Since 15 years ago, we have been practising zero burning and biomass preservation to clear land for new planting or replanting. The zero burning technique of replanting, where all oil palm biomass such as trunks and fronds are recycled, increases soil organic matter while at the same time reduces the need for inorganic fertilizers.

Every year, large volumes of biomass such as empty fruit bunches, mesocarp fiber and kernel shells are produced in our palm oil mills as by-products. We have implemented or are in the process of implementing a few projects to utilize these renewable resources.

i) In 2005, IOI installed a biomass steam plant to produce steam to power our refinery at Sandakan by using empty fruit bunch (EFB) fiber and kernel shell.

ii) IOI is commissioning a 15MW biomass power plant using the same fiber and shell in the same refinery.

iii) IOI also uses organic-rich effluent produced at its crude palm oil (CPO) mills as a supplementary fertilizer for its estates.

iv) IOI also invested in new processing technology in its CPO mills which further reduces the effluent pollutants level (BOD).

Such applications are not only beneficial to the oil palms but also result in significant savings on fertilizers and energy costs as well as being an environmental-friendly method of handling the waste discharge from palm oil mills.

b) Integrated Pest Management

IOI uses biological control measures for pest management in order to reduce dependency on chemicals in day-to-day operations. For example, planting various types of beneficial plants at roadsides and open spaces comprising Cassia Cobaniensis (60%), White flower Tunera Subulata (20%) and Antigonon Leptopus (20%) to control leaf-eating pests and setting up barn owl nest boxes for rat control.



c) Soil Management and Energy Saving Initiatives

The two main soil-related problems in oil palm plantations are erosion and surface run-off. These two factors affect the soil’s water-holding capacity and soil fertility due to nutrient loss.

To reduce soil erosion, riparian reserves are restored while terraces are constructed at hilly areas. Placement of frond and establishment of legume cover cops (LCC) on terrace fringes further reduce the velocity of water flowing down hill slopes and minimize nutrient loss through soil erosion. Buffaloes are used instead of mini tractors for crop evacuation to reduce the usage of diesel and subsequent emission of greenhouse gasses.

All these measures result in the efficient use of land which translates into lower fertilizer, pesticides and energy usage which in turn delivers significant benefits to the environment. Based on IOI’s planted hectarage of 150,000 hectares, IOI saves an astonishing 70,000 hectares of valuable land.

IOI’s commitment to sustainable development is also reflected in our work with the Roundtable on Sustainable Palm Oil (RSPO). As one of the RSPO’s members and subsequently a member of its executive board, IOI’s efforts towards practising sustainable agriculture and sustainable palm oil production have intensified.

IOI has undergone a number of sustainability audits by several regional and international bodies and intend to obtain the RSPO certification for some of IOI’s estates soon.

We will continue with our very active and leadership role within the RSPO and as our business grows, we will strive to employ these best practices in any new holdings. Our focus will remain on leadership in the most efficient use of agricultural land and the careful use of other resources needed for a successful palm oil business.

To view the summary of IOI’s Environmental Management Plan and the Social Management Plan, click here – Sustainability