09.04.2018 (The Edge Markets MY) - KUALA LUMPUR (April 9): Felda Global Ventures Holdings Bhd (FGV) is enhancing its “No Deforestation, No Peat and No Exploitation” policy with immediate effect to boost its sustainable development efforts.

Group president and chief executive officer Datuk Zakaria Arshad said FGV takes the sustainability efforts seriously to fulfill the needs of all stakeholders — the environment, workers, businesses and local community.

“FGV is committed to sustainable development, especially in all matters pertaining to social equity, the rights of local peoples to the economic betterment and the rights of our workers to a safe work environment, who are accorded benefits commensurate with the requirements of the law,” he said in a statement.

FGV’s improved policy pledges peat management systems, the high-carbon stock approach (HCSA), recruitment fees and human rights — the rights and welfare of their workers and the rights of local people and their communities.

On its peat management system, FGV aims to restore all its developed peatlands without causing social conflict in line with their 2017 Sustainability Policy.

“With regard to PT Temila Agro Abadi (PT TAA), we have submitted a detailed peat restoration plan for approval by Indonesia’s Ministry of Environment and Forestry.

“Upon implementation of this plan, water levels will be maintained at an appropriate level to restore peat ecosystem functions,” FGV said.

Additionally, FGV has developed a peat management masterplan, of which the implementation will be conducted in consultation with the relevant stakeholders, to rehabilitate the affected areas.

“In this respect, the RSPO (Roundtable on Sustainable Palm Oil) has been regularly consulted for advice. FGV will also work with stakeholders to find the right balance between the needs of the people and planet,” it said.

Meanwhile, FGV has also adopted HCSA in current areas of potential development as it takes into consideration both environmental and social aspects in determining suitable areas for new development.

“We have already incorporated this approach in our investment screening process for all future land acquisitions,” it said.

Furthermore, FGV said it does not in any way condone the practice of imposing recruitment fees for job placements, other than those fees imposed by the authorities at sourcing countries.

For the human rights part, FGV said it is constructing safety deposit boxes in easily accessible locations in every estate operation across the group which are slated to be completed by the end of 2018.

“FGV is establishing a transparent and independent multi-stakeholder engagement mechanism that will include local communities and members of civil society groups to offer local communities a platform to raise their concerns in an open forum,” it said.

Zakaria said FGV is committed to the principles of sustainable development and continuous improvement.

“We will continue to engage all our stakeholders in an open and transparent manner to bring the greatest benefit to our stakeholders, which include civil society organisations, our original FELDA settlers and their dependent families, impoverished rural communities, our customers and the environment that sustains us,” he added.

FGV’s share price rose four sen or 2.37% to RM1.73 today, with 5.37 million shares traded, giving it a market capitalisation of RM6.31 billion.

Over the past 12 months, the counter has fallen 12.29%.