IOI palm CR_Book

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Te trail o embracingcorporate responsibility


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Message rom the IOI Group Executive Director 01

Creating a uture 02Te IOI Group enriching lives over the years

Setting the oundation 04Committing to corporate responsibility

Corporate Responsibility Policy Statement 06Standard o Conduct and EthicsTe EnvironmentCustomersEmployees

ShareholdersBusiness PartnersCommunity

Planting seeds o sustainability 07Converving Mother Nature

Maximum Yield or Maximum Sustainability 09Zero Burning Policy Waste Management and Resource Conservation 10

Land ManagementIntegrated Pest Management 11Roundtable on Sustainable Palm Oil (RSPO) 12

Cultivating environmental care 14Fostering roots o environmental protection

Wildlie Conservation 15Ecology and BiodiversitySustainable Living 16

Environmental Care Practices

Nurturing employee well-being 17Forging a land o respect

Unolding the alent o IOI 18Caring or the Family 19Advocating Health and Saety 20

Harvesting community growth 21ouching lives in communities

Broadening the Horizons o Education 22Young Achievers AwardsScholarship AwardsStudent Adoption Programme 23

School Adoption Programme 24SJK (C) Ladang Harcrot

Uniting the Community 25IOI Community RunRakan CopREACH OU 26

Uniting to ouch the Environment

Earth Hour

Partnering to Change LivesHUMANA Learning CentresLawas Project 27Supporting Smallholders

reasuring our corporate values 28Dedicating to an endless journey

racking our progress 29Share your opinion

Contents


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Te trail o embracing corporate responsibility | 2009 | Page 1

Welcome to the IOI Corporate Responsibility report. Tis booklet

provides an overview o our corporate responsibility initiatives rom

responsible business practices and workplace commitment to

environmental care and community concern.

IOI strives to achieve responsible commercial success whilst

balancing the interests o a diverse range o stakeholders. Armed with

this thought in mind, IOI is dedicated to integrating corporate

citizenship into our business operations. Tese include practising

strong leadership through corporate governance and ethical conduct;

adopting sensible and sustainable business practices or our

environment; conducting health and saety operations; respecting our

employees; and supporting the community. Tese have been our corepractices o doing business and we are constantly evolving according to

prevailing time and circumstances.

It is also our responsibility to create a corporate culture where teams o

talented employees can ully ourish. A corporate culture where they

eel inspired, energised and proud o every decision they make and

Message rom theIOI Group

Executive Director

every action they take. By creating an engaged workorce, we are

building a oundation o goodwill that extends to our customers,

suppliers, investors and communities.

Trough Yayasan an Sri Lee Shin Cheng, a non-prot organisationounded by the Chairman o IOI Group, we initiate various human

capital development programmes, community and philanthropic

eorts to enrich lives. We realise that our eorts alone are not sucient

so we are also partnering with other NGOs like HUMANA, World

Vision Malaysia, RSPO and WWF to urther advance the agenda o

human capital development and environmental preservation.

Above all, we know that maintaining our strong corporate cultureand core values will help ensure our continued commitment to the

communities in which we live and work as well as to the social interests

we have identied as important to our business and our stakeholders.

As we progress on our trail o embracing corporate responsibility, it is

our goal to continuously exert our best to advance towards the high

standards and ideals that we have set or ourselves.

Dato Lee Yeow Chor


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Te trail to embrace corporate responsibility | 2009 | Page 2

Creating

a utureTe IOI Group enriching lives over the years


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IOI Group is a leading global integrated palm oil producer with

operations stretching the entire palm value chain rom seed breeding

and planting to oil extraction, rening and downstream resource-based

manuacturing across major continents serving global markets in

more than 65 countries.

Te Group is also one o the leading property developers in Malaysia

with more than 26 years o experience in property development. Our

propertys businesses can be categorised into real estate development

and property investment holding branching out to leisure

and hospitality.

By having control over the global palm supply-chain, IOI is able to

guarantee the quality and traceability o its immediate products, as well

as optimise logistics and distribution eciencies.

