Felda Global Ventures Holdings Bhd.

Overall approach

3/10
- Overarching commitment on deforestation
  
  0/4
  
  Overall commitment
  
  Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
  
  0/4
  
  Which commodities does the commodity-specific commitment apply to?: Palm oil
  
  Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
  
  "FGV is committed to no deforestation, no planting on peat and no exploitation (NDPE). Recognising the potential impact of our industry on the environment, FGV undertakes to adopt the following practices:No new planting on peatland regardless of depthNo development on areas of natural forest, high carbon stock (HCS) or high conservation value (HCV)No open burning in all its premises"
  
  Open source document
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  "FGV is pleased to announce our partnership with the United Nations Global Compact Network Malaysia (GCMY) on the #mySPACE4Change initiative which was officially launched on 9 June 2020 at the Malaysian Parliament by the Deputy Speaker of the House of Representatives, YB Dato' Haji Mohd Rashid bin Hasnon.."
  
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "In line with this, FGV undertakes to [...] ensure protection of the environment including through [....] no deforestation, no new planting on peat and no development on areas of natural forest, high carbon stock (HCS) or high conservation value (HCV)".
  
  Open source document
- Deforestation as a business risk
  
  0/1
- High-level management of deforestion
  
  1/1
  
  High-level management
  
  Yes
  
  1/1
  
  Which commodities does it apply to?: Palm oil
  
  How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not specified
  
  "In line with our strong commitment to sustainability, we have expanded the scope of our Sustainability Division to cover the whole Group and the Sustainability Division now reports directly to the Group Chief Executive Officer. This structural change reflects FGV’s seriousness in embedding and mainstreaming sustainability within and throughout the Group’s operations and supply chain.[...]We have established a Sustainability Synergy Committee comprising the heads or representatives of the various sectors and divisions within FGV Group to facilitate the mainstreaming of sustainability principles and practices throughout FGV, as well as to ensure effective implementation of FGV’s sustainability initiatives and programmes across the board."
  
  Open source document
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/1
- Reporting on emissions from land-use change
  
  0/1
- Disclosure of conservation activity
- Disclosure of reforestation activity
- Target to reduce emissions in scope 1/2
  
  Reduce emissions
  
  Yes
  
  0/0
  
  Type of climate target: N/A
  
  Is this target aligned with/verified by SBTi?: No
  
  What is the target date for the company to achieve their climate target?: 2050
  
  "The science-based targets provide a defined carbon management framework to reduce emissions in line with the latest climate science to limit the global temperature rise at 1.5°C. The commitment to science-based targets requires FGV to halve its greenhouse gas emissions by 2030 and hit net zero emissions by no later than 2050. FGV will also need to set up short and mid-term targets to ensure effective emissions tracking and consistent annual reduction."
  
  Open source document
Commodity score

45/90
- Palm oil
  
  57/90
  - Commitment Strength
    
    15/17
    - Commitment to protect priority forests
      
      8/9.5
      - Commitment details
        Zero-gross deforestation
        
        4/6
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        4/6
        
        Which certification schemes are used?: RSPO; Other certification
        
        Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat
        
        When was this commitment set?: 2021
        
        If other certification, specify: MSPO, ISCC
        
        FGV define deforestation as the "Loss of natural forest as a result of conversion to agriculture or other nonforest land use, conversion to plantation forest, or severe and sustained degradation. [...] (and)FGV Group shall ensure its operations adhere to our commitments to No Deforestation, No Peat and No Exploitation (NDPE). [...] FGV Group shall not develop on any areas of [...] High Conservation Value (HCV)" [...] "FGV was amongst the first agricultural companies to obtain the RSPO mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification. In the process of certifying our mills, we had also certified about 40,000 FELDA schemed smallholders. Following the withdrawal of its RSPO certification in 2016, FGV is now pursuing re-certification of all its 68 complexes, which we target to be achieved by the end of 2020. [...] Mills certified to date: 30 of 67"
        
        Open source document
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        What subsidiaries are explicitly excluded?: NA
        
        What subsidiaries are explicitly included?: NA
        
        What is the rationale for any exclusions?: NA
        
        What percentage of commodity production/sourcing is excluded?: NA
        
        FGV define deforestation as the "Loss of natural forest as a result of conversion to agriculture or other nonforest land use, conversion to plantation forest, or severe and sustained degradation. [...] (and)FGV Group shall ensure its operations adhere to our commitments to No Deforestation, No Peat and No Exploitation (NDPE). [...] FGV Group shall not develop on any areas of [...] High Conservation Value (HCV)" [...] "FGV was amongst the first agricultural companies to obtain the RSPO mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification. In the process of certifying our mills, we had also certified about 40,000 FELDA schemed smallholders. Following the withdrawal of its RSPO certification in 2016, FGV is now pursuing re-certification of all its 68 complexes, which we target to be achieved by the end of 2020. [...] mills certified to date: 30 of 67"
        
