This year’s design depicts a vibrantly alive and sustainable ecosystem where all can thrive. The bold strokes reflect the Group’s strong commitment and clarity of vision in their set sustainable goals. The chosen images emphasise the importance of technology, partnerships, and inclusivity as IOI ramps up initiatives towards enhancing biodiversity to increase their resilience in supporting the ecosystem and their sequestration ability, while ensuring that the measures implemented as we transition towards a low-carbon economy will be just and benefit those impacted by climate change. The gold tributes indicate the three main strategic approach to decarbonisation and IOI’s Pathway to Net Zero by 2040.
As at end June 2024, global temperatures during the past few months have risen above last year’s readings and year 2024 promises to outrank 2023 as the hottest year on record. In fact, climate change has resulted in this year’s average global temperature exceeding the 1.5 deg. C limit outlined in the Paris Agreement on climate change. As a responsible and sustainable corporation, IOI aspires to do our part in combating climate change by addressing various societal and environmental issues, and have taken up the challenge of achieving net zero by the year 2040.
DATO' LEE YEOW CHOR
Group Managing Director and Chief Executive
As at end-June 2024, we have already achieved our short-term goal of reducing the GHG emission intensity of our operations by 40% in 2025 when compared to our 2015 baseline.
Partnered with Nextgreen Global Berhad to develop a 150,000 tonne/ year paper pulp plant using EFB as the raw material
Established and funded the Women Empowerment Committees across the headquarters’ office, plantations, and manufacturing facilities within the Group
We are the pioneer in producing organic palm oil on plantation scale.
IOI first introduced our Five-Year Strategic Priorities in 2020 to provide a clear direction for the Group to become a high value-added and diversified palm-based products producer with the objective of increasing our resilience while remaining a competitive industry player. When considering each strategic priority, aside from the business targets, IOI has ensured that sustainability continues to be one of the core requirements in the development of Mechanised Geo Sprayer for these strategic business priorities.
The growing global demand for palm oil, pushed mainly by increase in global population, is likely to drive further need for this strategic commodity. The targeting of increased yield per hectare reduces IOI’s immediate need for land expansion, which may have environmental impact such as increased GHG emission from land use change (“LUC”). Furthermore, in alignment with the UN SDG 2 - Zero Hunger, IOI is committed to increasing our yields as part of our efforts to contribute to a sustainable global food security. Throughout the past 5 years, our achievements towards this goal include:
As highlighted in our IOISP, we are committed to upholding the human rights of our workforce together with ensuring the care and wellbeing of our workers. A key component to achieving this priority is automation and digitalisation for some of our processes as well as to increase mechanisation within our operations. These initiatives can contribute both to improved working conditions with increased productivity, and subsequently, increased income among our workers. In addition, upskilling of our workers generally leads to enhanced performance in their jobs.
IOI recognizes the importance of biodiversity and its ecosystem to our agricultural business. For example, the increased variety of plants results in a wider range of insects and microorganisms, creating a more complex and resilient ecosystem. Natural predators that are attracted to the diverse ecosystem can, in turn, be used as a biological control for this ecosystem. Crop diversification is one of our regenerative agriculture practices, through which we seek to enhance biodiversity within our operations.
IOI's journey to net zero began in 2019 with the launch of the Climate Change Action initiative. By 2021, we had adopted the TCFD recommendations, weaving them into a robust framework of Governance, Strategy, and Risk Management. We are currently ahead by a year of meeting our short-term target of 40% reduction by 2025 in Scopes 1 and 2 for the Group. Our next mid-term goal is to achieve carbon neutrality by 2030 in Scopes 1 and 2. Ultimately, we hope to reach our challenging and ambitious long-term goal of Net Zero carbon intensity by 2040 in Scopes 1, 2 and 3.
In this, our strategy is a blend of innovation, precision agriculture, and resilient practices. With expert guidance and strong collaboration, we have conducted comprehensive assessments to tackle GHG emissions within our operation and our supply chain, supporting these efforts with capacity building and awareness, cutting-edge technologies, and green procurement standards, ensuring a future that’s as sustainable as it is strategic.
IOI seeks a model of sustainable agriculture that balances high productivity with strong conservation. With an oil yield generally higher than the national average, we reduce land use and contribute to climate change mitigation while ensuring food security. We are committed to a "no deforestation" policy, protection of peat areas, and rigorous environmental assessments. To manage our finite natural resources, we practise the 7Rs of Circularity to reduce our impact to the environment, especially by utilising our byproducts or biomass for value added purposes. We uphold high conservation values, enforce a strict zero-burning policy, and implement Integrated Pest Management (“IPM”) to control pests naturally. Innovative regenerative practices like using beneficial cover crops to keep soil rich in nutrients naturally, and palm biomass as organic fertilisers further underscore our dedication to safeguarding our biodiversity and ecosystems.
At IOI, we are committed to a Just Transition. This means ensuring that the shift towards a sustainable future especially as we transition towards a low carbon economy, is inclusive, fair, and beneficial for all. Recognising the critical role that our employees and other stakeholders like local communities and indigenous people play, we prioritise their well-being and active participation in this transformation. We aim to not only mitigate environmental impacts but also create resilient livelihoods, fostering a collaborative approach to support customary-practice led conservation. Through continuous engagement and educational transfer of native culture, the journey towards sustainability is one where no one should be left behind.
The basis of IOI’s cohesive and inclusive responses towards climate change and subsequent commitment to achieve net zero by 2040 lies in our comprehensive decarbonisation efforts such as investing in clean and renewable energy, our nature-based solutions, and our action plans to manage current climate risks through mitigation and adaptation to climaterelated risks. In fact, we are fully aware that transitioning to a more sustainable and low-carbon economy involves more than just adopting green technologies or policies.
We will seek to engage with the local communities and indigenous people to be part of our customary-led conservation initiatives as we strengthen efforts to reduce GHG emissions through rehabilitation and reforestation.
Ensure social protection for employees affected by the transition to low carbon economy through job placement, and income generating opportunities. This includes offering retraining and upskilling programs focused on new green technologies, so employees can adapt to changes and stay employed.
Raising awareness of climate risks, especially for employees who are highly exposed to these risks and implementing workplace adaptation measures such as educating on climate impacts and risks like heat, adjusting work schedules, and providing necessary PPE for health and safety.
Engaging local communities in our decarbonisation and climate risk mitigation efforts, promoting an inclusive approach that fosters collective responsibility and shared benefits.
