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IOI Corporation Bhd

Palm oil assessment
  • Latest update: November 2020
  • Next scheduled: November 2021

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  • About this company:

    Established in 1969, IOI Corporation is engaged in

  • Landbank (oil palm)
    211,416 hectares
  • Market cap:
    6,391,131,851 USD
  • Thomson Reuters ticker:
    IOIB.KL
  • Bloomberg ticker:
    IOI MK
  • ISIN:
    MYL1961OO001
  • Sedol:
    B1Y3WG1
  • RSPO member?
    Yes
  • Website:

Company assessment: IOI Corporation Bhd – November 2020

Assessment date:

Score by disclosure type:

Total: 77.1% 144.95 / 188
  • Organisation: 28 / 38 73.7%
  • Policy: 64.5 / 76 84.9%
  • Practice: 52.4 / 74 70.9%
  • Self-reported: 12.2 / 74 16.6%
  • External: 27 / 74 36.5%
  • Certified: 13.2 / 74 17.8%
  • Sustainability policy and leadership Sustainability policy and leadership
    10 / 11 90.9%
    • Organisation: 6 / 6 100%
    • Policy: 2 / 2 100%
    • Practice: 2 / 3 66.7%
    • Self-reported: 1 / 3 33.3%
    • External: 1 / 3 33.3%
    • Certified: 0 / 3 0%
    • Y
      1 / 1

      1. Sustainable palm oil policy or commitment for all its operations?

      The company meets this indicator through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. Also, the company has a sustainable palm oil policy.

    • Y
      1 / 1

      2. Sustainable palm oil policy or commitment applies to all suppliers?

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      The company's day-to-day management of sustainability issues is led by the Group Head of Sustainability.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      The group Managing Director and Chief Executive sit on the Group Sustainability Steering Committee which reports directly to the board.

    • Y
      1 / 1

      5. Percentage or number of women in senior management team?

    • Y
      1 / 1

      6. Percentage or number of women board members?

      1

    • Y
      1 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with palm oil production?

      The company is a member of the Fire Free Alliance and HCS Approach Steering Committee.

    • Y
      1 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with palm oil production?

      The company collaborates with Earthworm Foundation to monitor the supply chain and adopt responsible practices. The company also collaborates with Aidenvironment Asia and Global Environment Centre for various sustainability initiatives, including the South Keptapang Landscape Initiatives which promote sustainable economic growth without negative consequences.

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      The latest sustainability report was published in 2019.

    • Y
      1 / 1

      10. Reports through standardised reporting systems?

      CDP.

    • 11. Verification report on compliance with POIG Charter, if a POIG member?

      This indicator is disabled as the company is not a POIG member.

    • N
      0 / 1

      12. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    16.5 / 27 61.1%
    • Organisation: 11 / 17 64.7%
    • Policy: 2 / 2 100%
    • Practice: 3.5 / 8 43.8%
    • Self-reported: 1.5 / 8 18.8%
    • External: 0 / 8 0%
    • Certified: 2 / 8 25%
    • Y
      1 / 1

      13. Total land area managed/controlled for oil palm (ha)?

      211,416

    • Y
      1 / 1

      14. Total oil palm planted area (ha)?

      176,156 - The company reports that its total oil palm planted area is 176,156 hectares excluding scheme smallholders/plasma areas.

    • Y
      1 / 1

      15. Plasma/scheme smallholders planted area (ha)?

      5,346.58

    • Y
      1 / 1

      16. Unplanted (areas designated for future planting) (ha)?

      3,570.9

    • Y
      1 / 1

      17. Conservation set-aside area, including HCV area (ha)?

      15,164.3 - The company reports that total land designated and managed as HCV areas is 3,655.35 and other conservation land set aside, excluding HCV areas is 11,508.95.

    • Y
      1 / 1

      18. Maps of estates/management units?

      Concession boundaries have been made available to the RSPO in 2018 and the company declares no new concession acquisition or change in the ownership of existing concessions was undertaken in its 2019 RSPO ACOP.

