8 April 2020

Kuala Lumpur, 8 April 2020 – FGV Holdings Berhad (FGV) has appealed against the decision by the Complaints Panel (CP) of the Roundtable on Sustainable Palm Oil (RSPO) to re-suspend the certification of its Serting Mill Complex, and to suspend all certification processes for currently uncertified FGV mills. This decision was communicated to FGV on 13th January 2020. FGV submitted its appeal to the RSPO on 3rd April 2020.

In its appeal, FGV made several points, including the following:

  1. The two independent verification bodies appointed by the RSPO, Bureau Veritas Certification (BVC) and TUV Nord (M) Sdn. Bhd. (TUV), had in fact recognised FGV’s efforts and progress made in our operations. The reports noted:
  • POSITIVELY RECOMMEND that FGV has demonstrated their compliance and positive progress to fulfill the RSPO Complaint Panel Directive as stated in RSPO Complaints Panel’s Directives letter to FGV dated 28th Nov 2018 throughout their complexes in Peninsular Malaysia.” (emphasis as published in the report) (BVC, October 2019)
  • It could be concluded, FGV Sahahat is putting efforts to address CP directives. However, there were several concerns outline in the verification findings.” (TUV, October 2019)

FGV also emphasized that the two mill complexes audited by TUV are located in the Sahabat Region of Sabah and are actually still uncertified, and thus, by extension unprepared for audits. Both mill complexes are scheduled for certification in 2021.

  1. the CP identified seven non-compliances, one of which was classified as major. This was in relation to the presence of undocumented workers, a matter which was true only for the two uncertified estates in Sabah and which had been transparently communicated to the CP and all FGV’s stakeholders over the span of several months.

Mindful of the complexity and historical context of undocumented population in Sabah, and in keeping with FGV’s commitments to support national efforts to eradicate poverty and to respect human rights, FGV had worked with the Sabah Immigration Department and several foreign embassies to document and regularise 6,158 workers by end-June 2020. The CP was aware of this timeline and had acknowledged and agreed that the matter is complex as it involves three governments and amendments to state policies and procedures. An action plan for this exercise was submitted to the RSPO’s CP on 13th February 2020, however FGV is yet to receive a response from the CP.

Five non-major non-compliances have been rectified since the audits were concluded and in accordance with FGV’s timelines for completion. Of these five, three were also found in the two uncertified complexes in Sabah. The remaining two non-compliances were found in mill complexes in Peninsula Malaysia and involved the timing of socialisation exercises of several new policies and procedures.

One non-compliance was vaguely worded. FGV is still awaiting a response from the RSPO seeking greater clarity.

With regard to Serting Mill Complex, where the original 41 non-compliances were identified in November 2018, the independent audit revealed that there was only one remaining non-compliance. This is related to the complaint by workers that they had to pay some fees to the recruitment agency in their home country to expedite the recruitment process.  It is important to note that FGV’s Guidelines and Procedures for the Responsible Recruitment of Foreign Workers was adopted on 27 June 2019 and the socialisation of these Guidelines among third parties is still ongoing, a fact the RSPO is aware of. It is also unclear whether the workers interviewed during the audit were recruited before or after the adoption of the said Guidelines. Thus, this non-compliance relates again to the timing of new policies and procedures that FGV has adopted.

  1. there was a lapse of approximately 3 months between the completion of the verification audits and the letter from the CP. During that time, the situation was dynamic and there were several ongoing efforts to revise and improve FGV’s internal policies, processes and guidelines, and also, compliance with the RSPO’s Principles & Criteria.

Simultaneously, FGV had been undergoing a leadership and strategic overhaul as part of its transformation programme.

Thus, several new and revised policies, procedures and guidelines were being rolled out across the Group and socialised during this period. Several processes are still ongoing with independent third-party organisations to further strengthen FGV’s initiatives.

Thus, between October 2019 and January 2020, the situation had changed and of all the non-compliances identified by the CP, except for the issues relating to Sabah, had been rectified.

“There has been a comprehensive and ongoing review and overhaul of FGV’s internal policies and standards, guidelines and processes. Many are new, or were revised and thus, the last 16 months have been intensive. This is why we were able to correct 34 of the 41 non-compliances identified in November 2018,” said FGV’s Group Chief Executive Officer Dato’ Haris Fadzilah Hassan. “Our revised Group sustainability policy was adopted in July 2019.”

