FGV Holdings Bhd

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".

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.

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.".

4. Sustainability report published within last two years?

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

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

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

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.

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

423156

9. Total oil palm planted area (ha)?

394162

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

1049.6

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

13508.2

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

14435.6

13. Area for infrastructure (ha)?

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.

15. Maps or coordinates of company owned mills?

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

16. Number and names of supplier mills?

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.

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.

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

2017

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

2021 - Goal: 100% traceable to plantations for company-owned mills by 2021.

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

100%

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

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

24. Commitment to zero deforestation?

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

26. Criteria for defining deforestation?

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

27. Evidence of monitoring deforestation?

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

Implemented five ecosystem and biodiversity enhancement projects with external parties.

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

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

30. Commitment to biodiversity conservation?

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.

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

33. Examples of species conservation activities?

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

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

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.

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).

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).

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).

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).

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

42. High Carbon Stock (HCS) assessments?

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

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).

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.

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

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

48. Landbank or planted area on peat?

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

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

50. Commitment to zero burning?

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

52. Evidence of management and monitoring fires?

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

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

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

2020 (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.

56. GHG emissions from land use change?

57. Methodology used to calculate GHG emissions?

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.

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

25 (36%)

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.

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.

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.

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

The company only reports on BOD being within legal limits.

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.

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

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

67. No use of paraquat?

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

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

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

70. Integrated Pest Management (IPM) approach?

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.

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

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

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

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.

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

77. FPIC commitment applies to independent suppliers?

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

79. Details of process for addressing land conflicts available?

80. Commitment to mitigate impacts on food security?

81. Commitment to provide essential community services and facilities?

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

82. Commitment to respect all workers' rights?

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

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

84. Total number of employees?

19101

85. Percentage or number of temporary employees?

86. Percentage or number of women employees?

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

87. Commitment to pay minimum wage?

88. Commitment to address occupational health and safety?

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.

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

4 - Figure refers to 2017.

91. Provision of personal protective equipment and pesticide training?

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

2004 - 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.

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

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

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

2021

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?

2025

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

2020 - 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.

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?

2017

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

20 (29%)

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

141248 (33.4%)

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

0 (0%)

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

0 (0%)

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

26394 (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.

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.

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

106. Malaysia Sustainable Palm Oil (MSPO) certified?

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

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

7 mills certified to ISCC in 2017.

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.

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

112000

110. Programme to support independent smallholders?

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

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

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

113. Suspension or exclusion criteria for suppliers?

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

115. Commitment to ethical conduct and prohibition of corruption?

116. Whistleblowing procedure?

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.

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.

119. Details of grievances disclosed?