67 REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT ENVIRONMENT STEWARDSHIP BIODIVERSITY AND CONSERVATION OF HCV ELEMENTS As a concerned corporate citizen, FGV is serious in our effort towards the preservation of HCV elements. FGV is committed to not undertake any new developments in primary forests, on land containing one or more HCVs that includes peatland and biodiversity areas. As we do have oil palm plantations which are typically located on the fringe of these areas, we take special care to ensure that due protection is given to protect the biodiversity of the area to preserve cultural heritage and customary use of the land. The identification and management of wildlife are equally important in our path towards sustainability. A recent HCV assessment we commissioned has indicated the presence of a variety of flora and fauna around our operational areas. This includes the Rafflesia spp , the largest floral species in the world, and the Malayan Sun Bear. Both species are listed on the International Union for Conversation of Nature (IUCN) Red List of threatened species. In addition to mitigate the impact of our presence near their natural habitat, we are also formally committed to the research and conservation of both species. PARTNERSHIP WITH BORNEO CONSERVATION TRUST (BCT) & SABAH WILDLIFE DEPARTMENT (SWD) ON SABAH MEGA BIODIVERSITY PROJECT We have strengthened our involvement in conservation programmes at the Kinabatangan, Sabah with five (5) years commitment with BCT and SWD in the Mega Biodiversity Corridor programme. The Kinabatangan area is one of the mega-biodiverse areas in the world, but at least 300 Bornean elephants here are at risk due to the limitation of suitable habitat and human-elephant conflict. The objective of the programme is to re-establish a network of forest corridors that will enable safe migration of wildlife between key forest habitats, avoid human-wildlife conflict and protect wildlife habitat, especially for the Bornean elephants and orang-utans along Kg. Batu Putih to Kg. Bilit, the hotspot area along FGV is committed to the implementation of business practices and initiatives that reduce our environmental impact where possible. Our commitment goes beyond our direct impact to cover the potential impact of our value chain, including our suppliers, vendors and other associated entities. The Group's environmental initiatives are also directed at mitigating or managing environmental risks and opportunities that pertain directly to our operations. A heard of Borneon Pygmy elephants (Elepas Maximus Borneensis) moving along the Kinabatangan river area in Sabah.