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Palm oil assessments

Established in 2007, Malaysian palm oil and rubber producer Felda Global Ventures Holdings is Malaysia's

  • Parent company:
    FELDA (The Federal Land Development Authority)
  • Landbank (oil palm):
    423,156 hectares
  • Palm cultivation revenue:
    75.97%
  • Market cap:
    1,533,550,000 USD
  • Thomson Reuters ticker:
    FGVH.KL
  • Bloomberg ticker:
    FGV MK
  • ISIN:
    MYL5222OO004
  • RSPO member?
    Yes
  • Website:

Company assessment: FGV Holdings Bhd – November 2018

SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.

Assessment date:

Total: 65.6% 81 / 123.5
  • Sustainability policy and leadership Sustainability policy and leadership 4 / 6 66.7%
    • Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Partial
      0.5 / 1
      Source

      1. Sustainable palm oil policy or commitment for all its operations?

      The company has a Group Sustainability Policy. Unclear if group sustainability policy applies to Felda IFFCO, a joint venture, as policy only states "includes FGV's subsidiaries and FGV's listed subsidiaries located worldwide, in which FGV holds a controlling interest and have management control"

    • Partial
      0.5 / 1
      Source

      2. Policy or commitment applies to direct and third-party suppliers?

      The company states that "FGV Group encourages its Value Chain Partners to embrace sustainable practices" inclusive of smallholders and other suppliers, but the company does not explicitly state its policy applies to suppliers

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company says "the Board of Directors has oversight for and sets the tone for the Group's Governance structure. The Board is accountable for our Sustainability strategy and performance as well as for ensuring that FGV's Strategic Plan (SP20 (V2)) takes into account the Sustainability of the Group's business with attention given to the environmental, social and governance aspects of the business."

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

    • No
      0 / 1
      No source

      5. Member of multiple industry schemes or other external initiatives to improve sustainability in relation to palm oil?

    • n/a
      -
      No source

      6. Verification report on compliance with POIG Charter, if a POIG member?

      This indicator is disabled as it is not applicable to this company.

    • Yes
      1 / 1
      Source

      7. Activities with government, NGOs or academic institutions to improve palm oil sustainability?

      The company has conducted sustainability research in collaboration with academic institutions and has collaborated with the Malaysian Palm Oil Board on training for more than 2000 individuals

  • Landbank, maps and traceability Landbank, maps and traceability 12 / 19 63.2%
    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their management areas and provide details on traceability of their products, both to mill and plantation level.

    • Yes
      1 / 1
      Source

      8. Total land area managed/controlled for oil palm (ha)?

      423,156

    • Yes
      1 / 1
      Source

      9. Total oil palm planted area (ha)?

      394,162

    • Yes
      1 / 1
      Source

      10. Plasma/scheme smallholders planted area (ha)?

      1,049.6

    • Yes
      1 / 1
      Source

      11. Unplanted (areas designated for future planting) (ha)?

      13,508.2

    • Yes
      1 / 1
      Source

      12. Conservation set-aside area, including HCV area (ha)?

      14,435.6

    • No
      0 / 1
      No source

      13. Area for infrastructure (ha)?

    • Partial
      0.5 / 1
      Source

      14. Number and names of company owned mills?

      69 - The company provides the number of mills but only the names of certified mills can be found on the RSPO website

    • Partial
      0.5 / 1
      Source

      15. Maps or coordinates of company owned mills?

      Only some mill locations have been made available on Global Forest Watch

    • No
      0 / 1
      No source

      16. Number and names of supplier mills?

    • Yes
      1 / 1
      Source

      17. Maps of estates/management units?

      Concession boundaries have been made available to the RSPO and the company declares these represent 100% of its concession sites, but not all may be publicly available due to ongoing legal issues. Maps will become available on GeoRSPO

    • Yes
      1 / 1
      Source

      18. Maps of scheme/plasma smallholders?

      Smallholder boundaries have been made available to the RSPO as part of its estate maps according to the company, but not all may be publicly available due to ongoing legal issues. Maps will become available on GeoRSPO

    • Yes
      1 / 1
      Source

      19. Time-bound commitment to achieve 100% traceability to mill level?

      2,017

    • Yes
      1 / 1
      Source

      20. Time-bound commitment to achieve 100% traceability to plantation level?

      2,021 - Goal: 100% traceable to plantations for company-owned mills by 2021

    • Yes
      2 / 2
      Source

      21. Percentage of supply traceable to mill level (above 80%)?

      100%

    • No
      0 / 2
      No source

      22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (above 75%)?

