RSPO certification and US Customs and Border Protection Withhold Release Order While we have been consistent both in thought and actions in relation to our sustainability commitments and unstinting in channelling resources to uphold them, the complexity of the value chain and the multiple players therein will inevitably result in some lapses. Where there have been lapses, we readily admit to them, and we have doubled our efforts and instituted rectification measures with the requisite urgency. FGV remains fully committed to our sustainability and human rights agenda and has placed priority and intense efforts aimed at lifting the Roundtable on Sustainable Palm Oil (RSPO) certification suspension and the United States Customs and Border Protection (CBP) Withhold Release Order (WRO). On the RSPO certification, FGV has implemented the RSPO Complaints Panel (CP)’s directives of November 2018 and January 2020, respectively, and verification audits involving six of FGV’s complexes were conducted between January and April 2021 by an independent auditor appointed by the RSPO. FGV was made to understand by the RSPO Secretariat that the outcome and findings of the verification audit were deliberated by the CP in August 2021 and FGV has since been following up regularly with the RSPO while awaiting the decision on the RSPO certification suspension. However, at the time of writing, FGV has yet to receive any feedback or response from the CP. FGV is committed to obtaining RSPO certification for all its complexes to demonstrate compliance with the RSPO Principles and Criteria (P&C). However, FGV is forced to put on hold efforts to achieve certification for remaining uncertified complexes until and unless a decision is made by the CP on the matter. Our inability to provide a clear response to our stakeholders on the matter due to the delay by the CP puts FGV in a very difficult position, not to mention the significant negative impact this is having on the company from a reputational and commercial standpoint, particularly on the loss of business opportunities. With regards to the WRO issued by the CBP on 30 September 2020 against palm oil products made by FGV Group, we have recently appointed ELEVATE, an industry leader in sustainability and supply chain services globally to conduct an independent assessment of FGV’s operations against the 11 International Labour Organization (ILO) Indicators of Forced Labour, as advised by the CBP. FGV estimates that we would be able to submit to the CBP, a petition to modify the WRO, together with the assessment and verification of remediation report by ELEVATE towards the end of 2022. Looking forward As a responsible corporate citizen and environmental steward, we will always have sustainability at the heart of our efforts. Sustainability is now an integral part of our business strategy and is firmly entrenched across all facets of our operations. As we forge ahead, we will remain unwavering in our sustainability commitments because everyone in FGV knows that without sustainability, there can be no prosperity. Hence, greater intensity and focus on sustainability will be on the cards for the next year and beyond, with new initiatives to build on the platform we have established from past efforts. 9 SUSTAINABILITY REPORT 2020/2021 CLIMATE ACTION & ENVIRONMENT PROTECTION ADDITIONAL INFORMATION
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