FGV Annual Report 2018

88 REINFORCED OUR STANDARDS OF GOVERNANCE FGV HOLDINGS BERHAD • Smooth progress of RSPO and MSPO certification as had been communicated to RSPO and customers. • Able to remedy the situation of continued deforestation activity in the High Carbon Stock areas in APL land and pacify the discerning Stakeholders. • Revised Board Charter, Terms of Reference of Board Committees, FGV Group Human Resource Policies, Discretionary Authority Limits, Legal Authority Limit and Signing Protocol, Finance Policies and Procedures, Business Continuity Management Policy and Framework, Group Sustainability Policy, Group Treasury Policies and Procedures, Group Procurement Policies and Procedures, and Board Remunerations Policy. • Enabled to develop an acceptable resolution to manage the issue well in advance of other players in the regions having facing similar predicament. GOVERNANCE AT FGV: ACCOUNTABILITY BOARD GOVERNANCE & RISK MANAGEMENT COMMITTEE REPORT • Made recommendations on the Group’s revised policies on governance, risk and control for the Board’s approval. • Closely monitored the progress in the engagement with the relevant Stakeholders in addressing palm oil development in protected peat lands in PT. Citra Niaga Perkasa and PT. Temila Agro Abadi. Group Policies Peat Soil Management PERFORMANCE REVIEW During the financial year, the Board evaluated the Board Governance & Risk Management Committee’s performance and to which extent the Board Governance & Risk Management Committee has met the requirements of its Terms of Reference, including the term of office and performance of the Board Governance & Risk Management Committee and each of its members. This performance assessment constituted part of the annual Board effectiveness assessment, pertaining to the assessment of Board Committees. This Report is made in accordance with a resolution of the Board of Directors and approved at the Board meeting dated 27 March 2019. Significant Matters How these Matters were Addressed by the Board Governance & Risk Management Committee Outcome on the Process Undertaken • Took note of the non-conformances in operating units and suggested practical approach to the recommended remedies to address the issues that could affect certification progress. • Guided the Plantation Division on the issuance of stop Work Order in Asian Plantations Limited (APL) that may have detrimental impact amongst FGV’s customers and supported the recommendation to test the new methodology (High Carbon Stock Approach), that is preferred amongst multinational organisations involved in palm oil trade. RSPO and MSPO certification