    • N
      0 / 1

      19. Maps of scheme/plasma smallholders?

    • N
      0 / 1

      20. Names and locations of all third-party supplying plantations?

    • Y
      1 / 1

      21. Number of company-owned mills?

      15

    • Y
      1 / 1

      22. Names and locations of company-owned mills?

    • N
      0 / 1

      23. Number (or percentage) of company-owned mills that source from company-owned operations and/or third parties?

    • Y
      1 / 1

      24. Reports total volumes (or percentages) sourced by company-owned mills that come from company-owned operations and/or third-parties?

      The company states that 96% of FFB processed by its mills comes from its own estates (therefore sourcing from third-party plantations is 4%). Data as of 2018.

    • Y
      1 / 1

      25. Number of third party supplying mills?

      367

    • Y
      1 / 1

      26. Names and locations of all third-party supplying mills?

    • N
      0 / 1

      27. Number (or percentage) of third party supplying mills that source from their own plantations and/or third party plantations?

    • N
      0 / 1

      28. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and/or third parties?

    • N
      0 / 1

      29. Total volume (or percentage) sourced for refineries that comes from intermediary traders and/or refiners rather than directly from mills?

    • Y
      1 / 1

      30. Time-bound commitment to achieve 100% traceability to mill level?

      The company reports that all volumes of palm oil, palm oil fractions and palm kernel oil are 100% traceable to supplying mills.

    • Y
      1 / 2

      31. Percentage of supply traceable to mill level?

      The company reports that all volumes of palm oil, palm oil fractions and palm kernel oil are 100% traceable to supplying mills.

    • Y
      1 / 1

      32. Time-bound commitment to achieve 100% traceability to plantation level?

      The company commits to achieving full traceability to plantations by the end of 2020.

    • Y
      1 / 2

      33. Percentage of fresh fruit bunches (FFB) supply to own mills traceable to plantation level?

      The company states on its May 2020 dashboard update that the volumes from its 15 own mills are traceable to plantation level.

    • N
      0 / 2

      34. Percentage of supply from third-party mills traceable to plantation level?

      The company reports traceability to plantation of 68% for palm oil and 49% for palm kernel oil. However, these figures include traceability to the company's own mills as well as supplier mills.

    • P
      0.75 / 1

      35. Publishes traceability data at refinery level?

      The company reports that the traceability for the refiner (IOI Edible Oils Sandakan) to the plantation level for palm oil is 71% and for palm kernel oil is 60%.

    • P
      0.75 / 1

      36. Publishes traceability data at crusher level?

      The company reports that the traceability for the refiner which is also the company's kernel crusher (IOI Edible Oils Sandakan), to the plantation level for palm oil is 71% and for palm kernel oil is 60%.

  • Certification standards Certification standards
    12 / 16 75%
    • Organisation: 2 / 2 100%
    • Policy: 3 / 3 100%
    • Practice: 7 / 11 63.6%
    • Self-reported: 3 / 11 27.3%
    • External: 4 / 11 36.4%
    • Certified: 0 / 11 0%
    • Y
      1 / 1

      37. Member of the Roundtable on Sustainable Palm Oil (RSPO)?

      2004 - Note that the company was suspended from the RSPO for five months in 2016.

    • Y
      1 / 1

      38. RSPO-certified within three years of joining the RSPO or by November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007?

      2009

    • Y
      1 / 1

      39. Submitted most recent RSPO Annual Communication of Progress (ACOP)?

    • Y
      1 / 1

      40. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?

      In its RSPO ACOP 2019, the company states that it operates in Indonesia (West Kalimantan) and Malaysia (Johor, Malacca, Negeri Sembilan, Pahang, Sabah, and Sarawak).

