IOI Group – Update on Sustainability
02/06/2016, Corporate Communications


As with the previous updates, this week’s update continues to deal with our progress in addressing the requirements of our Roundtable on Sustainable Palm Oil (RSPO) certification suspension, as well as sustainability matters beyond the specific topics raised in the Complaint.

RSPO conditions for lifting suspension

In their letters, dated 14 March and 28 April, the RSPO Complaints Panel (RSPO CP) stated the following conditions for lifting IOI Group’s RSPO certification suspension:

  1. The submission and acceptance of IOI’s Action Plan;
  2. The Peer Review assessments of the three HCV reports on PT SKS, PT BNS and PT BSS;
  3. Additionally, in a letter dated 5 May 2016, the RSPO CP requested the submission of an IOI’s Corporation Board-endorsed quarterly progress report together with the Board’s endorsed policy initiatives and resource allocations document, to ensure that measures are in place to prevent recurrence.

IOI Group has met all conditions

We are happy to report that we have submitted our completed Action Plan, IOI’s Corporation Board-endorsed quarterly progress report together with the Board’s endorsed IOI Group Sustainable Resource Allocations and Policy Initiatives document to RSPO CP on 30 May 2016. 

In addition, the Peer Review assessments conducted by Daemeter, a HCV assessor approved by both Aidenvironment and RSPO, on the three HCV reports on PT SKS, PT BNS and PT BSS; which were performed by a HCV licensed assessor between years 2009 and 2014, have also been completed and submitted to RSPO. With all these actions taken and documents submitted, we are now awaiting the deliberations by the RSPO CP about the lifting of our certification suspension.

Peat Restoration work at PT BSS completed

The team at Global Environmental Center (GEC) team has conducted their second field trip from 23 to 28 May 2016 to verify, amongst other issues, the peat restoration work at PT BSS. GEC has confirmed that the restoration work is in order and is regarded as completed end of May 2016. IOI wishes to acknowledge the input and knowledge sharing from Aidenvironment and Greenpeace on this matter.

Other Related Initiatives

  1. Together with GEC, we are also in the process of developing a more comprehensive Peat Protection and Management Policy for IOI group.

  2. At the plantation level, we further confirm our commitment to developing and implementing current best practices on peat land remediation and restoration and where necessary, compensation measures on our existing PT BSS in West Kalimantan. We will take a “landscape-level approach” to peat land protection and management involving local communities within and outside our concession areas in order to ensure optimum outcomes. The work on this has already started after the visit by GEC.

  3. We have met with Greenpeace on two occasions. In the first meeting on 20 May 2016 in Indonesia, we discussed many matters including Greenpeace’s published images of our concession in West Kalimantan. Together with GEC, IOI has investigated these images and shared our findings with Greenpeace. We will publish these findings on our website. The second meeting, held at IOI’s Headquarters on 25 May 2016, was attended by the IOI Group CEO and the discussion was about IOI’s top level commitment to its sustainability practices and procedure and the new Sustainable Palm Oil Policy for IOI Group.

  4. In line with our commitment towards more transparency and inclusive stakeholder engagement, we have also met with Waxman Strategies, Conservation International and World Wildlife Fund on 26 May 2016 to further communicate IOI’s commitments towards sustainability development.

New Sustainable Palm Oil Policy

To further enhance our sustainability commitments throughout the Group, we have drafted a more comprehensive and robust IOI Group Sustainable Palm Oil Policy (SPOP). We are in the process of consulting with our key stakeholders about the contents of this policy and we expect this to be completed by 10 June 2016. This is in line with IOI’s Stakeholder Outreach Program of communicating our commitments and seeking our stakeholders’ views as a basis for setting priorities in our sustainability development process.

As always, IOI Group would like to reiterate that we remain dedicated to all necessary actions (both corrective and forward-looking) to demonstrate our continued commitment to building a world class oil palm business, based on our published sustainability principles of no deforestation, no planting on peat, zero-burning on all new planting and re-planting of oil palm, and to drive positive socio-economic impact for people and communities.

For further information, please contact:

Dr Surina Ismail
Group Head of Sustainability
IOI Corporation Berhad
Tel: +603-8947 8691
Email: surina@ioigroup.com