IOI Corp re­sponds to Green­peace re­port on de­for­esta­tion

The Sun (Malaysia) - - SPEAK UP - BY LEE WENG KHUEN

PETALING JAYA: IOI Corp Bhd yes­ter­day is­sued a de­tailed re­sponse to the Green­peace re­port that linked the group’s third-party sup­plier in In­done­sia to de­for­esta­tion, for­est fires and hu­man rights abuses.

In re­sponse to the Green­peace re­port, IOI CEO Datuk Lee Yeow Chor ( pix) said the group does not source di­rectly or has any com­mer­cial re­la­tion­ship with Korindo Group, Austindo Nu­san­tara, Good­hope, Ea­gle High and Ind­o­food/Salim – who are named in the Green­peace re­port – but oil from th­ese com­pa­nies en­ters its sup­ply chain via ship­ments from its di­rect sup­pli­ers, who are Wil­mar, Golden Agri Re­sources (GAR), AAA Oils & Fats and Musim Mas.

“We have re­quested an up­date from our di­rect sup­pli­ers, al­though they have also re­ported sev­eral of the al­le­ga­tions on their griev­ance lists. We sup­port our di­rect sup­pli­ers Wil­mar, GAR, AAA and Musim Mas’s move to fur­ther en­gage with or to stop pur­chas­ing from the named com­pa­nies,” he added.

Lee said IOI has re­quested its di­rect sup­pli­ers to pro­vide fur­ther de­tailed up­dates of their find­ings with re­gard to Green­peace’s al­le­ga­tions by the end of Novem­ber.

How­ever, he said IOI will sus­pend con­tracts with the sup­pli­ers only as a last re­sort when all at­tempts at en­gage­ment fail or when no demon­stra­ble progress has been made.

Green­peace is a non­govern­men­tal or­gan­i­sa­tion that fo­cuses its cam­paign­ing on world­wide is­sues such as cli­mate change, de­for­esta­tion and over­fish­ing.

Worth not­ing is that lo­cal com­pany TH Plan­ta­tions Bhd is also on Green­peace’s list.

On that, Lee said IOI has de­cided to phase out TH Plan­ta­tions from its sup­ply chain as it did not re­ceive any pos­i­tive re­sponse from TH Plan­ta­tions fol­low­ing on-site mill and sup­ply vase ver­i­fi­ca­tion on sev­eral oc­ca­sions. “Nev­er­the­less, IOI will con­tinue to en­gage with TH Plan­ta­tions to push for a ver­i­fi­ca­tion visit and ad­dress the is­sues raised by Green­peace in re­la­tion to their In­done­sian op­er­a­tions,” he said. Lee high­lighted the fact that it sources di­rectly from TH Plan­ta­tions in Malaysia and not from their plan­ta­tions in In­done­sia, which is against Green­peace’s al­le­ga­tions. The sup­ply from TH Plan­ta­tions is 15,850 tonnes or 1.38% of IOI’s pur­chase from third party sup­pli­ers in 2015.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.