IOI Corporation Bhd

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

The company states its Sustainable Palm Oil Policy applies "to all IOI operations worldwide, including our subsidiary companies, joint ventures and companies in which we have management control".

2. Policy or commitment applies to direct and third-party suppliers?

The company states "Any existing or potential supplier to the IOI Group, both direct and indirect through a trading partner, is required to comply with the IOI Sustainable Palm Oil Policy" including third party suppliers.

3. High-level position of responsibility for sustainability?

Head of Sustainability.

4. Sustainability report published within last two years?

No sustainability report, but Annual Report includes sections on sustainability, plus updates on Sustainability Implementation Plan.

5. Member of industry schemes or other external initiatives to improve palm oil sustainability or transparency?

Member of Fire Free Alliance.

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

This indicator is disabled as it is not applicable to this company.

7. Activities with government and/or NGOs to improve palm oil sustainability?

IOI engaged with NGOs after complaint by Aidenvironment to RSPO and subsequent suspension of RSPO certification.

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

238881

9. Total oil palm planted area (ha)?

217918

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

4459

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

8836

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

7668.07

13. Area for infrastructure (ha)?

28189 - The company states this area is for "Labour lines, building sites and others", but unclear exactly what this includes.

14. Number of company owned mills?

15

15. Maps or coordinates of company owned mills?

Concession boundaries have been made available to the RSPO and the company declares these represent 100% of their concession sites, but not all may not be publicly available due to ongoing legal issues.

16. Number and names of supplier mills?

1429

17. Maps of estates/management units?

Concession boundaries have been made available to the RSPO, but not all are publicly available due to ongoing legal issues. The company provides a map of estates with point locations, but the boundaries of concessions are not publicly available (need to register to download).

18. Maps of scheme/plasma smallholders?

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

2018 - Commit to all volumes of palm oil and palm oil fractions will be 100% traceable to mills by the end of 2016 while palm kernel oil volumes will be traceable to crushers by end 2016 and to the mills by end 2018.

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

2020

21. Percentage of supply traceable to mill level (is 100%)?

99% for palm oil and 96% for palm kernel oil.

22. Percentage of fresh fruit bunches (FFB) from own mills traceable to plantation level (is above 75%)?

25% for palm oil and 21% for palm kernel oil.

23. Percentage of fresh fruit bunches (FFB) from supplier mills traceable to plantation level (is above 75%)?

24. Commitment to address deforestation?

25. Commitment to zero deforestation?

26. Deforestation commitment applies to scheme smallholders and independent suppliers?

Commitment applies to suppliers and third party suppliers.

27. Criteria for defining deforestation?

No deforestation of HCV or HCS areas.

28. Evidence of monitoring deforestation?

29. Commitment to set aside areas for conservation?

30. Evidence of habitat management and/or habitat restoration?

IOI has engaged the Global Environment Centre on peat restoration and protection measures in peat and HCV areas.

31. A landscape-level approach?

32. Commitment to biodiversity conservation?

33. Commitment to not endanger species of conservation concern, referencing international or national system of species classification?

The company states it strives to "conserve flora and fauna species in buffer zones and steep areas unsuitable for planting", but does not have a clear commitment to not endanger species.

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

35. Commitment not to operate within internationally and nationally designated protected areas?

36. Evidence of species conservation activities?

The company reports it has carried out activities like establishing a deer farm, a sanctuary for proboscis monkeys and conducting biodiversity studies in its plantations. However, only the sanctuary is considered evidence of species conservation.

37. Commitment to High Conservation Value (HCV) approach?

38. HCV commitment applies to scheme smallholders and independent suppliers?

Commitment applies to suppliers and third party suppliers.

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

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

There is public availability of one HCV asssement.

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

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

43. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2016 by the HCV ALS Quality Panel?

44. Commitment to the High Carbon Stock (HCS) approach?

45. High Carbon Stock (HCS) assessments?

One HCS assessment pending submission.

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

47. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?

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

49. Peat commitment applies to scheme smallholders and independent suppliers?

Commitment applies to suppliers and third party suppliers.

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

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

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

53. Commitment to zero burning?

54. Zero burning commitment applies to scheme smallholders and independent suppliers?

Commitment applies to suppliers and third party suppliers.

55. Evidence of management and monitoring fires?

Awareness raising programmes, developed enhanced fire prevention and mitigation programmes within and around concessions, MoU with conservation organization to work on fire prevention action plan, maintaining optimum level of water to counter risk of fire.

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

Company publishes bi-weekly alert bulletins containing information on fires within concessions and is a member of the Fire Free Alliance.

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

Company publishes bi-weekly alert bulletins containing information on fires within surrounding landscape and is a member of the Fire Free Alliance.

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

The company only states it is committed to implement programs to progressively reduce GHG emissions, but no time-bound commitment.

59. GHG commitment applies to scheme smallholders and independent suppliers?

Commitment applies to suppliers and third party suppliers.

60. GHG emissions?

61. GHG emissions from land use change?

62. Methodology used to calculate GHG emissions?

RSPO Palm GHG Calculator and ISCC GHG Emission Calculation Methodology.

63. Progress towards commitment to reduce GHG emissions?

64. Percentage of mills with methane capture (is above 75%)?

2 (13.3333%) - Two biogas plants.