IOIs integrated palm oil businesses are best illustrated in the ollowing

palm value chain diagram:

IOI Group employs more than 30,000 people o more than 25

dierent nationalities in 15 countries. Plantation lands over 250,000 hectares in Malaysia and Indonesia

Palm oil production 800,000 M per year

Milling capacity 4,100,000 M per year over 12 palm oil mills

Rening capacity 3.2 million M per year over 4 reneries

Oleochemicals production 750,000 M per year

Specialty Fats production 600,000 M per year

Seedling ProductionOil Palm

Plantations

Rened PO& PKOTissue Culture

Palm Oil Mills

Reneries OleochemicalPlants

Specialty Oils &Fats Plants

KernelCrushing Plants

CPO

PKPlant Breeding

Plantation

Properties

Resource-based manufacturing facilities

Resource-based manufacturing sales oces

North America

South America

Africa

Middle East

Europe

Asia PacicSingaporeIndonesia


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Setting the

oundationCommitting to corporate responsibility


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Te IOI Groups Corporate Responsibility (CR) principle is encoded

in our Vision IOI whereby the emphasis is on achieving commercial

success in a balanced, responsible manner by addressing the interests

o all stakeholders. Tis simple guiding principle ensures that CR, as

we see it, is part and parcel o how we do business as we continuously

implement programmes and practices that benet and meet the needs

o not only our customers, employees, investors and partners but o the

global community.

CSR is dened as open and

transparent business practices thatare based on ethical values and

respect or employees, communities,and the environment. It is designed

to deliver sustainable value tosociety at large, as well asto shareholders.

~ Te Prince of Wales,

in Business Leaders Forum 2003


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Corporate Responsibility Policy StatementIOIs CR policy is built upon the crux o itsVision Statementwhich

addresses the ollowing areas:

Standard o Conduct and Ethics

IOI is strongly committed to

conducting its businesses in

ways that are consistent with

international standards o

business conduct and

ethics. Specically, we conduct

our operations with honesty,integrity, duty o care, and

in compliance with laws and

regulations o the countries or

markets in which we operate.

We do this by adopting and

practising a set oCore

Values and by continuously

benchmarking our businesspractices against the best o

global practices.

Te Environment

IOI holds rmly to operating

its businesses in ways that meet

regulatory requirements on environmental impact in the countries

or markets in which we operate. We strive to achieve a sustainable

long-term balance between meeting our business goals and the

preservation o the environment. Specically, we adopt a group-wide

policy o greening the environment. In that regard, we also insist on

the same standard o environmental care rom our suppliers and

business partners.

Customers

IOI is strongly committed to delivering superior value in our products

and services to our customers. We achieve this through a culture o

innovation, quality, consistency and matching customers expectations

in our products and services. In the process, we apply rigorous

standards o control and product / process saety.

Employees

IOI is committed to providing rewarding careers to our people on the

basis o their aptitude, perormance, and qualication - irrespective o

race, gender, or nationality. Other key commitments to our employees

include providing sae and healthy working conditions devoid o orce

or child labour; preservation o dignity and reedom o association;

and maintaining open channels o communication.

Shareholders

IOI is committed to delivering value to shareholders through

sustained consistent growth in volume and economic protability

whilst practising internationally accepted principles o good

corporate governance.

Business Partners

IOI is committed to establishing mutually benecial relations and

growth with our suppliers, service providers, and business partners

(i.e. agents, distributors, venture and alliance partners). In return,

we expect our partners to adhere to business principles and conduct

consistent with ours.

Community

IOI strives to be a trusted and responsible corporate citizen through

participation and contribution to the community in which we operate.

Key areas o our ocus include education, assistance to the deprived,

racial / community integration, practical training, and other social and

welare programmes.


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Planting

seeds o

sustainabilityConserving Mother Nature


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Malaysia currently accounts or 41% o world palm oil production

and 53% o world export, and also or 11% and 27% o the worlds

total production and exports o oils and ats. Te Malaysian palm oil

now eed some 3 billion people in 150 countries. As one o the biggest

producers and exporters o palm oil and palm oil products in Malaysia,

IOI has an important role to play in ullling the growing global need

or oils and ats in general.

Te concern and regard or the environment is an integral part o

sustainable oil palm cultivation that IOI believes in and has been

practising or many years already.

