IOI Corporation Berhad (IOI) maintains regular engagement and monitoring of suppliers to ensure our supply chain is meeting the No Deforestation, No New Planting on Peat and No Social Exploitation (NDPE) requirements consistently. To foster a positive change and improvement in our supply chain, our engagement activities are not entirely focused on setting specific requirements and seeking suppliers’ compliance, but also consider the efforts taken by the counterparty and embrace them until tangible results are produced.
One of our suppliers, Prosper Capital Holdings Sdn Bhd (Prosper), embarked on a Recovery Project in March 2020 to address their liability to the NDPE commitment due to their activities in 2018, when a major shareholder of Prosper invested in the development of oil palm plantations in Papua New Guinea (PNG) that led to significant deforestation.
The project was carried out in a partnership between Prosper and the Global Environment Centre (GEC) that focused on the long-term protection and rehabilitation of the Bukit Belata (Extension) Forest Reserve (BBEFR), which covers an area of 3,140 hectares (ha) of lowland dipterocarp and peat swamp forest. Phase 1 of the project was executed from April 2020 until September 2023.
In June 2023, Prosper invited all its stakeholders, including IOI, to present its progress in Phase 1 and the validations to support the adequacy of this project. We accepted and supported this project with no disputes raised. During the site visit, IOI and the other stakeholders took part in a tree planting event and successfully planted 300 Nyatoh trees (Madhuca hirtiflora).
In March 2024, Prosper invited IOI and other stakeholders to the extension of their Recovery Project to Phase 2 (October 2023-December 2026). The goal is to maintain and enhance the achievements of the first phase and expand the project to include 4,000 ha of the adjacent Raja Musa Forest Reserve to make up a total area of 7,140 ha. All stakeholders were glad to see the progress and exchanged thoughts on the activities under this project, such as the conservation measures employed and the engagement of smallholders and adjacent landowners to help them improve productivity and protect the Recovery Project site.