    • P
      0.84 / 1

      41. Percentage of area (ha) RSPO-certified?

      84.22% - The company reports its total land bank (land under scheme smallholders) to be 206,069.16 out of which 173,563.91 ha is RSPO certified. Therefore, the percentage of the area (ha) RSPO-certified is 84.22%.

    • P
      0.93 / 1

      42. Percentage of mills RSPO-certified?

      93.33% - 14 out of 15 mills are RSPO-certified.

    • Y
      1 / 1

      43. Time-bound plan for achieving 100% RSPO certification of estates and mills within 5 years or achieved 100% RSPO-certification of estates?

      2023

    • Y
      1 / 1

      44. Year expected to achieve 100% RSPO certification of all palm product processing facilities?

      2013

    • N
      0 / 1

      45. Percentage of scheme/plasma smallholders (ha) RSPO-certified?

    • Y
      1 / 1

      46. Time-bound plan for achieving 100% RSPO certification of scheme/plasma/associated smallholders and outgrowers within 5 years or target already achieved?

      2023

    • P
      0.02 / 1

      47. Percentage of FFB supply (tonnes) from independent smallholders/outgrowers/third-party FFB suppliers that is RSPO-certified?

    • P
      0.21 / 1

      48. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that is RSPO-certified?

    • Y
      1 / 1

      49. Sells or processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

      The company reports that 25,169.82 tonnes are Identity Preserved and 352,906.4 tonnes are Segregated.

    • N
      0 / 1

      50. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?

    • Y
      1 / 1

      51. Malaysia Sustainable Palm Oil (MSPO) certified?

      All 14 of the company's mills in Malaysia are MSPO certified.

    • Y
      1 / 1

      52. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAS, RSB)?

      ISCC.

  • Deforestation and biodiversity Deforestation and biodiversity
    11.09 / 17 65.2%
    • Organisation: 0 / 2 0%
    • Policy: 5.5 / 9 61.1%
    • Practice: 5.6 / 6 93.2%
    • Self-reported: 0.8 / 6 12.5%
    • External: 3 / 6 50%
    • Certified: 1.8 / 6 30.7%
    • Y
      1 / 1

      53. Commitment to zero deforestation or zero conversion of natural ecosystems?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have been therefore awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. Also, the company commits to no deforestation.

    • Y
      1 / 1

      54. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all suppliers?

      The company has an NDPE policy which applies to all of its operations worldwide, within its organisation and to all its third-party suppliers.

    • Y
      1 / 1

      55. Criteria for defining deforestation?

      The company commits to no land clearing damaging primary forests or areas required to protect or enhance HCVs since November 2005, and no land clearing damaging HCVs or HCS forest since November 2018, through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • Y
      1 / 1

      56. Evidence of monitoring deforestation?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company, in partnership with Aidenvironment, has established a land-use change, deforestation, and peat clearance monitoring programme to ensure compliance of third-party suppliers to the company's No Deforestation, No Planting on Peat and No Exploitation (NDPE) commitments.

    • P
      0.75 / 1

      57. Evidence of monitoring deforestation in supplier operations?

      The company in partnership with Aidenvironment with the use of tools and software such as UAV, Spatial Monitoring and Reporting Tool patrolling, and online fire alert, establishes a land-use change, deforestation, and peat clearance monitoring programme to ensure compliance of third-party suppliers to the company's "No Deforestation, No Planting on Peat and No Exploitation" commitments.

    • N
      0 / 1

      58. Amount of illegal/non-compliant deforestation recorded in own operations?

    • N
      0 / 1

      59. Amount of illegal/non-compliant deforestation recorded in supplier operations?

    • P
      0.5 / 1

      60. Commitment to restoration of non-compliant deforestation/conversion?

      The company commits to applying the RSPO Remediation and Compensation Procedure where there has been land clearing without prior HCV assessment since November 2005, or without prior HCV-HCSA assessment since November 2018, through the RSPO Principles and Criteria 2018. However, a commitment covering restoration of all non-compliant deforestation/conversion was not found. Partial points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within 5 years.