    • No
      0 / 2
      No source

      23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (above 75%)?

  • Deforestation and biodiversity Deforestation and biodiversity 7 / 10 70%
    • Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of species conservation and biodiversity protection.

    • Yes
      1 / 1
      Source

      24. Commitment to zero deforestation?

    • No
      0 / 1
      No source

      25. Deforestation commitment applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      26. Criteria for defining deforestation?

      Primary forest, wildlife reserves, wetlands, HCV, HCS, peat

    • No
      0 / 1
      No source

      27. Evidence of monitoring deforestation?

    • Yes
      1 / 1
      Source

      28. Examples of habitat management and/or habitat restoration?

      Implemented five ecosystem and biodiversity enhancement projects with external parties

    • Yes
      1 / 1
      Source

      29. Implementing a landscape-level approach to biodiversity conservation?

      Undertaking landscape level analysis of corridors and vegetation buffers adjacent to plantation in Pahang

    • Yes
      1 / 1
      Source

      30. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      31. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?

      The company protects and conserves endangered, rare and threatened species, referencing the IUCN Red List and the Malaysian Wildlife Conservation Act 2010

    • No
      0 / 1
      No source

      32. Commitment to no hunting or only sustainable hunting of species?

    • Yes
      1 / 1
      Source

      33. Examples of species conservation activities?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 7 / 11 63.6%
    • Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.

    • Yes
      1 / 1
      Source

      34. Commitment to conduct High Conservation Value (HCV) assessments?

    • No
      0 / 1
      No source

      35. HCV commitment applies to scheme smallholders and independent suppliers?

    • Partial
      0.5 / 1
      Source

      36. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      The company does not have an explicit commitment itself, but commits through the RSPO NPP

    • Yes
      1 / 1
      Source

      37. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?

      HCV assessments are available for: PT Temila Agro Abadi (Aug 2014); PT Citra Niaga Perkasa (Jan 2013)

    • Partial
      0.5 / 1
      Source

      38. High Conservation Value (HCV) assessments for all estates planted since January 2015?

      The company reported in its 2017 ACOP that it submitted an NPP however the assessment report is not yet publicly available. An HCV assessment is available for Asian Plantations Limited Sdn Bhd (Dec 2015)

    • Partial
      0.5 / 1
      Source

      39. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?

      The company reported in its 2017 ACOP that it submitted an NPP however the assessment report is not yet publicly available. A management and monitoring plan with reference to HCV areas is available for Asian Plantations Limited Sdn Bhd (Dec 2015)

    • Partial
      0.5 / 1
      Source

      40. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?

      The company reported in its 2017 ACOP that it submitted an NPP however the assessment report is not yet publicly available nor review undertaken. A satisfactory review of HCV assessment is available for Asian Plantations Limited Sdn Bhd (Dec 2015)

    • Yes
      1 / 1
      Source

      41. Commitment to the High Carbon Stock (HCS) Approach?

    • No
      0 / 1
      No source

      42. High Carbon Stock (HCS) assessments?

    • Yes
      1 / 1
      Source

      43. Commitment to conduct social and environmental impact assessments (SEIAs)?

    • Yes
      1 / 1
      Source

      44. Social and environmental impact assessments (SEIAs) undertaken, and associated management and monitoring plans?

      SEIA summaries are available for: PT Temila Agro Abadi (Aug 2014); PT Citra Niaga Perkasa (Jan 2013); Asian Plantations Limited Sdn Bhd (Dec 2015)

  • Peat, fire and GHG emissions Peat, fire and GHG emissions 9.5 / 15 63.3%
    • Companies should commit to protect peatland and undertake best management practices for soils and peat. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as any fires that occurred in or around their estates, along with plans for managing and monitoring fires.