“It is however important to note that rolling out new policies and procedures to third parties and outsiders is a complex exercise, especially since FGV works extensively with smallholders who have limited means and capacity to implement changes swiftly. Thus, it is an ongoing journey of continuous improvement,” added Haris Fadzilah.

During that period, FGV had also engaged with several independent organisations such as the United Nations International Organization for Migration (IOM), and the non-profit Earthworm Foundation. Furthermore, FGV was also accepted as a Participating Company of the Fair Labor Association (FLA), together with the Procter & Gamble Chemicals, an important partner and stakeholder of FGV’s. The FLA Board had taken into consideration FGV’s willingness to improve working conditions and uphold stringent labour standards in its palm oil supply chain as well as its commitment to an independent review, verification, and public transparency of its social compliance programme. Under this affiliation programme, FGV will ensure that all its practices are fully in line with international labour standards.

Transparency

FGV remains committed to ensuring that all our stakeholders are kept abreast of the efforts undertaken to deliver on our commitment to sustainability. In this spirit of full transparency and disclosure, all of FGV’s statements, updates, action plans and progress reports have outlined the various measures that have been taken and continue to be taken. All of these documents are available on FGV’s website and are listed below.

  1. 30 November 2018 – Press Release: FGV’s response to the CP’s decision dated 28th November 2018
  2. 7 December 2018 – Updates: Chairman’s letter to business partners
  3. 14 December 2018 – Report: Progress Report in reference to the findings of the CP
  4. 14 January 2019 – Updates: Chairman’s 1st letter to shareholders
  5. 25 April 2019 – Report: 1st Quarterly Report and Progress Updates to the RSPO
  6. 21 June 2019 – Updates: Chairman’s 2nd letter to shareholders
  7. 28 June 2019 – Report: 2nd Quarterly Report and Progress Updates to the RSPO
  8. 12 July 2019 – Updates: GCEO’s letter to business partners
  9. 5 August 2019 – Press Release: Lifting of Certification Suspension for FGV’s Serting Complex
  10. 5 August 2019 – Updates: GCEO’s letter to business partners
  11. 17 September 2019 – Updates: GCEO’s letter to business partners
  12. 27 September 2019 – Report: 3rd Quarterly Report and Progress Updates to the RSPO
  13. 8 January 2020 – Updates: Chairman’s 3rd letter to shareholders
  14. 13 January 2020 – Press Release: FGV’s Response to RSPO’s CP’s letter dated 13th January 2020
  15. 24 January 2020 – Updates: GCEO’s letter to business partners
  16. 2 April 2020 – Press Release: FGV announces action plan to enhance labour practices

FGV is committed to sustainable development and the principles of human rights, and will continue with efforts to uphold the highest standards in all our operations, with the aim to create sustainable value for all our stakeholders.

(End)

 

Kuala Lumpur, 8 April 2020 – FGV Holdings Berhad (FGV) telah membuat rayuan keputusan oleh Panel Aduan (CP) Rundingan Meja Bulat Minyak Sawit Lestari (RSPO) yang menangguhkan pensijilan Kompleks Kilang Serting, dan menggantung semua proses pensijilan bagi kilang FGV yang tiada pensijilan. Keputusan ini dikemukakan kepada FGV pada 13 Januari 2020. FGV mengemukakan rayuannya kepada RSPO pada 3 April 2020.

Dalam rayuannya, FGV menyatakan beberapa perkara, termasuk yang berikut:

  1. dua badan penentusahan bebas yang dilantik oleh RSPO, Persijilan Biro Veritas (BVC) dan TUV Nord (M) Sdn. Bhd. (TUV), telah mengiktiraf usaha dan progres yang dibuat FGV dalam operasinya. Laporan tersebut menyatakan:
  • POSITIF MENGESYORKAN” bahawa FGV telah menunjukkan kepatuhan mereka dan kemajuan positif untuk memenuhi Arahan Panel Aduan RSPO seperti yang dinyatakan dalam surat Arahan Panel Aduan RSPO kepada FGV pada 28 Nov 2018 di seluruh kompleks mereka di Semenanjung Malaysia.” (penekanan seperti yang disiarkan dalam laporan) (BVC, Oktober 2019).
  • “Dapat disimpulkan, FGV Sahahat meletakkan usaha untuk menangani arahan CP. Walau bagaimanapun, terdapat beberapa perkara yang dinyatakan dalam penemuan pengesahan. ” (TUV, Oktober 2019)

