IOI Corporation Bhd.

IOI Group abide by the minimum standards for human rights as set by the ILO, the UNGP and the UN Declaration on Human Rights. They require their suppliers to ensure their workers' "have freedom of association, and to be free from forced labour, child labour and discrimination. They also require safe and healthy working conditions, legal working hours and are free from abusive practicies." [...] "IOI is committed to upholding the rights of our workers in accordance with the Universal Declaration of Human Rights, the International Labour Organisation’s (“ILO”) core conventions etc., as stated in our SPOP. Specifically, some of the ILO core conventions adopted by IOI are; Right to Organise and Collective Bargaining Convention, Forced Labour Convention and Worst forms of Child Labour Convention"

"• Working in partnership supporting Smallholders and Outgrowers towards sustainable production and achieving sustainability certification (“MSPO”)....• IOI had collaborated with customers, food companies, civil societies, regulatory body, and local authorities in joint sustainability projects including project ILHAM, project RELeaf and certification programs for smallholders...• We collaborated with different organisations to improve capacity building for our suppliers, smallholders and our own workforce which were discussed in all focus areas in this report...Currently, 40% of the total worldwide palm oil production originated from smallholders. As such, IOI recognises the importance smallholders play in our supply chain. To support their journey towards sustainability, IOI initiated several capacity building initiatives with the purpose of helping them implement best management practices to increase their yield and to assist them in preparing for mandatory sustainability certifications like Malaysian Sustainable Palm Oil (“MSPO”) and Indonesian Sustainable Palm Oil (“ISPO”)...IOI’s Responsible Sourcing Team has partnered with Malaysian based social enterprise Wild Asia to find ways to support economically vulnerable small producers within our supply base during these uncertain times. The Wild Asia Group Scheme (“WAGS”) is a programme formalised in 2011 to enhance local capacity in the oil palm sector as well as to support independent farmers and producers towards sustainable production. It aims to build a network of farmers who grow healthy and sustainable produce for the betterment of the ecosystem and the environment. This partnership with WAGS has helped to enhance the income of our small producers through the delivery of traceable, deforestation-free and Roundtable on Sustainable Palm Oil (RSPO)-certified palm oil. Our first physical raw material connection with the WAGS team completed in July 2020 in Perak...Smallholders Support and Engagement In July 2020, IOI UNICO Group and IOI Sustainable Palm Oil (SPO) team organised a series of training sessions for major outgrowers and smallholders who supply FFB to Unico Oil Mill, as well as interested participants from neighbouring estates. The objectives of the training were to improve the quality of FFB and palm oil production from external suppliers, improve the overall oil extraction rate, as well as demonstrate to smallholders how to identify good quality FFB. The smallholders were also given guided sessions on how to prepare for their upcoming MSPO audit"[...]5420ha of Scheme Smallholder Land

IOI Group commit their suppliers to "provide fair and equal employment opportunities for all employees, regardless of race, nationality, religion or gender", and to "protect reproductive health of women employees and promote women empowerment" [...] "Women empowerment is an important path forward to achieving gender equality within our community. IOI upholds the rights of women and continues to provide opportunities for them to grow and explore new responsibilities and challenges. Our Women and Empowerment Committee (“WEC”) introduced last year, is an important platform for our female employees in our plantations to raise their concerns on gender rights "

"Accountability, transparency and responsiveness towards grievances and complaints is essential to ensure that they are effectively handled, any issues addressed as well as compliance on any remediation implemented. [...] As one of the top six materiality matters of 2021, IOI views the above matter very seriously. To enable all stakeholders to express and communicate their concerns easily and freely over our operational impacts that may require improvement or remediation due to the possibility of misalignment to our policies and best practices, IOI has provided multi-channels for these matters to be reported either transparently or anonymously, if required. For example, the Group has implemented an open and transparent whistleblowing approach to resolve both internal and external stakeholder grievances. Stakeholders are encouraged to submit their grievances if they find any part of our operations or supply chain are not operating in line with the principles stated in the Group’s SPOP."

"Respect the land tenure rights of indigenous local communities including their right to give or withhold Free, Prior and Informed Consent ("FPIC") to operations on land over which they hold legal, communal or customary rights in accordance with the UN Declaration on the Rights of Indigenous People"

"New oil palm developments only after comprehensive stakeholder engagement and assessments (including ESIA, HCV and HCS assessment, LUC analysis, GHG assessment, soil suitability and topographic survey).[....] • New oil palm developments are permitted only after comprehensive stakeholder engagement and assessments."

"• More than 90% of our mills are Roundtable on Sustainable Palm Oil (“RSPO”) certified."

"Support suppliers on their transformation towards NDPE policy commitments."

