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  • Overall approach
    7/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      Commodity-specific commitment
      0/6
      Commodities (if applicable): Palm oil
      "Under No Deforestation, No Peat and No Exploitation (“NDPE”), IOI is fully committed to no new development on peatland and will adhere to the newly revised 2018 RSPO Principal & Criteria."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      IOI Corporation are a member of the UN Global Compact Network Malaysia.
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "IOI is keenly aware of its important role in protecting, conserving and rehabilitating the ecosystems in and around its estates. IOI commit to strictly adhering to all relevant laws, RSPO, RSPO NEXT, MSPO, and ISCC certification principles regarding biodiversity protection and enhancement."
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: operational
      "The sustainability risks that concern our operations include human rights, local community grievances, occupational health and safety, fire management, deforestation, climate change, biodiversity, and peatland protection. These risks are managed at the business unit level and are guided by approved guidelines and SOP."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Palm oil

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Four times a year
      "IOI has developed and will continuously improve upon a systematic approach to sustainability by ensuring sustainability sits at the top agenda of IOI’s management. Additionally, to ensure transparency IOI established a Sustainability Governance structure. This Sustainability Governance structure comprises Board of Directors, Group Sustainability Steering Committee, Sustainability Team, and an external Sustainability Advisory Panel."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      3/3
      Report LUC emissions
      Yes
      3/3
      Which method is used to calculate the GHG emissions arising from land use change?: GHG emissions calculation for IOI Plantation is based on RSPO Palm GHG,

      What is the total volume of GHG emissions arising from land use change?: 0.002601 million tCO2e
      "During 2019, IOI as a group produced 3.014 million tCO2 -e of direct (Scope 1) GHG emissions while indirect (Scope 2) GHG emissions contributed 0.0051 million tCO2 -e. About 51% of the total GHG emissions was from historical land use change during plantation development." IOI report their total plantation emissions to be 3,634.51
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
  • Commodity score
    39/84
    • Palm oil
      58/84
      • Commitment Strength
        21/28
        • Commitment to protect priority forests
          7/12
          • Commitment details
            Zero-net deforestation
            5/8
            Commitment to protect priority forests
            Zero-net deforestation
            5/8
            Which certification schemes are used?: RSPO
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Target date
            No target date
            0/1.3
            Target date
            No target date
            0/1.3
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Interim target date
            No
            0/0.7
            Interim target date
            No
            0/0.7
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          6/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Target date
            No target date
            0/1.3
            Target date
            No target date
            0/1.3
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Interim target date
            No
            0/0.7
            Interim target date
            No
            0/0.7
            "To implement leading sustainability standards laid out in this policy for environmental management including no deforestation, no new planting on peat and no social exploitation (“NDPE”)". "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
        • Commitment to a traceable supply chain
          8/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "we commit to building a traceable and sustainable palm oil supply chain. Traceability is defined as traceable to a defined list of mills and plantations. All volumes of palm oil, palm oil fractions and palm kernel oil are traceable to the supplying mills. This commitment will be extended towards full traceability by end 2020"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "we commit to building a traceable and sustainable palm oil supply chain. Traceability is defined as traceable to a defined list of mills and plantations. All volumes of palm oil, palm oil fractions and palm kernel oil are traceable to the supplying mills. This commitment will be extended towards full traceability by end 2020"
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "we commit to building a traceable and sustainable palm oil supply chain. Traceability is defined as traceable to a defined list of mills and plantations. All volumes of palm oil, palm oil fractions and palm kernel oil are traceable to the supplying mills. This commitment will be extended towards full traceability by end 2020"
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "we commit to building a traceable and sustainable palm oil supply chain. Traceability is defined as traceable to a defined list of mills and plantations. All volumes of palm oil, palm oil fractions and palm kernel oil are traceable to the supplying mills. This commitment will be extended towards full traceability by end 2020"
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          IOI Group abide by the minimum standards for human rights as set by the ILO 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
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Education and training
          "IOI recognises our ability to empower smallholders and has made improvements in centralising our efforts for support programmes to aid in their business growth. We aim to deliver a positive impact to the communities and smallholders that we support. By 2020, all smallholders will be required by the Malaysian government regulation to make MSPO certifications mandatory for all palm oil plantation areas. IOI has been engaging with the Malaysian Palm Oil Board (“MPOB”) in providing MSPO-related trainings to the smallholders in our supply chain."
        • Gender equality in the supply chain
          Equality in the supply chain
          2/4
          Gender equality in the supply chain
          Equality in the supply chain
          2/4
          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".
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          "IOI recognises that there can be an overshoot of natural resources thus, formulate its approach to expand its productivity and yield through utilising innovative solutions. IOI is also keen on doing what it can to conserve lands and maintain the biodiversity of the area. This is explained in the topics of Land Use Plan and Palm Biotechnology [...] We confirm our commitment to developing and implementing best practices on peatland remediation, rehabilitation and where necessary, compensation measures"
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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".
      • Reporting and Implementation
        23/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            OIO Corporation produced 406300.39 tonnes of RSPO Certified palm oil in 2019.
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            "we commit to building a traceable and sustainable palm oil supply chain. Traceability is defined as traceable to a defined list of mills and plantations. All volumes of palm oil, palm oil fractions and palm kernel oil are traceable to the supplying mills. This commitment will be extended towards full traceability by end 2020"
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: Certification schemes

