FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD ENSURING OUR BUSINESS STANDS THE TEST OF TIME 58 FOCUSING ONWHATMATTERS In 2017, we made significant progress in implementing sustainability initiatives throughout our supply chain, based on the materiality assessment conducted with our Stakeholders. The key material matters identified are Yield Improvement, Economic Performance, Governance, Ethics & Integrity, Effective Communications and Human Rights. These are important to build our customers confidence in our oil palm production process and at the same time improve our competitive edge in the oil palm business. Governance, Ethics & Integrity We realised that high reputational risks may arise from any perceived weakness of corporate governance in the company, which may be due to some gaps. To address this, we intended to ensure the Group complies with the latest requirements of the Companies Act 2016 and Malaysian Code on Corporate Governance 2017 (MCCG 2017), the Bursa Malaysia Main Market Listing Requirements (MMLR) and other relevant guidelines. We have enhanced the Group’s governance through revisions to the previous policies and procedures across the organisation. At this point in time, we are in the process of reviewing the social compliance, and human rights policies and procedures. OUR STAND ON SUSTAINABILITY Kindly refer to ‘Assessing Our Material Matters’ which is available on pages 13-15. Further information on the progress can be referred to ‘The Links Between Our Material Matters, Strategy and Risks’ on pages 18-19. GROUP SUSTAINABILITY POLICY One of our key strategies in solidifying our commitment to sustainability is the introduction of our Group Sustainability Policy (GSP), which applies to our operations, subsidiaries and contractors. This Policy embeds a holistic approach to our business management through EES principles to ensure that sustainability is embraced in all facets of our business. ENTRENCHED SUSTAINABILITY GOVERNANCE STRUCTURE Our Group practices sustainability governance at the highest level through our Board of Directors, who are accountable for our sustainability strategy and performance. The Board ensures that our SP20 (V2) takes into consideration the sustainability of the Group’s business with respect to environmental, social and governance concerns. This has been clearly stipulated as one of the Terms Of References (TOR) of the Board of Directors. Our Group President/Chief Executive Officer (GP/CEO) has the overall management responsibility for sustainability, whilst our Chief Strategy Officer (CSO) ensures the overall performance of operational sustainability. Sustainability actions and their implementation are cascaded down to our business units by our Group Sustainability & Environment Department (GSED), which is under the purview of our CSO. A Sustainability Steering Committee (SSC) was formed in 2017 to look into the day-to-day management of sustainability matters and address emerging operational issues expeditiously. The SSC is chaired by the Chief Operating Officer (COO) of the Plantation Sector. FOSTERING A CULTURE OF INCLUSIVITY As a global organisation, we are committed in developing a diverse workforce spanning a spectrum of different cultures, ethnic backgrounds, genders and ages. At the same time, we respect and welcome the distinct attributes of every individual within our workforce. Our corporate culture embraces the diversity of people in our organisation and promotes equal employment opportunities for all. We ensure that all employees and applicants for employment receive fair treatment and are not discriminated against race, nationality, religion, disability, gender, age, marital status, sexual orientation, union membership, political affiliation protected by local legislations and regulations. OUR STRATEGIC PLAN SUPPORTS THE UNITED NATION’S SUSTAINABLE DEVELOPMENT GOALS (SDG). GE GE HR EP EC GE HR YI