FGV Annual Report 2017

ANNUAL INTEGRATED REPORT 2017 ENSURING OUR BUSINESS STANDS THE TEST OF TIME 57 OUR STAND ON SUSTAINABILITY WHAT SUSTAINABILITY MEANS TO US Sustainability is Key to Our Long-Term Success as a Going Concern This Sustainability Statement covers all operations of our Group in Malaysia and Indonesia. This scope has been expanded from our reporting in 2016, where we only reported on sustainability information for our Upstream activities in Malaysia and Indonesia. However, we have just initiated monitoring on sustainability performance of our non-Upstream operations in 2017. As such, their performance figures are not reported in this year’s statement. We believe that this enlarged scope enables us to present a more accurate and holistic picture as we highlight the efforts we have undertaken to embed sustainability principles throughout our Group. These principles encompass considerations in the Economic, Environmental and Social (EES) spheres. In addition, we profile some of our key accomplishments throughout the year under review. Sustainability in Business Strategy Our Group’s Strategic Plan (SP20 (V2)), which guides the holistic development of our business strategies, embeds sustainability into every aspect of our business operations. The revised Group’s vision statement ‘To be among the World’s Leading Integrated and Sustainable Agribusiness that Delivers Value to Customers and Stakeholders especially the Smallholders’ reflects this renamed ambition. This helps ensure that the drive to achieve our economic goals is balanced with efficient resource utilisation and strict adherence to corporate guardrails. Figure 1 illustrates the interplay between these elements: Figure 1: Embedding Sustainability into SP20 (V2) - Balancing Our Goals, Resources and Guardrails Operational Excellence Kindly refer to ‘Who We Are’ on pages 4-5. Optimise Financial & Human Capital Growth Through Portfolio Balancing Moving Down Value Chain • Materials • Energy • Water • Biodiversity • Emissions • Effluents & Waste • Economic Performance • Market Presence • Indirect Economic Impacts • Financial Resource & Discipline • Structure & Business Model • BOD & BOD Committees TORs • Procurement Practices • Risk Management • Human Rights Assessment • Supplier Social Assessment • Environmental Compliance • Supplier Environmental Assessment • HR Strategy Framework • Freedom of Association & Collective Bargaining • Child Labour • Forced or Compulsory Labour • Rights of Indigenous People • Local Communities • Customer Privacy • Corporate Culture S T R A T E G I C T H R U S T S SP20 (V2) S U S T A I N A B I L I T Y E C O N O M I C I M P A C T S G O V E R N A N C E P E O P L E E N V I R O N M E N T A L S T E W A R D S H I P