Shaping a Circular, Decarbonised Future at IOI

It is true that we do not inherit the Earth from our ancestors; we borrow it from our children. This ethos fuels IOI Corporation Berhad’s (IOI) unwavering commitment to sustainability – not as a corporate obligation, but as a heartfelt responsibility to the communities it serves, the people it employs, and the ecosystems we depend on.

At the core of this vision lies IOI’s holistic resources and waste management approach, known as the 7Rs of Circularity (Rethink, Repurpose, Reduce, Reuse, Recycle, Repair and Recover). These principles shape how IOI operates across its value chain, from plantation to manufacturing innovation, and serve as a daily reminder that every material, every effort, and every person matters. Through this deep commitment to decarbonisation and circularity, IOI achieved many remarkable milestones.

In 2019, IOI Corporation pledged to reduce 40% of Scope 1 and 2 greenhouse gas (GHG) emissions by 2025, using 2015 as a baseline. By FY2024, a year ahead of schedule, IOI surpassed that goal with a 42% reduction, and further advanced its progress in FY2025 with a 46% reduction in Group-wide GHG emissions intensity. This success was driven by its integrated approach to sustainability, leveraging methane capture facilities, crop sequestration, the 7Rs and more to drive tangible impact.

But IOI’s journey goes far beyond numbers. It lives in the hands of its employees collecting used beverage cartons (UBC) for recycling through a pioneering partnership with Tetra Pak Malaysia. It’s seen in the smiles of local communities participating in its upcycling initiatives, and in the pride of its teams who see waste not as an end, but as a beginning.

It’s also in the transformation of agricultural by-products into new sources of value. Where others saw discarded oil palm trunks and empty fruit bunches, IOI saw potential. From this, the OnCore® palm wood was born as a sustainable timber alternative, produced at Malaysia’s first palm wood factory, IOI Palm Wood Sdn Bhd in Segamat, Johor. And through a strategic partnership with Nextgreen Global Berhad, it is turning empty fruit bunches into wood-free pulp and paper, contributing to forest conservation while growing new circular economies.

Central to all these efforts is IOI’s unwavering focus on people. Its inclusive “Just Transition” approach ensures that its employees, stakeholders, supply chains and communities are not only included, but also empowered and equipped with the knowledge, tools and support needed to walk this path together.

IOI believes that a low-carbon and climate-resilient future can only be realised when everyone moves forward, side by side.