    • N
      0 / 1

      61. Commitment to restoration of non-compliant deforestation/conversion applies to all suppliers?

    • Y
      1 / 1

      62. Implementing a landscape or jurisdictional level approach?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      63. Commitment to biodiversity conservation?

    • N
      0 / 1

      64. Commitment to biodiversity conservation applies to all suppliers?

    • Y
      +
      1 / 1
      0.84 / 1

      65. Identified species of conservation concern, referencing international or national system of species classification?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      66. Examples of species and/or habitat conservation management?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports addressing challenges of peatland management and rehabilitation, biodiversity conservation, flood and fire prevention, and community livelihood development. Also, the company commits to protect Endangered Borneo Pygmy Elephant and Sepilok Orangutan.

    • Y
      1 / 1

      67. Commitment to no hunting or only sustainable hunting of species?

    • N
      0 / 1

      68. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    13 / 14 92.9%
    • Organisation: 0 / 0 0%
    • Policy: 7 / 8 87.5%
    • Practice: 6 / 6 100%
    • Self-reported: 0 / 6 0%
    • External: 6 / 6 100%
    • Certified: 0 / 6 0%
    • Y
      1 / 1

      69. Commitment to conduct High Conservation Value (HCV) assessments?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company identifies and protects and High Conservation Value areas.

    • Y
      1 / 1

      70. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

    • Y
      1 / 1

      71. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?

      The company provides a summary of HCV assessment for PT. Bumi Sawit Sejahtera.

    • Y
      1 / 1

      72. High Conservation Value (HCV) assessments for all estates planted since January 2015?

    • Y
      1 / 1

      73. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?

    • Y
      1 / 1

      74. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to safeguard high conservation value (HCV) sites within their concessions and abides by the requirements to use a licensed assessor by HCV Resource Network for the preparation and submission of its New Planting Procedure (NPP) and pre-development planning.

    • N
      0 / 1

      75. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS) applies to all suppliers?

    • Y
      1 / 1

      76. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?

    • Y
      1 / 1

      77. Commitment to the High Carbon Stock (HCS) Approach?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. Also, the company identifies and protects High Carbon Stock (HCS) areas, using the revised High Carbon Stock Approach (HCSA).

    • Y
      1 / 1

      78. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

    • Y
      1 / 1

      79. High Carbon Stock (HCS) assessments available?

    • Y
      1 / 1

      80. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company reports mitigating the environmental impact from its operation based on Environmental Impact Assessment (EIA) and best management practices. Also, the company reports identifying potential social impacts and measures to minimise or eliminate the impacts through Social Impact Assessment (SIA).

    • Y
      1 / 1

      81. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

    • Y
      1 / 1

      82. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

      The company provides a summary of SEIA for PT. Bumi Sawit Sejahtera.

  • Peat, fire and GHG emissions Peat, fire and GHG emissions
    15.84 / 20 79.2%
    • Organisation: 4.5 / 5 90%
    • Policy: 8 / 8 100%
    • Practice: 3.3 / 7 47.7%
    • Self-reported: 0.5 / 7 7.1%
    • External: 0 / 7 0%
    • Certified: 2.8 / 7 40.6%
    • Y
      1 / 1

      83. Commitment to no planting on peat of any depth?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company outlines a commitment to no planting on peat in its Sustainable Palm Oil Policy.

    • Y
      1 / 1

      84. Commitment to no planting on peat of any depth applies to all suppliers?

    • Y
      1 / 1

      85. Landbank or planted area on peat (ha)?

      3,850

    • N
      0 / 1

      86. Implementation of commitment to no planting on peat of any depth?

    • Y
      1 / 1

      87. Commitment to best management practices for soils and peat?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to appropriate management using best management practices for existing oil pam cultivation on peat and marginal soil.

