FGV Annual Report 2016

FELDA GLOBAL VENTURES HOLDINGS BERHAD 74 REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT SOCIAL STAKEHOLDER ENGAGEMENT We believe that the contribution and support of our Stakeholders are pivotal for us to achieve our sustainability goals and targets. Stakeholder engagement is recognised as an integral aspect of our sustainability strategy for continued progress towards realising our sustainability vision. We continuously engage our Stakeholders at various platforms to understand their concerns. This ensures proactive communications, both formal and informal, with Stakeholders across the entire value chain, including the government, investors, customers, suppliers, and NGO for better decision making. By actively engaging our Stakeholders, we are able to identify risks and opportunities in the way we do business. Through this process, a transparent and trustworthy relationship is forged. Given that FGV's sustainability engagement is paramount, we have been intensifying our engagement with Stakeholders, especially NGOs and customers to brief them on our various sustainability initiatives and to explain how we are addressing material sustainability concerns raised by them. We also adopt communications using different mediums such as social media, which appears to be very effective, reaching out to FGV internally as well as externally. We have issued frequent updates on the progress of our sustainability initiatives and issues to our business partners through our GP/CEO's Letter to Business Partners which we also upload on our company website. We collaborate with a few of our major customers to drive change on the ground, while enabling long-term growth for the industry and community. Independent smallholders outside FELDA schemes are brought into sustainability practices by constantly engaging with external parties such as our JV partner - P&G, smallholder organisations, NGOs, private plantation companies and governmental agencies through a series of awareness campaigns and outreach programmes in Malaysia. In December 2016, FGV and FELDA had organised a workshop on labour issues that currently prevail in the palm oil industry. The focused issues include: i. Prohibition of fees charged to foreign guest workers by contractors and labour suppliers (labour recruiters) in their home countries ii. Prohibition of employers and contractors keeping foreign guest workers' identity documents/passports iii. Children at workplace The workshop was held to provide a platform for industry and concerned groups to discuss and share views on the aforementioned issues in an open forum. The team effort consisted of Government bodies - Malayan Agricultural Producers Association (MAPA), Labour Department Malaysia (JTKSM) and Malaysian Palm Oil Association (MPOA) Secretariat, RSPO, Growers - FGV & FELDA (host), Sime Darby, KLK, WILMAR, Cargill, P&G and IOI, NGO - Tenaganita and Business Partners - P&G and The Forest Trust (TFT). The participation of many Stakeholders resulted in the formulation of possible ideas and resolutions to mitigate/address some of the pressing issues within the industry. Moving forward, FGV will work with several parties to refine the resolutions which will then be issued to the participants for further comments. There is still much to be done to enhance the image of the oil palm industry, and we intend to collaborate further with all parties in similar workshops and forums. RESPECTING HUMAN RIGHTS FGV is committed to adhering to human rights frameworks defined in the UDHR and the ILO's Core Conventions to ensure that working conditions are non-exploitative. The Group's respect and commitment to fundamental human rights are embodied in our Group values, Code of Business Conduct and Ethics for Employees and Directors, Group Sustainability Policy and the Group's Discretionary Authority Limit. The Group Sustainability Policy, the details of which are elaborated on page 62 of this statement applies to all our employees, directors and all parties involved in any business dealings with FGV Group. FGV has implemented, through the Code of Business Conduct and Ethics for Employees and Directors and Group Sustainability Policy, provisions for equal opportunity and prohibition of underage workers and will continue to champion the guidelines on human trafficking and forced labour exploitation, sexual harassment and violence. Within the Code of Business Conduct and Ethics for Employees and Directors, employees are allowed to form and join trade unions to bargain for their needs collectively. FGV is aware of its responsibility to protect the rights of all employees and will continue to actively engage its employees to ensure that their needs such as wages, shelter and access to services are met, and to create a harmonious and prosperous working environment. FGV is dedicated to uphold the ILO and relevant child protection laws and regulations in each country in which the Group conducts business activities and/or transactions as well as support other international and local treaties which demand that children receive protection against any forms of abuse and exploitation. The Group businesses shall ensure that all business partners observe the need to comply with the relevant child labour laws and all FGV Group's suppliers and subcontractors are prohibited from hiring employees who are under the minimum legal age. FGV has engaged TFT, an organisation with extensive knowledge and experience working with marginalised groups, to conduct the 'Support for Transformation' initiative in four (4) selected sites of FGVPM, FELDA and FTPSB and focus on five (5) areas affecting foreign guest workers in oil palm plantations. The initiative aims to identify gaps between policy and implementation and recommend specific action plans to address