        Open source document
        Open source document
      - Target date
        Current/achieved
        
        1/1
        
        Target date
        
        Current/achieved
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: RSPO certification
        
        FGV define deforestation as the "Loss of natural forest as a result of conversion to agriculture or other nonforest land use, conversion to plantation forest, or severe and sustained degradation. [...] (and)FGV Group shall ensure its operations adhere to our commitments to No Deforestation, No Peat and No Exploitation (NDPE). [...] FGV Group shall not develop on any areas of [...] High Conservation Value (HCV)" [...] "FGV was amongst the first agricultural companies to obtain the RSPO mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification. In the process of certifying our mills, we had also certified about 40,000 FELDA schemed smallholders. Following the withdrawal of its RSPO certification in 2016, FGV is now pursuing re-certification of all its 68 complexes, which we target to be achieved by the end of 2020. [...] mills certified to date: 30 of 67"
        
        Open source document
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: 2020
        
        FGV define deforestation as the "Loss of natural forest as a result of conversion to agriculture or other nonforest land use, conversion to plantation forest, or severe and sustained degradation. [...] (and)FGV Group shall ensure its operations adhere to our commitments to No Deforestation, No Peat and No Exploitation (NDPE). [...] FGV Group shall not develop on any areas of [...] High Conservation Value (HCV)" [...] "FGV was amongst the first agricultural companies to obtain the RSPO mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification. In the process of certifying our mills, we had also certified about 40,000 FELDA schemed smallholders. Following the withdrawal of its RSPO certification in 2016, FGV is now pursuing re-certification of all its 68 complexes, which we target to be achieved by the end of 2020. [...] mills certified to date: 30 of 67"
        
        Open source document
        Open source document
    - Commitment to a traceable supply chain
      
      8/7.5
      - Commitment details
        Traces to Point of production
        
        4/4
        
        Commitment to a traceable supply chain
        
        Traces to Point of production
        
        4/4
        
        When was this commitment set?: 2017
        
        "Since 2019, FGV has maintained 100 percent palm oil traceability to mills and FGV currently has 82 percent traceability to plantation (TTP). Our TTP data for full year 2020 was externally verified by the Malaysian Institute of Supply Chain Innovation (MISI). FGV targets to achieve a 100 percent traceability to plantation by the end of 2021. The Traceability and Validation Task Force (TVTF), which was established in 2019 in collaboration with MISI, Malaysia’s National Applied Research and Development Centre (MIMOS) and Procter & Gamble Chemicals (PGC), is tasked to identify and verify the sustainability risks, including environmental as well as social and human rights risks, associated with external suppliers based on their specific geographical areas. This is done by assessing and verifying compliance to FGV’s Group Sustainability Policy (GSP) by third party FFB suppliers and assisting the independent smallholders to improve their farming practices. In 2021, we plan to expand TTP up to Tier 3 suppliers in plantations. By 2023, FGV’s goal is to expand the application of the GSP to all its supply chain partners, and for FGV’s products to be fully compliant with the requirements of international markets."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Since 2019, FGV has maintained 100 percent palm oil traceability to mills and FGV currently has 82 percent traceability to plantation (TTP). Our TTP data for full year 2020 was externally verified by the Malaysian Institute of Supply Chain Innovation (MISI). FGV targets to achieve a 100 percent traceability to plantation by the end of 2021. The Traceability and Validation Task Force (TVTF), which was established in 2019 in collaboration with MISI, Malaysia’s National Applied Research and Development Centre (MIMOS) and Procter & Gamble Chemicals (PGC), is tasked to identify and verify the sustainability risks, including environmental as well as social and human rights risks, associated with external suppliers based on their specific geographical areas. This is done by assessing and verifying compliance to FGV’s Group Sustainability Policy (GSP) by third party FFB suppliers and assisting the independent smallholders to improve their farming practices. In 2021, we plan to expand TTP up to Tier 3 suppliers in plantations. By 2023, FGV’s goal is to expand the application of the GSP to all its supply chain partners, and for FGV’s products to be fully compliant with the requirements of international markets."
        
