Sustainability Report 2024

Inside This

REPORT

About This Report

Management Key Messages

Decarbonisation Pathway towards Net Zero by 2040

• Nature-basedSolution
• Engineered Solution
• Supply Chain Management

About This

REPORT

The Focus of This Report

In this year's report, the theme "Enhancing Biodiversity, Transitioning Together" further reaffirms IOI Corporation Berhad's ("IOI" or "The Group") belief that our Climate Change Action initiative ("CCAi"), from the clear mapping of our decarbonisation pathway to Net Zero by 2040, is firmly intertwined with the protection of biological diversity and their corresponding ecosystems. We also embrace the concept of circularity to help manage our natural resources and promote biodiversity within our operations. We are also aware that the success of these endeavours requires fostering an inclusive approach which meant the consultation and involvement

elements from the International Financial Reporting Standard ("IFRS") S1 and S2, Corporate Sustainability Reporting Directive ("CSRD") as well as European Sustainability Reporting Standards ("ESRS").

The information and figures in this report are based on the most up-to-date data available for the reporting period. The data may differ from other reports, such as the RSPO Annual Communication of Progress ("ACOP"), due to varying reporting periods (e.g. the annual assessment period from January 2023 to December 2023). Where applicable, data and information have been included in this report. In some

of all relevant stakeholders. This report will further detail our purpose and activity driven efforts in mitigating climate and ecological impacts through various sustainability activities while simultaneously transitioning to a low-carbon economy to benefit our employees, stakeholders, and local communities in equitable manner. As in the past 3 years, IOI continues to align with the recommendations of the Task Force on Climate-Related Financial Disclosure ("TCFD") by consistently monitoring and disclosing our climate-related risks and opportunities. Our sustainability commitments and performances disclosed in this report are also in alignment with IOI's Five-Year Strategic Priorities. Details on our progress in safeguarding the well-being of our workforce and the welfare of the surrounding communities and our commitment to upholding human rights will be disclosed in this report. All these topics disclosed throughout this report reflect our commitments toward Economic/Environmental, Social, and Governance ("EESG"). We measure, as well, our performance against the set targets and goals of the six United Nations Sustainable Development Goals ("UN SDG")s deemed most relevant and impactful to our operations.

Reporting Period and Scope

IOI's Sustainability Report was prepared based on national and global standards. The content of this report consists of IOI Group's sustainability management approach and performance data, reflecting to a certain extent the impacts where relevant, together with the risks and opportunities of our EESG material matters for the reporting period from 1 July 2023 to 30 June 2024 which is IOI's 2024 financial year ("FY2024"). IOI's Sustainability Report 2024 ("SR2024") is published together with Annual Report 2024 ("AR2024") as part of IOI's Annual Integrated Reporting. During this reporting period, there are no changes to IOI's size or supply chain, and any changes involving the structure and ownership can be found in AR2024.

This report was prepared in accordance with the Global Reporting Initiatives Sustainability Reporting Standards ("GRI") 2021 and GRI 13: Agriculture Aquaculture and Fishing Sectors 2022. This report has also been prepared with reference to the Bursa Malaysia Sustainability Reporting Guide (3rd Edition), which sets out the sustainability-related disclosure obligations prescribed in the Main Market Listing Requirements of Bursa Malaysia Berhad and reporting framework recommendations. This report also adopts the content elements of the International Integrated Reporting Framework. IOI continues to report our climate-related disclosures in line with the TCFD recommendations. This year's report is also in reference to the Accountability Framework Initiatives ("AFI"). Additionally, we are in preparation to report following the recommendation

cases, figures from previous years' Sustainability Reports have been restated to reflect improvements in our data collection and analysis.

The scope of this report covers entities included in our consolidated financial statements. These entities are our headquarters in Putrajaya, Malaysia, and core businesses, including IOI Plantation (estates and mills) and Resource-Based Manufacturing refineries ("IOI Refinery"), IOI Oleochemical Industries Berhad ("IOI Oleo") operation activities in Malaysia, Indonesia, and Germany and palm wood factory, IOI Palm Wood. This report excludes IOI Group Sales Offices, and the Group's 20% owned associate company, Bunge Loders Croklaan (formerly known as IOI Loders Croklaan).