We believe that an ecient and environmentally-riendly management

model is also an eective business model. Maximising outputs rom

our plantations and actories while minimising the inputs required

means that we are working with a model that is good or business and

good or the environment.

Te global warming phenomenon requires

immediate and substantive action rom

every citizen o the world. Our desire is to

tackle the problem o global warming in asmart way through ecient and optimum

utilization o available resources.

~ Dato Lee Yeow Chor,

Group Executive Director of

IOI Corporation Bhd

o sustain our growth in land productivity, our Research Centre

ocuses on continuously producing high yielding planting material

through plant breeding, biotechnological research and tissue culture.

We also ensure long-term sustainability through optimising the use o

renewable resources and environmental-riendly agricultural practices.

Some o the more signicant areas are highlighted below.

Only the best resh ruit bunches (FFB) are selected.

Breeding the best seeds at the tissue culture laboratory.


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IOI Palm Oil Estates are committed to produce in an environmentally sound

and sustainable manner, through continuous improvement in environmentalperormance in all our activities:

ACCORDINGLY, PALM OIL ESAES AIMS ARE OAssess the environmental impacts o all its business activities rom ProductDevelopment through production, distribution, use and disposal. In particular, wewill ensure current legislation and guidelines are taken into consideration beore anymajor change in processes or expansion o the plan.

Ensure the saety o our products and operations or the environment, usingstandards o environmental impact assessment and pollution prevention systems,which are scientically sound and generally acceptable within the present state o

knowledge. At the same time we shall also attempt to improve on current practice.

Develop innovative products and processes, which will reduce levels o environmen-tal impact, through waste minimization and resource conservation including energyand water use, and explore opportunities or reuse and recycling.

Develop and apply systems o environmental management, as part o day-to-dayoperational practice and on-going management reporting and control procedures.

Encourage our suppliers to develop environmentally superior processes andingredients and co-operate with other members o the supply chain to improve

overall environmental perormance.

Rerain rom destroying and shall undertake to preserve any primary rainorestwithin its control, in order not to put at risk areas o special scientic interest orhabitats important or endangered plant or animal species.

Work with industry bodies, government agencies, business partners and otherconcerned organizations, to promote environmental care, increase knowledge anddisseminate best practice.

Comply with all Government environmental legislation regarding permissible levelso emissions rom plant and machinery.

Remain alert and responsive to developing issues, knowledge and public concerns.

Ensure that all employees are aware o the Companys environmental policy andmotivated to apply it, are aware o their own responsibilities and are given thesupport and training necessary to ullll them.

Dato Foong Lai ChoongGroup Plantation Director

IOI CORPORAION BERHAD (ESAE)

ENVIRONMENAL POLICY


Maximum Yield or Maximum Sustainability

Trough an ecient and eective plantation management programme,

our palm oil yield per hectare which is more than 50% higher than the

industry average yields has resulted in a dramatic reduction in the land

required to produce the same amount o palm oil by an astonishing

70,000 hectares.

Tis ecient use o land translates into lower ertilizer, pesticide,

energy usage and ewer CO2 emissions which in turn deliver

signicant benets to the environment.

Zero Burning Policy

IOI practises the zero burning technique in all its plantations when

it comes to land clearing or new planting or replanting and waste

management. Tis technique, which is regulated under the

Environment Quality (Clean Air) Regulations 1978, is designed to

totally overcome the smoke pollution commonly associated with land

clearing via slash-and-burn and to return all organic matter to the soil.

Although this method is deemed comparatively costly, yet IOI Group

has voluntarily used it to minimise the impact o land clearing activities

on the environment.

Zero burning enhances soil organic matter and restores its ertility and richness.


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Waste Management and Resource Conservation

Over the years, our agro-management practices have evolved to

optimise the utilization, conservation and recycling o resources, in

particular soil, water and biomass. By-products rom palm oil mills

especially Empty Fruit Bunches (EFB) and palm oil mill efuent

(POME) are used where necessary as organic ertilizers to enhance

yields resulting in cost-eectiveness in our ertilizer practices.

Tis practice provides compost that enriches the soil naturally as well as

minimises the water and soil pollution. Mesocarp bre and palm kernel

shells are used as biouel or power generation in palm oil mills while

EFB bre is used as biouel or steam generation in our renery. Nearly

98% o our uel consumption or steam generation at our mills now

comes rom these renewable resources.