FGV juga menegaskan bahawa kedua-dua kompleks kilang yang diaudit oleh TUV terletak di Sahabat Wilayah Sabah sebenarnya masih belum disijilkan, dan oleh itu, dengan lanjutan tidak bersedia untuk audit. Kedua-dua kompleks kilang dijadualkan untuk pensijilan pada tahun 2021.                                                

  1. CP mengenal pasti tujuh ketidakpatuhan, salah satunya dikelaskan sebagai utama. Ini berkaitan dengan kehadiran pekerja tanpa dokumen, yang sebenarnya hanya untuk dua estet yang tiada pensijilan di Sabah dan telah dinyatakan secara telus kepada CP dan semua pemegang kepentingan FGV selama beberapa bulan.

Menyedari kerumitan dan konteks sejarah penduduk yang tidak berdokumen di Sabah, dan selaras dengan komitmen FGV untuk menyokong usaha nasional untuk membasmi kemiskinan dan menghormati hak asasi manusia, FGV telah bekerjasama dengan Jabatan Imigresen Sabah dan beberapa kedutaan asing untuk mendokumentasikan dan memperbaharui 6,158 pekerja pada akhir Jun 2020. CP menyedari garis masa ini dan telah mengakui dan bersetuju bahawa perkara itu adalah rumit kerana ia melibatkan tiga kerajaan dan pindaan kepada dasar dan prosedur negeri. Pelan tindakan untuk pelaksanaan ini dikemukakan kepada CP RSPO pada 13 Februari 2020, namun FGV masih belum menerima maklum balas daripada CP.

Lima ketidakpatuhan bukan utama telah diperbetulkan sejak audit dan telah selesai mengikut garis masa FGV untuk disiapkan. Daripada lima, tiga juga terdapat di dua kompleks yang tiada pensijilan di Sabah. Baki dua lagi ketidakpatuhan didapati di kompleks kilang di Semenanjung Malaysia dan melibatkan masa pelaksanaan sosialisasi beberapa dasar dan prosedur baharu.

Satu ketidakpatuhan tidak dinyatakan dengan jelas. FGV masih menunggu maklum balas daripada RSPO untuk mencari penjelesan yang lebih baik.

Berkenaan dengan Kompleks Kilang Serting, di mana 41 ketidakpatuhan asal telah dikenalpasti pada November 2018, audit bebas mendedahkan bahawa hanya ada satu ketidakpatuhan. Ini berkaitan dengan aduan oleh pekerja bahawa mereka perlu membuat beberapa bayaran kepada agensi pengambilan di negara asal mereka untuk mempercepatkan proses pengambilan pekerja. Penting untuk dinyatakan bahawa Garis Panduan dan Prosedur FGV untuk Pengambilan Pekerja Asing Secara Bertanggungjawab telah diterima pakai pada 27 Jun 2019 dan sosialisasi Garis Panduan di kalangan pihak ketiga masih berlangsung, satu fakta yang diketahui oleh RSPO. Ia juga tidak jelas sama ada pekerja yang ditemuramah semasa audit telah direkrut sebelum atau selepas penggunaan Garis Panduan tersebut. Oleh itu, ketidakpatuhan ini berkaitan sekali lagi dengan penentuan dasar dan prosedur baharu yang digunapakai oleh FGV.

  1. terdapat kira-kira 3 bulan jurang masa antara penyempurnaan audit pengesahan dan surat dari CP. Pada masa itu, keadaan adalah dinamik dan terdapat beberapa usaha berterusan untuk menyemak dan memperbaiki dasar, proses dan garis panduan dalaman FGV, dan juga pematuhan kepada Prinsip & Kriteria RSPO.

Pada masa yang sama, FGV sedang menjalani rombakan kepimpinan dan strategik sebagai sebahagian daripada program transformasinya.

Oleh itu, beberapa dasar, prosedur dan garis panduan yang baharu dan disemak telah dilancarkan di seluruh Kumpulan dan disosialisasikan dalam tempoh ini. Beberapa proses masih berterusan dengan organisasi pihak ketiga yang bebas untuk mengukuhkan lagi inisiatif FGV.