This report is intended to be read together with our AR2024. Throughout this report, there are sustainability-related disclosures that are also or would be referred to in our website.

Assurance and Forward-looking Statement

This report has been reviewed by our Chief Sustainability Officer ("CSO"), approved by the Group Managing Director ("GMD") and Chief Executive, and presented to the IOI Board Sustainability Committee ("BSC"). In further strengthening the credibility of the Sustainability Statement, this Sustainability Statement has been subjected to review by the Internal Audit to obtain a reasonable assurance of the data presented in the Sustainability Statement. The scope of review includes review of the processes and internal controls for collating and reporting of the various environmental and social indicators and that the data is consistent with the underlying records. It covers various business divisions and operating units of the Group.

In connection with the audit of the financial statements of IOI Group contained in the financial section of IOI Corporation Berhad's AR2024, BDO PLT, the external auditors, have read the other information in accordance with ISA 720 (revised) The Auditor's Responsibilities Relating to Other Information.

While we plan to engage a third-party assurance in the next two years for the information in this report, we believe that our multiple certification audits including but not limited to Roundtable on Sustainable Palm Oil ("RSPO"), Malaysian Sustainable Palm Oil ("MSPO"), and ISO-related assurance audits such as ISO14064-1 and ISO45001, have lent credibility to the performance data we present to our stakeholders. We are committed to continually enhancing our reporting disclosures to ensure transparency in our operations. We aim to broaden the scope of our assurance processes by potentially engaging external verification, in line with our dedication to building trust by being transparent.

2 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

Message from Our

Group Managing Director and Chief Executive

Dear Stakeholders,

Management Key Messages 3

As at end June 2024, global temperatures during the past few months have risen above last year's readings and year 2024 promises to outrank 2023 as the hottest year on record. In fact, climate change has resulted in this year's average global temperature exceeding the 1.5 deg. C limit outlined in the Paris Agreement on climate change. As a responsible and sustainable corporation, IOI aspires to do our part in combating climate change by addressing various societal and environmental issues, and have taken up the challenge of achieving net zero by the year 2040.

DATO' LEE YEOW CHOR

Group Managing Director and Chief Executive

Solar panels installed on the rooftops @ IOI Oleo Prai

Understanding the amount of ESG data that needs to be recorded and analysed to appropriately understand their impacts, we introduced the "IOI ESG" digital platform. This digital platform streamlines the collection, calculation, and consolidation of our sustainability data in a centralised repository with real-time monitoring and analytical capabilities. IOI ESG also supports data auditability and reporting that adheres to both Malaysian and global standards, and frameworks like Bursa Malaysia, GRI, TCFD, etc.

DECARBONISATION pathway to Net Zero

(Details in pages 42-53)

When IOI first introduced our CCAi in 2019, we started to develop a decarbonisation pathway. Resource and waste utilisation have been an important component of this decarbonisation pathway.

Besides our palm wood venture which started commercial production early this year, we have recently partnered with Nextgreen Global Berhad to develop a 150,000 tonne/ year paper pulp plant using Empty Fruit Bunch ("EFB") as the raw material. We continue to generate renewable energy using the methane captured from our palm oil mill effluent ("POME") which is one of the largest contributors of GHG emissions in our plantation operations. There are also other initiatives such as replacing diesel-powered agricultural machines with electric-powered machines, rooftop solar power generation and conversion of the effluent in our manufacturing facilities to fertilisers. I am pleased to announce that as at end June 2024, we have already achieved our short-term goal of reducing the GHG emission intensity of our operations by 40% in 2025 when compared to 2015 baseline.

