News

IOI comments on RSPO suspension

7 Apr 2016

IOI has issued a statement following its recent suspension by the Roundtable on Sustainable Palm Oil (RSPO) of its certification, for non-compliance with certain RSPO Principles and Criteria.

IOI has issued a statement following its recent suspension by the Roundtable on Sustainable Palm Oil (RSPO) of its certification, for non-compliance with certain RSPO Principles and Criteria.

The company said it is a very serious matter and has given rise to new challenges, and that it wished to assure all its stakeholders that, after the complaint was made to the RSPO a year ago, it has taken corrective actions to review and enhance its sustainability practices. These include rehabilitating affected areas, improving its firefighting capabilities and engaging consultants to advise on all relevant Indonesian laws and regulations which are the subject matters of the complaint.

Its recent actions, the company said, include::

1. 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, who reports directly to the Group CEO. This will ensure that the operations personnel strictly adhere to all Sustainability policies, practices and commitments of the Group;

2. Setting aside equivalent lands within its development areas for conservation as a compensation measure for the affected HCV area;

3. It is a joint funder of the two-year High Carbon Stock Study, together with several large plantation companies and multinational corporations, which has resulted in a science-based HCS+ methodology. IOI is committed to conduct field trials and testing of the HCS+ in its new planting developments;

4. IOI is in the process of identifying and appointing an internationally reputable organisation as its implementation partner and sustainability consultant particularly for matters related to new developments.

Pursuant to the letter from RSPO dated 14 March 2016, IOI has submitted a comprehensive action plan in the prescribed format on 23 March 2016. The company said it will actively work with the complainant to jointly verify the issues and to engage another licensed HCV assessor from the HCV Resource Network to conduct an additional peer review of its HCV assessments report.

IOI notes that, as one of the founding members of RSPO, it has participated in the drafting of the RSPO Principles and Criteria and is fully committed to upholding all the RSPO Certifications and Processes. It says it places great emphasis and value on the importance of sustainability in its business practices. In fact, IOI said, it is also one of the company’s corporate core values which is embedded in its Vision IOI as expounded by the company’s founder and early pioneers of

the company more than twenty years ago.