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?

Head of Group Environment & Sustainability Division.

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 and/or NGOs to improve palm oil sustainability?

Felda engages with NGOs through its Sustainability Technical Unit and engaged with NGOs and government through the Labour Issue workshop on Palm Oil Plantations which was organized by Felda.

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

445687 - Total land for palm oil cultivation given as 445,687 ha in ACOP 2016 and total landbank given as 784,710 ha in 2015 RSPO ACOP. However, the company states it manages 440,622 ha of plantation landbank in Malaysia and Indonesia, excluding 475,000 ha of land under settlers who supply FFBs to FGV in its 2015 and 2016 Annual Reports, and states it has 850,000 ha of predominantly oil palm plantations on its website.

9. Total oil palm planted area (ha)?

414500 - The company reports a figure of 341,190 in its 2016 annual report excluding estates held under joint venture but including smallholders.

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

237298 - The company reports 237,298 ha of scheme smallholders in 2015 RSPO ACOP, but also reports 475,000 ha of land under settlers who supply FFBs to FGV in 2015 Annual Report. In its 2016 ACOP it only report 1,049 ha under scheme smallholders.

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

15700

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

13389 - Sum of HCV areas and other conservation areas.

13. Area for infrastructure (ha)?

14. Number of company owned mills?

72

15. Maps or coordinates of company owned mills?

Some mill locations have been made available on the company's website and on Global Forest Watch. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's palm oil mills.

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 their concession sites, but not all may not 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 their 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?

2020 - Target to achieve 100% traceable to plantations for FGV-owned mills by 2020.

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 (is above 75%)?

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

24. Commitment to address deforestation?

25. Commitment to zero deforestation?

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

27. Criteria for defining deforestation?

The company pledges no conversion of primary forests, wildlife reserves, wetlands, HCV areas, peat soils or HCS areas.

28. Evidence of monitoring deforestation?

29. Commitment to set aside areas for conservation?

30. Evidence of habitat management and/or habitat restoration?

31. A landscape-level approach?

The company only states they have undertaken a HCV landscape assessment of their existing plantations in Malaysia, but unclear if they are actually implementing a landscape approach.

32. Commitment to biodiversity conservation?

33. 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.

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

35. Commitment not to operate within internationally and nationally designated protected areas?

The company states it shall not perform any new development in areas that are under protection, such as wildlife reserves, but does not reference internationally or nationally designated protected areas.

36. Evidence of species conservation activities?

37. Commitment to High Conservation Value (HCV) approach?

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

39. 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.

40. 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).

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

An HCV assessment is available for Asian Plantations Limited Sdn Bhd (Dec 2015).

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

An HCV assessment is available for Asian Plantations Limited Sdn Bhd (Dec 2015).

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

Satisfactory review of Asian Plantations Limited. There is also a HCV assessment under review.

44. Commitment to the High Carbon Stock (HCS) approach?

The company states it does not plant HCS areas, but does not refer to the HCS Approach specifically.

45. High Carbon Stock (HCS) assessments?

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

47. Social and environmental impact assessment (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).

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

The company states that it will stop immediately all new development on peat lands irrespective of then they were acquired or any previous RSPO NPP approval.

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

The company plans to extend its peatland policy to third party suppliers in the future.

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

51. Landbank or planted area on peat (ha)?

2170 - Data is more than two years old.

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

53. Commitment to zero burning?

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

55. Evidence of management and monitoring fires?

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

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

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

2020 (25%) - The company commits to reducing GHG emissions by 25% from baseline emission in 2014 by 2020.

59. GHG commitment applies to scheme smallholders and independent suppliers?

60. GHG emissions?

GHG reports are disclosed only for some operations.

61. GHG emissions from land use change?

Land conversion GHG emissions are disclosed only for some operations.

62. Methodology used to calculate GHG emissions?

PalmGHG Calculator.

63. Progress towards commitment to reduce GHG emissions?

The company reports 87,429 total monitored CO2 emission reduction (mt) in 2016.

64. Percentage of mills with methane capture (is above 75%)?

19 (26%) - The company has a commitment to install methane capture facilities in 59 mills by 2018, and had installed 19 by Dec 2015.

65. Time-bound commitment to improve water use?

The company had a target to achieve a water usage ratio of 1 tonne of water per tonne of Fresh Fruit Bunch (FFB) at their mills by 2014, however this was not achieved. The target is now ongoing but has no new time-bound commitment.

66. Time-bound commitment to improve water quality?

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. These targets were not met.

67. Progress towards commitment on water use?

The company reports it did not achieve its target of water usage ratio of 1 tonne of water per tonne of Fresh Fruit Bunch (FFB) at mills by 2014, but does report its usage figures of 1.34 MT on average to process 1 MT of FFB.

