Eng - IOI Group

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWCORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT cont’dReport On Current Key InitiativesIOI’s focus on operational excellence also applies to our vision for environmental and social responsibility as well as our commitment tothe development of programs leading to the production of sustainable palm oil.Our belief is that the most efficient business model can also be a very effective environmental model. Maximising outputs from ourplantations and factories while minimising the inputs required means that we are working with a model that is good for business andgood for the environment.When compared to other major vegetable oil crops, oil palm is recognised as the most productive crop in yield per hectare in the world.Through an efficient and effective plantation management program IOI’s yields per hectare of palm oil are more than 50% greater thanthe average yields for palm oil among all producers!This efficient use of land translates into lower fertiliser, pesticide and energy usage which in turn delivers significant benefits to theenvironment. It also means that there is a dramatically reduced demand for the land required to produce the volumes necessaryto satisfy the markets. This reduces the pressure on a precious resource, the beautiful rainforests. To put this efficiency into moredescriptive terms, IOI’s yield performance vs. the average yield for a Malaysian plantation has resulted in a reduced demand for landby an astonishing 70,000 hectares. This is a land mass area equivalent to the Republic of Singapore.Global Vegetable Oil YieldsSoybeanSunflowerRapeseedOil PalmIOI Oil Palm0 1 2 3 4 5 6MT per HectareIOI Corporation BerhadANNUAL REPORT 2007 38