IOI is currently piloting a method or reducing greenhouse gases

(GHG) released rom palm oil mill efuent ponds. Tis method, i

proven to be unctionally and commercially practical, will have a

substantial impact on the reduction o GHG emissions or the palm

oil mills.

Bualoes are also used wherever practical instead o uel-powered

vehicles to transport resh ruit bunches rom inelds. By using as

little ossil uel as possible, we actively reduce the amount o

undesirable emissions, greenhouse gases and pollution that we

produce. Furthermore, this approach also causes less soil erosion

than working with machines.

Land Management

Soil is a living environment that can be depleted or damaged by

cultivation. erracing is carried out in undulating or hilly areas to

conserve soil, water and nutrients eectively.

Te Bualo-Assisted Harvesting (BAH) method is employed to reduce energy consumption.

erracing conserves soil, water and nutrients eectively.

EFB mulching in the inner circle o replants provides palms with initial nutrients.


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Biological control is integrated into pest management practices to

minimise usage o pesticides. Benecial plants (e.g. Casensia cobanensis

and unera spp.) are planted to attract natural predators or biological

control o bagworms and other lea-eating caterpillars which are major

insect pests in oil palm plantations.

Barn owl boxes are erected in the estates to increase the owl

population or biological control o rats which can cause signicant

yield reduction. Eective pest control measures make it possible to

reduce the amount o chemicals required to control pests.

Legume cover crops (LCC) are established immediately ater planting

as they oer excellent soil coverage compared to natural ground covers.

Tese plants are also useul in minimising soil erosion, conserving soil

moisture and improving soil ertility.

o urther enhance our soil conservation measures, we do not cultivate

oil palm:On moderate to deep peat and riverine reserves.

On hill slopes exceeding 30 degrees.

In primary or designated orest reserve.

Integrated Pest Management

o ensure ecient, successul and sustainable cultivation, it is

absolutely necessary to control pests, rodents and plant disease.

Our primary means o doing so is by ollowing an Integrated PestManagement policy.


Legume cover crops provide excellent soil coverage. Tese benecial plants are a biological means to attract natural predators.

Barn owls are an environmentally-riendly and cost-eective way to control rats.


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Roundtable on Sustainable Palm Oil (RSPO)

IOI is a ounding member o the RSPO and plays an active role in

promoting sustainable practices. Te RSPO, a global multi-stakeholder

initiative on sustainable palm oil, is committed to promote growth

and use o sustainable palm oil though co-operation within the supply

chain and open dialogue with its stakeholders.

Te preparation and training or RSPO certication program has

already been carried out within most o our 80 IOI estates. Te Pamol

Estates grouping in Sabah has been awarded the RSPO Compliance

Certication or its sustainable palm oil production in early February

2009. With the encouragement rom its rst RSPO certication, IOI

is actively pursuing certication audits on its other estates and mills in

Malaysia with a view o obtaining RSPO certication or all its local

estates and mills by year 2011.


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Corporate Responsibility is

considered an important part o

the rich abric o activities that

constitutes the IOI Group. Perhaps

the most visible example o our

eorts can be exemplied through

our leadership role in the

Roundtable on Sustainable Palm

Oil. Tis initiative is ocused on

protecting and enhancing the

principles o people, planet and

prot or the benet o all. We are

proud to be one o the ounding

companies and also one o the

leaders in this initiative.

~ Mr. Donald C. Grubba,

Global Sustainability Director,

IOI Corporation Bhd


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Cultivating

environmentalcareFostering roots o environmental protection

T l b b l | | P 5


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Ecology and Biodiversity

In order to maintain the biological balance within the plantations,

all steep, unplanted tracts o land are purposely let in wildernesscondition to allow indigenous insects, plants and wildlie to continue

ourishing in and around the plantations. We also link riparian

reserves and other reserve areas within estates and surrounding

neighbourhoods to orm corridors and reuges or wildlie.