    • Yes
      1 / 1
      Source

      45. Commitment to no planting on peat of any depth?

      The company states that it will stop immediately all new development on peat lands of all depth and size, irrespective of when they were acquired or any previous RSPO NPP approval

    • No
      0 / 1
      Source

      46. Peat commitment applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      47. Commitment to best management practices for soils and peat?

    • Yes
      1 / 1
      Source

      48. Landbank or planted area on peat?

      20% - The company reports that less than 20% of its area is on peat

    • Yes
      1 / 1
      Source

      49. Evidence of best management practices for soils and peat?

    • Yes
      1 / 1
      Source

      50. Commitment to zero burning?

    • No
      0 / 1
      No source

      51. Zero burning commitment applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      52. Evidence of management and monitoring fires?

    • Yes
      1 / 1
      Source

      53. Details/number of hotspots/fires in company estates?

    • No
      0 / 1
      No source

      54. Details/number of hotspots/fires within surrounding landscape/smallholders?

    • Partial
      0.5 / 1
      Source

      55. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

      2,020 (25%) - The company commits to reducing GHG emissions by 25% from baseline emission in 2014 by 2020; does not report on GHG intensity goals specifically

    • No
      0 / 1
      No source

      56. GHG emissions from land use change?

    • Yes
      1 / 1
      Source

      57. Methodology used to calculate GHG emissions?

    • Partial
      0.5 / 1
      Source

      58. Progress towards commitment to reduce GHG emissions intensity?

      Company does not report GHG intensity change but did report on reduction in emissions from mills in 2017 compared to 2014 baseline year

    • Partial
      0.5 / 1
      Source

      59. Percentage of mills with methane capture (100%)?

      25 (36%)

  • Water, chemical and pest management Water, chemical and pest management 9.5 / 12 79.2%
    • Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use and treatment of palm oil mill effluent (POME).

    • Partial
      0.5 / 1
      Source

      60. Time-bound commitment to improve water use per tonne of FFB Processed?

      1.2 - The company lacks a time-bound commitment, though aims to reduce water usage in mills to 1.2 MT of water for each MT of FFB processed

    • Partial
      0.5 / 1
      Source

      61. Time-bound commitment to improve water quality (BOD and COD)?

      The company had a target to achieve average Biological Oxygen Demand (BOD) levels below 100ppm in all mill complexes and BOD levels below 20 ppm in new mill complexes by 2014, but these targets were not met and no updated commitment could be found

    • Partial
      0.5 / 1
      Source

      62. Progress towards commitment on water use?

      1.27 - The company reports it did not achieve its target of water usage ratio of 1.2 MT of water per MT of Fresh Fruit Bunch (FFB), but it is progressing towards its commitment

    • Partial
      0.5 / 1
      Source

      63. Progress towards commitment on water quality (BOD and COD)?

      The company only reports on BOD being within legal limits

    • Partial
      0.5 / 1
      Source

      64. Protection of natural waterways through buffer zones?

      The company reports it is protecting and restoring riparian areas in Sabah, but unclear if it has buffer or riparian zones across all operations

    • Yes
      1 / 1
      Source

      65. Evidence of treating palm oil mill effluent (POME)?

    • Yes
      1 / 1
      Source

      66. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

    • Yes
      1 / 1
      Source

      67. No use of paraquat?

      Company has "discontinued its usage completely effective 1 January 2018"

    • Yes
      1 / 1
      Source

      68. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • Yes
      1 / 1
      Source

      69. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • Yes
      1 / 1
      Source

      70. Integrated Pest Management (IPM) approach?

    • Yes
      1 / 1
      Source

      71. Chemical usage per ha or list of chemicals used?

      Report on herbicide use for past three years (litre per ha) and paraquat use 2015-2017 (as no longer use as of 2018). Active ingredients of herbicides 1.09 litre per ha in 2017

  • Community, land and labour rights Community, land and labour rights 14 / 19.5 71.8%
    • Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.

