The purpose of this Policy is to establish the objectives and guidelines for Felda Global Ventures (“FGV”) and its Group of Companies (collectively referred to as the “FGV Group” or “Group”) with regards to sustainability matters.
In accordance with the FGV’s aim to develop productive agriculture areas,
improve people’s livelihood and effective plantation management, FGV supports
sustainable palm oil production through the process of certification of
sustainable palm oil. With this, FGV as one of the largest palm oil producer in the
world, we are committed to play its part to work on sustainable palm plantation.
FGV’s sustainable palm oil production process is based on three core production
lasting balance profit (Profit), environmental sustainability (Planet) and social
FGV Management is committed to continuous improvement and transparency in
the activities of sustainable palm oil production.
FGV Group will seek to ensure that all employees and applicants for employment
should receive fair treatment and do not engage in or support discrimination
based on race, nationality, religion, disability, gender, age, sexual orientation,
union membership and political body.
However, positive discrimination that can provide employment and benefits to
the community/certain reasonably group will be implemented as agreed
outcome of negotiations.
Management is responsible to communicate to customers/external parties and
reviewing all reports received and takes proper action.
The management is also responsible for communicating with staff about the
importance of achieving the goal of quality, environment, occupational safety
and health. Management also considers the suggestions made by the employees.
It is the responsibility of each employee to communicate about issues, problems
or suggestions to management.
Department of Corporate Services at Headquarters is responsible for any
communication with the media.
Along with the effort to control erosion, soil degradation prevention and reduce
pollution, FGV Group adopts the following methods in the cultivation of oil:
a. Hilly areas:
1. Does not plant palm oil in the area above 25 degrees in the steep area of new planting.
2. Grow good legumes of cover crop.
3. Maintains and encourages the growth of native ground covers that fit like soft grass in an area that is difficult to establish a good cover crop.
4. Build terrace or other methods to reduce soil erosion and surface run off as appropriate.
5. In areas with a slope of more than 25 degrees, the current vegetation will be maintained or even enhanced by the high value of forest tree species.
b. Riparian Reserved areas:
Provide appropriate buffer zones on both sides of the river, to filter out any
foreign material that may contaminate the river. This practice must be enforced
in all areas of the new opening.
In areas that have been developed, these buffer zones must be covered with
vegetation without any input of agrochemicals.
General guideline on the width of buffer zones are:-
|The width of the waterway between banks||Minimum requirements of the width of the reserved from both banks according to the width of existing river|
|Peninsular & Sarawak||Sabah|
|>40 Meter||50m||20 m (river width > 3 m)|
FGV Group prohibits an individual under the age of 18 to be employed on the
premises accordance with current national legislation.
However children are acceptable on family farms with adult supervision
(guardians) and when it do not interfere their studies.
Any accident is the responsibility of the children’s guardians and FGV will not be
responsible for any accident.
Replanting development is an important activity to be planned properly. This is
to increase the production capacity of the estate with minimal impact on current
income and operating companies in the FGV Group.
Replanting policy in FGV Group focused on two key points, namely, in the
selection of areas to be replanted and the implementation of good agricultural
practices during replanting.
The selection areas to be replanted are based on one of more of the following
During replanting, FGV will adopt the best practices in the industry to suit local
situation. This is to ensure smooth operation, and provides good growth.
Paraquat is classified as 1B class in WHO guideline. This chemical is extremely
harmful to health and the environment. The Malaysian government has not
banned the use of Paraquat in oil palm plantation; however FGV thinks this is a
dangerous chemical and its uses should be reduced to the minimum level or
discontinued altogether. This initiative can be implemented with a tight control
on the uses of Paraquat.
Aligned with the international and Malaysia requirements, FGV take the initiative
to reduce and target “Zero Paraquat” in the management of the company. This
policy is supported by the following practices.
FGV faced the challenges of shortage of local workers to work in the plantation
sector, especially in oil palm plantations. Therefore, FGV has decided to fill this
gap with foreign labor from an approved source country subject to the laws,
regulations and acts related to the workforce in Malaysia.
FGV employment policy allows foreign workers to be paid based on the
Minimum Wage Order as gazetted by the Malaysian government. FGV
management also adopted a policy of no discrimination and no contract
The new foreign workers will be given an orientation program which covers
safety, labor law, language and local cultural sensitivities. In addition, all foreign
workers are protected by insurance and provided a proper shelter/hostel.
FGV as one of the big palm oil organization is responsible for the preservation of
the environment and quality of FGV products.
To ensure a balance between the preservation of the environment and business
objectives, FGV management will seek to;
FGV Management is responsible and committed in giving adequate attention to
the ethics and conduct of the employees in connection with sexual harassment
(verbal, gestures, visual psychological or physical contact, including any notes
that are sent via electronic media) and violence in line with the needs and
requirements contained under Section 22, Code of Ethics and Conduct
FGV Management will also maintain the rights of women, such as reproductive
rights and family life, the right to breastfeed a child and there is no
discrimination against women.
FGV Unions Workers represent all employees in FGV Group, is a registered
FGV gives the right to freedom of expression (within the law) and does not
preclude individuals to join the Union or other entities that are registered and
approved by FGV that existed in FGV Group.
FGV is committed in supporting human rights.
To realize this policy, FGV will take into account the needs of human rights in
formulating and preparing manuals, procedures and other company policies.
FGV will also continue to engage in multilateral efforts to support and participate
in various activities to promote corporate responsibility to respect human rights.
