Eng - IOI Group

Management’s Discussion and Analysis cont’dGROUP BUSINESS REVIEWCORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT cont’dReport On Current Key Initiatives cont’dIOI’s commitment to sustainable development is also reflected in our work with the Roundtable on Sustainable Palm Oil (RSPO). TheRSPO is a coalition of industry, non governmental organisations, financial institutions, retailers and consumer product companiesthat have come together during the organisation’s short 4 year history to develop a structured way forward for the production anduse of sustainable palm oil. IOI is a founding member of the RSPO and is an active contributor though our current position on theexecutive board. We are firmly committed to the success of this important organisation. The following are the RSPO Principles forsustainable palm oil development:Roundtable on Sustainable Palm Oil Principles1. Commitment to Transparency.2. Compliance with applicable laws and regulations.3. Commitment to long term economic and financial viability.4. Use of appropriate best practices by millers and growers.5. Environmental responsibility and conservation of natural resources and biodiversity.6. Responsible consideration of employees and individuals and communities affected by growers and mills.7. Responsible development of new plantings.8. Commitment to continuous improvement in key areas of activity.The RSPO is expected to implement its certification program beginning in 2008. The certification program is extremely rigorouswith 39 criteria supporting the 8 principles covering a wide range of environmental and social issues. Issues addressed includeinsuring the respect of workers and community rights, biodiversity, land development guidelines and sustainable economicdevelopment, just to name a few. This program requires the certification of every mill in a members operation. With 12 millsin operation this will be a significant effort for IOI. However, this is an initiative that we believe in and are committed to andwill pursue certification with all necessary effort. In fact, compliance to these RSPO principles have been highlighted in a newcompany policy for plantation practices at IOI.Looking towards the future, although we have significant accomplishments to date we also clearly recognise that we canalways do better. We will remain committed to continuously improving our performance with respect to environmental andsocial practices. This is in fact also a guiding principle of the RSPO. We will also continue with our very active and leadershiprole within the RSPO and as our business grows we will strive to employ these best practices in any new holdings. Our focuswill remain on leadership in the most efficient use of agricultural land and the careful use of other resources needed for asuccessful palm oil business. We also take our responsibility as an industry leader seriously and will encourage others in ourindustry to promote sustainable practices as a matter of course. Our belief is that a successful and sustainable economic futureis inseparably linked to sustainable practices in the production of palm oil.43ANNUAL REPORT 2007IOI Corporation Berhad