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IOI Group – Sustainability Progress Update (October – December 2017)
29/01/2018Corporate Sustainability
We are pleased to publish our fourth quarterly progress update on our Sustainability Implementation Plan (SIP). The highlights of this progress update are as follow:

  • International consultant BSR conducted a training and workshop session in October 2017 to address gaps in IOI’s labour practices for the management team from the plantation division and sustainability personnel.
  • IOI Group published its revised policies on human rights at workplace which includes the Foreign Workers “No Recruitment Fee” Guidelines and Freedom of Association Policy, after extensive engagement with non-governmental organizations (NGOs) like Finnwatch, Rainforest Action Network (RAN) and Tenaganita, as well as its employees.
  • A Management Review Meeting, attended by management team from the plantation and sustainability division, was held in October 2017, to review the implementation of IOI’s sustainability commitments.
  • On IOI-Pelita, a district level stakeholders’ consultation involving local communities was conducted by Miri District Council in November 2017. One of the issues discussed was the land dispute issue at IOI-Pelita. In addition, an action plan that IOI had formulated and developed with Grassroots was submitted to RSPO in November 2017 for deliberations at the RSPO Complaint Panel meeting on 19 December 2017.
  • IOI also strengthened its governance structure where sustainability matters are concerned by the addition of a clause to the Terms of Reference in IOI’s Group Sustainability Steering Committee (GSCC) that reports directly to IOI’s Board of Directors. Specifically, under Risk Management, the clause states that the GSCC will review commercial decisions which are likely to impact the implementation of IOI’s Sustainable Palm Oil Policy (SPOP).
  • International NGO Finnwatch visited Luangmanis and Moynod estates in Sandakan, Sabah from 4th to 5th December 2017 to study the labour practices in IOI’s estates in Sabah.
  • In Q4 2017, several meetings and discussions were held with stakeholders for the implementation of the Ketapang Landscape Level Approach.
  • In the latest Sustainability Policy Transparency Toolkit (SPOTT) assessment published by the Zoological Society of London, IOI Group was ranked nine out of 50 companies assessed for the public availability of corporate information relating to environmental, social and governance (ESG) issues.
  • In November 2017, Greenpeace published a report titled “How the Palm Oil Industry is Still Cooking the Climate”, and noted the progress that IOI had made especially on accountability.

Our full report can be accessed HERE.

*Regarding the “No Recruitment Fee Policy”, there is slight amendment on the timeline for the full implementation of the policy. Specifically, the new timeline will be revised for the following region: (i) July 2018 for Peninsular Malaysia, (ii) August 2018 for Sandakan, and (iii) September 2018 for Lahad Datu.