IJM Plantations Berhad - Roundtable on Sustainable Palm Oil

RSPO 2006 /IJM Plantations Berhad

RSPO Annual Communication of Progress

IJM Plantations Berhad 1. Profile Name of organisation Membership type Report prepared and submitted by Email Reporting Period Date of Report

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IJM PLANTATIONS BERHAD Ordinary Joseph Tek Choon Yee [email protected] August 2005 – July 2006 14 August 2006

2. Details of Progress A. Current efforts and progress in producing, procuring and/or utilising sustainable palm oil. A.1 This is IJMP’s 2nd year of reporting in the RSPO Annual Communication of Progress. It covers IJMP’s endeavours over the last one year from August 2005 to July 2006. A.2 IJMP’s history in agribusiness can be traced back to 1985. Since then, the Group has grown steadily. Today, IJMP owns and operates a total land bank of about 30,000 hectares in Sabah, Malaysia comprised of 11 oil palm estates, 3 palm oil mills and one kernel crushing plant. IJMP was listed on the Main Board of Bursa Malaysia on 7th March 2003. Year 2005 marked the 20 years anniversary for the organisation. A.3 IJMP has actively been involved in the RSPO related activities since it applied for RSPO membership on 14 August 2004. IJMP recognises the importance of such a global multistakeholders platform to exchange views among relevant stakeholders throughout the palm oil supply chain towards promoting the production and use of sustainable palm oil. IJMP was also a signatory to the MPOA Environmental Charter, a testimony of its commitment to maintain a good balance between environment protection and business objectives. A.3 IJMP takes great pride in incorporating the basic tenets of sound environmental management and responsibility in its business endeavours. IJMP’s operating units adopt and implement good agricultural practices (GAP) while concerted efforts are being channelled towards continuous improvements. IJMP’s Planting Manual records time-tested GAPs. This include zero burning practice, soil and water conservation efforts, integrated pest management, conservation pursuits in catchment, riparian and jungle reserves and utilisation of palm oil mill byproducts. A.4 IJMP has adopted the theme Nurturing Sustainability which is rooted in four inter-related core pillars namely Innovations and Productivity, Care for Environment, Investor in People and Returning to the Community. This is in line with the sustainability concepts of triple bottom lines i.e. Profits, Planet and People.

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B.

Implementation and/or sponsorship of projects/initiatives that promote sustainable palm oil

B.1 Nurturing Sustainability - Innovations and Productivity ( ‘PROFITS’ ) B.1.1 IJMP’s business operations in Year 2005/06 was highlighted in its Annual Report 2006. Reference: www.ijm.com/download/arc_ar_2006_20.pdf B.1.2 IJMP’s palm oil mill in Sabang, Sugut achieved annual average oil extraction rate of 24.7% in Year 2005 – probably the highest oil extraction in Malaysia for 2005. Oil palm replanting commenced in its Desa Talisai South estate using zero burning technique. B.1.3 Quality, Training & Research Centre (QTRC) continued to be the centre of performance excellence for IJMP. The ongoing activities by QTRC will enable IJMP to build on its own strengths relating to high operational efficiency, environmental management and human resource development. QTRC pursues audits in operating units for productivity, quality, P&D and safety & health. In addition, QTRC’s R&D activities include carrying out breeding trials and seed production of pedigreed and high yielding planting materials. In early 2006, mother palms were selected from the seed garden in Sijas estate, Sabah for DxP seed production. Reference: www.ijm.com/download/arc_ar_2006_26.pdf

B.2 Nurturing Sustainability - Care for the Environment ( ‘PLANET’ ) B.2.1 IJMP is committed to conserve an area totaled 315 acres surrounding an oxbow lake i.e. Oxbow Lake 117 in Sugut for the purposes of research, education and conservation. It is also exploring sustainable agro-ecotourism within the region. IJMP and its university collaborator, Universiti Malaysia Sabah (UMS) are currently sourcing for funding to pursue research towards developing a sustainable management plan for wetland conservation in Sugut. B.2.2 Additional efforts were directed by the IJMP estate management to plant up low lying areas and hills with tropical tree saplings in Sugut while its arboretum in Sabang has added a new collection of medicinal plants. B.2.3 IJMP’s has updated its Policy Statement on Environmental, Occupational Safety and Health in March 2006. B.2.4 IJMP conducted a detailed feasibility study was conducted with Japan Bank for International Cooperation (JBIC) in Desa Talisai palm oil mill in order to explore Clean Development Mechanism (CDM). The study explore the utilization of palm oil solid waste to be converted into biopower - electricity. B.2.5 IJMP continued with commercial field evaluation of microencapsulated bacteria i.e. natural nitrogen involved in biological N-fixation in its oil palm estates. B.2.6 QTRC intensified with breeding of predatory insects while planting of beneficial plants was promoted throughout all operating units especially Sugut region as part of the biological control efforts. B.2.7 IJMP continued engaging other stakeholders as it welcomes visitors to its operations. This included visitors from Global Environmental Forum (GEF) and Saraya from Japan, university students and the public.

