IOI Group – Immediate Actions to Enhance Sustainability Practices
The IOI Group is deeply concerned with the impact of the temporary suspension of IOI Group’s RSPO certification on all our stakeholders. In addition to the necessary Action Plans to address the Complaint, we have also taken immediate actions to review and enhance our sustainability practices.
We have put in place within our company, a more formalised Sustainability Governance Structure. It comprises of:
- Sustainability Team: In line with IOI’s greater commitment towards a more transparent and effective execution of policy, we have recently put in place a new Sustainability Team Structure where the Sustainability Heads at all operating divisions have a reporting line to the Group Head of Sustainability, Dr Surina Ismail, who joined IOI Corporation Berhad on March 1, 2016 and reports directly to the Group CEO, Dato’ Lee Yeow Chor. This will also ensure that the operations personnel strictly adhere to all Sustainability policies, practices and commitments of the Group.
- Sustainability Steering Committee: On the Governance side, to ensure that we keep our sustainability strategy and performance on track and support the Board in setting high-level direction and focus, IOI set up a Sustainability Steering Committee that reports to the IOI Board of Directors. This committee comprises the Group CEO, Heads of the Operating Divisions, Group Head of Sustainability, and Senior Management from Group Support Functions.
The first action of the Steering Committee was to set up a Group Task Force to develop a Stakeholder Outreach Program to communicate IOI’s commitments and to seek stakeholders’ views as a basis for setting priorities. The Group Task Force is chaired by Dato’ Lee Yeow Chor, with Mr. Julian Veitch, the CEO of IOI Loders Croklaan, as deputy chair and comprises of the respective divisions’ Head of Sustainability, the Group Head of Sustainability and the Head of Corporate Communications.
Other activities that we are actively pursuing, to ensure we are adhering to our commitment to sustainability:
1. We are identifying all necessary actions to address the complaint relating to our Ketapang development areas, including mitigation and restoration for the affected HCV area in PT BSS.
2. IOI will put measures in place to ensure that our policy commitments with regard to HCS, HCV, FPIC and peat are implemented on the future PT KPAM new development, including compliance with the RSPO NPP process.
Other than the above PT KPAM development, IOI does not hold any other concession for development into oil palm plantation.
3. Appointment of internationally reputable implementation partner and sustainability consultant:
a. IOI is in the process of engaging with Proforest in relation to the PT KPAM development and the verification of IOI’s commitments with regard to HCS, HCV, FPIC and peat.
b. IOI also intends to seek the advice of Proforest on strategic matters related to sustainability, in the context of ensuring implementation of IOI’s policy commitments.
4. On the matter related to our temporary suspension by RSPO of our Group Certification, following meetings with the complainant, IOI submitted a revised action plan to RSPO on April 6, 2016. Thus far, the complainant has been agreeable to our Action Plans and we will continue our engagement with the complainant with a meeting scheduled on April 18, 2016 at the complainant’s office. In addition, IOI will also work with specialists, after consultation with the complainant, to execute corrective measures that require external support.
5. We are also in contact with the complainant to work on other topics, which are not part of the complaint. These topics include the development of PT KPAM, and a review of the fire monitoring and mitigation systems that IOI has put in place since last year
IOI Group is committed to all the necessary actions (both corrective and forward- looking) to demonstrate our continued commitment to building a world class oil palm business based on our published sustainability principles of no deforestation, no planting on peat and to drive positive socio-economic impact for people and communities.
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