        Open source document
      - Target date
        2023
        
        1/1
        
        Target date
        
        2023
        
        1/1
        
        What actions or steps are identified for time-bound implementation?: NA
        
        "Since 2019, FGV has maintained 100 percent palm oil traceability to mills and FGV currently has 82 percent traceability to plantation (TTP). Our TTP data for full year 2020 was externally verified by the Malaysian Institute of Supply Chain Innovation (MISI). FGV targets to achieve a 100 percent traceability to plantation by the end of 2021. The Traceability and Validation Task Force (TVTF), which was established in 2019 in collaboration with MISI, Malaysia’s National Applied Research and Development Centre (MIMOS) and Procter & Gamble Chemicals (PGC), is tasked to identify and verify the sustainability risks, including environmental as well as social and human rights risks, associated with external suppliers based on their specific geographical areas. This is done by assessing and verifying compliance to FGV’s Group Sustainability Policy (GSP) by third party FFB suppliers and assisting the independent smallholders to improve their farming practices. In 2021, we plan to expand TTP up to Tier 3 suppliers in plantations. By 2023, FGV’s goal is to expand the application of the GSP (Group Sustainability Policy) to all its supply chain partners, and for FGV’s products to be fully compliant with the requirements of international markets."
        
        Open source document
      - Interim target date
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        Interim target date
        
        NA (target date current or achieved or 2023)
        
        0.5/0.5
        
        What date is given for the interim milestone?: 2021
        
        "Since 2019, FGV has maintained 100 percent palm oil traceability to mills and FGV currently has 82 percent traceability to plantation (TTP). Our TTP data for full year 2020 was externally verified by the Malaysian Institute of Supply Chain Innovation (MISI). FGV targets to achieve a 100 percent traceability to plantation by the end of 2021. "
        
        Open source document
  - Associated Human Rights Abuses
    
    11/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Details of commitment: ILO; UNGP; Discrimination; Forced labour; Child labour; Freedom of association
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
      
      "In fulfilling its responsibility to respect human rights, FGV Group is guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs). FGV Group is committed to ensure that its operations are free from any form of exploitation and to eliminate any form of forced and bonded labour, human trafficking and slavery, and child labour in all its operations [...] FGV Group reiterates its commitment to respect employees’ and workers’ right to freedom of movement, fair working hours, freedom of association and right to decent living condition [...] FGV Group is committed to the principles of non-discrimination... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group." [...] Lists ILO as one of their Key Human Rights Instruments
      
      Open source document
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      2/2
      
      Inclusion of small-scale farmers
      
      Yes
      
      2/2
      
      What is the nature of that support?: Technical assistance/support; Education and training, Economic
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 40,000 +
      
      "In 2019, we held six meetings with FELDA settlers and independent smallholders, involving more than 350 participants nationwide. These kept them engaged and aware of the palm oil industry’s developments, including challenges and regulatory developments. Educating FELDA settlers and independent smallholders is crucial to ensure they are able to fulfil our sustainability requirements and comply with the Group’s standards and guidelines. As an RSPO member, we aim to fulfil the RSPO Principles and Criteria (P&C) as we strive to meet all the requirements to produce certified sustainable palm oil (CSPO)." [...] "FGV was amongst the first agricultural companies to obtain the RSPO mill certification in 2010; and the first in the world to organise a smallholder group to obtain the RSPO Fresh Fruit Bunch (FFB) Certification. In the process of certifying our mills, we had also certified about 40,000 FELDA schemed smallholders. Following the withdrawal of its RSPO certification in 2016, FGV is now pursuing re-certification of all its 68 complexes, which we target to be achieved by the end of 2020."
      
      Open source document
      Open source document
    - Gender equality in the supply chain
      Commitment to ensure equality of women in the supply chain
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to ensure equality of women in the supply chain
      
      1/2
      
      "Gender Equality and Preventing Sexual Harassment & Violence 3.1.6.1 FGV Group is committed to the principles of non-discrimination and gender equality... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group."
      
      Open source document
    - Commitment to remediation
      No
      
      0/1
    - Commitment to ensure Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      "FGV Group shall observe the principles of free, prior and informed (FPIC) consent prior to any new land development... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group."
      
      Open source document
    - Commitment to resolve land conflicts
      Yes
      
      3/3
      
      Commitment to resolve land conflicts
      
      Yes
      
      3/3
      
      "FGV Group respects the rights of indigenous and local communities, including their rights to give or withhold their consent to land over which they hold legal, communal or customary rights. 2.3.2 FGV Group shall observe the principles of free, prior and informed consent (FPIC) in any new land development. 2.3.3 Where there is conflict and/or dispute over land, FGV Group is committed to resolving such conflict and dispute through engagement and consultation with affected local communities and their own representative institutions."
      
