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Supply Chain Innovation

Findings on the Progress of FGV’s Action Plan 2020

Publication date: 
Tuesday, March 30, 2021

FGV Holdings Berhad affiliated with the Fair Labor Association (FLA) in October 2019. Through this affiliation FGV top management committed to uphold FLA standards, address labor issues, and drive long-term improvements to working conditions in its owned operations and upstream supply chain.

On March 31, 2020, FGV released Action Plan 2020, a document that aligns FGV's commitment and practices with FLA standards, namely the FLA Workplace Code of Conduct for the Agriculture Sector and the FLA Principles of Fair Labor and Responsible Sourcing for Companies with Agricultural Supply Chains. The Action Plan 2020 details 46 items that cut across FLA principles.

On September 30, 2020, FLA published the first interim Progress Findings Report, assessing FGV implementation of its management system action plan for January 2020 to September 2020. In line with FLA expectations, FGV focused this initial implementation period on confirming top management commitment, alignment of policies and standards, internal staff training, and strengthening engagement with external stakeholders. These actions are foundational to long-term sustainable changes in workplace conditions.

Today's validation report provides an updated assessment of implementation of the Action Plan 2020 from September 30, 2020, to March 15, 2021. The report details activities undertaken by FGV and assesses the company's progress in improving its internal management systems.

During the second quarter of 2021, FLA will conduct an Independent External Assessment (IEA) in FGV operations based on the FLA Workplace Code of Conduct for the Agriculture Sector. The IEA findings and FGV's Corrective Action Plan (CAP) will be published by FLA this year.

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