Sustainability is essential for the long-term success of FGV. To be sustainable, FGV needs to manage all potential sustainability risks from its own operations and also along its supply chain. Only by doing so, FGV can meet the ever increasing stakeholders’ expectation and secure respectable market for its products and services whilst fulfilling its socio-economic obligation. This calls for a general policy that is not only economically sound, environmentally friendly and socially acceptable with good ethical attributes, but also robust to be used in all FGV business units. Taking this into consideration the Group Sustainability Policy (GSP) has been drafted to guide every individual, business units and associated partners in conducting their activities in an acceptable manner.
The main objective of the GSP is to enable FGV to take all possible steps to ensure that the Group’s activities will create trust and long-term value for the business, shareholders and stakeholders. At the same time the GSP would enable execution of the Group’s strategy in ways that will address sustainability risks and opportunities effectively to achieve business and operational excellence. This GSP makes reference to, and shall be read together with other relevant codes and policies in FGV Group. As s for Labour issues, the GSP adopts UDHR labour policy and shall be guided by the guidelines set by the International Labour Organization (ILO).
As the Board is the ultimate governing body of the Company, the Company’s sustainable strategy is driven by the Board with delegation of responsibility to the Group President and CEO (GPCEO). Cluster and Corporate Centre Heads are responsible for the implementation of this GSP by ensuring their operations and business decisions made are aligned to this Policy. SED is the owner of this Policy and is responsible to ensure that the Policy is communicated to relevant stakeholders, reviewed and updated to be kept relevant. The review of this Policy shall be undertaken by the Head of Sustainability & Environment department (SED) with the supervision of Group Governance Department (GGD). GGD, as the custodian of the Policy is responsible to ensure that the Policy is disseminated and made accessible to all Directors and Employees within the Group.
The GSP covers:
1. FGV Groups Commitment to Sustainability: Mentions on the approach taken by FGV Group on the sustainable use of resources, engagement with stakeholders and meeting stakeholders requirements and expectations
2. Environmental Stewardship: Expresses on the way FGV group mitigates environmental impact from its business units in relations to regulatory requirement, volunteer standards and expected norms.
3. Social and Economic Responsibility: Touches on strengthening human and social capitol to employees, contractors, business partners and local communities in and around FGV operational areas. This includes safe and non-discriminative working parties, responsible employment, respecting human rights, ethical business conduct with respect to local community’s rights.
4. Value Chain: Stresses on obtaining the commitment of all players in FGV’s value chain to embrace sustainable practices in their sector.
5. Traceability: To show FGV’s commitment in ensuring raw materials are obtained from legitimate sources, especially oil palm products that should be coming from “No peat, No Deforestation and No Exploitation” area.
6. Governance Responsibility: States the relevant entity responsible for the successful implementation of the GSP.
7. Reporting of FGV Group’s Sustainability Efforts: Describes the reporting principles of FGV’s sustainability performance to stakeholders in appropriate form and channels.
By having this GSP, FGV Group would be better equipped to address major sustainability concerns in its business units. With the good implementation of the GSP within the organization and along its value chain, FGV will be able to balance Environmental, Social and Economic needs and create a positive impact to stakeholders and sustainable business.
FGV has a grievance policy to address grievances within the company whereas, for external parties, the whistleblowing policy will act as a medium in addressing their concern.