68. Progress towards commitment on water quality?

The company reports average BOD data for 2016, 2015 and 2014 are 75 parts per million (ppm), 63ppm and 47ppm respectively. This means that the target of a BOD below 100ppm has been met although it has gone up over the last three years. Moreover, this target was only met for 98% of mills in 2015. The target to achieve BOD levels below 20 ppm in new mill complexes by 2014 was met in Ulu Belitong mill but not achieved in two other mills in 2014 & 2015.

69. Protection of natural waterways through buffer zones?

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

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

The company only states that its use of IPM reduces the company's use of agrochemicals.

72. No use of paraquat?

The company states that it plans to eliminate paraquat use in general weed control by 2020.

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

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

75. Integrated Pest Management (IPM) approach?

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

The company plans to summarise group total pesticide usage by type by 2017.

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

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

79. 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 UNFRIP in relation to FPIC.

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

81. FPIC commitment applies to independent suppliers?

82. Free, prior and informed consent (FPIC) process?

83. Process for addressing land conflicts?

84. Commitment to ensure food security for local communities?

85. Commitment to respect all workers' rights?

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

87. Total number of employees?

19557 - The figure includes employees of MSM Group.

88. Percentage or number of temporary employees?

89. Percentage or number of women employees?

2809 (14.4%)

90. Minimum wage that the company pays?

Pays above minimum wage for all employees FGV directly employs.

91. Commitment to address occupational health and safety?

92. Lost time accident rate?

0.4 - Lost time accident rate (accidents per 200,000 working hours). Data more than 2 years old.

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

4

94. Provision of personal protective equipment and pesticide training?

The company states it provides personal protective equipment, but does not mention pesticide training.

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

2004 - FELDA has been an RSPO member since 2004. Felda Global Ventures (FGV) became a member in 2016 due to FELDA not having a controlling interest in FGV. Felda IFFCO has also been a member since 2010.

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

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

FELDA states it operates: Malaysia (Johor; Kelantan; Negeri Sembilan; Pahang; Perak; Sabah; Sarawak; Terengganu) and Indonesia (West Kalimantan).

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

2021 - Time-bound of 2017 originally stated in FELDA's 2015 RSPO ACOP. FELDA is currently revising its time-bound plans due to seeking certification under FGV rather than FELDA.

99. 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 - FELDA is currently revising its time-bound plans due to seeking certification under FGV rather than FELDA. The time-bound plan is more than five years away.

100. Time-bound plan for achieving 100% RSPO certification of all supply chains?

2020 - Felda IFFCO, a joint venture between FELDA and IFFCO, has a target to achieve 100% certification of all supply chains by 2020 and FGV by 2025.

101. 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?

As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified estates. However, FELDA certified its first plantation estate in 2010. FGV plans to re-certify its first estate in 2017.

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

As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified mills. Previously it had 58 mills certified.

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

0 (0%) - As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified estates. Previously it had 527,931 ha certified.

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

0 (0%) - As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified scheme smallholders.

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

0 (0%) - As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified independent suppliers.

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

25494.8 (2.3%) - Felda IFFCO reported 25,494.81 tonnes of CPO certified out of 1,107,044 tonnes of all palm oil and oil palm products handled/traded/processed in the year. As FELDA has withdrawn its RSPO certificates, the company currently has no RSPO-certified palm oil handled/traded/processed.

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

As FELDA has withdrawn its RSPO certificates, it currently produces no certified sustainable palm oil.

Felda IFFCO processes/trades Mass Balance and Segregated.

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

109. Malaysia Sustainable Palm Oil (MSPO) certified (100%)?

The company states it has 3 mills certified to MSPO.

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

The company states it certified 15 mill complexes to ISCC in 2014 but reduced to 3 in 2015 due to lower market demand and increased again to 5 in 2016.

111. Programme to support scheme smallholders?

Supports associated smallholders, also referred to as FELDA settlers.

112. Details of support programme for scheme smallholders?

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

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

The company states it has supported 14 FELDA settlements in obtaining RSPO Group Smallholder Certification, and states that they have managed to certify up to 44,577 oil palm settlers. The company also that it trained 54 trainee settlers in Gabon.

114. Programme to support independent smallholders?

The company states in its ACOP that they do not support independent smallholders but are planning to start supporting them in 2021.

115. Details of support programme for independent smallholders?

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

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

The company states it is committed to supplier mapping and verification, but does not state the process being used
.

118. Suspension or exclusion criteria for suppliers?

The company states that it has severed ties with FFB suppliers growing oil palm in forest reserves, and has a target to stop sourcing from entities found to be in violation of FGV's Sustainability Policy and that are involved in human trafficking. They also state "we are in the process of coming up with a supplier guidelines to bind all our suppliers in an ethical conduct in sourcing practices".

119. Number or percentage of suppliers assessed and/or engaged?

120. Commitment to ethical conduct and prohibition of corruption?

121. Whistleblowing procedure?

122. Own grievance or complaints system?

The company states that it plans to establish a grievance mechanism system in 2017.

123. Grievance system accessible to internal stakeholders (i.e. employees)?

124. Grievance system accessible to external stakeholders?

125. Details of grievances disclosed?