            Which processes or groups does the company use for third party verification?: RSPO
            "Our operations in Peninsular Malaysia and Sabah are 100% Roundtable on Sustainable Palm Oil ("RSPO") certified and 100% Malaysian Sustainable Palm Oil ("MSPO") certified."
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: RSPO

            Which tools, approaches, third-party verification, including certification, schemes are used?: Certification schemes
            OIO Corporation produced 406300.39 tonnes of RSPO Certified palm oil in 2019.
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: workshop on HCV management

          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise
          "In November 2018, IOI alongside Universiti Malaysia Sabah, hosted a workshop on HCV management. Attendees included representatives from Environment Protection Department, PONGO Alliance, Bunge Loders Croklaan, WWF Malaysia, Kinabatangan Wildlife Officer, Lahad Datu Wildlife Officer, Department of Irrigation and Drainage. The workshop succeeded in connecting different stakeholders in Sabah to discuss potential collaborations and partnerships for managing HCV areas."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: not specified
          "Environmental Management � Identification and protection of High Conservation Value ("HCV") areas, working with relevant authorities in biodiversity conservation and protection of rare, endangered and threatened ("Int") species. � Identification and protection of High Carbon Stock (1-ICS") areas, using the revised High Carbon Stock Approach ("I-ICSA"). � For existing plantations on peat, appropriate management using best management practices ("BMP'D, as defined in the 2018 RSPO PAC and the RSPO manual on BMP for existing oil palm cultivation on peat and marginal soil."
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          Details of the mechanism: Social; Environmental

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: webform, phone, email, mail
          IOI encourages its employees to raise genuine concerns about suspected or possible violations of the Group’s Code of Business Conduct & Ethics, improprieties in matters of financial reporting, non-compliances with laws and regulations, non-compliances with the Group’s Policies and Procedures and to disclose any improper conduct or other malpractices within the Group (i.e. whistleblowing) in an appropriate way [...] E-mail to whistleblowing@ioigroup.com, or complete an online whistleblowing formFax to (603) 8947 8958. Whistleblowing Secretariat – Group Internal Audit, Tel: (603) 8947 8888 (General line)In person to the respective Head of Business/Operating Unit, or its Head of Human ResourceIn writing to one or more of the following persons as appropriate at: IOI Corporation Berhad, Level 29, IOI City Tower 2, Lebuh IRC, IOI Resort City, 62502 Putrajaya, Malaysia.
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 406300.39 tonnes

