KUALA LUMPUR (Dec 3): FGV Holdings Bhd has reiterated its commitment to addressing the Withhold Release Order (WRO) issued by the US Customs and Border Protection (CBP) against the group's palm oil and palm oil products and assured that it is making continuous effort in addressing the matter.

In a statement today, FGV said the issues raised by CBP have been the subject of public discourse since 2015, with the group rigorously working towards enhancement of its labour practices.

"FGV's continuous effort in ensuring the implementation of FGV's human rights and labour policies on the ground is evidenced by the various initiatives and programmes that FGV has embarked on, in particular its affiliation to the Fair Labor Association (FLA).

"FGV has also appointed the Independent Advisory Panel to advise FGV on matters relating to governance and sustainability including labour matters," it said.

The group further said that it had communicated with the CBP via conference call to seek clarification on the allegations of forced labour within its plantations, although the latter did not reveal any information about its findings.

However, the CBP said its research had identified 11 International Labour Organization indicators of forced labour in FGV's practices. It did not disclose any further information about its findings, including the nature or locations of any incidents linked to such indicators.

"Therefore, FGV has decided to take a systematic approach in ensuring that the rights of its workers are respected and protected, thereby eliminating practices indicative of labour exploitation.

"This is to ensure that the best labour practices are observed in accordance with international standards throughout its entire operations," FGV said.

The group said it is committed to ensuring the completion of its ongoing efforts towards further improving the hard infrastructure of its facilities within a reasonable period of time, for the benefit of its workers, including via added improvements in housing, clinics, schools, shops and places of worship.

FGV had previously stated that it would be appointing an independent third-party audit firm for an imminent audit of its operations, and has decided to revisit this appointment after the group is satisfied that all measures have been implemented accordingly.

"In the meantime, FGV will continue to engage with the CBP to keep them abreast on the various measures undertaken and its other ongoing initiatives pertaining to labour rights in particular, and human rights in general," it said.

The group also remains committed to implementing its action plan under its affiliation with the FLA, with the next progress report to be published on March 31, 2021.

At the noon market break, FGV was unchanged at RM1.25. Its market capitalisation was RM4.6 billion.