IOI Corp makes sustainability the foundation of long-term growth
IOI Corp Bhd (KL:IOICORP) has made continuous improvements in its ESG journey, viewing ESG initiatives not as a checklist to complete but an evolving journey. This commitment has enabled the company to win gold for the past three consecutive years in the plantation sector category at The Edge Malaysia ESG Awards, says its group managing director and CEO Datuk Lee Yeow Chor.
This achievement enabled IOI Corp to enter the new best of the best category this year, which celebrates public-listed companies that consistently outperformed peers by winning gold for the past three Awards.
“Each year, we raise our internal benchmarks, reflect on lessons learned and incorporate valuable stakeholder input through platforms such as our annual Sustainability Consultation Forum,” says Lee.
“One of the most important lessons that we have learned is that ESG success requires more than leadership commitment at the top; it also depends on active participation across every level of the organisation, from the boardroom to the field.”
Lee is proud of the company’s achievement in surpassing its greenhouse gas (GHG) emissions intensity reduction target a year ahead of schedule. The original goal was to reach a 40% reduction in Scope 1 and 2 GHG emissions intensity by 2025, measured against its 2015 carbon emissions intensity.
By the end of its 2025 financial year, the company had managed to reduce 46% of carbon emissions intensity, says Lee.
“We achieved this through a combination of initiatives: enhancing our methane capture facilities, installing solar panels, optimising energy and resource efficiency, as well as deploying both nature-based and engineered solutions. Just as importantly, we worked closely with our employees and stakeholders to align everyday actions with our long-term ESG goals.”
IOI Corp’s biggest challenge in the past year has been to balance its decarbonisation targets with the operational realities on the ground, including volatile market conditions and climate-related risks such as extreme weather.
Lee says the company addressed these issues by staying agile, doubling down on innovation, including investments in renewable energy and resource efficiency, while fostering strong internal engagement to embed sustainability and best practices into its daily operations, across all levels of business.
“Collaboration across functions, from plantation to downstream manufacturing, ensured that our ESG performance was not siloed within each operating unit but became a shared responsibility across the group,” he says.
“The introduction of IOI ESG Platform in FY2024 was also a game changer, enabling us to manage large volumes of data, monitor progress, enhance transparency and strengthen accountability across our sustainability reporting.”
Lee stresses that ESG cannot be achieved in isolation, and he hopes the government will introduce clearer policies, meaningful incentives and harmonised standards to drive ESG implementation across the industry.
Meanwhile, consumers should have more awareness of and demand sustainable products. “From investors, we seek long-term and pragmatic perspectives that fairly value the financial benefits of sustainability, coupled with a deeper understanding of the operational realities on the ground,” says Lee.
IOI Corp will continue to focus on biodiversity enhancement and community empowerment, as well as anchor its decarbonisation efforts on its commitment to achieving net-zero GHG emissions by 2040.
This is aligned with its new five-year strategic roadmap (2025-2029), which highlights sustainability and climate initiatives as one of four strategic priorities. “This reflects our view that sustainability and climate initiatives are not only a responsibility but also an overriding business strategy to shape a more resilient and successful future for ourselves over the next five years,” says Lee.