          Which certification schemes are used?: RSPO

          What is the compliant volume?: 93537.04 tonnes

          What is the non-certified/non-compliant volume?: 72257.55 tonnes
          IOI Corporation reported their certified, compliant, and total volumes of crude palm oil in the 2019 RSPO ACOP.
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Not disclosed
          "IOI commits to implement the RSPO New Planting Procedure (“NPP”) guides responsible planting using a set of assessments and verification activities, conducted by growers and certification bodies prior to a new oil palm development. This process means that new oil palm developments are only allowed following comprehensive stakeholder engagement and assessments (including ESIA, HCV and HCS assessment, LUC analysis, GHG assessment, soil suitability and topographic survey)."
        • Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          Upstream: Reporting production/processing locations
          Reports location of company-owned processing facilities
          1/4
          In what country(ies) does the company operate and/or source material?: Malaysia, Indonesia

          What is the total area in production (in ha)?: 206,000 hectares

          For what percent are boundaries disclosed?: 100%
          IOI provides mill lists detailing location and whether the mill is direct or indirect. Last updated in June 2020
        • Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          From what country(ies) does the company source material?: Malaysia and Indonesia

          Does the company disclose location of suppliers' production areas or primary processing sites?: No
          IOI Group report their list of suppliers.
        • Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          Does the company use a jurisdictional monitoring mechanism?: No

          How frequently is compliance assessed?: Not disclosed

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: HCV Assessments

          Does the company use a certification system?: No
          "TARGETS [...] To ensure that all HCV assessment templates for IOI plantations are based on the latest HCV Resource Network (HCVRN) common guidance for HCV identification by Q1 2020. [...] PROGRESS [...] As of June 2020, all of IOI plantation areas have undergone in-house HCV assessment according to the latest HCV templates based on the HCVRN guidelines."
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers production or primary processing operations in its supply chains
          4/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers production or primary processing operations in its supply chains
          4/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: not specified
          "we will adopt a three-step palm oil supply chain verification approach that requires all third party mills and refineries to disclose their supply chain traceability information, perform risk assessments using remote sensing and geospatial analysis, and conduct on site verification and assessment on prioritized suppliers. "
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes
          "To ensure continuous compliance with its policies, IOI conducts regular engagement visits and workshops for mills within its direct supply chain. For third-party suppliers, IOI has implemented and communicated a proactive mill-level monitoring program [...] When a breach of policy commitment is identified, the party in question will be subjected to oversight by the independent SAP. Failure or refusal to meet IOI’s time-bound plan to rectify issues will result in business suspension."
        • Downstream: Disclosure of non-compliant suppliers
          Yes (engaged)
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes (engaged)
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No

          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 5
          IOI lists out engagement with non-compliant suppliers "Non-compliance with IOI’s SPOP will trigger engagement and if required, corrective action plans and re-evaluation of commercial relationships for repeated failures."
    • Pulp & Paper *
      0/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/12
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          0/8
          • Commitment details
            No
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        0/18
        • Labour rights in the supply chain
          No
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          No commitment
          0/4
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    14/28
    Avg. score
  • Reporting and Implementation
    15/38
    Avg. score
  • Social considerations
    9/18
    Avg. score

Profile

IOI Corporation is a global, vertically integrated palm oil company active throughout the supply chain from cultivation to manufacturing. The company has one of the top ten largest landbanks for palm oil globally, with more than 225,000 hectares of plantation land in Indonesia and Malaysia. Its 15 mills have an annual capacity for more than 4.5 million metric tons of fresh fruit bunches. IOI also owns four refineries in Malaysia and the Netherlands with an annual capacity of more than 3 million metric tons. Its products include oleochemicals and specialty oils and fats for the food industry. IOI Corporation Bhd. is selected as a powerbroker for palm oil.

Sector
Industry sector 
Agriculture, Ingredients, Oils & fats, Chemicals
Segments
Producer, Processor, Manufacturer
HQ
HQ 
Malaysia
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

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How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.