Where our Scope 3 emissions are concerned, the mapping of our supply chain will enable us to understand the impact of our suppliers' GHG emissions on our net zero target. We will introduce policies and guidelines on decarbonisation to help our suppliers navigate the pathway to net zero with us.

As at end-June 2024, we have already achieved our short-term goal of reducing the GHG emission intensity of our operations by 40% in 2025 when compared to our 2015 baseline.

Partnered with

Nextgreen Global

Berhad to develop a

150,000 tonne/

year paper pulp plant using EFB as the raw material

Established

and funded the Women Empowerment Committees across the headquarters' office, plantations, and manufacturing facilities within the Group

4 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

MESSAGE FROM OUR

GROUP MANAGING DIRECTOR AND CHIEF EXECUTIVE

Management Key Messages 5

On Sustainable Agriculture, Managing

Natural Resources and Enhancing

Biodiversity

(Details in pages 56-66)

As an agriculture-based company, managing our natural resources well is at the heart of our operational success. In Malaysia, we are the pioneer in producing organic palm oil on a plantation scale and have recently received certification from RSPO for our organic palm oil. The lessons learnt in managing the organic plantation are invaluable to further improve our best management practices in our plantation operations.

In FY2024, IOI introduced our nature-based solutions approach. Part of this nature-based solutions approach is to establish a carbon sequestration baseline for all forested and non-forested conservation areas within IOI's concessions. This baseline will then allow us to develop our reforestation and rehabilitation programs to increase the biodiversity and carbon sequestration value of these conservation areas.

Our philosophy of valuing natural resources is extended to our resource-based manufacturing division as well. To reduce the consumption of water, we recycle our processed water and harvest rain water for non-critical usage.

We are also cognizant of our operations' dependencies and impacts on biodiversity and the ecosystems. Our various initiatives for reforestation and rehabilitation at forest buffers and riparian zones having been making good progress over the years. Recently, we set aside 284 ha in one of our plantations in Lahad Datu for conservation due to its rich biodiversity. The area has been found to have two near-threatened bird species and two vulnerable mammalia, namely sambar deer and bearded pig.

In Peninsular Malaysia, we are currently working in collaboration with Management and Ecology of Malaysian Elephants ("MEME") in planting an alternative food source for the elephants which is at the boundary of our estates.

We are the pioneer in producing organic palm oil on plantation scale.

Some of the wildlife found within our set-aside areas

Enhancing Employee Wellbeing and Respecting Employee Rights

(Details in pages 70-81)

At IOI, we have established appropriate policies and taken actions to protect the health and safety of our workers. We noticed that climate change has been causing more frequent and extreme heatwaves which particularly impact our plantation workers. The extensive introduction of mechanisation within our plantation operations has resulted in reduced physical labour and lower exposure to sun and heat for our workers, while increasing their

This assessment enables clear and actionable monitoring of their working conditions and wellbeing.

We continue in our effort to ensure that our recruitment process does not allow exploitation of our workers by conducting audits based on an adapted version of ILO's Global Business Network Toolkit for Conducting Due Diligence. So far, we have completed one round of third-party audits on our recruitment agents in Indonesia, Nepal, and India. To empower our women employees, we established and funded the Women Empowerment Committees across the headquarter's office, plantations, and manufacturing facilities within the Group.

Moving Forward

With the completion of our Five-year(2020-2024) Strategic Plan by the end of this year, the new strategic plan to be tabled next year will have sustainability more firmly integrated into our strategy. This is in line with the recently revised and renamed IOI Group Sustainability Policy ("IOISP"), which was previously known as IOI Group Sustainable Palm Oil Policy. The strengthened IOISP incorporates more explicit sustainability requirements such as strong governance, climate change mitigation and adaptation, net zero, etc., and covers business operations beyond palm oil.

Central to all that we have attained in our sustainability journey is the zeal and commitment of the IOI teams from around the world. As we transition towards net zero, we are conscious that we are not just navigating the present, but also actively contributing to shaping the future of our next generations. We look forward to your support in taking this meaningful journey together.

