Felda Global Venture (FGV)
Originally named as Federal Land Development Authority (FELDA). FGV Holdings Berhad is a member of RSPO. The relevant RSPO grievance case trackers which are:
a) related to the complaint made by the community of Desa Begahak can be found here.
b) related to Wall Street Journal article can be found here.
c) related to Chain Reaction research can be found here.
1) The Wall Street Journal (WSJ) article titled, “Palm Oil Migrant Workers tell of abuses on Malaysian Plantation” (July 2015)
2) Chain Reaction Research report titled, “The Chain: EXCLUSIVE – FGV Risks Supply Chain Exclusion Over Repeat Offenses” (18 April 2017)
3) Chain Reaction Research report titled, “The Chain: Felda Global Ventures Allegedly Defying Government of Indonesia Peatland Laws, Company Disagrees” (10 May 2017)
4) Greenpeace bulletin titled, “Palm Oil Alert” (July 2017)
5) Greenpeace report titled, “Final Countdown: Now or Never to Reform the Palm Oil Industry” (19 September 2018)
6) Mighty Earth report titled, “Rapid Response Report 9” (October 2018)
7) Grant & Eisenhofer ESG Institute petition titled, “Grant & Eisenhofer ESG Institute Petitions US Government to Block Importation of Palm Oil Produced by FGV Holdings Berhad in Malaysia, Based on Evidence of Child and Forced Labor Practices” (24 June 2019)
8) International Labor Rights Forum (ILRF), Rainforest Action Network and SumOfUs petition titled, “NGOs Call on US Customs to Block Import of Forced Labour Palm Oil” (15 August 2019)
9) Mighty Earth report titled, “Rapid Response Report 20” (12 October 2019)
(1) The Wall Street Journal report highlighted that the company was allegedly exploiting human and labour rights.
(2) Chain Reaction Research published an article – “FGV Risks Supply Chain Exclusion Over Repeat Offenses”, alleging deforestation and clearance of Peatland by FGV.
(3) Chain Reaction Research published a report titled: “Felda Global Ventures Allegedly Defying Government of Indonesia Peatland Laws, Company Disagrees” on alleged deforestation and clearing of Peatland by FGV.
(4) Greenpeace published a bulletin on FGV and repeated the allegations that FGV has cleared Peatland , forests and has social issues with its migrant workers.
(5) Greenpeace said that FGV continued to clear forest and Peatland between May 2015 to April 2018.
(6) Mighty Earth published a report on alleged use of fire for developing the land in West Kalimantan, Indonesia by one of FGV’s subsidiaries in Indonesia, PT Temila Agro Abadi.
(7) Grant & Eisenhower petitioned to US Customs and Border Protection (CBP) for a ban on importation of Palm Oil produced by FGV due to widespread evidence of forced labour and illegal child labour practices within their plantations.
(8) NGOS petitioned to US CBP for a ban on importation of Palm Oil produced by FGV due the labour and human rights issues and called for global brands to publicly cut ties with FGV.
(9) The report alleges deforestation by PT Citra Niaga Perkasa (PT CNP) of an estimated 4 ha between 22 May – 21 August 2019.
We applied ‘controlled purchase’ in July 2015 and we continue to monitor the development of the complaint with RSPO.
The WSJ case is also lodged with the RSPO Complaints Panel. The case can be found here.
As a member of the RSPO, we respect the RSPO Complaints procedure and we will act in accordance with any decision made by the Complaints Panel of the RSPO.
We reviewed the trade relations with FGV and its action plan.
We decided to resume trade relations with FGV after determining their commitment towards publishing an action plan.
We had a meeting with FGV’s management on sustainability options and requested to visit its mill.
We engaged with Greenpeace via email and informed that we have applied a controlled purchase condition from October 2015 – May 2016 and started the purchase from May 2016 – November 2016.
Musim Mas followed up with FGV, to engage them on their labour and peat issues.
We had a physical meeting on 19 July 2019 at the FGV’s head office with FGV’s Head of Sustainability Engagement and his team.
The discussion was with regards to the Grant & Eisenhofer’s petition and FGV’s action plan and implementation progress as well as other initiatives that FGV is planning to take to ensure all the action plans are implemented progressively.
We reached out to FGV after the allegations made in Mighty Earth RRR 20 were raised.
FGV set up a sustainability response team to look into the criticisms raised by the stakeholders. For more information, please refer to its website for the progress to date.
FGV published a social verification report on its operations.
FGV published an action plan on re-certification of its mills, following the WSJ complaint and ASI audit verification findings.
FGV further reported progress on its sustainability initiatives.
FGV engaged TFT to publish a transformation report.
FGV responded to Chain Reaction Research via an announcement to the Bursa KL.
The RSPO Complaints Panel will review the action plan on the WSJ complaint.
