This update is a recap of the status and progress so far, in addressing the requirements from RSPO with regards to our certification suspension. It also discusses other sustainability initiatives that go beyond the specific topics raised by RSPO.

Requirements from RSPO

On 27 June 2016, we have submitted a status update of our Quarterly Progress Report, specifically pertaining to the land use change analysis using satellite images and various reports. The analysis was done with assistance from Global Environment Center (GEC). We will be meeting with Aidenvironment to undertake a joint analysis of this matter during the second half of July 2016.

IOI Group Sustainability Palm Oil Policy (SPOP) and Sustainability Implementation Plan (SIP)

As mentioned in our Group CEO statement on 16 June 2016, we are revising our Group Sustainability Palm Oil Policy (SPOP) which is aimed at enhancing our sustainability commitments and applying a uniform set of policies across all our operating units. In line with IOI Group’s Stakeholders Outreach Program, we have also shared the draft SPOP with our key stakeholders to seek their views. After a 2-week consultation period which ended on 10 June 2016, we have received and processed, with the help of Proforest, all feedbacks regarding our Group SPOP from our key stakeholders. After internal deliberation and review, the SPOP will be endorsed by the IOI Group Sustainability Steering Committee and published on 12 July 2016.

We are also working on a detailed Sustainability Implementation Plan (SIP) which will be published around the same time as our SPOP. The SIP has clear objectives, milestones and timelines for each activity outlined, as well as a program to monitor and verify the implementation of our policy across all levels of our organization. As a working document, the SIP will be continually updated to reflect the progress of our implementation plan.

Other Related Initiatives

1. We are in discussions with several organizations with a view to implement a more robust labor rights monitoring system as well as verify labor conditions and compliance with labor policy requirements.

2. To address existing concerns and allegations, we will formalise a public Grievance Mechanism at Group level, which acknowledges existing concerns and allegations and outlines clear actions and timelines to address retroactive and future grievances, by September 2016.

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