Affiliation to Fair Labor Association FGV became an affiliate company of the Fair Labor Association (FLA) in October 2019 in an integral effort to uphold labor standards. A foundational process under this affiliation is the implementation of a long-term and comprehensive programme aimed at aligning FGV’s commitment and practices with FLA standards, namely the FLA Workplace Code of Conduct for the Agriculture Sector (WCOC) and FLA Principles of Fair Labor and Responsible Sourcing for Companies with Agricultural Supply Chains (FLA Principles). The comprehensive programme covers a number of initiatives to improve various aspects of FGV’s labour practices including recruitment process, human rights training programmes, working and living conditions, as well as grievance mechanisms, among others. Our progress is subject to validation by FLA with 2 validations being conducted since the its adoption. The validations which covered 2 separate periods: January 2020 to September 2020 and September 2020 to March 2021 involved documentation review, management interviews, external stakeholder interviews and a worker survey. As part of FLA’s annual due diligence cycle, FLA is conducting an Independent External Assessment (IEA) on FGV’s palm oil supply chain in Malaysia. This IEA aims to evaluate workplace management systems, working conditions, and associated labour standards risks. It will include a review of employment relationships, indicators of forced labour, child labour, harassment and abuse, discrimination, hours of work, health and safety, freedom of association, and fair compensation. The comprehensive workplace assessment at the estate level will help the FLA and FGV teams document gaps in working conditions that the Company needs to address. FGV is expected to develop a corrective action plan to address all the IEA findings. FGV strictly prohibits any and all forms of forced and bonded labour, human trafficking, slavery and child labour in our operation. To reinforce this stance, we have undertaken a number of initiatives as part of the long-term programme following our affiliation with FLA which also periodically validates progress of the agreed action items. Of particular significance is the Pre-Sourcing Assessment which forms an important and integral part of our recruitment process to mandate responsible and ethical recruitment practices and prevent forced and bonded labour, human trafficking, slavery and child labour at the outset. In addition, FGV has developed a Labour Profile System that serves mainly as a centralised online one-stop-centre for information and data relating to FGV’s plantation and mill workforce including migrant workforce. This would facilitate further FGV efforts to enhance its labour standards compliance mechanism. In 2021, FGV had participated in the campaign by the Ministry of Human Resources of Malaysia, the Human Rights Commission of Malaysia (SUHAKAM) and the International Labour Organization (ILO) Malaysia where it signed up to be part of the National Pledge against Child Labour. FGV pledged to implement certain activities from July 2021 to December 2025 to contribute to preventing or addressing child labour in Malaysia. These activities include: Embarking on a child protection programme to minimise the risk of child labour in FGV’s operations and supply chain through an enhanced due diligence process that will include a more extensive mapping and risk assessment involving its suppliers and supply chain partners Promoting empowerment of children under FGV’s duty of care by implementing programmes that could help them realise their full potential including collaborating with strategic partners to ensure access to education and to enhance the children’s vocational skills Intensifying awareness-raising and capacity-building programmes for FGV’s personnel and supply chain partners on child rights and on measures to safeguard the best interest of the child i ii iii Respecting Human Rights 78 FGV HOLDINGS BERHAD RESPONSIBLE BUSINESS ABOUT THIS REPORT RESPECTING HUMAN RIGHTS
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