      Open source document
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    31/56
    - Reporting volumes against commitments
      Unclear reporting on progress/non-quantifiable reporting on progress
      
      1/3
      
      Reporting volumes against commitments
      
      Unclear reporting on progress/non-quantifiable reporting on progress
      
      0.5/3
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
      
      How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA
      
      How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date on land owned, controlled, or managed by the company?: NA
      
      How much of this upstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA
      
      How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA
      
      What is the certified volume?: NA
      
      What is the compliant volume?: NA
      
      How many hectares of land owned, controlled or managed is certified?: NA
      
      What is the non-certified/non-compliant volume?: NA
      
      What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA
      
      What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA
      
      "FGV currently has 82 percent traceability to plantation (TTP)[...] In 2021, we plan to expand TTP up to Tier 3 suppliers in plantations. By 2023, FGV’s goal is to expand the application of the GSP (Group Sustainability Policy) to all its supply chain partners, and for FGV’s products to be fully compliant with the requirements of international markets." - Unclear proportion of commodity volume compliant with traceability to plantation disclosed as unclear what proportion of suppliers are compliant/are traceable to production. Further, no clarification whether FGV have met target to have 100% traceability by end of 2021.
      
      Open source document
    - Reporting is independently verified
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      Reporting is independently verified
      
      Yes, using a third-party verification scheme or certification scheme
      
      2/2
      
      For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 33 of 68 mills are RSPO certified
      
      Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
      
      What methods are used for verification?: RSPO
      
      Which processes or groups does the company use for third party verification?: RSPO
      
      What percent of the company's supply volume is verified using company verification systems?: NA
      
      Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: Unclear
    - Suppliers aligned with deforestation commitments across supply chain
      Yes, required
      
      3/3
      
      Suppliers aligned with deforestation commitments across supply chain
      
      Yes, required
      
      3/3
      
      "Contractors, consultants, suppliers, vendors and all other third party companies including individuals working with them, should adopt responsible practices and at a minimum adhere to this Policy."[...]"FGV Group shall ensure its operations adhere to our commitments to No Deforestation, No Peat and No Exploitation (NDPE)"
      
      Open source document
    - Deforestation cut off date
      Yes, for partial sourcing regions/operations
      
      1/2
      
      Deforestation cut off date
      
      Yes, for partial sourcing regions/operations
      
      1/2
      
      What cut-off date is specified?: 25 August 2016
      
      "FGV adopted its ‘No Deforestation, No Peat, No Exploitation’ (NDPE) policy in 2016, a commitment that is important in recognising environmental protection and respect for human rights.[...]The Group has also decided that it will not develop any greenfield areas of high conservation value, including peatlands, and where possible, will restore peatlands that were previously cleared after 25 August 2016"
      
      Open source document
    - Collaborative actions
      Yes
      
      2/2
      
      Collaborative actions
      
      Yes
      
      2/2
      
      What initiatives does the company participate in?: The Malaysian Sustainable Palm Oil (MSPO) Certification Scheme, Malayan Sun Bear Conservation Programme (SBCP)
      
      What is the nature of that participation?: Attending & contributing to meetings; Providing support/ advice/ experience/ expertise
      
      "FGV has been working closely with stakeholders and other members in the industry in developing MSPO, the first Malaysian palm oil sustainability certification scheme. MSPO is similar to the RSPO and ISCC but takes into consideration the national socio-economic agenda – focusing particularly on developing marginalised local communities – while adhering to all local, national and ratified international laws and treaties. We are also among the first few plantation companies to be MSPO certified since 2015. Heeding the Malaysian Government’s directive to make MSPO certification mandatory by the end of 2019, we are taking the necessary steps to ensure all our complexes are MSPO certified by the given deadline."[...] "One of our landmark conservation initiatives is the Sun Bear Conservation Programme (SBCP). The SBCP, which is funded by FGV Holdings Bhd (FGV), is a collaboration with the Malaysian Nature Society (MNS), Department of Wildlife and National Parks Peninsular Malaysia (PERHILITAN) and Universiti Kebangsaan Malaysia (UKM)."
      
      Open source document
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: Every 5 years
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
      
      "FGV performs biodiversity assessments in all our operations at least once every five years, followed by periodic monitoring on wildlife activity. Information gathered from these assessments is used to develop HCV Management and Monitoring Plans. These plans are reviewed and updated annually with inputs from monitoring activities. To date, we have developed 16 monitoring plans and are developing three landscape plans (sun bear conservation programme, rafflesia programme, mega biodiversity programme) where FGV participates with other partners." "In 2018 and2019, the size of our High Conservation Value (HCV) areas grew by 257.41 Ha with our Tawai estates in Perak being the most recently assessed in 2018. We have 14 HCV locations in Malaysia and two in Kalimantan, Indonesia, where we conduct biodiversity assessments in all our operations once every five years to develop Environmental Management and Monitoring Plans. These assessments have enabled us to identify the rare and critically endangered wildlife species within our concessions and operational borders."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "FGV uses the Global Forest Watch (GFW) Pro platform to trace and monitor deforestation activities around our operations. This platform is an open-source web application that monitors global deforestation rates in near real-time and is able to detect illegal land-clearing activities that encroach into protected areas. If the platform identifies any deforestation activity, we verify if any of our suppliers are associated with it and if they are found to be involved, they will be subjected to our Supplier Delinquency Guideline which may lead to their removal from our supply chain. So far, we have identified one supplier that has been involved in illegal deforestation activities and it has subsequently been removed from our supply chain following efforts by FGV to engage with it"
      
