FGV Annual Report 2018

20 ESTABLISHED INTEGRATED AND COMPREHENSIVE IMPLEMENTATION PLANS FGV HOLDINGS BERHAD BEST–IN-CLASS OPERATIONS We aim to establish a sustainable future for our Stakeholders by focusing on our core businesses and utilising our key assets efficiently. STRONG FINANCIAL MANAGEMENT We endeavour to create a strong financial environment that is resilient to internal and external challenges through prudent and optimised measures to maximise Stakeholders return. WELL-ENTRENCHED GOVERNANCE AND ETHICS We strive to build a solid foundation for our business through good governance and ethical practices. STRONG SUSTAINABILITY AND SOCIAL RESPONSIBILITY ORIENTATION We work closely with our people, customers and suppliers to lead the way in maximising resources without compromising on Economic, Environment and Social considerations. • Non-performing investments and impairments. • Escalating operational costs. • Volatility of Crude Palm Oil (CPO) price due to stockpile level and market demand. • Uncertainty on global economic conditions. • Volatility of commodity prices and foreign exchange movements. • Adverse reputational impact arising from perceived weakness in internal governance. • Potential loss arising from inadequate internal controls. • Loss of opportunity in Roundtable Sustainable Palm Oil (RSPO) market due to non-compliance that prevent certifications. • Not meeting sustainability standards results in adverse reputational repercussions that can impact the Group ’ s business. • Shortage of talent pool and capabilities. • Change in regulations related to worker that will give significant impact to the Group. EP GE YI RC HR THE LINKS BETWEEN MATERIAL MATTERS, STRATEGY AND RISKS STRATEGIC INTENT MATERIAL MATTERS RISKS • Ageing oil palm profile affecting overall yield. • Shortages of foreign guest workers to work in the estates especially in Sabah & Sarawak. • Adverse weather conditions disrupting the growth of palm oil fruits. • Low Fresh Fruit Bunches (FFB) supply from external suppliers due to competitive market. • Land Lease Agreement (LLA) consideration. • Shrinking market share. • Cheaper sugar from other producer countries due to market liberation. Legend: Economic Environment Social For further details can be found in the Management Discussion & Analysis on pages 31-55 For further details can be found in the Management Discussion & Analysis on pages 31-55 For further details can be found in Corporate Governance Overview Statement on pages 56-95 For further details can be found in the Management Discussion & Analysis on pages 31-55