Sustainability Report 2023

DRIVING
NATURE
POSITIVE IMPACTS

Sustainability Report 2023

MESSAGE FROM OUR GROUP MANAGING DIRECTOR & CHIEF EXECUTIVE

Driving Nature Positive Impacts is another step towards transparently sharing our activities and the various positive impacts that we hope to achieve as we move forward with our sustainability agenda.

DATO’ LEE YEOW CHOR

Group Managing Director and Chief Executive

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MATERIAL SUSTAINABILITY MATTERS

Our materiality assessment process is guided by Bursa Malaysia’s Sustainability Reporting Guide 3rd Edition, Bursa Malaysia’s Materiality Toolkit, and the Global Reporting Initiative (“GRI”) 3: Material Topics 2021.

The process of determining the material matters is as follows:

1

Identification
A total of 30 sustainability material matters are considered in the broad areas of Economics and ESG, based on our assessment process.

2

Stakeholder engagement
Engagement with various categories of internal and external stakeholders were established via multiples channels such as direct interviews, questionnaires, workshops, forums, working groups, meetings, etc.

3

Prioritisation of each matter
Prioritisation was done after considering the sustainability impact to our stakeholders and company as well as financial impact on material matters to IOI business.

4

Validation
Materiality assessment and top 10 prioritised material matters were reviewed by the GMD and approved by the Board Sustainability Committee (BSC).

5

Reporting
The top 10 materiality with Economic & ESG impact as well as significant financial impact shown in the materiality matrix are reported in adherence to the quality principals of comparability, accuracy, clarity, balance, transparency and timeline.

A double materiality assessment was also conducted to identify sustainability matters that have both significance to IOI’s Environmental, Social, Governance/Economics as well as financial impact on IOI’s performance.

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SUSTAINABILITY GOVERNANCE AND ESG

To ensure effective and successful implementation of IOI Corporation Berhad (“IOI”) sustainability commitments and policies, clear lines of accountability, well-defined roles, and responsibilities within our Governance structure were established.

This year, IOI took further steps to enhance the importance of sustainability within IOI by strengthening our sustainability governance framework through the formation of the Board Sustainability Committee (“BSC”) and putting in place IOI Climate Change Action Financial Disclosure Committee.

Sustainability Governance Structure

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ACCELERATING OUR CLIMATE CHANGE INITIATIVES

The journey towards Net-Zero entails a holistic approach that encompasses circularity principles, the adoption of cutting-edge green technologies and a drive for innovation in optimising resource utilisation, reducing greenhouse gas emissions, enhancing energy efficiency and transitioning to a cleaner and more sustainable future.

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IOI'S PATHWAY TO NET-ZERO


A
Nature-based Solutions
B
Engineered Solutions
C
Supply Chain Management

FOSTERING A POSITIVE WORK CULTURE

In alignment with
UN SDG 8.2, workers’ productivity has also improved by about 30% through mechanisation, especially on labour intensive tasks and improve earnings by increasing the worker’s ratio per tonne of fresh fruit bunch and hectare.
In addition to
UN SDG 8.2 and 8.8, IOI has newly adopted UN SDG 8.7 with the goal to eradicate forced labour including elimination of worst forms of child labour, protect labour rights, promote safe and secure working environment for all workers including migrant workers.
At least 164 trainings had been organised and conducted by the Corporate Learning & Organisational Development Department who engaged both internal and external training providers. These trainings benefited about 1317 employees at the staff level and above.
We further expanded the Child Education initiative where about RM3,624,835 were spent to encompass a ‘Full-Day Zero Cost Education Platform’ which introduced in 2021.
37.5% of our board members are women bringing with them diverse backgrounds with different thought processes and skills to the table.
Contributed a cumulative amount of RM63.19 million through programmes related to education, social, and medical purposes.
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ENHANCED BIODIVERSITY & ECOSYSTEM

Our actions are guided by IOI’s Sustainable Sustainable Palm Oil Policy (“SPOP”) which together with the Environmental Management Guidelines (“EMG”) and Zero Burning Policy are in full alignment with our newly made commitments towards the Science Based Target initiative Forest, Land and Agriculture (“SBTi FLAG”).

This year, to further emphasise the importance that IOI placed on Biodiversity, the new revision of our previous Biodiversity and Conservation Guidelines will now also include ecosystem enhancement.

With the revised guideline,
we aim to:

  • Provide guidance for Biodiversity and Ecosystem assessment and execution of the management plan as well as continuous compliance towards national regulations
  • Provide guidance for biodiversity and ecosystem enhancement practices
  • Provide guidance for wildlife crisis management and handling
  • Provide guidance on reforestation management and practices
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OUR ACTIONS

As part of our continued push towards Net-Zero and the conservation and enrichment of biodiversity and its ecosystems in areas that we operate in, IOI continues to work with various stakeholders in the projects featured below:

  • RELeaf Project

    IOI Plantation and Nestle’Project REleaf team conducted two field surveys in November 2021 and June 2022, respectively

  • Laran Tree Planting Project

    Picture of a Sambar deer (Left) and Rufous-tailed Shama (Right) found within the project site.

  • Protecting RTE species in Sabah

    Picture of Elephant collaring at our plantation in Sabah

  • Orangutan & Proboscis Monkey conservation in Sabah and Kalimantan

    Picture of Proboscis Monkey and Orangutan in our area at PT BSS

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Our policies and guidelines for environmental management.

We have aligned our commitments of environmental stewardship to incorporate some of the relevant recommendations stated in the draft Science Based Targets Network (“SBTN”) guidance for companies. Key highlights of the revised guideline include:

Guideline aligned to SBTN guidance
The guideline now provides guidance for the development of biodiversity and ecosystem enhancement management plan
Emphasised the development of a strategic management and monitoring plan (when needed)
Emphasised the importance of ecosystem identification

Biodiversity and Ecosystem Enhancement Guidelines

Biodiversity and Ecosystem Enhancement Guidelines is revised in order to provide guidance for the protection, conservation and enrichment of biodiversity and natural ecosystem in our operating sites. The guideline is in alignment with HCV-HCS assessment manual, RSPO Principle 7 & MSPO Principle 5 as well as the recommendations from SBTN draft guidance, which comprised of four key steps as follow:

STEP 01
Identification of Biodiversity & Conservation Value Areas

  • Establishment of baseline data through assessment
  • Delineation activities through GIS activities
  • Stakeholder consultation and engagement programme
  • Internal Assessment Report

STEP 02
Execution & Management

  • Setting up objectives and targets for the identified management areas
  • Development of biodiversity and ecosystem enhancement management plan
  • Development of strategic monitoring plan

STEP 03
Threat Monitoring & Crisis Management

  • Define monitoring techniques
  • Crisis management plan
  • Active communication & participation with relevant stakeholders
  • Development of Integrated Management Plan
  • Data management using SMART tool
  • Crisis & threats mapping

STEP 04
Impact Evaluation, Mitigation, Protection & Enhancement

  • Analyse and evaluate monitoring results based on indicator
  • Re-evaluate indicator if target not achieve to identify the gaps and root cause
  • Establish the “Adaptive Management Strategies”
  • Stakeholder engagement and partnership
  • Rehabilitation and Reforestation programme whenever necessary
  • HCV-HCS approach to determine the performance of planted (rehabilitated / reforested) area (ie., from shrub land to secondary forest)

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