FGV announced its enhanced Group Sustainability Policy and committed to the following:
a) No deforestation of High Conservation Value and High Carbon Stock areas, and peatlands regardless of size and depth;
b) Adopt best management practices on existing Peatland estates; and endeavour to rehabilitate all peatlands planted on, after 25 August 2016 (in accordance RSPO’s rehabilitation guidelines, and in consultation with Indonesia’s Peatland Restoration Agency);
c) Cease all new peat development regardless of the land acquisition date or any prior RSPO NPP approval.
FGV has also ceased all land development in PT Temila Agro Abadi (PT TAA) and PT Citra Niaga Perkasa (PT CNP) since 25 April 2017. The issue of its subsequent re-commencement of development for two weeks in May 2017 at PT TAA has since been resolved. With the enhancement to its Group Sustainability Policy, FGV has communicated that the development at PT TAA and PT CNP will be permanently discontinued.
It will also engage with the local communities and formulate programmes to address their concerns.
The RSPO Complaints Panel will be reviewing the independent report commissioned by FGV before it initiates any further on-site investigations.
FGV published its Action Plan implementation updates.
FGV published updates on its sustainability initiatives progress:
a) Eight mills attained RSPO-certification
b) Consulted with the Peatland Restoration Agency (BRG) and Ministry of Environment and Forestry (KLHK) on peat restoration and is working with the RSPO in conducting independent investigations into the alleged peat land clearance in Kalimantan.
c) Announced a tentative peat management master plan
d) FGV is also seeking an independent verification of community conflict in PT Temila Agri Abadi (PT TAA).
The full document can be accessed here.
FGV announced the progress update on its social compliance and human rights initiatives related to the allegations by the Wall Street Journal (WSJ), peat and the High Carbon Stock (HCS) approach.
The document lists all the actions which have been undertaken to address the allegation and timelines.
The progress report can be found here.
FGV published a statement reaffirming its stance on sustainability commitments.
FGV published a statement regarding the forest and peat clearance by PT TAA here. The company has a stop-work order since April 2017.
FGV issued a response to Greenpeace’s report (Final Countdown), as well as provided updates on their RSPO certifications, issues in Kalimantan (plans for peat restoration and efforts to address the well-being of local communities affected by the SWO), and HCS assessment in APL.
RSPO Complaints Panel released a public announcement on its decision on the case here. A decision was made for the Certification Body to suspend FGV’s P&C certificate for Kilang Sawit Serting and its supply bases, and the suspension will only be lifted once FGV has satisfied the Complaints Panel directives in the letter.
FGV published a statement regarding the RSPO decision letter here, affirming their compliance to all of RSPO’s Principles and Criteria by taking several immediate measures to address all the issues raised.
On 7 December, FGV issued a letter to all its business partners, reaffirming its commitment to the RSPO and announcing a transformation programme it has developed to restore the integrity of its operations.
On 14 December, FGV published its report on its progress in Serting Estates that is the subject of the RSPO’s investigations.
RSPO has approved FGV’s request for an extension to submit their action plan.
On 21 June, FGV published a letter to all its shareholders, sharing their progress on their operational transformation. The letter also addresses RSPO’s ongoing certifications on Serting Estate. They confirmed that FGV submitted an action plan and that RSPO will conduct another audit in Serting to verify their progress.
FGV published a response to Grant & Eisenhofer’s petition on their website on the 26 June 2019. FGV stressed that the issues raised in the petition were since 2015 and that they have taken the necessary actions to correct the non-compliances raised. The response includes the Quarterly Progress Report of the Action Plan implementation.
On 5 August 2019, RSPO published a letter to announce the Complaints Panel decision to lift the suspension on FGV’s Serting Complex as FGV had fulfilled the major conditions set out by the Complaints Panel.
RSPO closed the case on 05 August 2019.
FGV also published a statement on their website on RSPO’s decision to lift the suspension on their Serting Complex. The statement by FGV can be found here.
FGV has released their response to the latest petition by ILRF, RAN and SumOfUs to US CBP on 19 August 2019. Their response can be found here.
We received a statement from FGV’s Group CEO dated 17 September 2019 that reiterates and affirms their commitment to uphold human rights and international labour standards throughout their operations. The letter can be found here.
FGV, together with Procter & Gamble (P&G) will be undertaking a long-term collaboration with international civil society groups to improve on labour standards and human rights. P&G released a statement on their support for the project on their website and their statement can be found here.
FGV clarified that the clearance location given in the report belongs to the local community. The clearing of the land has been carried out by the land owner since June 2019 for paddy planting.
The stop-work order for FGV Kalimantan (PT CNP & PT TAA) remains in force since May 2017 and since then, FGV Kalimantan has not carried out any land clearing except for maintenance of roads, drains and boundary trenches.