Sustainability Update – Field Trip to Kalimantan and Appointment of Proforest

In this week’s update, we would like to provide you with further details on the field trip to PT BSS, Kalimantan that took place last week and the appointment of Proforest as our implementation partner and sustainability consultant.

1. After the April 18, 2016 meeting with Aidenvironment to discuss the revised Action Plan that we had submitted to RSPO on April 6, our sustainability team, together with GEC (Global Environment Centre), went on a 4 days field trip to Kalimantan to conduct an on-the-ground verification of some of the action plans. During the field trip, GEC observed the peat rehabilitation and restoration effort undertaken on site and made some recommendations for improvements. These relate to:

– Improvement of water management in and surrounding the peat area.

– Planting with indigenous species in areas with poor recovery.

– Enrichment planting to enhance species diversity.

– Management plans for Conservation and rehabilitation areas.

– Cooperation with the local community to prevent fire in adjacent areas.

The recommendations were accepted by the operational management and some actions had already commenced on site.

Following the field trip, GEC held a discussion with IOI’s Senior Management team at IOI HQ about the findings and recommendations. It was agreed that the resources for the full implementation of the recommendations would be provided.

At the follow-up meeting with Aidenvironment, scheduled on April 29, 2016, IOI will discuss the findings and recommendations of GEC related to the action plans. This will be followed by a review of legal compliance issues raised in the complaint, with IOI’s estate team and our appointed legal advisor from AsM Law.

2. Proforest has been appointed as our implementation partner and sustainability consultant:

– Proforest will advice IOI on how to further enhance the implementation of sustainability policy commitments throughout the group.
– IOI will also be working with Proforest in relations to the future KPAM development, where they will review and verify IOI’s commitments on HCS, HCV, FPIC and peat in the RSPO New Planting Procedure (NPP).

In line with the appointment of Proforest as our implementation partner, IOI would defer the clearing for the new KPAM development until end September 2016. This will also ensure sufficient time for the new peat protection plan to be properly implemented on site. We have further agreed to conduct the testing and comparison of both the HCS+ and HCS Approach methodologies on the new KPAM development pending the outcome of the HCS Convergence discussion.

IOI Group would like to reiterate that we remain dedicated to all 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, zero-burning on all new planting and re-planting of oil palm, and to drive positive socio-economic impact for people and communities.

For further information, please contact:

Dr Surina Ismail
Group Head of Sustainability
IOI Corporation Berhad
Tel: +603-8947 8888 (ext. 6841)