Mayvin Palm Oil Mill -

Sandakan Region

6 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

From the Desk of the

Chief Sustainability Officer

Despite the many developments occurring globally, from the shifting geopolitical dynamics to climate change-related disasters, I am happy to say that IOI has remained steadfast in our commitments to sustainability. At the core of IOI's sustainability is our people's commitment and their belief that their actions matter to the organisation. Furthermore, our Sustainability Management philosophy, based on People, Planet & Prosperity ("3Ps") plus Partnership, has enabled us to put into action various initiatives. These are the driving force behind our activity and impact-driven approach to business despite the rapid changes occurring within our operational environment, such as increased regulatory (CSRD, European Union Deforestation Regulation ["EUDR"], etc.) and disclosure requirements like IFRS S1

• S2, Science-Based Targets Initiative Forest, Land and Agriculture ("SBTi-FLAG").

IOI's pledge to be net zero by 2040 as part of our CCAi is testament to our belief that together we can effect change. The evidence that together we can succeed is shown by the GHG emission intensity reduction results that we have achieved for this financial year, which is 42% emission reduction ahead of the target year (FY2025). We are also intensifying our efforts surrounding rehabilitation and reforestation with the aim of increasing our carbon sequestration and enhancing biodiversity and its

DR. SURINA ISMAIL

Chief Sustainability Officer

Introduction of an

ESG Digital platform

to analyse environmental and

social-related data

Management Key Messages 7

At the core of IOI's sustainability is our people's commitment and their belief that their actions matter to the organisation.

ecosystem. A satellite mapping of areas such as buffer zones, riparian, etc., are currently in progress to enable us to identify the areas that require the necessary actions. As we forge forward to create further transformations across our operations, we also understand the importance of embracing digital transformation. The introduction of our IOI ESG Digital platform is one such initiative as it facilitates the analysis of our environmental and social- related data to identify gaps, trends, and issues within our operations so that we can devise effective actions to address their impact.

Finally, our ability to implement our goals and aspirations goes hand in hand with our strategic engagement with relevant stakeholders to provide clarity in our journey ahead. With our valued workforce, the communities where we operate and our identified partners, we are transitioning together by collaborating to achieve our sustainable goals and harness growth opportunities that are material not only to us but to all involved in this journey. I hope that as you go through this Sustainability Report, despite the foreseen and unforeseen challenges that IOI have faced, you will be as pleased as we are with the positive impact that we have made with our presence.

8 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

Performance on

IOI FIVE-YEAR strategic priorities

Sustainability Highlight 9

Mechanised Geo Sprayer for pest control

IOI first introduced our Five-Year Strategic Priorities in 2020 to provide a clear direction for the Group to become a high value-added and diversified palm-based products producer with the objective of increasing our resilience while remaining a competitive industry player. When considering each strategic priority, aside from the business targets, IOI has ensured that sustainability continues to be one of the core requirements in the development of these strategic business priorities.

Strategic Priority 2- Optimise Workforce

As highlighted in our IOISP, we are committed to upholding the human rights of our workforce together with ensuring the care and wellbeing of our workers. A key component to achieving this priority is automation and digitalisation for some of our processes as well as to increase mechanisation within our operations. These initiatives can contribute both to improved working conditions with increased productivity, and subsequently, increased income among our workers. In addition, upskilling of our workers generally leads to enhanced performance in their jobs.

Automation in our resource-based manufacturing, including digitalisation and data automation in both the Refinery and Oleochemical divisions, helps our operators monitor the performance of multiple facilities simultaneously, ensuring real-time oversight of critical processes. This approach aligns with the Fourth Industrial Revolution (IR 4.0), which focuses on automation and data exchange in manufacturing technologies and processes.

Mechanisation reduces physical labour while enhancing worker productivity. Overall, it boosts workforce efficiency across IOI plantations, helping to achieve the ideal land-labour ratio with an average of 1:9 ha.