FGV is committed to establish a culture of ethics and integrity in business
management. In line with this commitment, FGV will ensure that all officers;
FGV adopts best management practices to ensure environmental sustainability.
In line with the best management practices and in compliance with Section 29A
of the Environmental Quality Act 1974 to ban open burning; none of FGV
employees and contractors working in FGV premises are allow for open burning.
There shall be no burning during replanting activities, no burning of domestic
waste in landfills, and all types of open burning on the premises is not allowed.
Failure to comply with this policy and if found guilty by the authorities, the party
convicted shall be fully responsible for his actions.
FGV is committed to resolve conflicts and disputes through discussion.
Any conflicts and disputes which cannot be resolved by discussion, the company
will use legal channels as means of legitimate solution for the satisfaction of both
parties. There will be no use of weapons and military in the resolution of
conflicts and disputes.
FGV practices recycling policy. This includes (waste recycling based on metal,
plastics, glass, paper and others) to protect the environment. FGV also establish
a good system of solid waste management. All relevant stakeholders in FGV also
required to comply this policy.
We understand that all human activity will have some degree of impact to the environment. However good planning will help us to minimise or eliminate the potential impact/(s), when executed well on the ground. Land clearing for agriculture is one of the activities that very often associated with environmental degradation, resulting in negative perception to the industry, despite the many good efforts by ethical producers.
FGVH’s commitment to sustainable agriculture starts right from the planting stage. In new plantings, we will do the best we can to ensure minimal residual impact to the environment with adequate consideration to the long term sustainability and to the benefit of our stakeholders.
Our policy on new planting covers the aspects as stated below:-
• Not acquiring new land banks that have significant amount (more than 20% of the land title/concession) of peat land effective from the commitment made in June 2014.
• Conduct all the relevant assessments* (eg. SIA, EIA, HCV, HCS and Land use change) as required by the legal and other standards subscribed by FGVH, to determine the conservation and “no go” areas for any planting.
*the assessment will be based on the regulatory or industry accepted/aligned protocols applicable in the country of operation. Where no such protocols are available, current version of the RSPO P&C 2013 and MSPO/ISPO Guideline will be used.
• Complying/conforming to all national and FGVH subscribed standard/s requirements, prior to embarking on the land development activity.
• Will not plant on any peat land, immaterial of size and depth.
• Will not plant on any primary forests found within our and banks.
• Prepare and implement action plans to ensure minimal impact to the significant aspects identified in the relevant assessment reports, during the planting exercise.
FGV is committed to conserving High Carbon Stock (HCS) forests as one of our carbon reduction strategy. While we will not plant oil palm in any land with primary forest, other areas such as secondary forests and grasslands may be considered for planting if the relevant assessments permits. We define forest as any area without significant human activity in the last 10 years.
High Conservation value (HCV) are the values that is considered to be important at local, regional or international level as has been defined in the Common Guidance for the HIGH CONSERVATION VALUES by HCV Resource Network (2013). Due to their importance, FGV is committed to conserves areas that contain such values so as to maintain or enhance the values.
When there is suitable land for development, we ensure due protection is given to the existing biodiversity, cultural heritage and customary land use by:-.
• Conducting a comprehensive HCV assessment prior to any new oil palm planting.
• Not to develop any areas containing one or more HCV elements identified in the HCV assessment report
• Prepare and implement a HCV management plan to protect the endangered, Rare & Threatened (ERT) species of flora and fauna found within our group of estates.
• Work along with our stakeholders wherever possible to support other conservation and biodiversity enhancement programmes and initiatives outside our land bank.
• We shall comply with all the local regulatory requirement in connection with wildlife and biodiversity
• As a member of RSPO, we commit to preserve High Conservation Value (HCV) land under RSPO Principles and Criteria (P&C).
We define Peat as organic soils with plant material (either sapric, hemic of fibric) occupying more than 50 cm in the 0-100 cm soil depth
As peatland are mostly drained for agriculture use, there is a general perception that drained peatland is a significant contributor to global warming and deteriorated ecosystem services, although some scientific evident show otherwise. In line with that, FGV is committed to manage its peatland in a responsible manner in order to ensure minimal impact to environment.
We intend to accomplish this by :
• Not acquiring any new land with significant peat (peat land area being more than 20 % of the land parcel) for oil palm development.
• Avoiding any new planting on peat land as per RSPO and MSPO’s guidelines.
• Working along with our stakeholders to explore options for alternative uses of peatland wherever possible.
• Managing the existing plantation on peat with appropriate Good Agricultural Practices (GAP).
• Explore options for the long-term restoration of peatland when an existing planting on peat is not viable any more. Strive to educate and influence our suppliers to adopt this policy wherever possible.
Felda Global Ventures, FGV adopts Zero Burning Policy in all of its plantations to combat haze and global warming that may affect the environment and quality of its lifeforms. In the course of implementing this policy, we will prohibit all forms of open burning by our staffs, workers and contractors within our premises. We define open burning as “any fire, combustion or smouldering that occurs in the open air and which is not directed there through a chimney or stack”.
Our policy is guided by Section 29A of the Environmental Quality Act 1974 and the Asean Policy on Zero Burning (2003).
We intent to accomplish this by :-
• Not allowing any forms of open burning in the preparation of land for and during the process of planting/replanting unless otherwise expressed in the provisions under EQA 1974 and Asean Policy on Zero Burning (2003).
• Not allowing for any open burning of wastes, either domestic or office wastes within our premises.
• Making sure that any individual/organization found guilty of offence by the authorities in relation to this requirement, fully responsible for their actions.