    • Yes
      1 / 1
      Source

      72. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?

    • No
      0 / 1
      No source

      73. Commitment to human rights applies to scheme smallholders and independent suppliers?

    • Yes
      1 / 1
      Source

      74. Commitment to respect legal and customary land tenure rights?

    • Partial
      0.5 / 1
      Source

      75. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?

      The company commits to respect the rights of indigenous peoples and surrounding communities but only refers to the UNDRIP in relation to FPIC

    • Yes
      1 / 1
      Source

      76. Commitment to free, prior and informed consent (FPIC)?

    • No
      0 / 1
      No source

      77. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

      78. Details of free, prior and informed consent (FPIC) process available?

    • Yes
      1 / 1
      Source

      79. Details of process for addressing land conflicts available?

    • No
      0 / 1
      No source

      80. Commitment to mitigate impacts on food security?

    • Yes
      1 / 1
      Source

      81. Commitment to provide essential community services and facilities?

      Offers academic scholarships and Yayasan Felda philanthropic spending on education, healthcare and other philanthropic causes

    • Yes
      1 / 1
      Source

      82. Commitment to respect all workers' rights?

      No mention specifically of permanent and/or temporary status, but mentions all workers

    • Yes
      1 / 1
      Source

      83. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?

    • Yes
      0.5 / 0.5
      Source

      84. tal number of employees?

      19,101

    • No
      0 / 1
      Source

      85. Percentage or number of temporary employees?

    • Yes
      1 / 1
      Source

      86. Percentage or number of women employees?

      The company provides percentage figures for non-executive, executive, middle and senior management employees

    • Yes
      1 / 1
      Source

      87. Commitment to pay minimum wage?

    • Yes
      1 / 1
      Source

      88. Commitment to address occupational health and safety?

    • Yes
      1 / 1
      Source

      89. Time lost due to work-based injuries?

      The company provides figures for Lost Time Injury Frequency Rate (LTIFR) which refers to frequency of accidents per million hours worked. LTIFR in Malaysia is 3.12 while in Indonesia 13.01

    • Yes
      1 / 1
      Source

      90. Number of fatalities as a result of work-based accidents?

      4 - Figure refers to 2017

    • Yes
      1 / 1
      Source

      91. Provision of personal protective equipment and pesticide training?

  • Certification standards Certification standards 8.5 / 18 47.2%
    • Companies should become members of credible certification standards and report in accordance with all appropriate categories of membership. The Roundtable on Sustainable Palm Oil (RSPO) requires members registered as growers to submit data relating to certification targets for their estates, scheme smallholders and independent fresh fruit bunch (FFB) suppliers, via an annual communications of progress (ACOP) report.

    • Yes
      1 / 1
      Source

      92. Member of the Roundtable on Sustainable Palm Oil (RSPO)?

      2,004 - FELDA has been an RSPO member since 2004. The company became a member in 2016 due to FELDA not having a controlling interest in FGV. Felda IFFCO has also been a member since 2010

    • Yes
      0.5 / 0.5
      Source

      93. Submitted most recent RSPO Annual Communication of Progress (ACOP)?

    • Yes
      0.5 / 0.5
      Source

      94. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?

    • Yes
      0.5 / 0.5
      Source

      95. Time-bound plan for achieving 100% RSPO certification of estates within 5 years or achieved 100% RSPO-certification of estates?

      2,021

    • No
      0 / 0.5
      Source

      96. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders within 5 years or achieved 100% RSPO-certification of scheme/associated smallholders?