Wildlie Conservation

Care or the environment is a global concern and it is also certainly a

key concern or IOI. We believe that the sustainability o our businesses

is interdependent with the sustainability o the ecosystem surrounding

its operations. Some o the conservation projects undertaken include:

Deer arm at Nangoh Estate, Sabah

Sanctuary or proboscis monkey(Nasalis Larvatus) in Bayok Estate, Sabah

Bufalo arm in indakon Estate, Sabah

Inormation Centre and Masasau rail atNangoh Estate, Sabah

Agro-tourism acilities in Sagil Estate, Johor

Sanctuaries or orang utan in undeveloped zoneswith planting o jungle trees

IOIs sanctuary or proboscis monkeys provide a home or these endangered species. ourists are able to gain useul inormation at the Inormation Centre at Nangoh Estate.

Riparian reserves serve as a habitat or the wildlie.Te deer arm at Nangoh Estate is one o the tourists attraction.

T tr il mbr in rp r t r p n ibilit | 2009 | P 16


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Furthermore, biodiversity studies o ora and auna species are also

conducted in our plantations where 337 ora and 227 auna endemic

species are ound.

Sustainable Living

For property development, we abstain rom property development

that encroach orest or green-belt reserves, and those that involves

hill slopes with gradient greater than 25 degrees or those that post

environmental risks. We also comply strictly with the Environmental

Impact Assessment requirement and regulatory guidelines on saety

and environment.

IOI Properties also gives preerence to vendors whose products andmanuacturing processes are environmentally-riendly.

Environmental Care Practices

Our commitment towards a responsible organisation extends beyond

the requirements o statutory bodies. For example, IOI Oleochemical,

on voluntary basis, adopted the six Codes o Practices laid down by

the Chemical Industries Council o Malaysia (CICM) and received the

CICMs Responsible Care award in 2006.

Besides plantations, our downstream manuacturing units also adhere

strictly to various environmental management systems, or example

Loders Croklaan Wormerveer and Rotterdam acilities have been both

ISO 14001 certied while IOI Oleochemical Industries Berhad has

been ISO 14001 and OHSAS 18001 certied.

Strict adherence to quality standards will ensure IOI operates in asustainable manner.

Rotterdams close location to clients means palm oil is rened only once resulting in less energy, ewer

materials and less waste.

IOIs property development is geared or sustainable living.

Te state-o-the-art IOI Oleochemical plant in Penang is committed to energy and water conservation.



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Nurturing

employeewell-beingForging a land o respect



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IOI is crated to be the employer o choice due to our dedicated

commitment to make our employees our top priority. We strive to

make IOI a premier working place by ostering a healthy environment

or all and treating our employees with dignity and respect.

At IOI, there are ample rewarding careers to empower employees to

grow and advance, open channels o communications to encourage

trusted relationships to be built, benecial health and saety programs

designed or the welare o employees and corporate policies that

underscore our drive or continuous improvement.

We value and promote diversity as we believe it sparks innovation,

unique ideas and perspectives to the workplace. When employees

with diverse backgrounds rom dierent races, cultures, genders, ages,

work experiences and working strengths combine their viewpoints and

contributions, it oers the company solutions to the challenges that weace and encourage a healthy, learning environment or everyone.

Unolding the alent o IOIIOI invests in the development o our employees potentials through

collective eorts to regularly train and hone their talents and skills or

productive and innovative outputs.

Although diverse in race, gender or nationality, our employees are given

equal opportunities to tap into a broad spectrum o knowledge and

expertise to improve and enhance in order to soar to greater heights.

Constant trainings are held to equip employees with essential skills to

excel in the company. Leadership workshops are conducted to shape

employees to be leaders. Ultimately, employees are inspired to drive thecompany to greater success.

In addition, IOI has implemented various ongoing programmes that

emphasise on the human capital development o the organisation

and benet the sta o IOI such as management trainee programmes,

internships and scholarships or selected IOI sta.

Success is a great source o motivation or urther achievements. A workshop in session on strateg y ormulat ion and implementation o the best practices.

Loders Croklaans sta receiving a encing course to know people rom a completelydierent perspective.



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Caring or the FamilyTe well-being o IOIs employees is integral to the company and this

is reected in the integrity o IOI to embrace each employee into the

amily o IOI. At IOI, a sports and recreational club organises sports,

social and recreational activities such as amily outings, gatherings and

various events or the benet o IOI sta and their amily members.