An example of successful mechanisation is the

implementation of the Mini Tractor Grabber ("MTG") at our estates, which has achieved a targeted harvester ratio ranging from 1:20 to 1:23 ha compared to conventional harvesting.

Mechanisation will increase workers' productivity and eventually enable them to earn better wages. For example, MTG implementation at some of our estates allowed a harvester to increase his earnings by more than 20%.

Continuous training is provided to our estates' personnel helps to upskill our workers and provide job specialisation, such as training on using mechanisation and digitalisation such as ePMS and the new IOI ESG Digital Sustainability Data Collection Platform to increase efficiency and productivity of our workforce. This in turn, can potentially widen our pool of workers to include locals to work in the plantation, reducing our dependencies on foreign labour.

Signage to indicate organic palm planting

10 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

Performance on

IOI FIVE-YEAR strategic priorities

About IOI Corporation 11

Organisational

OVERVIEW

the Segment

IOI embraces a "no-waste" culture throughout our business operations via managing our natural resources and having waste management plans. We adopted the practice of circular economy by implementing the 7Rs ("Rethink, Repurpose,

As a leading integrated and sustainable palm oil company, IOI Corporation Berhad ("IOI" or "the Group") has a global presence in several countries across Asia, Europe, Africa, and America. Headquartered in Malaysia, IOI has an integrated value chain business comprises of our upstream Plantation and downstream Resource-Based Manufacturing Divisions.

Strategic Priority 4- Increase Non-Crude Palm Oil ("CPO")

Reduce, Reuse, Recycle, Repair, and Recover")

of Circularity.

Utilisation of oil palm trunks ("OPT") to produce

a higher value-added product like palm

wood implements the principle of circularity by deriving revenue from a biomass generally used in burning or composting. IOI Palm Wood's facilities have the capacity to produce up to 80,000 m3 palm-based wood products per annum.

Throughout the palm wood production process, we also attempt to minimise wastage by repairing lower grade materials into higher grade, and saleable products.

Nextgreen IOI Pulp has the capacity to produce 150,000 MT per annum of paper pulp from EFB using the patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp ("PRC-RBMP") technology by converting

IOI employees inspecting one of our Oleochemical facilities in Germany

At IOI, our commitments towards sustainability, including EESG matters throughout our operations and supply chain, are embedded within our IOISP. This is further reflected by the fact that we are a constituent of the FTSE4Good Index since 2018. Additionally, we are committed to adopting six of the UN SDGs most relevant to our business which are SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 15 (Life on Land) and SDG 17 (Partnership for the Goals). The 7Rs of Circularity are also implemented throughout our value chain as part of our efforts to reduce our environmental footprint and support our climate targets to achieve net zero by 2040. Our Value Creation Model in pages 16-17 clearly depicts how the 7Rs are implemented in our operations.

At our plantations, as part of our efforts to reduce our GHG emissions, the 7Rs of Circularity approach is fully embraced. Case in point, some of the mills equipped with methane capture facilities utilise biogas from POME for power generation to be used in our mills and estates,

with more facilities upcoming. More details on our efforts to reduce emissions can be found in page 47 of this report. Our Research Centres and Palm Biotech facilities support the Plantation division in research and development in practicing regenerative agriculture, such as through the promotion of organic oil palm planting, producing high yielding clonal palm, etc., with more information about their activities being disclosed within this report and our website. Our Resource-Based Manufacturing division comprises of our refinery in Malaysia, and Oleochemical with operations in Malaysia and Germany, which produce high-quality, sustainable palm products. In recent years, IOI has also worked towards expanding the non-CPO segment with the addition of IOI Palm Wood, which utilises palm trunks to produce high-value wood products, and Nextgreen IOI Pulp, producing pulp and paper from palm biomass (page 60).

A full description of IOI's integrated business model, financial outcomes, information on our global and local presence, as well as risk management and internal controls, can be found in pages 122-126 of our AR2024.

biomass into sustainable value-added products.