      Open source document
    - Accessible grievance mechanism
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      Accessible grievance mechanism
      
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      "If you wish to report a grievance or raise concerns related to bribery, abuse of power, fraud, misconducts or other issues pertaining to sustainability, please fill in the form below. "
      
      Open source document
    - Report volumes of commodity
      Reporting total volume
      
      3/3
      
      Report volumes of commodity
      
      Reporting total volume
      
      3/3
      
      Reporting certified/compliant volume: 526639.34 tonnes
      
      Reporting non-certified/non-compliant volume: 3250157.66 tonnes
      
      What product types/sectors is this in?: Crude Palm Oil (CSPO) and CSPO Derivatives Crude Palm Kerne Oil (CSPKO) and CSPKO Derivatives Palm Kernel Expeller (CSPKE)
      
      Total volume: 3776797 tonnes
      
      What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA
      
      In the 2020 RSPO ACOP, FGV Holdings report using 3776797 tonnes with 526639.34 tonnes certified
      
      Open source document
    - Upstream: Monitor compliance with human rights
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Upstream: Monitor compliance with human rights
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What is the status of those FPIC processes?: NA
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      What steps has the company taken to implement their labour rights commitment?: Independent external assessments
      
      "As one of Malaysia’s leading agribusiness and a responsible corporate entity, FGV Holdings Berhad (FGV) is committed to respecting the rights of its workers by upholding international labour standards throughout its operations. As part of its efforts in honouring this commitment, FGV became a participating company of the Fair Labor Association (FLA)[...]FGV’s affiliation to the FLA entails the implementation of a long term programme to address and resolve any gaps in FGV’s labour practices. The scope of this programme includes an independent external assessment on FGV’s labour policy commitments and practices such as, policy alignment with internationally-recognized standards, internal policy socialization and awareness building, external stakeholders engagement, and field-level assessment and verification."
      
      Open source document
    - Compliance of company-owned operations
      No
      
      0/5
    - Upstream: Impact assessments for land development/acquisition
      Yes
      
      4/4
      
      Upstream: Impact assessments for land development/acquisition
      
      Yes
      
      4/4
      
      For what percentage of production units has an ESIA been carried out as part of the land use planning process?: 100%
      
      How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: NA
      
      "Managing Environmental Impacts 3.2.1 FGV Group shall ensure that all its businesses operate in a responsible and sustainable manner to minimize and/or eliminate negative impact on the environment and that an Environmental Management plan is in place. 3.2.2 FGV Group shall undertake a Social and Environmental Impact Assessment (SEIA) prior to new plantings or operations. "
      
      Open source document
    - Upstream: Reporting production/processing locations
      Reports location of company-owned processing facilities
      
      1/4
      
      Upstream: Reporting production/processing locations
      
      Reports location of company-owned processing facilities
      
      1/4
      
      What type of conservation designation and/or conservation status is used?: NA
      
      For what percent are boundaries disclosed?: 0%
      
      What types of ecosystems are these?: NA
      
      For what percent are point locations (of certified land holdings) disclosed?: 0%
      
      What is the total area in production (in ha)?: 335,404Ha
      
      What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: NA
      
      For what percent are point locations (of land holdings and processing facilities) disclosed: 0%
      
      For what percent are point locations (of holdings under conservation) disclosed?: 0%
      
      What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: 416,697ha Malaysia 22578ha Indonesia
      
      In what jurisdiction(s)/subnational region does the company operate and/or source material?: Selangor, Perak, Pahang, Negeri Sembilan, Johor, Terengganu, Kelantan, Sabah, Sarawak, Central and West Kalimantan
      
      In what country(ies) does the company operate and/or source material?: Indonesia, Malaysia
      
      From what sub-national jurisdiction(s) does the company source material?: Selangor, Perak, Pahang, Negeri Sembilan, Johor, Terengganu, Kelantan, Sabah, Sarawak, Central and West Kalimantan
      