65. Commitment to manage water use and water quality?

The company only states some information relating to its water management, including its priority to minimise water contamination.

66. Time-bound commitments to improve water use and water quality?

Target to reduce water usage by 5% by 2016, but no time-bound commitment relating to water quality.

67. Progress towards commitment on water use?

Reports figures on water consumption to process each MT of FFB, but has increased over time.

68. Progress towards commitment on water quality?

69. Protection of natural waterways through buffer zones?

70. Evidence of treating palm oil mill effluent (POME)?

All POME monitored and treated before discharging, using greentubes to remove solids from POME, thus reducing BOD.

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

The company only states "Best agronomic practices and efficient land utilisation led to higher productivity, hence reducing usage of chemical fertiliser and pesticide", but does not have a clear commitment.

72. No use of paraquat?

73. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

74. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

75. Integrated Pest Management (IPM) approach?

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

77. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human Rights?

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

79. Commitment to respect indigenous and local communities' rights, referencing the UN Declaration on the Rights of Indigenous Peoples or ILO 169?

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

Yes.

81. FPIC commitment applies to independent suppliers?

82. Free, prior and informed consent (FPIC) process?

83. Process for addressing land conflicts?

84. Commitment to ensure food security for local communities?

85. Commitment to respect all workers' rights?

86. Reference to Fundamental ILO Conventions or Free and Fair Labour Principles?

87. Total number of employees?

6615

88. Percentage or number of temporary employees?

89. Percentage or number of women employees?

2072 (31%)

90. Minimum wage that the company pays?

91. Commitment to address occupational health and safety?

92. Lost time accident rate?

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

94. Provision of personal protective equipment and pesticide training?

The company states that continuous training and awareness programmes are conducted for those dealing with hazards such as pesticides, but does not clearly refer to provision of personal protective equipment.

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

2004 - IOI Corporation has been an RSPO member since 2004.

IOI Group's RSPO certificates were suspended on 4th April 2016, but not its membership. As of 8th August 2016 the company's RSPO certificates were reinstated.

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

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

IOI states the following countries and regions in which the company operates: Indonesia (Kalimantan Barat); Malaysia (Johor; Malacca; Negeri Sembilan; Pahang; Sabah; Sarawak).

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

2020 - A target for 100% RSPO certification of estates was extended from 2013 to 2017 in the 2013-2014 ACOP, and then to 2018 in the 2014 ACOP. This was to take into account the acquisition of 2 new mills at the end of 2013. In the 2015 and 2016 ACOP this target had been extended to 2020.

99. Time-bound plan for achieving 100% RSPO certification of scheme/associated smallholders within 5 years or achieved 100% RSPO-certification of scheme/associated smallholders?

2022 - IOI has a time-bound plan to complete certification of its scheme/associated smallholders by 2022, that was extended from 2017.

100. Time-bound plan for achieving 100% RSPO certification of all supply chains?

2018

101. 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

102. Percentage of mills RSPO-certified (is above 75%)?

12 (80%)

103. Percentage of area (ha) RSPO-certified (is above 75%)?

142410 (60%)

104. Percentage of scheme/associated smallholders (ha) RSPO-certified (is above 75%)?

105. Percentage of FFB supply (tonnes) from independent FFB suppliers that is RSPO-certified (is above 75%)?

106. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that are RSPO-certified (is above 75%)?

569541 (20%) - Total volume handled/processed/traded in year RSPO certified divided by total volume of all palm oil and oil palm products handled/traded/processed in the year.

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

Book & Claim, Mass Balance, Segregated, Identity Preserved.

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

109. Malaysia Sustainable Palm Oil (MSPO) certified (100%)?

110. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAN, RSB, etc.)?

ISCC.

111. Programme to support scheme smallholders?

Only state that "support the inclusion of smallholders in the palm oil supply chain and help them to comply with our sustainability policy".

112. Details of support programme for scheme smallholders?

113. Number or percentage of scheme smallholders involved in programme?

114. Programme to support independent smallholders?

115. Details of support programme for independent smallholders?

The company states "The management support the independent smallholder with sharing knowledge and result on soil fertility for fertilizer input, best practices knowledge on oil palm daily operations, awareness on usage of Protective Protection Equipment (PPE) and sharing information on the new technology that can be use in the daily operations for field management efficiency.".

116. Number or percentage of independent smallholders involved in programme?

117. 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 assess all palm oil supplier mills using tools such as the 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.

118. Suspension or exclusion criteria for suppliers?

The company states that requires compliance within 12 months and "Where groups are suspected of serious or ongoing environmental, social and labour violations, IOI Group shall consider suspending purchases from the group until investigations are concluded and any policy violations resolved.".

119. Number or percentage of suppliers assessed and/or engaged?

The company lists the number of mill assessed, number of high priority mills, number on mills with on-site verification completed and number of mills with time bound action plans in place.

120. Commitment to ethical conduct and prohibition of corruption?

121. Whistleblowing procedure?

122. Own grievance or complaints system?

123. Grievance system accessible to internal stakeholders (i.e. employees)?

124. Grievance system accessible to external stakeholders?

125. Details of grievances disclosed?

The company has a list of grievances ongoing, closed and being monitored. The list include grievances number, date, category, scope, grievance raiser, and status.