Biogas from methane capture plants at our mills are used as renewable fuel to replace fossil fuels as source of energy contributes to reduction of GHG emissions.

IOI generates revenue by selling biomass such as Palm Kernel Shell ("PKS") from our Plantation mills that can be used as raw materials in other industries. For example, the PKS sold to some of our third-party buyers have been used as activated carbon in filtration process.

Waste products from our operations such as Spent Bleaching Earth ("SBE") and Palm Fatty Acid Distillate ("PFAD") from IOI Refinery are sold to third parties for biodiesel production, while boiler ash is also sold to be used in producing fertilisers.

12 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

Awards

AND RECOGNITION

Achievements of IOI Corporation

Our Sustainability Approach 13

Performance in

GLOBAL ASSESSMENT, INDICES AND RATING

Our commitment to Environmental, Social, and Governance ("ESG") practices across all divisions of IOI is reflected in our achievements and the accolades we have received from various global ratings and assessment agencies. We continually review our ESG initiatives by utilising insights gained from these international evaluations, ratings, and indices. Furthermore, this approach helps us to identify gaps within our sustainability performance and subsequently enable us to implement the necessary actions to address these gaps. Gains from these insights also allow us to further communicate effectively with further clarity regarding our sustainability performance.

Awarded as Company of the Year (Best in Green, Education and Social Initiatives) under the Conglomerate - Plantation category at the Sustainability and CSR Malaysia Awards 2023

Sustainalytics

S&P Global

Corporate

Sustainability

Assessment

CDP

IOI has further improved from 24.7 to 23.3 in the ESG risk rating score.

IOI's score 36 for the overall company score in the 2023 S&P Global Corporate Sustainability Assessment.

Our CDP score for Forest has increased from C to B and scored C for both Water Security and Climate Change.

IOI Oleo GmbH has won its fourth consecutive Gold Sustainability Rating while IOI Oleo Pan-Century

Achievements by IOI Group's subsidiaries

EcoVadis

Oleochemicals has also won its second Gold Sustainability Rating from EcoVadis. IOI Esterchem earned a Silver Sustainability Rating for its first participation.

IOI Pan-Century Oleochemicals Sdn Bhd (IOI Pan-Cen Oleo) scored Gold in the Community Awareness and Emergency Response Code as well as Employee Health and Safety Code categories at 16th Responsible Care Awards 2021/2022 that was held in August 2023

IOI Plantation Services Sdn Bhd's (Morisem 3 Estate) was among the winners of the National Occupational Safety & Health Awards 2022 held in October 2023

IOI Pan-Century Oleochemicals Sdn Bhd has received a Best Employer Award 2023 from the Employee Provident Fund ("EPF") of Johor in November 2023

IOI Oleo GmbH has won Silver for Innovation Zone Best Active Ingredient Award at in-cosmetics Asia Awards in November 2023

FTSE4Good Index Series

SPOTT Palm Oil Assessment

MSCI

ISS ESG

IOI remains as constituent company in the FTSE4Good Index Series with FTSE Russell ESG score of 3.6. We are among the top 5 subsectors peers (farming and fishing) and achieved a perfect score for the Governance's theme which makes us the sole company among its top 5 subsectors peers to achieve such standing.

The percentage score of IOI has increased from 79.7% to

85.3%.

IOI maintained the ESG Rating score of "BBB" for Morgan Stanley Capital International ("MSCI") rating.

IOI's score for ISS ESG Corporate Rating, as a first-time

participant, is C in 2024.

14 IOI CORPORATION BERHAD  •  SUSTAINABILITY REPORT 2024

Sustainability

COMMITMENT & COMPLIANCE

At IOI, sustainability is more than a means to fulfil current business requirements, it has become the way we conduct our business and operations. Our sustainability commitments, which align with our three Pillar's of Sustainability (People, Planet, and Prosperity) plus Partnership, are driven by our conviction to not only meet the needs of the present without compromising that of the next generation, but to also strive for them to achieve a better future.

