GENP Sustainability Report 2018 1 2 About This Report
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GENP Sustainability Report 2018 1 2 About This Report 3 Message From President & Chief Operating Officer 4 2018 Sustainability Highlights 5-8 About Genting Plantations Berhad - Our Vision & Our Core Values - Our Profile - Our Businesses & Locations 9-14 Our Path to Sustainability - Our Sustainability Policy - Our Four-Pillared Sustainability Agenda Contents - Our Sustainability Governance - Ethical Business Conduct - Our Stakeholders - Grievances & Whistleblowing - Our Material Topics 15-24 Marketplace - Economic Performance - Responsible Supply Chain - Product Stewardship 25-38 Workplace - Our Workforce - Remuneration & Benefits - Occupational Safety & Health Community 39-45 - Free Prior Informed Consent (“FPIC”) - Community Development 46-56 Environment - Flora, Fauna & Conservation - Fire Prevention, Control & Monitoring - Greenhouse Gas Emissions - Resource Management - Waste Management 57-64 Appendix - Base Data - GRI Content Index - Glossary 1 GENP Sustainability Report 2018 About This Report Genting Plantations has been reporting annually on its sustainability initiatives and progress since 2003. This third Our Data standalone report continues to provide an overview of our Genting Plantations acknowledges current limitations in the Group’s sustainability efforts and details our approach curation of environmental and social data. Concerted efforts towards risks and opportunities in economic, environmental are put in to continuously to improve the accuracy of the data and social ("EES") aspects. and implement better controls and measures. Environmental and social data reported is procured from Reporting Period operational activities that our Group directly manages and This report covers the twelve-month period from 1 January affect. Most data covering Malaysian operations presented 2018 to 31 December 2018; and where applicable, historical herein are collected on the same basis used for our 2017 data from the preceding years has been included for Sustainability Report. Any differences or revisions reflect comparison. Any forward-looking statements found in this changes in calculation methods and the expanded scope report is based on information, plans, prospects, covered in this report. management policies and strategies available at the time of publication. In this report, our Group collates data for the full reporting year ending December 2018. Any significant changes beyond the date will be addressed in the following year’s publication. Reporting Procedure & Assurance The accuracy of environmental and social data may differ • This report has been prepared in accordance with “Global from the data obtained through our financial reports. Reporting Institute (”GRI”) Standards: Core Option and Bursa Malaysia’s Main Market Listing Requirements. Moving forward, our Group will continue to improve on data collection and, if necessary seek, external assurance on the • This report is made in accordance with a resolution data shared with our stakeholders. of the Board of Directors dated 26 February 2019. Scope & Boundary The scope of this report covers operations where the Company has management control which includes our Group’s Plantation Division, Downstream Manufacturing Division, Property Division and Biotechnology Division. Unless otherwise specified, the boundary of this report includes all operations mentioned above. The term “Genting Plantations” refers to Genting Plantations Berhad and the terms “we”, “us”, “our”, “Group”, “Organisation”, “GENP”, and “the Company” refer to Genting Plantations and, as applicable to GENP and its direct or indirect subsidiaries as a group. Additional information relating to GENP (which is not incorporated herein) can be found in our Annual Reports and on www.gentingplantations.com. GENP Sustainability Report 2018 2 Message From President & Chief Operating Officer Dear Stakeholders, At Genting Plantations Berhad, we remain unwavered in our commitment to ensure that our business practises good corporate governance and observe sustainable agricultural practices. Grounded by the Genting Core Values, namely – Hard Work, Honesty, Harmony, Loyalty and Compassion, we believe in encouraging the creation of shared values for the benefit of our Group and our stakeholders in a sustainable and responsible manner. We are fully mindful of our role to uphold and constantly improve on our sustainability efforts for our current business operations, as well as for the growth initiatives which our Group will be undertaking in the years ahead. We continue to be guided by the global trends like the UN Sustainable Development Goals (“UN SDGs”), Roundtable on Sustainable Palm Oil (“RSPO”), to name a few, whilst at the same time be attentive to the increasing demand