FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 73 REPORTING ON WHAT MATTERS SUSTAINABILITY STATEMENT SOCIAL EMPLOYEES This is of paramount importance to excel in theway we performour business, work together effectively, and nurture employees' needs and requirements. As a global organisation, we are committed working towards having a diverse workforce with a range of individual attributes spanning a spectrum of different cultures, ethnic backgrounds, gender and ages. Please refer to the MD&A section in this report for more information on our employees. COMMUNITY STAKEHOLDERS Our community Stakeholders can be divided into two (2) groups: FELDA settlers and smallholders who form part of our supply chain, and the public at large with whom we interact as a business entity. Our commitment to our FELDA Stakeholders includes helping them build and develop their economic capacities. As suppliers to our mills, they form part of our supply chain and we endeavour to educate them on best practices to maximise their returns. Additionally, as RSPO members, we seek to ensure that they comply with all stipulated requirements to ensure that they do not jeopardise the certification of our assets. FGV conducts regular and close engagement with our settlers, holding regular town hall meetings in various FELDA settlements around the country. FGV also channels a portion of its profits to FELDA settlers who own an approximate 20% stake in the Company. Earnings from FGV are channelled to the settlers through their participation in FELDA, and also in the form of dividends which are distributed by Koperasi Permodalan Felda (KPF). Some 2 million people, comprising 112,635 settler families benefit from plantation income as do another further 300,000 people associated with the settlements. Meanwhile, our commitments to the general public are delivered through Yayasan Felda. In 2016, we allocated RM8,500,348* to various programmes through Yayasan Felda. Through the foundation, FGV helps fund a number of charitable causes and initiatives focused primarily on education, healthcare and other philanthropic causes. Aid from Yayasan Felda is open to all Malaysians, particularly settler communities and the rural population. Additional information about Yayasan Felda's activities is available on its website www.yayasanfelda.net.my. Further to our CSR contributions through FELDA, FGV also sponsors a Scholarship Programme which awards scholarship to students with excellent academic track records. In 2016, FGV sponsored 20 students who will pursue their tertiary education at local university. FGV Group embraces a culture that respects and leverages on the diversity of our people, our customers and our communities. FGV's 2016 sponsored scholars. FGV has trained 54 Gabonese trainee settlers who underwent an extensive four-month training programme to develop the oil palm industry in their own country. FGV has collaborated with the Gabonese government through OLAM International Ltd under the GRAINE project, with the intention of enabling a farming economy as well as providing food for the Gabonese people. Upon completion of their training, the Gabonese government will provide land for them to develop, an opportunity that provides employment and elevates the socio-economic infrastructure of the country as well as eradicating poverty. In its endeavour to enrich communities outside Malaysia, FGV has reached out to the Indonesian guest workers, a large percentage of whom are from Lombok, with a lucrative incentive amounting to RM1.5 million. Each one will receive IDR500,000 (RM150.00) to assist their families after three months of employment. They will also be presented RM50.00 per person upon arrival in Malaysia to assist in communicating with their families in Indonesia. FGV has found that by extending compassion to these workers from Indonesia as well as their families and gaining their trust, more Indonesian guest workers have expressed their desire to work for the company. * This data point has been independently audited. Please refer to our Independent Assurance Report on pages 355-356.

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