The Company is a licence-holder of Sustainable Forest Management Licence Agreement 06/97 (“SFMLA 06/97”), covering an area of 71,293 hectare of natural forest in the Lingkabau Forest Reserve, Forest District of Kota Marudu, Sabah. Subsequently, the Company has on 12 April 2018 entered into a Sustainable Forest Management Licence Agreement (“Supplemental”) under the 100 years SFMLA 06/97 for conversion of 15,438.30 hectares into Protection Forest Reserve (“Class One”) and excise 10,195.28 hectares for socio-economic purpose. Pursuant to the exercise, the remaining licensed area is 45,659.42 hectares.
Our activities and commitments to Corporate Responsibility are consistent with the concept, principles and practices of the sustainable forest management to ensure the sustainability of our forest resources.
Under the SFMLA, we are mandated to manage the licenced forest area based on the principles of sustainable forest management “to ensure forest remaining large, healthy, diverse and productive”.
The principles of sustainable forest management entail the following:
In achieving the above principles, the Company has set the following Policy Statement:
The forest management practices adopted by the Company are basically in line with those advocated by Sabah Forestry Department and comprise the following:
The table below depicts the key performance indicators of the forest resource management:
|No.||Performance measure||Target (ha)||Achieved (ha)|
|No.||Stakeholder Relevant||EES Matters|
|1.||Contractor||• Labor and Management Relations|
• Weather Condition
|2.||Employee||Training and Education|
|No.||Continuing Education Programme Attended||Month Attended|
|1.||Sabah Forest and Timber Industry Master Plan||Feb 2020|
|2.||FPLC Webinar COVID-19 Series: Paradigm Shift in Human Capital Management||July 2020|
|3.||Workshop Forest Beyond Timber||July 2020|
|4.||The Cooler Earth: Sustainability Summit 2020: Profits with a purpose||September 2020|
|5.||The Cooler Earth Sustainability Summit 2020: Environmental Reporting||September 2020|
|6.||The Cooler Earth Sustainability Summit 2020: Building a Sustainable World||September 2020|
|7.||The Cooler Earth Sustainability Summit 2020: Resilient Cities and Communities||September 2020|
|8.||The Cooler Earth Sustainability Summit 2020: Managing Change for Sustainability||September 2020|
|9.||The Cooler Earth Sustainability Summit 2020: Tools for Environmental Risk Management||October 2020|
|10.||The Cooler Earth Sustainability Summit 2020: Green Finance||October 2020|
|11.||The Cooler Earth Sustainability Summit 2020: ESG Financing for Business||October 2020|
Moving forward, the Company will continue the practice of measuring, disclosing and accounting for corporate performance towards the goal of sustainable development. Sustainability key matters are complex, inter-connected and continually evolving. Thus, this report essentially describes the Company’s performance in its forest resource management, and initiatives on environmental and social responsibility in FY2020, and presents our commitments for the future years.
In line with the Company’s sustainability goals, we have actively sought to improve and raise the level of sustainability within our operations while addressing social, environmental and economic challenges. The Company has adopted several sustainability policies aimed at delivering our commitment without compromising on performance. These apply to the Company and its subsidiary companies.
|Code of Conduct & Business Ethic||March 2021|
|Whistle Blowing Policy||March 2021|
|Board Diversity Policy||March 2021|
|Succession Planning Policy||August 2020|
|Occupational Safety and Health Policy||November 2019|
|Risk Assessment Profile Statement||November 2019|
|Environmental and Biodiversity Policy||November 2019|
|Anti-Bribery & Corruption Policy||November 2019|
The Company has in line with Government’s directive urged all business entities to have a Standard Operating Procedures (“SOP”) for the New Normal Practices in the work place. A copy of the SOP was extended to all employees and uploaded to Company’s website.
In terms of risk management of the Group, a sound risk management framework has been established for managing risks affecting the business and operations, which are detailed in the Statement on Risk Management and Internal Control section of this Annual Report. It clearly outlines the duties and responsibilities at each level within the Group as well as the accountability in implementing the risk management processes and internal control system. For the coming financial year 2021, the Company shall arrange for the RMC to meet at least once to assess various sustainability issues and developments in its annual Risk Assessment and Management process.