      2,025

    • No
      0 / 0.5
      Source

      97. Year expected to achieve 100% RSPO certification of all palm product processing facilities?

      2,020 - Felda IFFCO, a joint venture between FELDA and IFFCO, has a target to achieve 100% certification of all supply chains by 2020 however this joint venture does not cover all the processing facilities as FGV has other processor/trader subsidiaries (e.g. Delima Oil) for which no target has been found

    • Yes
      0.5 / 0.5
      Source

      98. RSPO-certified within three years of joining the RSPO or by November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007?

      2,017

    • Partial
      1 / 2
      Source

      99. Percentage of mills RSPO-certified (above 75%)?

      20 (29%)

    • Partial
      1 / 2
      Source

      100. Percentage of area (ha) RSPO-certified (above 75%)?

      141,248 (33.4%)

    • No
      0 / 2
      Source

      101. Percentage of scheme/associated smallholders (ha) RSPO-certified (above 75%)?

      0 (0%)

    • No
      0 / 2
      Source

      102. Percentage of FFB supply (tonnes) from independent FFB suppliers that is RSPO-certified (above 75%)?

      0 (0%)

    • Partial
      0.5 / 2
      Source

      103. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that are RSPO-certified (above 75%)?

      26,394 (1.9%) - Figures refer to percentage for Felda IFFCO, a joint venture between FELDA and IFFCO, however this joint venture does not cover all the processing facilities as FGV has other processor/trader subsidiaries (e.g. Delima Oil) for which no figures has been found

    • Yes
      1 / 1
      Source

      104. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

      The company's processor and trader subsidiary handles segregated supply chain besides mass balance

    • No
      0 / 1
      No source

      105. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?

    • Yes
      1 / 1
      Source

      106. Malaysia Sustainable Palm Oil (MSPO) certified?

      The company states it has one mill and three estates that are MPSO-certified

    • Yes
      1 / 1
      Source

      107. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?

      7 mills certified to ISCC in 2017

  • Smallholders and suppliers Smallholders and suppliers 4 / 7 57.1%
    • Companies should report details of any programmes or schemes to support both schemed and independent smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.

    • Yes
      1 / 1
      Source

      108. Programme to support scheme smallholders?

      Preparing smallholders for sustainability certification; provide with planting materials at affordable prices; best agronomic practices; awareness training; yield improvement programme

    • Yes
      1 / 1
      Source

      109. Number or percentage of scheme smallholders involved in programme?

      112,000

    • Yes
      1 / 1
      Source

      110. Programme to support independent smallholders?

      Training and awareness programmes related to certification, good agricultural practices and yield improvement

    • No
      0 / 1
      No source

      111. Number or percentage of independent smallholders involved in programme?

    • Yes
      1 / 1
      Source

      112. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

    • No
      0 / 1
      No source

      113. Suspension or exclusion criteria for suppliers?

    • No
      0 / 1
      No source

      114. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

  • Governance and grievances Governance and grievances 5.5 / 6 91.7%
    • Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • Yes
      1 / 1
      Source

      115. Commitment to ethical conduct and prohibition of corruption?

    • Yes
      1 / 1
      Source

      116. Whistleblowing procedure?

    • Partial
      0.5 / 1
      Source

      117. Own grievance or complaints system?

      Whistleblowing system exists (for concerns related to act of wrongdoing, fraud, bribery and misconduct, though company invites external parties to utilize for any issues) and the company states it has implemented an internal grievance system however no details are provided on this

    • Yes
      1 / 1
      Source

      118. Grievance or complaints system is accessible to internal and external stakeholders?

      The company specifies that whistleblowing system designed for internal complaints related to fraud/bribery/misconduct as well as external party complaints on any issue and that a grievance system is available to internal parties

    • Yes
      2 / 2
      Source

      119. Details of grievances disclosed?

Media monitor: Felda Global Ventures Holdings Sdn Bhd

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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Research protocols: Felda Global Ventures Holdings Sdn Bhd

Research protocols guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full palm oil indicator framework contains 119 indicators across 10 categories, aligned with corporate reporting initiatives.

SPOTT is a ZSL initiative.
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