Eng - IOI Group

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWCORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT cont’dReport On Current Key Initiatives cont’dAt the Oleochemical plant in Penang, Malaysia, the waste water treatment plants were upgraded during the year to ensure dischargeare well below stipulated limits. Conversion to yeast technology instead of the conventional primary chemical treatment process alsomeans there is no chemical schedule waste generation whilst the sludge from this plant is fully bio-degradable and can be re-cycledas organic fertilser.Also, an on-going energy saving project to improve efficiency of the electrical motors used in the production facilities are yielding anaverage of 10-14% savings to-date.Some of these initiatives have contributed towards IOI Oleo winning 4 silver awards in the CICM (Chemical Industries Council ofMalaysia) Responsible Care Awards 2006 in the category of distribution, pollution preventions, process safety and employee health& safety.Despite some of these successes, we recognise that there still remain facilities in some operating units, especially the newly acquiredones, that need to be upgraded and which is being attended to.IOI’s focus on sustainable improvement does not only include the environment. It also includes considerable efforts toward improvingthe lives of those that work in and around our 80 estates. One example of our efforts in the area of education was highlighted recentlyby Borneo Child Aid Society (Humana). Humana is a non governmental organisation that is focused on providing education in Borneoto the children of visiting workers on plantations. Humana has thus far developed 60 schools to provide primary education to children.IOI was acknowledged as the leader in the success of this program having supported the development of 20 of the education centersin and around our estates. We are very proud of this important contribution to development of our future generation.We have always regard education as a key to a successful future and hence focus on trying to make a difference here. We encouragelearning among children and young people by offering incentives for academic achievement as well as scholarships for highereducation. Special IOI training events that we hold for local smallholders encourage them to share experiences of good agriculturalpractices that can end up benefiting the entire community. By improving the structural, educational and spiritual circumstances of thelocal people, we help to ensure that our business enhances the quality of their daily lives and future prospects as well as their income.We continue to look for new and effective ways in which to improve the sustainable performance of our business. Social andenvironmental responsibility are very important, but they must go hand in hand with the efficient and successful production of palmoil to make for profitable, sustainable business.IOI Corporation BerhadANNUAL REPORT 2007 42