    • Y
      1 / 1

      88. Commitment to best management practices for soils and peat applies to all suppliers?

    • Y
      +
      1 / 1
      0.84 / 1

      89. Evidence of best management practices for soils and peat?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      90. Commitment to zero burning?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company also has a zero burning policy where it commits to zero burning practices across the company's estates, as part of efforts in protecting the environment and combating haze problem. Although the company seeks alternative approaches to the zero burning technique, where burning is necessary.

    • Y
      1 / 1

      91. Commitment to zero burning applies to all suppliers?

    • Y
      1 / 2

      92. Evidence of fire monitoring and management?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company has an Emergency Response Programme and establishes a fire monitoring system through fire alert information system, fire towers and drones and patrolling.

    • Y
      1 / 1

      93. Details/number of hotspots/fires in company estates?

    • Y
      1 / 1

      94. Details/number of hotspots/fires within surrounding landscape/smallholders?

      17 - There were 17 instances of fires.

    • Y
      1 / 1

      95. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

      The company has a target to achieve a GHG intensity reduction of 61.12%, 33.61% and 13.10% against its 2015 baseline by 2025 for its plantations, refinery and oleochemical plants respectively.

    • Y
      1 / 1

      96. GHG emissions intensity?

      The company reports GHG Emission Intensity by company division. For 'Plantation' the GHG emissions intensity is 0.06 ktCO2e/MT and for 'Refinery' it is 0.000009 ktCO2e/MT.

    • P
      0.5 / 1

      97. GHG emissions from land use change?

      The company states "About 51% of the total GHG emissions was from historical land use change during plantation development." No actual figures are reported.

    • N
      0 / 1

      98. Progress towards commitment to reduce GHG emissions intensity?

    • Y
      1 / 1

      99. Methodology used to calculate GHG emissions?

      The RSPO requires companies to assess their GHG emissions through the Palm GHG calculator. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • P
      0.5 / 1

      100. Percentage of mills with methane capture (100%)?

      The company reports that six mills have methane capture facilities while three mills are in the pipeline for methane capture installation in FY2020.

  • Water, chemical and pest management Water, chemical and pest management
    19.52 / 25 78.1%
    • Organisation: 1.5 / 2 75%
    • Policy: 9 / 11 81.8%
    • Practice: 9 / 12 75.2%
    • Self-reported: 1.5 / 12 12.5%
    • External: 1 / 12 8.3%
    • Certified: 6.5 / 12 54.3%
    • N
      0 / 1

      101. Time-bound commitment to improve water use intensity?

    • Y
      1 / 1

      102. Water use intensity?

      3.54 - Water consumption for the processing of FFB (m3 water/MT FFB) in 2020.

    • P
      0.75 / 1

      103. Progress towards commitment on water use intensity?

      The company reports the water consumption for the processing of FFB as 7.25 in 2019 and 3.54 in 2020 (m3 water/MT FFB).

    • N
      0 / 1

      104. Time-bound commitment to improve water quality (BOD and COD)?

    • N
      0 / 1

      105. Progress towards commitment on water quality (BOD and COD)?

    • Y
      +
      1 / 1
      0.84 / 1

      106. Treatment of palm oil mill effluent (POME)?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. Also, the company reports the process of POME upcycling.

    • P
      0.75 / 1

      107. Treatment of palm oil refinery effluent (PORE)?

    • Y
      1 / 1

      108. Commitment to protect natural waterways through buffer zones?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company also makes this commitment independently.

    • Y
      +
      1 / 1
      0.84 / 1

      109. Implementation of commitment to protect natural waterways through buffer zones?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      110. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to best agronomic practices and efficient land utilisation which helps in reducing the usage of chemical fertiliser and pesticide.

    • Y
      1 / 1

      111. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

    • Y
      1 / 1

      112. Commitment to no use of paraquat?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. Also the company has published a commitment towards no use of paraquat.

