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  • Overall approach
    11/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      "No deforestation, no new planting on peat". This is the palm oil policy, but explicitly states that the policy is also applicable to all other commodities under IOI group.
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      IOI Corporation are a member of the UN Global Compact Network Malaysia.
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "Detrimental impact caused by deforestation and land use change is one of the drivers of climate change. The issues have been linked to production of unsustainable palm oil. IOI upholds commitments to ensures no deforestation and practice responsible land use in production of sustainable palm oil."
    • Deforestation as a business risk
      1/1
      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 are environmental, social and governance matters which include but are not limited to; 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
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Four times a year

      Which commodities does it apply to?: Palm oil
       Deforestation falls within the category of sustainability risks that are monitored by the board - "Overall, the Board has the ultimate responsibility for the management, general affairs, direction, performance, and long-term success of the Group. Sustainability risks and opportunities are presented at the board level by the Group Head of Sustainability (“GHS”). [...] The role of the previous Sustainability Advisory Panel (“SAP” or “the Panel”) has now evolved to become the core members of the newly formed Sustainability Consultation Forum (“SCF”).[...]  Based on current trends, internal and external audits as well as sustainability indications and assessments, the table explains the provision of Environmental, Social and Governance (“ESG”) matters that are managed and addressed by IOI: [...] Responsible land use. • No Deforestation, No New Planting on Peat"
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      2/2
      Yes
      2/2
      "GHG emissions intensity for plantations in 2020 significantly reduced in comparison to 2019 baseline (Figure 1). However, the emissions reduction achieved in 2020 for scenario 1 was 14.77% in comparison to the targeted reduction of 21%. Emissions for scenario 1 was calculated with the basis of palms planted after 25 years are not considered as part of the overall emissions sequestration as per current PalmGHG calculation methodology. However, emissions reduced as much as 29.57% if the calculation take into account of sequestration of palms planted after 25 years"
    • Reporting on emissions from land-use change
      2/2
      Yes
      2/2
      Which method is used to calculate the GHG emissions arising from land use change?: GHG emissions calculation for IOI Plantation is based on RSPO PalmGHG, calculations for refinery are based on ISCC methodology, calculations for oleochemical are based on the Intergovernmental Panel on Climate Change’s (IPCC) and the Institute for Global Environmental Strategies (IGES).

      What is the total volume of GHG emissions arising from land use change?: 0.0611 million tonnes
      "IOI as a group produced 2.908 million tCO2-e of direct (Scope 1) GHG while indirect (Scope 2) emissions contributed 0.0611 million tCO2-e. Net GHG emissions for IOI stands at 1.376 million tCO2-e which translates to 1.93 tCO2-e/ MT Product after taking into account the GHG sequestration/ credit mainly from conservation areas and GHG credits from selling of oil palm-based biomass. Full metrics of our carbon emission and absolute numbers is available in Appendix: Sustainability Performance Metrics."
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      Type of climate target: Other or unclear

      What is the target date for the company to achieve their climate target?: 2025
      "Implement measures to reduce GHG emissions [...] • IOI is committed to a holistic approach in implementing its climate action strategy and to strive for reducing GHG emissions. [...]  Emission reduction target of 41% by 2025"
  • Commodity score
    50/88
    • Palm oil
      71/88
      • Commitment Strength
        17/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Other certification scheme: MSPO, ISCC, and ISPO