One of most existential challenges faced by us today is Climate Change. Therefore, for IOI to be part of the solution rather than the problem, we commit to achieve Net Zero by 2040 along with strengthening our focus on principles such as Enhancing Biodiversity and Just Transition.

Decarbonisation Pathway to Net Zero by 2040

• Aim to manage climate related risks and opportunities through our CCAi
• Equip our operations to adapt to changing circumstances arising from climate change

Enhanced Biodiversity and Ecosystem

• Limit environmental footprint of our operations through responsible use of natural resources and embracing the 7Rs of Circularity
• Build resilience towards the potential effects of climate change

Just Transition

• Promote inclusivity by providing fair and equal opportunities for our workers and communities throughout our decarbonisation journey.
• Upskilling of our workforce by providing relevant training

Pillar of Sustainability

Planet

PeopleProsperity

+

Partnership

Regulatory and

THIRD-PARTY COMPLIANCE

Certifications & Regulations

Plantation

• 100% IOI Mills RSPO certified.
• • Malaysia: 13 Mills RSPO IP certified
  • Indonesia: 1 Mill RSPO MB certified
• 99% Malaysian and 73% Indonesian Estates RSPO Certified
• All Malaysian Estates and Mills are MSPO certified
• 29% of IOI palm oil mills are certified under ISCC to meet market driven requirements
• 5.4% certified under ISO45001: 2018 (Occupational
  Safety & Health Management Standards)

Refineries

• All our refineries are ISCC certified under the Point of
  Origin scope for waste and residue
• Both refineries are MSPO SCCS and RSPO SCCS certified
• 100% ISO45001:2018 certified
• GHG emissions have been verified under ISO14064- 1:2018 (Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions and removals)

Oleochemical

Our Sustainability Approach 15

IOI is also committed to complying with international regulations such as the EUDR and aligning with the AFI. EUDR commitments are communicated to our suppliers through suppliers' engagement such as the Tools for Transformation ("T4T") as we aim for a deforestation-free supply chain.

Additionally, this year, we have started engaging with relevant regulators to align with the Corporate Sustainability Reporting Directive ("CSRD").

We continue to actively monitor the upcoming regulations such as:

• EU Forced Labour Regulation
• Corporate Sustainability Due Diligence Directive
  ("CSDDD")

Legal Compliance

In line with the commitments stated in our IOISP and requirements of various sustainability certifications, compliance with all applicable local and international legislations are a priority at IOI. This is to protect our business and our people against the risk of any legal liability as well as to fulfil our duty as a responsible corporate citizen.

IOI Group Sustainability Policy ("IOISP") Key Commitments

This year, IOI has revised its IOISP, formerly known as the SPOP, to incorporate new or enhanced sustainability requirements, our target to achieve Net Zero by 2040 as well as to now include our business operations beyond palm oil. The IOISP was also updated to incorporate governance and the role of the Board in IOI's sustainability matters.

Some key new commitments of the IOISP are:

• 100% of our Oleochemical operations are certified
  ISO45001:2018
• GHG emissions verified under ISO14064-1:2018
• All Malaysian operations are certified MSPO SCCS and
  RSPO SCCS

This year, IOI recorded one fine from the Department of Environment ("DOE") and one fine from Department of Safety and Health ("DOSH").

The fine from DOE was due to an overflow of wastewater at one of our mills into an adjacent stream after experiencing

Governance

Compliance to Policies and Regulations

Environment

Social

• Additional statement on the board's direct involvement in overseeing the Group's sustainability matters through the BSC and the GSSC
• Commitment towards compliance to RSPO, MSPO, ISCC, and ISPO as well as the Supply
  Chain certification standards for our Resource-Based Divisions and work to strengthen these standards
• Implement decarbonisation programme to progressively reduce GHG emissions in line with IOI's Pathway to Net-Zero by 2040
• Protection of natural ecosystem and promote circularity
• Adopt environmentally friendly and energy efficient processes to ensure efficient use of natural resources and reduce environmental impact
• Practice responsible water stewardship in accordance with the IOI Group Water Policy
• Promote children's rights to ensure they are safe from harm and any form of exploitation