      What is the total area of land (in ha) that is available for future production, e.g. concessions?: 95876Ha
      
      What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 439,275Ha
      
      What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA
      
      For what percent are boundaries (of holdings under conservation) disclosed?: 0%
      
      For what percent are boundaries (of certified land holdings) disclosed?: 0%
      
      "Our Palm Upstream business is the largest revenue generator and forms the core of the FGV Group. We manage a total land bank of 439,275 hectares in Malaysia and Indonesia, producing approximately 3 million metric tonnes (MT) of CPO annually.In Malaysia, we have 197 estates located in Selangor, Perak, Pahang, Negeri Sembilan, Johor, Terengganu, Kelantan, Sabah and Sarawak. Meanwhile in Indonesia, our plantation activities are focused in 5 estates located in Central and West Kalimantan. Currently, FGV owns 68 mills across Malaysia, processing over 14 million MT of Fresh Fruit Bunches (FFB) annually, where two-thirds of the FFB are sourced from FELDA settlers and independent smallholders."
      
      Open source document
    - Downstream: Publishing supplier lists
      Yes, report direct suppliers
      
      2/4
      
      Downstream: Publishing supplier lists
      
      Yes, report direct suppliers
      
      2/4
      
      For what percent are boundaries disclosed?: NA
      
      From what sub-national jurisdiction(s) does the company source material?: NA
      
      For what percent of smallholder suppliers is location disclosed?: NA
      
      From what country(ies) does the company source material?: Malaysia
      
      For what percent of suppliers' production areas are point locations disclosed?: NA
      
      Does the company disclose location of suppliers' production areas or primary processing sites?: Yes
      
      What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA
      
      What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA
      
      For what percent is no location data disclosed?: 0%
      
      FGV publishes on their website an interactive map "Our Assets", which discloses number of locations, estates, locations of refineries, factories in different Malay regions.
      
      Open source document
    - Upstream: Monitor compliance of production/processing
      Yes, using a third-party verification system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes, using a third-party verification system
      
      4/4
      
      If so, what jurisdictions and mechanisms does the company use?: audits
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
      
      For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: NA
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      Does the company use a certification system?: Yes
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 0%
      
      How frequently is compliance assessed?: not specified
      
      What tools, processes, bodies carry out monitoring of the company's production or processing operations?: Audits
      
      ""Our Sustainability Compliance and Certification Department (SCCD) plays a central role in FGV. It advises the relevant departments and units on all sustainability matters [...] Some of the measures taken to address RSPO’s concerns include full-scale audits of employment practices, implementing Standard Operating Procedures across FGV’s operations and improving communication with internal and external stakeholders." [...] "Suppliers may be asked to permit inspections of their sites and facilities verification purposes in line with this code. Suppliers shall provide all relevant records to the FGV Group upon request. The FGV Group reserves the rights to audit suppliers on a randomly basis. [...] Suppliers are required to appraise themselves in accordance with sustainability certification schemes, of which the FGV Group is a member, including but not limited to the Roundtable on Sustainable Palm Oil (RSPO) and the Malaysian Sustainable Palm Oil Certification Scheme (MSPO), and are expected to comply with the principles and criteria therein. The FGV Group is committed to support Suppliers towards achieving compliance."
      
      Open source document
      Open source document
    - Upstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      Yes, for its suppliers
      
      2/4
      
      Downstream: Monitor compliance in supply chain
      
      Yes, for its suppliers
      
      2/4
      
      How frequently is compliance assessed?: Unspecified
      
      For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: 100%
      
      For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA
      
      What percentage of the company's supply chain volume does that represent?: 100%
      
      How is compliance monitored?: Internal monitoring and verification systems
      
      For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
      
      "FGV uses the Global Forest Watch (GFW) Pro platform to trace and monitor deforestation activities around our operations. This platform is an open-source web application that monitors global deforestation rates in near real-time and is able to detect illegal land-clearing activities that encroach into protected areas. If the platform identifies any deforestation activity, we verify if any of our suppliers are associated with it and if they are found to be involved, they will be subjected to our Supplier Delinquency Guideline which may lead to their removal from our supply chain. So far, we have identified one supplier that has been involved in illegal deforestation activities and it has subsequently been removed from our supply chain following efforts by FGV to engage with it. We have communicated the use of this platform to all our top suppliers, along with our revised GSP and NDPE commitments, and have measured their sustainability risk levels using the platform as well."
      