In the estates, we invest in extensive amenities such as proper

housing, clinics, schools, nurseries, places o worship, community hall

and sundry shops to promote the welare o IOIs workers. Recreational

acilities such as basketball courts, swimming pool and ootball elds

are easily available or the workers during their ree time.

Leadership is communicating to people their worth andpotential so clearly that they come to see it in themselves.

~ Stephen R. Covey

g p p y | | g

Clean and comortable housing or workers.

School bus to bring children o estate workers to schools. Swimming pool in an estate clubhouse.



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Advocating Health and SaetySae and healthy working conditions are never compromised especially

in non-oce-based environment such as eld operation, processing

and manuacturing. IOI places substantial investments in occupational

saety and health management systems that meet world-class

accreditation levels such as OHSAS 18001 standards.

Continuous training and awareness programmes such as re training

and hazard guidance are conducted or those dealing with potential

hazards such as pesticides and machinery.

IOI also initiates ree medical treatment at clinics with x-ray

and ambulance acilities or IOIs estate workers and

neighbouring communities.

o maintain cleanliness and hygiene, a Visiting Medical Ocer

(VMO) visits the labour quarters twice a month whilst requent health

programmes and campaigns on pap smear, breast cancer and other

healthcare issues are organised or the workers and local communities.

A clinic with adequate acilities.

Free medical treatment or the estate workers and neighbouring communities.

Saety is a priority at all IOI estates.



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Harvesting

communitygrowthouching lives in communities



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At IOI, we place a very high value on education and human capital

development or the nation, especially our employees and their

children. Many o these social initiatives are undertaken through

Yayasan an Sri Lee Shin Cheng (Yayasan).

Yayasan an Sri Lee Shin Cheng is a charity arm o IOI Group

established in 1994 by an Sri Lee Shin Cheng, the ounder o IOI

Group, with the objectives o contributing towards education, welare

and advancement o the country.

Since its ormation, Yayasan has touched and impacted countless lives

with its passion to extend a hand to those in need o care, concern

and compassion.

Broadening the Horizons o EducationYoung Achievers AwardsYayasan introduced the Young Achievers Awards in 1999 with the

aim to invigorate and motivate young students to strive or excellence

in their studies. Cash awards are given out annually to reward bright

students rom primary to upper secondary levels who excel

academically and in their extra-curriculum activities.

Scholarship Awards

o motivate the pursuit o educational excellence, Yayasan continuallyinspires the youth to achieve their dreams. Yayasan grants scholarships

and bursaries to outstanding students pursuing their degree courses in

recognised local institutions o higher learning in disciplines related

to our businesses which includes agriculture, ood science,

oleochemical, biotechnology, chemical engineering, mechanical

engineering, civil engineering and accountancy.

Career opportunities within IOI Group are given to these studentsater they graduate rom their studies.

A-level Gold awards recipient, Sangeetha a/p Manoharan, sharing her secret o success withthe audience.

Recipients o the Young Achievers Awards 2009 with Dato Lawrence Chan, Dato Lee Yeow Chor,Dr. Chua Yee Yen and Yayasans committee members.



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Our past scholars are now in importantpositions in dierent organisations and

some have continued to enjoy successulcareers in IOI Group itsel.

~ Mr. Lee Yeow Seng,

Executive Director of

IOI Corporation Bhd

Student Adoption Programme

Yayasan believes that the education path o underprivileged children

should never be hindered. Te notable Student Adoption Programme

was launched in 2008 by YB Dr. Wee Ka Siong, Deputy Minister o

Education to ensure their education journey is well taken care o.

For a start, 262 students rom poor amilies and spread across 58

primary and 20 secondary schools in Peninsular Malaysia and Sabahhave been selected to receive RM800 and a school bag each year until

he or she completes primary or secondary education. About 2000

children rom HUMANA kindergartens in IOIs oil palm estates in

Sabah also beneted rom this programme.

Te ocial launch o the Yayasan SLSC Student Adoption Programme by YB Dr. Wee Ka Siong.

RM582,000 o scholarships were awarded to 17 students in 2007.

Te mock cheque presentation or Yayasan SLSC School Adoption Programme at SK Pamol Sabah.