for accountability by various stakeholders towards all aspects of the palm oil supply chain, both in the local and global front. On the certification initiatives, we remain committed to RSPO and are supportive of the newly endorsed RSPO P&C 2018 as we continue to work towards full RSPO certification of our entire palm oil business. In addition, we are also tirelessly working towards national certification in both Malaysia and Indonesia - Malaysian Sustainable Palm Oil (“MSPO”) certification and Indonesian Sustainable Palm Oil (“ISPO”) certification. Continued emphasis is placed on the well-being of the local communities where our Group operates. We believe that it is pertinent to focus on respecting the legal, customary and traditional land rights of local communities, indigenous people and smallholders so as to create shared values whilst also advancing their socioeconomic development. In reverence to human rights, we firmly stand against exploitation of human lives and has an uncompromising stance against any forms of discrimination, forced or bonded labour, child labour, and human trafficking. Over the years since inception, steps have been taken to inculcate good corporate governance and good agricultural practices all aimed towards sustainability. On this note, I am pleased to say that all these diligent efforts, however little they may be, has culminated in our Group becoming a constituent of the FTSE4Good Index Series; a globally recognised index for companies demonstrating strong environmental, social and governance practices. Not to rest on our laurels, we do believe that, despite being an arduous and challenging journey, our sustainability agenda is a continuous effort, where we acknowledge that there is always room for improvement. In this respect, we are confident that with the support and commitment from all stakeholders, the Company is poised to reach greater heights as we forge ahead into the next chapter of growth, expansion and success. Tan Wee Kok President & Chief Operating Officer 26 February 2019 3 GENP Sustainability Report 2018 2018 Sustainability Highlights Economic RM147.0 RM7.94 billion Quantity of Products million Total Market Fresh Fruit Bunch • 2.08 million MT net profit in 2018 Capitalisation Crude Palm Oil • 0.5 million MT (31 December 2018) Refined Product 0. million MT Biodiesel & Crude Glycerin • 0.1 million MT Environmental Certification for Certification for Certification for all 7 ISPO Certification 6 palm oil mills and 5 Malaysian palm oil Malaysian palm oil mills for 1 Indonesian its supply bases, mills and its supply and its supply bases, oil mill and its and 1 refinery bases 2 biodiesel plants and supply bases 1 refinery ~1.12 million MT of ~8% reduction in ~17,500 hectares of biomass recycled GHG emission High Conservation (equivalent to ~54% compared to 2016 Value ("HCV") areas FFB produced) Social ~15,300 Over 13% 16% Women in hectares 23,700 Hiring Rate Board of Director in Indonesia workforce allocated for Over 5,000 12% 21% plasma women in our Turnover Women in scheme workforce Rate Management 10 Lost Time Humana Injury Frequency schools Rate ("LTIFR") RM 6.6 5.9 injuries for community every one million man-hours investment worked 7 Community Learning 10 Scholars Centres of Tan Sri (Dr.) 3 Fatalities Lim Goh Tong Endownment in Indonesia Fund GENP Sustainability Report 2018 4 About Genting Plantations Berhad Our Vision We strive: • To become a leader in the • To adopt a market-driven and plantation industry. customer-oriented approach, with emphasis on product quality and • To embark aggressively onto diversity. valued-added downstream manufacturing activities which • To strengthen our competitive are synergistic to our core position by adopting new business. technologies and innovations. • To enhance return on the company s peope are the ey to achieing land bank through property the copanys ision e are development activities. coitted to deeop our epoyees and create a highy otiating and rearding environment for them. Our Core values Hard Work HonestyHarmony Loyalty Compassion Accomplish tasks Integrity drives Practise teamwork Faithful to duty Demonstrate with vigour and attitude and action and communicate and committed to empathy and kindness commitment efficiently to the company towards others achieve goals 5 GENP Sustainability Report 2018 Our Profile Genting Plantations, a subsidiary of Genting Berhad, has a landbank of about 64,600 hectares in Malaysia and some 182,800 hectares in Indonesia (including the Plasma scheme). Genting Plantations owns seven oil mills in Malaysia and four in Indonesia with a total milling capacity of 550 metric tonnes (“MT”) of fresh fruit bunch (“FFB”) processed per hour. The upstream business is complemented by our Genting ntegrated Biorefinery Comple, comprising of the Genting MusimMas Refinery GMMR,