      Open source document
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      Downstream: Engagement with non-compliant suppliers
      
      Engage with suppliers but with no time-bound threat of exclusion
      
      1/2
      
      What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not detailed
      
      What criteria does the policy specify for blacklisting or exclusion?: Involvement in illegal deforestation
      
      Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No
      
      Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes
      
      Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
      
      "If the platform identifies any deforestation activity, we verify if any of our suppliers are associated with it and if they are found to be involved, they will be subjected to our Supplier Delinquency Guideline which may lead to their removal from our supply chain. So far, we have identified one supplier that has been involved in illegal deforestation activities and it has subsequently been removed from our supply chain following efforts by FGV to engage with it. We have communicated the use of this platform to all our top suppliers, along with our revised GSP and NDPE commitments, and have measured their sustainability risk levels using the platform as well."
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      Yes, engaged; Yes, excluded
      
      2/2
      
      Downstream: Disclosure of non-compliant suppliers
      
      Yes, engaged; Yes, excluded
      
      2/2
      
      Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
      
      How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: multiple
      
      "On 10 May 2022, FGV issued a letter to AA Sawit Sdn Bhd to suspend the sourcing of FFB from AA Sawit Sdn Bhd and other entities associated with AA Sawit Sdn Bhd with immediate effect. As part of FGV’s efforts to promote sustainable palm oil production across the supply chain, FGV plans to further engage with AA Sawit Sdn Bhd to discuss next steps towards ensuring their compliance with our NDPE commitments."
      
      Open source document
- Pulp & Paper *
  
  22/90
  - Commitment Strength
    
    0/17
    - Commitment to protect priority forests
      
      0/9.5
      - Commitment details
        No commitment
        
        0/6
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
    - Commitment to a traceable supply chain
      
      0/7.5
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        Post 2050 or no target date
        
        0/1
      - Interim target date
        No
        
        0/0.5
  - Associated Human Rights Abuses
    
    12/17
    - Labour rights in the supply chain
      Yes
      
      3/3
      
      Labour rights in the supply chain
      
      Yes
      
      3/3
      
      Details of commitment: ILO; UNGP; Discrimination; Forced labour; Child labour; Freedom of association
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures
      
      "In fulfilling its responsibility to respect human rights, FGV Group is guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs).FGV Group is committed to ensure that its operations are free from any form of exploitation and to eliminate any form of forced and bonded labour, human trafficking and slavery, and child labour in all its operations [...] FGV Group reiterates its commitment to respect employees’ and workers’ right to freedom of movement, fair working hours, freedom of association and right to decent living condition [...] FGV Group is committed to the principles of non-discrimination... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group." [...] Lists ILO as one of their Key Human Rights Instruments
      
      Open source document
    - Inclusion of small-scale farmers
      Yes
      
      2/2
      
      Inclusion of small-scale farmers
      
      Yes
      
      2/2
      
      How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA
      
      What is the nature of that support?: Technical assistance/support
      
      "FGV Group promotes the inclusion of smallholders and outgrowers into our supply chain in a fair, transparent and equitable manner."
      
      Open source document
    - Gender equality in the supply chain
      Commitment to ensure equality of women in the supply chain
      
      1/2
      
      Gender equality in the supply chain
      
      Commitment to ensure equality of women in the supply chain
      
      1/2
      
      "Gender Equality and Preventing Sexual Harassment & Violence 3.1.6.1 FGV Group is committed to the principles of non-discrimination and gender equality... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group."
      
      Open source document
    - Commitment to remediation
      Yes
      
      1/1
      
      Commitment to remediation
      
      Yes
      
      0.5/1
      
      What does the commitment cover?: Environmental harm
      
      "FGV Group shall consider replanting when due based on economic, legal and/or environmental concern(s)."
      
      Open source document
    - Commitment to ensure Free, Prior and Informed Consent
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      Commitment to ensure Free, Prior and Informed Consent
      
      Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
      
      2/3
      
      How far back in the supply chain does this commitment apply?: Tier 1
      
      "FGV Group shall observe the principles of free, prior and informed (FPIC) consent prior to any new land development... FGV Group expects the adoption of this Policy in its entirety by all vendors and suppliers of the group."
      
      Open source document
    - Commitment to resolve land conflicts
      Yes
      
      3/3
      
      Commitment to resolve land conflicts
      
      Yes
      
      3/3
      
      "FGV Group respects the rights of indigenous and local communities, including their rights to give or withhold their consent to land over which they hold legal, communal or customary rights. 2.3.2 FGV Group shall observe the principles of free, prior and informed consent (FPIC) in any new land development. 2.3.3 Where there is conflict and/or dispute over land, FGV Group is committed to resolving such conflict and dispute through engagement and consultation with affected local communities and their own representative institutions."
      