            Which certification schemes are used?: RSPO; Other certification
            "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
          • Target date
            2023
            0.5/0.7
            Target date
            2023
            0.5/0.7
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
          • Target date
            2023
            0.5/0.7
            Target date
            2023
            0.5/0.7
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            For their own operations - "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016. [...] Continue to be an active supporter of certification schemes such as RSPO, MSPO, ISCC, and ISPO and work to strengthen their standards. [...] Protection of High Conservation Value (“HCV”) and High Carbon Stock (“HCS”) areas in existing and new oil palm plantations." [...] For third party suppliers - " Support suppliers on their transformation towards NDPE policy commitments. Target for suppliers: 100% RSPO certification for all IOI plantations by 2023."
        • Commitment to a traceable supply chain
          6/6
          • 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. Our goal is to ensure that 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 to plantations progressively.  ... We commit to achieve full traceability to plantations in high risk landscapes by end 2020"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            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. Our goal is to ensure that 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 to plantations progressively.  ... We commit to achieve full traceability to plantations in high risk landscapes by end 2020"
          • Target date
            Past target date, not updated or not achieved
            0/0.7
            Target date
            Past target date, not updated or not achieved
            0/0.7
            "We commit to achieve full traceability to plantations in high risk landscapes by end 2020" - however dashboard only shows traceability to plantation for their own mills, and 9% of suppliers' volumes are pending verification.
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            What date is given for the interim milestone(s)?: Current
            "Our goal is to ensure that 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 to plantations progressively."
      • Social Considerations
        16/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Only work legal working hours; Guaranteed safe and healthy workspaces; Free from abusive practices/undue disciplinary procedures

          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          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. 
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 0 not specified

          What is the nature of that support?: Certification; Technical assistance/support; Education and training
          "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”).
        • Gender equality in the supply chain
          Commitment to ensure equality of women in the supply chain
          2/4
          Gender equality in the supply chain
          Commitment to ensure equality of women 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
          Type of harm covered: Social harm; Environmental harm
          "POLICY COMMITMENT: • We confirm our commitment to developing and implementing best practice on peatland remediation, restoration 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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "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".
        • Commitment to resolve land conflicts
          Yes
      • Reporting and Implementation
        38/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "Zero incident and grievances reported on deforestation in our own operation [...] More than 90% of our mills are Roundtable on Sustainable Palm Oil (“RSPO”) certified"
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            "Zero incident and grievances reported on deforestation in our own operation [...] More than 90% of our mills are Roundtable on Sustainable Palm Oil (“RSPO”) certified"
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            On their palm oil dashboard: "15 MILLS OWNED, 100%TRACEABLE TO PLANTATION [...] 383 supplying mills, 121 direct sourcing, 262 indirect"
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certified

            Which processes or groups does the company use for third party verification?: RSPO Certified
            "Zero incident and grievances reported on deforestation in our own operation [...] More than 90% of our mills are Roundtable on Sustainable Palm Oil (“RSPO”) certified"
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certified

            Which processes or groups does the company use for third party verification?: RSPO Certified
            "Zero incident and grievances reported on deforestation in our own operation [...] More than 90% of our mills are Roundtable on Sustainable Palm Oil (“RSPO”) certified"
          • Commitment to a traceable supply chain
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to a traceable supply chain
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: Independent verification exercise

            Which processes or groups does the company use for third party verification?: Control Union
            " On IOI’s part, we had engaged Control Union to conduct an independent verification exercise to ensure that the traceability data to plantations is reliable and accurate."
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          For old/current suppliers - "Support suppliers on their transformation towards NDPE policy commitments." "IOI engages with new suppliers through a pre-qualification and screening process as articulated here to ensure the new suppliers meet IOI’s sustainability requirements. New suppliers are screened using social and environmental criteria to meet the essential NDPE commitments. IOI will not approve any new suppliers that are unable to commit to these requirements."
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 2016
          "Key Commitments of IOI Group’s Sustainable Palm Oil Policy; No Deforestation, No New Planting on Peat, No Social Exploitation (“NDPE”) and moratorium on deforestation since 2016"
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%

          How frequently are assessments conducted?: not specified
          "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. Our Biodiversity and Conservation guideline provides clear procedures for the operating units on identifying, managing, monitoring and responding to any related crisis. IOI has put in measures to protect, conserve and enhance ecosystems of its conservation area. Identified HCV and HCS areas are monitored and managed as conservation areas."
        • Operations assessed to comply with law
          No
          0/2
        • Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          Accessible grievance mechanism
          Yes, and published details of any grievances within the last two years (2019-2021)
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Internal, but aligned with the UN Guiding principles on business and human rights for effective non-judicial grievance mechanisms.