    • Y
      1 / 1

      113. Commitment to no use of paraquat applies to all suppliers?

    • Y
      1 / 1

      114. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. Also, the company provides a commitment towards no use of pesticides that are categorised as World Health Organisation Class 1A or 1B.

    • Y
      1 / 1

      115. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

    • Y
      1 / 1

      116. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention.

    • Y
      1 / 1

      117. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

    • P
      0.5 / 1

      118. Chemical usage per ha or list of chemicals used?

      The company lists names of pesticides and fertilisers but per hectare usage figures could not be found, and it is not clear if this list is exhaustive.

    • Y
      1 / 2

      119. Implementation of commitment to minimise inorganic fertiliser use?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      +
      1 / 1
      0.84 / 1

      120. Integrated Pest Management (IPM) approach?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reduces the usage of agrochemicals and implements Integrated Pest Management solutions to sustainably control pests.

    • Y
      1 / 1

      121. Waste management system in place to avoid negative impacts?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company commits to minimising generation of wastes and maximising recycling by integrating the circular economy model into the production of palm oil.

  • Community, land and labour rights Community, land and labour rights
    31.75 / 35 90.7%
    • Organisation: 3 / 4 75%
    • Policy: 20 / 22 90.9%
    • Practice: 8.8 / 9 97.2%
    • Self-reported: 0.8 / 9 8.3%
    • External: 8 / 9 88.9%
    • Certified: 0 / 9 0%
    • Y
      1 / 1

      122. Commitment to human rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to respect and uphold the rights of all workers in accordance with the Universal Declaration of Human Rights.

    • Y
      1 / 1

      123. Commitment to human rights applies to all suppliers?

    • Y
      1 / 1

      124. Progress on human rights commitment?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports that as part of Proforest's independent assessment regarding its implementation of the Sustainable Palm Oil Policy, a review of the company's human rights and working conditions are reported.

    • Y
      1 / 1

      125. Commitment to respect indigenous and local communities' rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company adheres to the Free, Prior and Informed Consent (FPIC) principle in support of UNDRIP to ensure the indigenous communities' rights are protected.

    • P
      0.5 / 1

      126. Commitment to indigenous and local communities' rights applies to all suppliers?

      The company commits to respect rights according to the UNDRIP, but only in reference to land tenure rights and FPIC.

    • Y
      1 / 1

      127. Commitment to respect legal and customary land tenure rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • P
      0.5 / 1

      128. Commitment to legal and customary land rights applies to all suppliers?

      The company commits to respecting the legal and customary rights of local communities, but only in relation explicitly to the FPIC process.

    • Y
      1 / 1

      129. Commitment to free, prior and informed consent (FPIC)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company respects the land tenure of indigenous local communities, including their right to give or withhold free, prior and informed consent (FPIC).

    • Y
      1 / 1

      130. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

    • Y
      1 / 1

      131. Details of free, prior and informed consent (FPIC) process available?

      The RSPO Principles and Criteria 2018 contain guidance and requirements on the process to conduct free, prior and informed consent (FPIC). Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company reports how it conducts the FPIC process.

    • P
      0.75 / 1

      132. Examples of local stakeholder engagement to prevent conflicts?

      The company established a stakeholder engagement team to take the role of identifying stakeholders' concerns and areas of interests. Also, the company provides an example of a land dispute that witnessed an improvement in relations with the affected communities and other stakeholders.

    • Y
      1 / 1

      133. Details of process for addressing land conflicts available?

      The RSPO Principles and Criteria 2018 contain requirements for addressing land conflicts. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • Y
      1 / 1

      134. Supports the inclusion of women across palm oil operations, including addressing barriers faced?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      135. Commitment to mitigate impacts on food security?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • N
      0 / 1

      136. Commitment to mitigate impacts on food security applies to all suppliers?

    • Y
      1 / 1

      137. Progress on commitment to mitigate impacts on food security?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company has smallholders' programme called "ILHAM" which provides agronomy support and agricultural advisory to the smallholders.

