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IOI Group - Sustainability Progress Update (April - June 2018)
30/07/2018Corporate Sustainability

We are pleased to publish our progress update on our Sustainability Implementation Plan (SIP) for Q2 2018. The highlights of this progress update are as follow:

  • On the RSPO Ketapang complaint case, IOI commented on a draft report that was based on RSPO’s verification visit in January 2018 at IOI’s concession in Ketapang. The draft report which was received by IOI on 21 March 2018, was due to be discussed by RSPO’s Complaints Panel (CP) in late April but was deferred to 18 June 2018 for several reasons. After follow-ups and meetings with RSPO on the outcome of the discussion on the report, IOI was informed that the decision on this matter will be given in July 2018.

  • Concerning the IOI-Pelita case, IOI visited the communities affected in May 2018 to update and to continue the dialogues with them on the IOI’s progress with RSPO in finalizing the draft resolution plan. This was followed by another round of socialisation session in June 2018, this time with Grassroots and RSPO representatives, to brief and consult with them regarding the draft resolution plan that has been developed with Grassroots and shared with RSPO.

  • A Stage 2 RSPO NEXT audit was successfully conducted on Ladang Sabah Mill grouping in May 2018. Other main assessment audits are also expected to be conducted on Syarimo Mill grouping in July 2018 followed by Pukin Mill and Leepang Mill groupings in August 2018.

  • In Q2 2018, three more groupings (Leepang, Syarimo and Ladang Sabah) successfully received the MSPO certifications, making the total number of MSPO certified groupings in IOI to six.

  • Finnwatch released a report titled “Working Conditions at IOI Group’s Oil Palm Estates in Sabah, Malaysia” which was based on Finnwatch’s visit to IOI Sabah estates in Q4 2017. Finnwatch stated that “IOI Group has continued to make improvements to working conditions at its oil palm estates.” IOI welcomes Finnwatch’s acknowledgement on the improvements made, as IOI works towards ensuring no human rights violation at the workplace, in accordance with the Group’s Sustainable Palm Oil Policy.

  • Regarding the plans for Landscape Level Approach in our Ketapang concession in Indonesia, the IOI Stakeholders Engagement team visited PT. SNA and parts of the landscape surrounding it, including Cagar Alam, Belida Lake, buffer zones, and the Jambi village next to PT. KPAM, in June. The team also identified peat areas which are most suitable for the pilot rehabilitation project proposed to be conducted jointly with a certain NGO.

  • IOI appointed Proforest, an international non-profit organisation with experience in the palm oil sector to conduct verification on IOI’s Sustainability Implementation Plan (SIP). The first phase of the verification, which mostly involved documentation verification, was completed in end of June.

  • IOI’s Sustainability Advisory Panel (SAP) had a meeting on 24 June 2018 in Paris, France. Amongst issues discussed were progress update on IOI-Pelita, RSPO final field verification in Ketapang, suppliers (direct & indirect) compliance and SIP external verification.

For more information, please click HERE to read the full report.

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