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FGV Group Embraces a Culture That Respects and Leverages on The

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FGV Group Embraces a Culture That Respects and Leverages on The REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT SOCIAL Meanwhile, our commitments to the general public are delivered through Yayasan Felda. In 2016, we allocated RM8,500,348* to various programmes through Yayasan Felda. Through the foundation, FGV helps FGV Group embraces a fund a number of charitable causes and initiatives focused primarily on education, healthcare and other philanthropic causes. Aid from Yayasan culture that respects and Felda is open to all Malaysians, particularly settler communities and the rural population. Additional information about Yayasan Felda's activities is leverages on the diversity of available on its website www.yayasanfelda.net.my. our people, our customers Further to our CSR contributions through FELDA, FGV also sponsors a Scholarship Programme which awards scholarship to students with and our communities. excellent academic track records. In 2016, FGV sponsored 20 students who will pursue their tertiary education at local university. EMPLOYEES This is of paramount importance to excel in the way we perform our business, work together effectively, and nurture employees' needs and requirements. As a global organisation, we are committed working towards having a diverse workforce with a range of individual attributes spanning a spectrum of different cultures, ethnic backgrounds, gender and ages. Please refer to the MD&A section in this report for more information on our employees. FGV's 2016 sponsored scholars. COMMUNITY STAKEHOLDERS Our community Stakeholders can be divided into two (2) groups: FELDA FGV has trained 54 Gabonese trainee settlers who underwent an extensive settlers and smallholders who form part of our supply chain, and the public four-month training programme to develop the oil palm industry in their own at large with whom we interact as a business entity. country. FGV has collaborated with the Gabonese government through OLAM International Ltd under the GRAINE project, with the intention of Our commitment to our FELDA Stakeholders includes helping them build enabling a farming economy as well as providing food for the Gabonese and develop their economic capacities. As suppliers to our mills, they people. Upon completion of their training, the Gabonese government form part of our supply chain and we endeavour to educate them on best will provide land for them to develop, an opportunity that provides practices to maximise their returns. Additionally, as RSPO members, we employment and elevates the socio-economic infrastructure of the country seek to ensure that they comply with all stipulated requirements to ensure as well as eradicating poverty. In its endeavour to enrich communities that they do not jeopardise the certification of our assets. FGV conducts outside Malaysia, FGV has reached out to the Indonesian guest workers, regular and close engagement with our settlers, holding regular town hall a large percentage of whom are from Lombok, with a lucrative incentive meetings in various FELDA settlements around the country. amounting to RM1.5 million. Each one will receive IDR500,000 (RM150.00) to assist their families after three months of employment. They FGV also channels a portion of its profits to FELDA settlers who own will also be presented RM50.00 per person upon arrival in Malaysia to an approximate 20% stake in the Company. Earnings from FGV are assist in communicating with their families in Indonesia. FGV has found channelled to the settlers through their participation in FELDA, and also in that by extending compassion to these workers from Indonesia as well as the form of dividends which are distributed by Koperasi Permodalan Felda their families and gaining their trust, more Indonesian guest workers have (KPF). Some 2 million people, comprising 112,635 settler families benefit expressed their desire to work for the company. from plantation income as do another further 300,000 people associated with the settlements. * This data point has been independently audited. Please refer to our Independent Assurance Report on pages 355-356. ANNUAL INTEGRATED REPORT 2016 73 REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT SOCIAL STAKEHOLDER ENGAGEMENT P&G and The Forest Trust (TFT). The participation of many Stakeholders resulted in the formulation of possible ideas and resolutions to We believe that the contribution and support of our Stakeholders are mitigate/address some of the pressing issues within the industry. Moving pivotal for us to achieve our sustainability goals and targets. Stakeholder forward, FGV will work with several parties to refine the resolutions which engagement is recognised as an integral aspect of our sustainability will then be issued to the participants for further comments. There is still much strategy for continued progress towards realising our sustainability to be done to enhance the image of the oil palm industry, and we intend to vision. We continuously engage our Stakeholders at various platforms to collaborate further with all parties in similar workshops and forums. understand their concerns. This ensures proactive communications, both formal and informal, with Stakeholders across the entire value chain, including the government, investors, customers, suppliers, and NGO for RESPECTING HUMAN RIGHTS better decision making. By actively engaging our Stakeholders, we are able to identify risks and opportunities in the way we do business. Through FGV is committed to adhering to human rights frameworks defined in the this process, a transparent and trustworthy relationship is forged. UDHR and the ILO's Core Conventions to ensure that working conditions are non-exploitative. The Group's respect and commitment to fundamental Given that FGV's sustainability engagement is paramount, we have been human rights are embodied in our Group values, Code of Business Conduct intensifying our engagement with Stakeholders, especially NGOs and and Ethics for Employees and Directors, Group Sustainability Policy and customers to brief them on our various sustainability initiatives and to the Group's Discretionary Authority Limit. The Group Sustainability Policy, explain how we are addressing material sustainability concerns raised the details of which are elaborated on page 62 of this statement applies by them. We also adopt communications using different mediums such as to all our employees, directors and all parties involved in any business social media, which appears to be very effective, reaching out to FGV dealings with FGV Group. internally as well as externally. We have issued frequent updates on the progress of our sustainability initiatives and issues to our business partners FGV has implemented, through the Code of Business Conduct and Ethics through our GP/CEO's Letter to Business Partners which we also upload on for Employees and Directors and Group Sustainability Policy, provisions for our company website. We collaborate with a few of our major customers equal opportunity and prohibition of underage workers and will continue to drive change on the ground, while enabling long-term growth for the to champion the guidelines on human trafficking and forced labour industry and community. Independent smallholders outside FELDA schemes exploitation, sexual harassment and violence. Within the Code of Business are brought into sustainability practices by constantly engaging with Conduct and Ethics for Employees and Directors, employees are allowed external parties such as our JV partner - P&G, smallholder organisations, to form and join trade unions to bargain for their needs collectively. FGV NGOs, private plantation companies and governmental agencies through is aware of its responsibility to protect the rights of all employees and will a series of awareness campaigns and outreach programmes in Malaysia. continue to actively engage its employees to ensure that their needs such as wages, shelter and access to services are met, and to create a harmonious In December 2016, FGV and FELDA had organised a workshop on labour and prosperous working environment. issues that currently prevail in the palm oil industry. The focused issues include: FGV is dedicated to uphold the ILO and relevant child protection laws and regulations in each country in which the Group conducts business i. Prohibition of fees charged to foreign guest workers by contractors activities and/or transactions as well as support other international and and labour suppliers (labour recruiters) in their home countries local treaties which demand that children receive protection against any ii. Prohibition of employers and contractors keeping foreign guest forms of abuse and exploitation. The Group businesses shall ensure that all workers' identity documents/passports business partners observe the need to comply with the relevant child labour iii. Children at workplace laws and all FGV Group's suppliers and subcontractors are prohibited from hiring employees who are under the minimum legal age. The workshop was held to provide a platform for industry and concerned groups to discuss and share views on the aforementioned issues in an FGV has engaged TFT, an organisation with extensive knowledge and open forum. The team effort consisted of Government bodies - Malayan experience working with marginalised groups, to conduct the 'Support Agricultural Producers Association (MAPA), Labour Department Malaysia for Transformation' initiative in four (4) selected sites of FGVPM, FELDA (JTKSM) and Malaysian Palm Oil Association (MPOA) Secretariat, and FTPSB and focus on five (5) areas affecting foreign
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