      Open source document
    - Zero-tolerance approach to violence and threats
      No
      
      0/3
  - Implementation and Reporting
    
    11/56
    - Reporting volumes against commitments
      No disclosure
      
      0/3
      
      Reporting volumes against commitments
      
      No disclosure
      
      0/3
      
      Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
    - Reporting is independently verified
      No
      
      0/2
    - Suppliers aligned with deforestation commitments across supply chain
      No
      
      0/3
    - Deforestation cut off date
      No
      
      0/2
      
      Deforestation cut off date
      
      No
      
      0/2
      
      What cut-off date is specified?: 25 August 2016
    - Collaborative actions
      No
      
      0/2
    - Jurisdictional approach focused on sustainable land use
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
      
      How frequently are assessments conducted?: Every 5 years
      
      "FGV performs biodiversity assessments in all our operations at least once every five years, followed by periodic monitoring on wildlife activity. Information gathered from these assessments is used to develop HCV Management and Monitoring Plans. These plans are reviewed and updated annually with inputs from monitoring activities. To date, we have developed 16 monitoring plans and are developing three landscape plans (sun bear conservation programme, rafflesia programme, mega biodiversity programme) where FGV participates with other partners."[..]"In 2018 and 2019, the size of our High Conservation Value (HCV) areas grew by 257.41 Ha with our Tawai estates in Perak being the most recently assessed in 2018. We have 14 HCV locations in Malaysia and two in Kalimantan, Indonesia, where we conduct biodiversity assessments in all our operations once every five years to develop Environmental Management and Monitoring Plans. These assessments have enabled us to identify the rare and critically endangered wildlife species within our concessions and operational borders."
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      "FGV uses the Global Forest Watch (GFW) Pro platform to trace and monitor deforestation activities around our operations. This platform is an open-source web application that monitors global deforestation rates in near real-time and is able to detect illegal land-clearing activities that encroach into protected areas. If the platform identifies any deforestation activity, we verify if any of our suppliers are associated with it and if they are found to be involved, they will be subjected to our Supplier Delinquency Guideline which may lead to their removal from our supply chain. So far, we have identified one supplier that has been involved in illegal deforestation activities and it has subsequently been removed from our supply chain following efforts by FGV to engage with it"
      
      Open source document
    - Accessible grievance mechanism
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      Accessible grievance mechanism
      
      Yes, and published details of any grievances within the last two years (2019-2021)
      
      4/4
      
      Which issues does the grievance mechanism cover?: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company?: Own mechanism
      
      "If you wish to report a grievance or raise concerns related to bribery, abuse of power, fraud, misconducts or other issues pertaining to sustainability, please fill in the form below. "
      
      Open source document
    - Report volumes of commodity
      No reporting
      
      0/3
    - Upstream: Monitor compliance with human rights
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      3/5
      
      Upstream: Monitor compliance with human rights
      
      Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
      
      2.5/5
      
      What steps has the company taken to implement their labour rights commitment?: Independent Assessments
      
      What is the status of those FPIC processes?: NA
      
      What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
      
      "As one of Malaysia’s leading agribusiness and a responsible corporate entity, FGV Holdings Berhad (FGV) is committed to respecting the rights of its workers by upholding international labour standards throughout its operations. As part of its efforts in honouring this commitment, FGV became a participating company of the Fair Labor Association (FLA)[...]FGV’s affiliation to the FLA entails the implementation of a long term programme to address and resolve any gaps in FGV’s labour practices. The scope of this programme includes an independent external assessment on FGV’s labour policy commitments and practices such as, policy alignment with internationally-recognized standards, internal policy socialization and awareness building, external stakeholders engagement, and field-level assessment and verification."
      
      Open source document
    - Compliance of company-owned operations
      No
      
      0/5
    - Downstream: Publishing supplier lists
      No
      
      0/4
    - Downstream: Monitor compliance in supply chain
      No
      
      0/4
    - Downstream: Reporting hectares of deforestation
      No
      
      0/4
    - Downstream: Engagement with non-compliant suppliers
      No engagement or exclusion
      
      0/2
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2

* commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

Commitment strength

10/17

Avg. score
Implementation and Reporting

24/56

Avg. score
Associated Human Rights Abuses

11/17

Avg. score

Profile

Felda Global Ventures (FGV) is a Malaysian group of agribusiness companies active in the palm, rubber, sugar, and agri-services industries. The group is involved in both the cultivation and processing of oil palm as well as in the manufacturing of palm oil goods. Felda Global Ventures Holdings Bhd. is selected as a powerbroker for palm oil.

Sector

Industry sector

Agricultural Products, Food Distributors, Paper Packaging

Segments

Producer, Trader

Malaysia

Company Type

Company type

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Full corporate sector performance data Forest 500 assessment methodology

More companies

Tradewinds (M) Berhad

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.