251 adopted students also received school bags and stationery sets at Humana House 101,Ulu Estate.



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School Adoption Programme

In addition to promoting education through various programmes,

Yayasan also initiated the School Adoption Programme to create a

conducive learning environment or students.

6 primary and secondary schools in or near IOIs oil palm estates in

Sabah have been adopted where nancial support was given to improve

their acilities. New classrooms were built. New halls were constructed.

I acilities were provided. Libraries were set up to instill the love o

reading. Parameter encings were erected.

SJK (C) Ladang Harcrot

IOI Group marked a momentous milestone with the ull unding andbuilding o SJK (C) Ladang Harcrot, a new Chinese-medium primary

school in Bandar Puchong Jaya at a cost o RM7 million.

On 30 November 2007, the school was ocially handed over to the

Minister o Education during a prestigious ocial opening by YAB

Dato Seri Abdullah Badawi, then Prime Minister o Malaysia.

Situated on the top o a hill over 5 acres o land with breathtakingviews o the Puchong township, the school has two 4-storey blocks

comprising 30 classrooms, a canteen and acilities such as basketball

court, open eld, assembly area and security guard house.

Trough its many years, IOI has

committed to the principle o by the

community, or the community andthrough Yayasan an Sri Lee Shin

Cheng, nancial assistance has been

allotted to oster, develop and improve

education in all areas as well as

charitable causes to the needy and

unortunate people such as the Orphan

Houses and the Silver Citizen Houses.

Actions do speak louder than words.With the establishment o Yayasan an

Sri Lee Shin Cheng, IOI is operating

its business in a manner that meets and

exceeds the ethical, legal, commercial

and public expectations that our society

has o other businesses o this nature.

~ Dr. Chua Yee Yen,

Executive Director,

Yayasan an Sri Lee Shin Cheng

an Sri Lee Shin Cheng sharing a light moment with then Prime Minister and cabinet ministersin ront o SJK (C) Ladang Harcrots scale model.



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Uniting the communityIOI Community Run

IOI emphasises on nurturing and building the ties o the

community by holding community events to draw people o all races

and ages together.

Te biennial IOI Community Run was launched in 2005 to promote

healthy activities and cultivate the spirit o neighbourliness in the

Puchong area and nearby communities. Te inaugural community run

attracted over 2300 participants and during the 2008 run, more than

4000 people rom all walks o lie participated.

IOI Community Run has become asignature and highly anticipated eventin Puchong district. Te main objectiveo the run is to unite the community byostering a closer relationship among the

local residents.~ Dato Lee Yeow Chor,

Group Executive Director of

IOI Corporation Bhd

o make the event even more meaningul, IOI Properties took the

opportunity to donate unds to various charitable organisations such

as Shuang Fu Disabled Living Association, orphanage homes such as

Rumah Shalom and a ew schools in Puchong.

Rakan Cop

o ensure the Puchong residents live in a sae and sound township,

IOI Properties collaborated with the police to launch the Rakan Cop

(Friends o the Police) programme on 10 March 2007 as a vehicle to

heighten public awareness on saety and security measures.

Under this programme, saety measures were undertaken such as

sponsoring Rakan Cop inormation boards at various strategiclocations in Puchong; disseminating leaets, posters, car stickers to

the public; posting inormation on anti-criminal and crime prevention

on IOIs community website; encouraging the public to act as police

look-outs and providing inormation on crime to the Police Command

Central Centre via its hotline, sms or mms.

In addition, IOI Properties ully unded the construction o a police

station with hostels and sponsored 10 police patrol cars or itsPuchong Jaya township.

Dato David and VIPs at the launch o Rakan Cop.Enthusiastic runners at the fag-o o the IOI Community Run.



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REACH OU

Another community project initiated by IOI Properties to reach out to

the Puchong community is the publication and ree distribution o the

quarterly REACH OU magazine eaturing news and stories to keep

readers updated with whats happening in and around Puchong.

IOIs community website, www.myioi.com is an additional useul

tool implemented to convey vital communication to the Puchong

community.

Uniting to ouch the EnvironmentEarth Hour

IOI Group united to support Earth Hour 2009, a green missioninitiated by WWF, by making it our responsibility to ick the switch

or an hour rom 8:30pm to 9:30pm on 28 March 2009.

