FGV Annual Report 2018

55 REMAINED FOCUSED ON VALUE CREATION 01 02 05 03 07 06 04 08 09 ANNUAL INTEGRATED REPORT 2018 MANAGEMENT DISCUSSION & ANALYSIS In line with RSPO’s initiative for worker welfare and human rights, we believe it is vital to provide basic necessities and improve workers’ living standards in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990 to retain our workforce in the estates. In 2018, we introduced a housing programme for the workers, which is split into two packages. Package 1 covers 158 blocks in Peninsular Malaysia while package 2 consists of 298 blocks in Sabah and Sarawak. For Package 2, we have achieved 70% completion and are currently connecting the areas with electricity supply. For Package 1, due to major delays in its construction, we have re-tendered the package to a new contractor that will commence work within the first half of 2019. We aim for the workers housing to be completed by end-2019 to ensure that our workers can thrive both within and outside of work. Challenges Moving Forward European Union (EU) ban on palm oil due to alleged sustainability issues Not meeting sustainability standards and possibility for RSPO certifications to be revoked Monitor progress of the ban and work closely with government agencies and industry players to counter EU’s anti palm oil campaign. • Strengthen engagement with our Stakeholders to address their concerns. • Focus on ethical treatment towards the worker by improving basic necessities and living standards following the Workers’ Minimum Standards of Housing and Amenities Act 1990. INCLUSION IN FTSE4GOOD INDEX SERIES Our efforts to embed sustainability throughout our organisation as well as uphold high standards of sustainability practices have resulted in our inclusion as a constituent of the FTSE4Good BursaMalaysia Index in 2018. Our inclusion follows an independent assessment according to the FTSE4Good criteria which found FGV to have satisfied the requirements to become a constituent of the index. The assessment on companies’ performances are carried out every six months. The FTSE4Good Index series, created by global index provider FTSE Russell, measures the performance of companies which demonstrate sound Environmental, Social and Governance practices and is used by a wide variety of market participants to create and assess responsible investment funds and other products. RISK ENVIRONMENT AND MOVING FORWARD PLAN For further details on the total workers in FGV, please refer to the Human Capital in this MD&A. SOCIAL & RELATIONSHIP CAPITAL