    • Y
      1 / 1

      138. Commitment to provide essential community services and facilities?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • Y
      1 / 1

      139. Progress on commitment to provide essential community services and facilities?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also provides an example of supplying an emergency response team to a community affected by fire.

    • Y
      1 / 1

      140. Commitment to provide business/work opportunities for local communities?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • Y
      1 / 1

      141. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to providing equal opportunities in employment and freedom of association for all its workers in line with the ILO Core Conventions.

    • Y
      1 / 1

      142. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

    • Y
      1 / 1

      143. Progress on commitment to respect all workers' rights?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. To ensure that workers understand their rights and that they are being fully implemented at all sites, the company carries out scheduled internal sustainability audits such as labour rights monitoring at all of its operating units and also has an internal grievance mechanism.

    • Y
      1 / 1

      144. Commitment to eliminate gender related discrimination with regards to employment?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to providing fair and equal employment opportunities for all employees, regardless of race, nationality, religion or gender.

    • Y
      1 / 1

      145. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

    • Y
      1 / 1

      146. Progress on commitment to eliminate gender related discrimination with regards to employment?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company has a Gender Consultative Committee (GCC) in place to address specific issues related to gender such as sexual harassment and any other form of harassments involving women at their workplace.

    • 147. Percentage or number of temporary employees?

      This indicator is disabled as the company has no temporary employees.

    • Y
      1 / 1

      148. Percentage or number of women employees?

    • Y
      1 / 1

      149. Commitment to pay at least minimum wage?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to pay all workers the statutory monthly minimum wage and overtime compensation in accordance to the current labour regulations.

    • Y
      1 / 1

      150. Commitment to pay at least minimum wage applies to all suppliers?

    • Y
      1 / 1

      151. Progress on commitment to pay at least minimum wage?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • N
      0 / 1

      152. Reporting of salary by gender?

    • Y
      1 / 1

      153. Commitment to address occupational health and safety?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company commits to complying to all national occupational safety and health laws, regulations, statutory requirements, relevant standards and approved codes of practices and guidelines.

    • Y
      1 / 1

      154. Commitment to address occupational health and safety applies to all suppliers?

    • Y
      1 / 1

      155. Provision of personal protective equipment and related training?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports providing provision of personal protective equipment and related training through HSE Campaigns.

    • Y
      1 / 1

      156. Time lost due to work-based injuries?

      2,331 - The company reports that lost time injury frequency rate (Number/Million Hours) for its Plantation and Refinery divisions as 15.3490 and 1.4927, respectively. The total number of lost time injuries for both the divisions is 2,331.

    • Y
      1 / 1

      157. Number of fatalities as a result of work-based accidents?

      6 - The company reports that the total number of fatalities as six, all occurred in the Plantation division.

  • Smallholders and suppliers Smallholders and suppliers
    9.25 / 16 57.8%
    • Organisation: 0 / 0 0%
    • Policy: 4 / 6 66.7%
    • Practice: 5.3 / 10 52.5%
    • Self-reported: 2.3 / 10 22.5%
    • External: 3 / 10 30%
    • Certified: 0 / 10 0%
    • Y
      1 / 1

      158. Commitment to support smallholders?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company supports the inclusion of smallholders in its palm oil supply chain and helps them to comply with the company's sustainability commitments.

    • Y
      1 / 1

      159. Programme to support scheme/plasma smallholders?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • N
      0 / 1

      160. Percentage of scheme/plasma smallholders involved in programme?

    • Y
      1 / 1

      161. Programme to support independent smallholders/outgrowers?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports that it supports independent smallholders/outgrowers through sourcing of physical FFB, training, support and community development.

