IOI Corporation Berhad (IOI) is pleased to provide the following updates on its sustainability progress in building a transparent and sustainable palm oil supply chain:

IOI Pelita – Sarawak (Malaysia) - land ownership

IOI met with the LTK community on two occasions, 9 November and 1 December 2015. During the December 2015 meeting, a Roundtable on Sustainable Palm Oil (RSPO) representative was present as an observer along with a Sarawakian law professor specialising in indigenous rights. All the parties have been able to express their views on the matters. Follow up meetings have been scheduled to enable the parties to continue further dialogues and discussions.

Ketapang – Kalimantan (Indonesia) - complaint by Aidenvironment filed to the RSPO

IOI has submitted reports and documentations from the field verification of the IOI Ketapang concession to the RSPO complaints panel. These reports confirmed that neither did IOI clear the HCV (High Conservation Value) site nor plant on peat. Nevertheless, IOI has commenced rehabilitation and restoration works on the affected HCV and peat areas and will be inviting the Forestry Department and a third party stakeholder for consultation and verification visits. IOI will regularly report on the updates and progress.

Partnership on labour practices with Tenaganita, a Malaysian social NGO

Currently, Tenaganita is studying the labour policy and practices at the various mills and estates of IOI. Tenaganita expects this to continue through the first quarter of 2016 before it can submit its preliminary findings to IOI.

No development on High Carbon Stock (HCS) areas

The signatories to the Sustainable Palm Oil Manifesto, which includes IOI, have commissioned a HCS Science Study. The study has recently concluded with the HCS+ methodology and is entering into the Pilot and Field Trials Stage. As a signatory to the Manifesto, IOI is committed to adopt this methodology and will conduct field trials on its implementation which requires the support of government authorities and local communities.

IOI remains focused on its efforts to operate a business that is competitive yet sustainable within the industry landscape. The Group is committed to continuously improve and looks forward to sharing future updates with its stakeholders.