FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 75 REPORTING ON WHAT MATTERS five (5) core issues, namely forced bonded labour, ethical recruitment, employment contract, minimum wage and safety & health which issues were highlighted by the Wall Street Journal (WSJ) on 26 July 2015. The WSJ report had prompted RSPO to appoint Accreditation Services International (ASI) to conduct an assessment on the allegation claims. To ascertain the claims, FGV has engaged with Wild Asia (WA) to carry on a verification assessment on the allegation on both WSJ and ASI findings. Both findings are publicly available on FGV website. The partnership with TFT has enabled us to identify gaps in our current policy commitment and practices specifically in five (5) focus areas and undertake specific, measurable and time-bound action plan to remedy the situations in the following four (4) specific areas in accordance with the United Nations (UN) Guiding Principles on Business & Human Rights and applicable laws & standards: • Institutional strengthening and leadership • Policy commitment • Due diligence • Supplier, community and external Stakeholders' engagement RESPONSIBLE EMPLOYMENT The Group prohibits any individual under the legal age to be employed in accordance with prevailing legislation in jurisdictions in which FGV operates. As of 31 December 2016, we are proud to report that we do not employ any under-aged workers with 100%* of our directly employed estate workers aged 18 years and above. FGV also firmly supports the provision of equal opportunity to all and ensure that all employees and applicants for employment receive fair treatment, and not be discriminated against based on race, nationality, religion, disability, gender, age, sexual orientation, union membership or political affiliation. FGV adhered to the Guidelines on Human Trafficking and Forced Labour Exploitation as well as the Declaration on Fundamental Principles and Rights at Work by the ILO. The Group does not support the employment or use of forced or bonded labour in connection with our activities, and does not knowingly collaborate with agencies, suppliers or contractors involved in human trafficking. Additionally, FGV's labour policy is based by national labour act that sets the industry standard on minimum wage, and is regulated by Ministry of Human Resources. The labours also enjoys the benefits of insurance coverage. FGV has a stringent zero-tolerance policy towards social and human rights issues in the workplace, and as for fair remuneration and benefits its has been agreed through Collective Bargaining Agreement (CBA). To ensure an inclusive, sustainable and comprehensive transformation of the company in the areas of social and human rights aspects, we have proposed a specific and time-bound plan of action which will address the four (4) core human rights aspects. Participants of the Labour Issues Workshop organised by FGV-FELDA. SUSTAINABILITY STATEMENT SOCIAL * This data point has been independently audited. Please refer to our Independent Assurance Report on pages 355-356.