    • N
      0 / 1

      162. Percentage of independent smallholders/outgrowers involved in programme?

    • Y
      1 / 1

      163. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

      The company states that it risk-assesses all palm oil supplier mills using tools such as spatial data and remote sensing information in order to facilitate monitoring of the palm oil supply chain to establish priorities for conducting mill-level verification assessments.

    • P
      0.75 / 1

      164. Number or percentage of suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

      36

    • P
      0.5 / 1

      165. Suspension or exclusion criteria for suppliers?

      The company conducts appropriate due diligence on prospective suppliers to assess compliance with the policy and also identifies appropriate measures to be carried out prior to entering into any contract. If suppliers miss targets in time-bound plans then the company will cease to do business with them. However, the criteria for setting up time-bound plans and their associated cut off dates are unclear.

    • N
      0 / 1

      166. Time-bound action plans (including Key Performance Indicators) for suppliers to be in compliance with palm oil sourcing commitments?

    • N
      0 / 1

      167. Proportion of direct and indirect supply that comes from palm oil plantations which are compliant with palm oil sourcing policies?

    • P
      0.5 / 1

      168. Time-bound plan to engage with all high risk mills within 3 years?

      The company commits to pre-monitoring group-level risk assessment of third-party suppliers but no time-bound action plan could be found.

    • Y
      1 / 1

      169. Programme to support high risk mills to become compliant with sourcing policies?

      The company reports that it works with Earthworm Foundation to engage, assess and support its supply chain towards meeting the company's sustainability commitments. Also, the company collaborates with Aidenvironment to establish a land-use change, deforestation, and peat clearance monitoring programme to ensure compliance of third party suppliers to the company;s No Deforestation, No Planting on Peat and No Exploitation (NDPE) commitments.

    • P
      0.5 / 1

      170. Regularly engages with a subset of high risk mills?

      The company monitors and engages with suppliers to ensure a more transparent and sustainable supply chain through the three-step palm oil verification approach but it is unclear how often this is carried out.

    • Y
      1 / 1

      171. Procedures in place to assess all own and third party supplying palm oil mills for risk level?

    • P
      0.5 / 1

      172. Regularly assesses and categorises the risk level of all their own and third party supplying mills?

      The company reports that the mills are assessed every two years, for full points assessments need to be annual.

    • P
      0.5 / 1

      173. Regularly reports the risk level of all own and third party supplying mills identified in its supply chain?

      The company reports that "As of June 2020, we have identified 13% high priority, 72% medium priority and 15% low priority suppliers within our supply chain".

  • Governance and grievances Governance and grievances
    6 / 7 85.7%
    • Organisation: 0 / 0 0%
    • Policy: 4 / 5 80%
    • Practice: 2 / 2 100%
    • Self-reported: 1 / 2 50%
    • External: 1 / 2 50%
    • Certified: 0 / 2 0%
    • Y
      1 / 1

      174. Commitment to ethical conduct and prohibition of corruption?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company reports that it acts with due care before engaging with a business partner and ensures that business partners and subsidiaries know and respect the company's Business Ethics, Compliance, Anti-Corruption and Anti-Money Laundering Policy.

    • Y
      1 / 1

      175. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

    • Y
      1 / 1

      176. Progress on commitment to ethical conduct and prohibition of corruption?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • N
      0 / 1

      177. Disclosure of the company's management approach to tax and payments to governments?

    • Y
      1 / 1

      178. Whistleblowing procedure?

      The RSPO Principles and Criteria 2018 contain guidance and requirements on whistleblowing procedures. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years. The company has a whistleblowing policy which states the scope of the policy and ensures the protection to whistleblower.

    • Y
      1 / 1

      179. Own grievance or complaints system open to all stakeholders?

      The company adheres to this criteria through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank (>75%) and a further commitment to be 100% certified within five years.

    • Y
      1 / 1

      180. Details of complaints and grievances disclosed?

Media monitor: IOI Corporation Bhd

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

Palm oil media reports (93) Last media reports:
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19

8

11

63

14

4

41

16

17

13


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