"IOI continues to implement programmes and measures to conserve and protect the natural environment around us. We assess all our operating units using recognised valuation standards including HCV assessment and Environmental Impact Assessment (“EIA”) to identify and manage impact [...] New oil palm developments are permitted only after comprehensive stakeholder engagement and assessments (HCV, HCS and GHG assessment, ESIA; LUC analysis; soil suitability and topographic surveys) are conducted. [...] • IOI exercises the application of High Conservation Value Network (“HCVN”) and High Carbon Stock Approach (“HCSA”) toolkit to help us identify and conserve HCV and HCS areas for new land developments in all our operations.[...] A total of 3608.47 hectares of HCV area and 6145.23 hectares other conservation areas in Malaysia and Indonesia were identified to be protected in FY 2021"

"In its Sustainable Palm Oil Policy (“SPOP”), IOI Corporation Berhad (“IOI” or “IOI Group”) committed to the implementation of a comprehensive Grievance Procedure covering its palm oil production and sourcing. IOI is committed to an open and transparent approach to resolve outstanding grievances with the involvement of affected stakeholders. IOI will deal with all grievances logged under the Grievance Procedure in a fair and timely manner. The Group will publicly disclose the results of this process." .. "Anyone can submit a grievance verbally or via a letter or e-mail to the Grievance Coordinator: E-mail: grievance@ioigroup.com By telephone to: +603 8947 8701 In writing to: IOI Corporation Berhad, Level 27, IOI City Tower Two, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia Attention: Sustainability Department (Grievance Coordinator)"

IOI report in their RSPO ACOP report that they produce a total of 3145470.33 Metric Tonnes of palm oil

"Between April to August 2021, IOI conducted the workers’ welfare programme to increase suppliers’ awareness in countering forced labour, which is a part of the No Exploitation commitment in the NDPE commitments. The programme aims to evaluate suppliers’ current practices as well as to provide training and solutions to make improvements and close the identified gaps. [...] The Year 2 T4T report on the progress made by our supply base on meeting NDPE requirements was published on 8th March 2021. More than 90% of the supplying mills participated in the assessment and the report showed that there was a high level of compliance to no new planting on peat, no child labour in plantation, freedom of association for the workers and traceability."

" New oil palm developments only after comprehensive stakeholder engagement and assessments (including ESIA, HCV and HCS assessment, LUC analysis, GHG assessment, soil suitability and topographic survey)"

IOI provide a map showing the locations of processing facilities and estates as well as publishing hectares for areas of production and areas of natural ecosystem in their RSPO ACOP report.

IOI publish a list of mills for both their direct and indirect suppliers.

"Utilises Global Forest Watch platform to map our concession areas, obtain daily information about forest fires, and obtain longer-term climate trends...• Application of T4T assessments and collaboration with Earthworm Foundation on engagement programmes for suppliers.[...]IOI exercises the application of High Conservation Value Resource Network (“HCVRN”) and High Carbon Stock Approach (“HCSA”) Resource toolkits to help us identify and conserve HCV and HCS areas for new land developments in all our operations. The Group is committed to using the latest integrated HCV-HCS assessments, led by licensed HCV assessors accredited by HCVRN Assessor Licensing Scheme (“ALS”) for any future development. As stated in our SPOP, since 2016, IOI fully implements our NDPE commitments and have had a moratorium on deforestation at all operations except our last new land development in PT KPAM"

"Utilises Global Forest Watch platform to map our concession areas, obtain daily information about forest fires, and obtain longer-term climate trends. [...] IOI exercises the application of High Conservation Value Resource Network (“HCVRN”) and High Carbon Stock Approach (“HCSA”) Resource toolkits to help us identify and conserve HCV and HCS areas for new land developments in all our operations. The Group is committed to using the latest integrated HCV-HCS assessments, led by licensed HCV assessors accredited by HCVRN Assessor Licensing Scheme (“ALS”) for any future development. As stated in our SPOP, since 2016, IOI fully implements our NDPE commitments and have had a moratorium on deforestation at all operations except our last new land development in PT KPAM. [...] In FY2021, we continue to report zero deforestation in all of our operating units"

"In order to ensure that our potential 3rd party suppliers are complying to IOI’s no deforestation, no planting on peat and no social exploitations commitments, due diligence will be conducted by the Responsible Sourcing Team even before the suppliers enter our supply chain. The due diligence process involves verification of current and past sustainability concerns in connection to the suppliers. IOI will only enter the sourcing agreement with suppliers without inherent sustainability issues to ensure that we can produce sustainable products to the market. As for the existing suppliers, IOI is utilising geospatial information to continuously monitor the suppliers for any deforestation and peat clearance activity. Within this financial year, there has been no new reported grievances related to deforestation and peat clearance on our suppliers."

"In FY2021, we continue to report zero deforestation in all of our operating units."

"IOI believes that every supplier should be given the opportunity to improve and provide assistance to the suppliers during their difficult period of adjustment in order to address any breach of conduct with time bound action plans [..] Within this financial year, no new grievance cases were recorded against our third-party suppliers. However, our Supplier Engagement Team is continuously providing support to the suppliers involved in past grievances with the aim of creating a more sustainable supply chain within the industry, i.e., the team had engaged with four direct suppliers and two indirect suppliers regarding allegations related to deforestation and forced labour. Details of the grievances against them can be assessed through IOI’s Grievance List" [...] "Non-compliance with IOI’s SPOP will trigger engagement and if required, corrective action plans and re-evaluation of commercial relationships for repeated failures."

"Non-compliance with IOI’s SPOP will trigger engagement and if required, corrective action plans and re-evaluation of commercial relationships for repeated failures."