FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD CREATING VALUE 18 STRATEGIC INTENT MATERIAL MATTERS SUSTAINABLE DEVELOPMENT GOALS (SDG) RISKS Best-in-Class Operations We aim to establish a sustainable future for our Stakeholders by focusing on our core businesses and utilising our key assets efficiently. Yield Improvement • Erratic weather conditions disrupting the growth of palm oil fruits • Ageing oil palm profile affecting overall palm oil yield • Shortage of foreign guest workers to work in the estates • High dependency on human skills for operational activities • Shrinking market share locally and globally Strong Financial Management We endeavour to create a strong financial environment that is resilient to internal and external challenges through prudent and optimised measures to maximise Stakeholders return. Economic Performance • Fluctuation of local and international commodity prices affecting prices of FFB, CPO and other palm oil based products • Volatility of raw sugar price • Volatile foreign exchange movements • Escalating operational costs Well-Entrenched Governance and Ethics We strive to build a solid foundation for our business through good governance and ethical practices. Governance, Ethics and Integrity • Adverse reputational impact arising from perceived weakness in internal governance • Potential loss arising from inadequate internal controls Effective Communications • Distorted market perception related to past unsuccessful business transactions and ventures • Land Lease Agreement (LLA) considerations Strong Sustainability and Social Responsibility Orientation We work closely with our people, customers and suppliers to lead the way in maximising resources without compromising on economic, environmental and social considerations. Human Rights • Loss of opportunity in RSPOmarket due to non-certification status • Not meeting sustainability standards results in adverse reputational repercussions that can impact FGV’s wider businesses THE LINKS BETWEEN MATERIAL MATTERS, STRATEGY AND RISKS LEGEND: Achieved Ongoing