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes

          Which issues does the grievance mechanism cover?: Social; Environmental
          "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)"
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 3,822,532.33 tonnes
          Own operations - "Total FFB volume produced = 3,145,470.33 tonnes [...] Total certified FFB volume produced = 2,959,469.38" [...] Third party supplied - "Total = 2,428,116 [...] RSPO-certified = 677,062"
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          What is the certified volume?: 3,636,531.38 tonnes

          What is the non-certified/non-compliant volume?: 186,000.95 tonnes

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 95%

          What third-party verification is used?: RSPO certification
          Own operations - "Total FFB volume produced = 3,145,470.33 tonnes [...] Total certified FFB volume produced = 2,959,469.38" [...] Third party supplied - "Total = 2,428,116 [...] RSPO-certified = 677,062" 
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          They monitor and report on suppliers' progress on reducing child labour and right to association.
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          "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 [...] 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)."
        • 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 jurisdiction(s)/subnational region does the company operate and/or source material?: Malaysia: Sabah and Penisular

          For what percent are point locations (of land holdings and processing facilities) disclosed: 100%

          In what country(ies) does the company operate and/or source material?: Malaysia and Indonesia

          For what percent are point locations (of certified land holdings) disclosed?: 100%

          What is the total area in production (in ha)?: 174,653HA PLANTED AREA
          Gives a map of IOI's refinery mills and estates in Indonesia and Malaysia. Indonesian concession map is accessible if you give contact details.
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers; Yes, report indirect suppliers
          4/4
          For what percent of suppliers' production areas are point locations disclosed?: 100%

          From what country(ies) does the company source material?: Malaysia and Indonesia

          For what percent is no location data disclosed?: 0%

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes, by lat-long
          Includes direct and indirect suppliers: "List of MillsThe below mills list was last updated in June 2021IOI Edible Oils Sandakan Mill ListIOI Full Mill ListIOI Oleochemical Prai Mill ListIOI Pan Century Mill List"
        • Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          How frequently is compliance assessed?: At least annually

          Does the company use a jurisdictional monitoring mechanism?: No

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: RSPO certification, HCS and HCV assessments

          Does the company use a certification system?: Yes
          "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 [...] External monitoring via Audit Certification by RSPO, ISCC, MSPO, etc. are conducted annually. During these audits, all of our labour practices will be verified by independent third-parties based on indicators under the respective certifications."
        • Upstream: Reporting hectares of deforestation
          Yes, for all operations
          4/4
          Upstream: Reporting hectares of deforestation
          Yes, for all operations
          4/4
          How many hectares/km/m?: 0 hectares
          "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"
        • 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
          How frequently is compliance assessed?:  not specified

          Details of monitoring: Using certification; Using internal monitoring and verification systems
          "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."  
        • Downstream: Reporting hectares of deforestation
          Yes, for all sourcing
          4/4
          Downstream: Reporting hectares of deforestation
          Yes, for all sourcing
          4/4
          How many hectares/km/m?: 0 hectares
          "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."
        • 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
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: action plans, support 

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          What criteria does the policy specify for blacklisting or exclusion?: non compliance or breach of NDPE policies
          "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"
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          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?: 2

          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          "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 *
      7/88
      • Commitment Strength
        4/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: FSC
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
        • Commitment to reduce use of virgin wood fibre
          0/5
          • Commitment details
            No
            0/3
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • 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
          0/4
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        3/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: FSC

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC
            "IOI currently uses FSC-certified paper in its operations for the past 10 years and also in the printing of its Sustainability Reports."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • 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
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          No
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          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
    13/20
    Avg. score
  • Reporting and Implementation
    26/50
    Avg. score
  • Social considerations
    11/18
    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

Top Brands

Century

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.