Te green initiative included IOIs leisure and hospitality hotels

and malls Putrajaya Marriott Hotel and Palm Garden Hotel,

IOI Mall Puchong, Puteri Mart, IOI Mall Kulai, IOI Mart Kulai;

IOI Properties in Puchong and Johor Bahru as well as the reneries and

plants Loders Croklaan (Asia, the Netherlands, North America andCanada), IOI Oleochemicals Penang, IOI Edible Oils Sabah,

Pan Century (Oleochemical and Edible Oils) which all pledged to

unite with the world to join the green movement and slowly learn to

adopt the habits o sustainable living in our daily lives.

Partnering to Change LivesHUMANA Learning Centres

One o IOIs goals in education is to provide a learning opportunity

to everyone. Hence a partnership is ormed with Borneo Child Aid

Society, Sabah (HUMANA) to care or the children o oreign

plantation workers who are unable to enrol into national schools

in Malaysia.

IOI also sponsored computers, projectors and sound system or some

selected learning centres. oday, IOI is the main contributor which

sponsors over 20 o these learning centres in Sabah that benet more

than 2000 children.

Presenting a souvenir or the Best Energy Saving Idea initiated during Earth Hour.

Children at the IOI Pamol Humana Centre.

Ulu Estate Manager presenting school bag and stationery to one o the Humana students.



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Lawas Project

Sharing the vision to reach out to the native groups, Yayasan partnered

with World Vision Malaysia in 2007 and embarked on an educational

development programme in Sarawak named the Lawas Project.

Yayasan is unding the Lawas Project or the curriculum inrastructure

development o the ethnic Lumbawang community in Sarawak to

realise the short-term vision o raising competent native-speaking

teachers and the long-term vision o building a training and research

centre or ethnic pre-school training in Sarawak.

Supporting Smallholders

IOI is partnering with J. Sainsbury, the third largest supermarket

chain in United Kingdom, to conduct a 3-year smallholder supportproject with Dutch NGO Solidaridad to assist the Malaysian small

holders in achieving RSPO certication while improving their yield

perormance and income level. Tis project is initiated by the Dutch

Government and will be unded by the inparticipating organisations.

IOI is presently our biggest

partner in providing education to

the plantation children. With therst plantation learning centre

starting more than 10 years ago,

IOI has gone ahead to be a good

example or other companies,

being one o the rst companies

to take up the social responsibility

towards the plantation children.We highly appreciate the

positive cooperation and lasting

commitment rom both company

and local management in the IOIplantations or the benet o

the children. ~ Mr. orben Venning,

Project Director of

Borneo Child Aid Society (HUMANA)

Te Learning Centre provides the native children rom Sarawak with their rst exposure tobasic education.




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reasuring our

corporate valuesDedicating to an endless journey

Te issues we are addressing rom ethical business conducts and sustainable business practices toworkplace policies and human capital development, rom environmental care to community service

are not a choice between business strategy and citizenship strategy. Tey are both.

Our trail to embrace corporate responsibility is only the beginning o a journey that entails an endless

route towards excelling in our business whilst protecting the environment and caring or society.It may be a challenge to balance our values but we are dedicated to our corporate responsibility.

As we stay true to our corporate values, it is also our goal to explore and practise new environmental

measures that benet the earth, deliver innovative and cost-ecient solutions that meet customers

aspirations, and contribute to the improvement o our society.


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Please let us know your views on this report or any issue it raises by

emailing [email protected] listing CR in the

subject matter.

Our Corporate Responsibility Logo

Eyeing Our CR Journey

Te swirling arrows embody our endless trail o giving back to

the world what we have received - this is the window to our soul.

As a catalyst or progress in an evolving world, IOI is embarking on

a corporate responsibility journey with our eyes on the lives o

tomorrow and the world we live in.

racking

our progressShare your opinion


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IOI Corporation Berhad (9027-W)

Level 10, wo IOI Square, IOI Resort,

62502 Putrajaya, Malaysia.

: 03-8947 8888 F: 03-8947 8918

W: www.ioigroup.com

Documents

IOI palm CR_Book