At IOI Corporation Berhad (IOI), we believe in meeting the needs of the present without compromising that of the future generations by:
Committing to protect, rehabilitate and preserve the environment where we live in
Ensuring that the economic, social wellbeing and health of our employees and their families as well as the wider communities are safeguarded
Leading and innovating as well as embedding sustainability practices into our businesses
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. To this end, we have both a Corporate Governance Framework as well as a revised Sustainability Governance Framework to better reflect our strong governance culture.. These frameworks also enable IOI to transparently address and report on Environment, Social, and Governance (“ESG”) matters.
Roles And Responsibilities
The Committee, on behalf of the Board, shall have oversight of the sustainable development responsibilities within IOI and support the Board in setting high level direction and strategic focus on sustainable business models within IOI. This include formulating the strategies designed to manage ESG risks and opportunities including climate change. The committee comprises three members of IOI Board of Directors and will meet twice a year. The BSC has oversight on all the Group’s material sustainability issues such as:
- Environment protection including No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and protection of biodiversity and ecosystem
- Climate change especially in the management of its greenhouse gas (“GHG”) emissions from all its businesses and operations
- Human rights including safeguarding the wellbeing of our workforce
- Safety and health
- Free, prior and informed consent (“FPIC”) rights of the local communities
- Welfare and socio-economic advancement of the wider communities
- Circularity including the efficient utilisation of resources
- Long term sustainability of business operations from the above perspectives
The GSSC reports directly to the BSC to ensure our Group’s sustainability agenda, commitments and issues are effectively discussed, approved and implemented. The membership of the Committee comprised of the GMD, Group Chief Financial Officer, Group Head of Sustainability, Sustainability Leads (Plantation, Refinery, Oleochemical, and Commodity Marketing), and Senior Management from Group Support Functions as determined by the Chairman of the Committee. Sustainability leads for each business divisions will play the main role in implementing all sustainability requirements and standards. They are also responsible to execute and monitor all relevant sustainability initiatives and groupwide commitment like IOI’s Net-Zero target. They will present the sustainability highlights and divisions’ performance during bi-annual committee meetings. The committee also will exercise their responsibilities in reviewing policies, standards and sustainability risk, ensuring the efficient functioning of IOI’s Grievance Mechanism, including reviewing the contents of the Annual Sustainability Report as required under various local and international requirements.
A committee for CCAi was introduced in 2022 by IOI to help monitor climate-related financial risks and financial impacts towards achieving Net-Zero. The committee is also responsible to systematically track and document the financial investments or projects related to the reduction and/or removal of GHG emissions throughout IOI’s operation. The composition of the committee consists of the chairperson which is the Group CFO and project leads from relevant departments such as Finance, Sustainability, Operations, etc.
The Group’s daily sustainability matters are led by IOI’s GHS. In this position, the GHS communicates and reports directly to the GMD to ensure all the Group’s sustainability commitments, policies, guidelines, etc., are developed and implemented by the respective divisions (Plantation and Resource-based). GHS is also responsible for corporate sustainability and help aligns the Group’s strategy as well as oversees the overall implementation of sustainability policies and practices for the Group.
The SAP is composed of NGOs, multinational brands and subject matter experts, as well as representatives from IOI Group senior management. The panel is responsible for advising the Group on its sustainability commitments and is the core external panel members of the Sustainability Consultation Forum (“SCF”). The SCF is a platform that IOI introduced to discuss complex sustainability topics together with external stakeholders such as NGO’s, subject-matter experts, governmental departments, customers, etc., as well as to gather bottom-up feedback from our own internal stakeholders.
Sustainability functions across the business operations are assisted by the division’s Sustainability Lead by ensuring sustainable practices and compliances are fully embedded within each operating unit. Operating units together with regional sustainability teams are responsible in ensuring regular internal sustainability audits, engagement with relevant stakeholders as well as regional sustainability meetings and management reviews are being conducted in a timely manner.
Attaining Balance by Harnessing Sustainable Partnership
IOI is committed to fully integrating sustainability into its core businesses. We believe that by attaining balance between development and conservation, it is better able to safeguard the wellbeing of the communities, protection of the environment, and prosperity of stakeholders. These approaches are driven by innovative solutions and through harnessing the power of collaboration where IOI has embarked on the strong partnerships with their stakeholders to help build a more dynamic and sustainable ecosystem and working hand in hand in smart collaboration towards attaining sustainable solutions and results.
IOI's Contribution to UN SDGs
As a company with global operations, IOI recognises the importance of its role in this global initiative. As such, we identified six United Nations Sustainable Development Goals (UN SDGs) with their specific targets that are most relevant to its business and are in alignment with the pillars of sustainability and SPOP. Please click here for more info on IOI's Contribution to UN SDGs.