2024 Highlights

• IOI Plantation has begun the verification process for ISO45001: 2018 and successfully certified 6% of our
  Plantation operations.
• IOI Pan-Century Edible Oils ("PCEO") refinery obtained their ISCC certification in June 2024.
• IOI Oleochemical and PCEO completed ISO14064-
  1:2018 verification for FY2024 GHG emissions while IOI Edible Oils ("IEO") completed verification for
  FY2023 GHG emissions.

a particularly heavy rainfall. All the necessary remediation and mitigation actions including construction of a sump to trap excess waste water and prevent flow into the stream have been taken.

The fine from DOSH was due to a work-related accident at one of our mills last year. Following the incident we have introduced and implemented an additional Safe Operating Procedure to prevent reoccurrence of similar incidents in the future.

Value Creation

MODEL

OUR VISION IS TO BE A LEADING AND SUSTAINABLE

1 CAPITAL INPUTS

MALAYSIAN BUSINESS CORPORATION WITH GLOBAL PRESENCE.

Value Creation Model 17

Human

• Strong leadership and governance
• ~ 28,000* talented and diverse people
• Succession and business continuity planning
• Training and upskilling opportunities to develop employees

Natural

• 98 estates
• 205,073 hectares of landbank
• Seeds, plants and healthy soil to cultivate oil palm trees and other crops

Financial

• Access to capital for investments in future success
• RM17.9 billion of total assets
• RM11.7 billion of shareholders' equity

Manufactured

• 14 mills
• 2 refineries
• 4 oleochemical plants/complexes
• 1 palm wood factory
• 1 biotech centre
• 4 Research and Development ("R&D") centres

Social and Relationship

• Strong long-term relationships with shareholders, customers, suppliers, financial institutions, non-governmental organisations
  ("NGOs"), regulators and communities to create shared values

Intellectual

• R&D capabilities and intellectual property
• Brand values and and good reputation
• Best agronomy practice and estate management practices

* Refer to Corporate Governance Overview Statement on page 100 for more information.

2 OUR INTEGRATED VALUE CHAIN

• PK: Palm Kernel • PKO: Palm Kernel Oil • POME: Palm Oil Mill Effluent

~ Associate (Bunge Loders Croklaan Group BV)

Refer to Strategic Enablers on pages 51-53 and Strategic Priorities on pages 54-59 in our AR2024 for more imformation.

7Rs of Circularity

Rethink

Repurpose

Reduce

Reuse

Recycle

Repair

Recover

3 VALUE DELIVERY & IMPACT

Human

• Good employee career development and progression
• Healthy workforce
• Safe and conducive workplace

Natural

• Sustainable palm oil practices support climate action and maintain ecosystem health
• 14 mills RSPO - certified in Malaysian and
  Indonesian operations
• No deforestation and protection of High Carbon Stock ("HCS") and High Conservation Value ("HCV")
• Towards Group-wide Net Zero by 2040

Financial

• Sustainable and profitable growth
• Good dividend pay-out
• Green and responsible investment
• Better economies of scale
• Resilient earnings from fully integrated business model

Manufactured

• State-of-the-art,certified and accredited manufacturing facilities
• Significant operational efficiencies and synergies
• First-of-its-kindpalm wood factory

Social and Relationship

• Quality and customised products at competitive cost for customers to support quality of life and improve nutrition
• Improve livelihoods and uphold land rights of local communities

Intellectual

• High-yieldinggermplasm
• Developed 15 new personal care applied formulations
• Filed a patent for pharmaceutical, nutrition and cosmetic applications and another patent for novel suppositories
• OnCore® engineered wood panels

In alignment with our three pillars of sustainability (People, Planet, Prosperity) + Partnership,

together with the six adopted relevant United Nations Sustainable Development Goals ("UN SDGs").