Aligning Our Business Operations with Environmental Protection, Social Responsibility, and Long-term Economic Growth
IOI Group embraces the Economic, Environmental, Social, and Governance (EESG) approach as a holistic framework for sustainability, recognising the interconnectedness of economic growth, environmental protection, social well-being, and strong governance. The inclusion of the economic dimension reinforces our commitment to long-term value creation for shareholders, employees, and local communities, ensuring that sustainability and business success go hand in hand.
IOI EESG Material Topics
By addressing these issues that are material to IOI in a transparent and accountable manner, together with a holistic approach to sustainability, we hope for continuous sustainable growth, while creating positive environmental and societal impacts. The material matters considered currently relevant to our company are shown here.
Economic
- Low carbon technology
- Digital integration and geospatial technology
- Sustainability certification
- Data privacy and security
- Energy management and operational eco-efficiency
- Palm biotechnology and product innovation
Environmental
- Climate change and GHG emission management
- No deforestation and sustainable land use
- Biodiversity and conservation
- Water management
- Agrochemical management
- Regenerative and Precision Agriculture
- Circular economy and waste management
- Fire Management
Social
- Health and Safety
- Human rights and good labour practices
- Ethical recruitment and responsible employment
- Diversity, inclusivity and equal opportunity
- Community engagement and social responsibility
- Child rights and no child labour
- Gender equality and women empowerment
- Smallholder development
Governance
- Grievance mechanism and transparent communication
- Traceability & Responsible Sourcing
- Supply chain management
- Regulatory and third-party compliance
- Anti-corruption and assurance
- Risk Management
- Business ethics and code of conduct
- Remuneration for senior management
Sustainability Governance
We have in place a strong Sustainability Governance Framework to ensure the effective and successful implementation of our sustainability commitments in accordance with the relevant policies and guidelines. Additionally, effective board governance is crucial for the resilience and sustainability of the organisation.
We have clear lines of accountability, together with well-defined roles and responsibilities. Board competencies are important to ensure that the Board can make informed decisions, provide effective oversight, and contribute to the overall success of the organisation.
Roles and Responsibilities
IOI Group Sustainability Policy (IOISP)
IOI Group is committed to responsible and sustainable practices by protecting the environment, supporting people and communities, and upholding strong governance. In 2024, we revised the IOISP, formerly known as the Sustainable Palm Oil Policy (SPOP), to incorporate new or enhanced sustainability requirements, our target to achieve Net Zero by 2040 as well as to now include our business operations beyond palm oil. The IOISP was also updated to incorporate governance and the role of the Board in IOI’s sustainability matters. New commitments of the IOISP can be found here.
To support the implementation of the IOI Group Sustainability Policy (IOISP), we have established key policies and guidelines that strengthen our sustainability efforts and drive positive impact across our operations. Please refer to the list of policies and guidelines below:
IOI Group and UN SDG
As a responsible, sustainable business corporation with a global presence, we are committed to the global initiative for a sustainable future by responding to the United Nation’s call for governments and organisations to contribute to the United Nations Sustainable Development Goals (“UN SDGs”).
In FY2018, IOI adopted the UN SDGs most relevant to our business to provide focus in setting our targets throughout the Group, with specific targets and contributions for each UN SDG. Since then, we monitor our performance for each UN SDG annually.
ESG Ratings
IOI continues to participate actively in leading ESG ratings and indices as a way to manage sustainability criteria that are both industry-specific and financially material and to communicate to all interested stakeholders such as customers and investors, our commitments in addressing their concerns. Below are our performance as of FY2024.
Sustainalytics
IOI has further improved its ESG risk rating score from 23.3 to 21.6 as of June 2025. This is based on the rating agency's assessment of our company's overall management of material ESG issues as Strong.
S&P Global Corporate Sustainability Assessment
IOI ranked 87th percentile in the Food Products industry during the 2024 S&P Global Corporate Sustainability Assessment.
CDP
Our CDP Score for both Water and Climate Change themes have increased from C to B while the score of B for Forests theme was maintained.
EcoVadis
IOI Oleo GmbH won Gold Sustainability Rating for the fifth consecutive time. IOI Pan-Century Oleochemicals obtained Silver Sustainability Rating in this year of assessment. IOI Esterchem earned a Silver Sustainability Rating for its second year of participation.
FTSE4Good Index Series
IOI remains as constituent company in the FTSE4Good Index Series with an improved FTSE Russell ESG score of 4.0 to 3.6, based on June 2025 review. We are among the top 5 subsectors peers (farming and fishing) and achieved a perfect score for the Governance's theme which makes the us the sole company among its top 4 subsectors peers to achieve such standing.
SPOTT Palm Oil Assessment
IOI achieved a score of 84.1% for the 2024 annual cycle assessment, ranked 18th out of a hundred palm oil companies.
MSCI
IOI improved the ESG Rating score to "A" from "BBB" for Morgan Stanley Internal ("MSCI") rating.