Oleh itu, antara Oktober 2019 dan Januari 2020, keadaan telah berubah dan semua ketidakpatuhan yang dikenalpasti oleh CP, kecuali isu-isu yang berkaitan dengan Sabah, telah diperbaiki

“Terdapat kajian menyeluruh dan berterusan dan rombakan dasar dan piawaian, garis panduan dan proses dalaman FGV. Banyak yang baharu, atau telah disemak, 16 bulan yang lalu adalah usaha yang tidak henti-henti. Hasilnya kami dapat membetulkan 34 daripada 41 ketidakpatuhan yang dikenalpasti pada November 2018,” kata Ketua Pegawai Eksekutif Kumpulan FGV, Dato‘ Haris Fadzilah Hassan. “Dasar Kelestarian Kumpulan kami yang telah disemak semula digunapakai pada Julai 2019.”

“Walau bagaimanapun, penting untuk dinyatakan bahawa untuk melancarkan dasar dan prosedur baharu kepada pihak ketiga dan orang luar adalah satu perkara yang kompleks, kerana FGV bekerja dengan ramai pekebun kecil yang mempunyai kemampuan dan kapasiti yang terhad untuk melaksanakan perubahan dengan cepat. Oleh itu, ia adalah proses yang berterusan untuk penambahbaikan,” tambah Haris Fadzilah.

Dalam tempoh itu, FGV juga telah terlibat dengan beberapa organisasi bebas seperti Organisasi Pertubuhan Antarabangsa Bagi Migrasi (IOM) Pertubuhan Bangsa-Bangsa Bersatu, dan badan bukan keuntungan Earthworm Foundation. Selain itu, FGV juga diterima menyertai Fair Labor Association (FLA), bersama dengan Procter & Gamble Chemicals, rakan kongsi dan pihak berkepentingan FGV. Lembaga FLA telah mengambil kira kesediaan FGV untuk memperbaiki keadaan kerja dan memperkasakan piawaian buruh yang ketat dalam rantaian bekalan minyak kelapa sawit serta komitmennya terhadap kajian bebas, pengesahan, dan ketelusan awam terhadap program pematuhan sosialnya. Di bawah program gabungan ini, FGV akan memastikan semua amalannya selaras dengan piawaian buruh antarabangsa.

Ketelusan

FGV komited untuk memastikan semua pihak yang berkepentingan sentiasa mengikuti usaha yang dijalankan untuk menzahirkan komitmen kami kepada kemampanan. Dalam semangat ketelusan dan pendedahan penuh, semua kenyataan, kemas kini, pelan tindakan dan laporan kemajuan FGV telah menggariskan pelbagai langkah yang telah diambil dan akn terus diambil. Semua dokumen ini boleh didapati di laman web FGV dan disenaraikan di bawah.

  1. 30 November 2018 – Press Release: FGV’s response to the CP’s decision dated 28th November 2018
  2. 7 Disember 2018 – Updates: Chairman’s letter to business partners
  3. 14 Disember 2018 – Report: Progress Report in reference to the findings of the CP
  4. 14 Januari 2019 – Updates: Chairman’s 1st letter to shareholders
  5. 25 April 2019 – Report: 1st Quarterly Report and Progress Updates to the RSPO
  6. 21 Jun 2019 – Updates: Chairman’s 2nd letter to shareholders
  7. 28 Jun 2019 – Report: 2nd Quarterly Report and Progress Updates to the RSPO
  8. 12 Julai 2019 – Updates: GCEO’s letter to business partners
  9. 5 Ogos 2019 – Press Release: Lifting of Certification Suspension for FGV’s Serting Complex
  10. 5 Ogos 2019 – Updates: GCEO’s letter to business partners
  11. 17 September 2019 – Updates: GCEO’s letter to business partners
  12. 27 September 2019 – Report: 3rd Quarterly Report and Progress Updates to the RSPO
  13. 8 Januari 2020 – Updates: Chairman’s 3rd letter to shareholders
  14. 13 Januari 2020 – Press Release: FGV’s Response to RSPO’s CP’s letter dated 13th January 2020
  15. 24 Januari 2020 – Updates: GCEO’s letter to business partners
  16. 2 April 2020 – Press Release: FGV announces action plan to enhance labour practices

FGV komited terhadap pembangunan mampan dan prinsip-prinsip hak asasi manusia, dan akan meneruskan usaha untuk mendukung piawaian tertinggi dalam semua operasi kami, dengan matlamat untuk mewujudkan nilai mampan bagi semua pemegang kepentingan kami.

 

(Tamat)

 

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