PETALING JAYA: FGV Holdings Bhd (FGV) appealed against the decision made by Roundtable on Sustainable Palm Oil’s (RSPO) complaints panel (CP) to re-suspend the certification of its Serting Mill Complex and suspend all certification process of its uncertified mills on Jan 13, 2020.
In its appeal, the group stated that the two independent verification bodies appointed by the RSPO, Bureau Veritas Certification (BVC) and TUV Nord (M) Sdn Bhd had recognised its efforts and progress made in its operations.
“[We] 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 Nov 28, 2018 throughout their complexes in Peninsular Malaysia,” according to a report by BVC.
FGV also cited TUV’s report had concluded that FGV Sahahat had put in effort to address the panel’s directive, however, there were several concerns outlined.
In response, the group emphasised 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. Certification of both mills are scheduled for 2021.
The CP had highlighted one major non-compliance issue in relation to undocumented workers, to which FGV said it 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 Feb 13 2020, however FGV is yet to receive a response from the CP,” FGV said.
The group also pointed out that five non-major non-compliances have been rectified since the audits were concluded and in accordance with its timelines for completion.
It pointed out that three of the five were also found in its two uncertified complexes in Sabah and the other two were found in mill complexes in Peninsula Malaysia and involved the timing of socialisation exercises of several new policies and procedures.
Meanwhile, FGV stated that the one remaining non-compliance was vaguely worded and was still awaiting response from the RSPO for greater clarity.
With regards to the Serting Mill Complex, the group revealed that only one non-compliance issue remains from the 41 identified in November 2018.
This is in relation to worket complaints about having to pay fees to their home country recruitment agencies to expedite the recruitment process.
FGV highlighted that its Guidelines and Procedures for the Responsible Recruitment of Foreign Workers was adopted on June 27, 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,”it said.
Between October 2019 and January 2020, the situation had changed and all of the non-compliances identified by the CP, except for the issues relating to Sabah, have been rectified.
FGV’s group CEO Datuk Haris Fadzilah Hassan said there has been a comprehensive and ongoing review and overhaul of FGV’s internal policies and standards, guidelines and processes over the past 16 months.
“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,” he said.
The group also emphasised its engagement with United Nations International Organization for Migration (IOM), the non-profit Earthworm Foundation, and the Fair Labor Association to improve working conditions and uphold stringent labour standards in its palm oil supply chain.