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B.3 Nurturing Sustainability – Investor in People and Returning to the Community ( ‘PEOPLE’ ) B.3.1 IJMP continued with its Best Management Practices (BMP) training programme for all its conductors, plantation cadets and estate assistant managers. Mill personnel have also been included since Module 6. The programme is shaped in line with the company’s Planting Manual. The objective is to provide an overview of industry, details in operational BMPs and the current state of knowledge contributing to the continued professional development of IJMP personnel. The importance for grass root personnel to appreciate issues related to sustainability and implement it on the ground is pre-requisites in promoting sustainable palm oil. B.3.3 IJMP continued with the promotion and development of rugby as a sport in schools throughout the State of Sabah through a platform known as Academy of Rugby Excellence. This is a tripartite partnership between IJMP, Sabah Education Department and Sabah Rugby Union. A multitude of rugby related activities including coaching clinics, camps and tournaments were carried out for the participating schools. B.3.4 IJMP sponsored and organised a public forum and volunteers workshop on breast health awareness with the local hospital, Duchess of Kent in Sandakan. The ongoing research on palm oil’s rich tocotrienols and breast cancer, along with its’ other nutritional and health benefits were shared with over 400 participants at the forum. References: ( Bilingual : English and Bahasa Malaysia ) www.radiologymalaysia.org/breasthealth/BCAC/2006Reports/0422.htm www.radiologymalaysia.org/breasthealth/BCAC/BM/Lapuran2006/0422.htm B.3.5 IJMP continued training local youths by way of attachment and placement in its operations. Under this programme, unemployed local Sabahan youths are provided on-job training, after which those with genuine interest and potential are offered permanent employment. IJMP also opens its door to university students for study and training tours. B.3.6 IJMP continued to develop the rural township in Sugut that contains a multipurpose hall, shops, supermarket and bakery. Both employees and the local surrounding communities benefitted from the facilities of the township. It is also exploring agro-ecotourism in Sugut which can also benefit the local communities. Other infrastructures that were constructed and are maintained by IJMP include the trunk roads, clinics, kindergarten, river jetty and a Bailey bridge across Sugut river.

C. Significant economic, social or environmental problems encountered in production, procurement and/or use of sustainable palm oil and efforts made to mitigate or resolve them C.1 Increasing cost of production and inadequacy of skilled workers - mitigated through ongoing and intensified organisational cost effective measures. - mitigated through ongoing training and supervision of human resource at all levels while exploring relevant job enrichment and change of work methods and process

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D. Outlook of planned activities to promote sustainable palm oil production, promotion and/or use in the next reporting period. D.1 IJMP believe that many of its existing and ongoing endeavours as highlighted in (B) are in line with the Principles and Criteria of Sustainable Palm Oil Production. Notwithstanding this, IJMP shall continue to move forward in engaging further improvements in all areas. D.2 IJMP will continue with stakeholder engagement process and other relevant activities under the ambit of RSPO and its ongoing deliberations. D.3 On going BMP training for IJMP employees and intensified implementation of GAPs especially in areas of palm byproduct utilization and integrated pest management (IPM). D.4 Environ-socio activities focus on the ox-bow lake conservation, tree planting, youths sport development and public awareness talks. E. Recent publications of environmental / social / sustainability reports or annual reports relating to the objectives and tasks of RSPO. E.1 Publication of the IJMP Annual Report 2006 with inputs on environmental and social contributions. PDF format of this Report can be made available upon request from IJMP’s RSPO contact at : [email protected] E.2 An article entitled ‘Hands-on ‘Green’ Policy’ was published in the Malaysian Palm Oil Council’s (MPOC) Global Oils and Fats Business Magazine ( Vol. 2 - Issue 4 / 2005 ) E.3 Articles on education and stakeholders engagement entitled “Voyage to the Future” and promotion of rugby in schools entitled “What has palm oil got to do with rugby?” in RSPO newsletter :Reference : www.sustainable-palmoil.org/PDF/Newsletter/Newsletter%20(Jul-Sep%202005).pdf E.3 Various in-house presentations relating to sustainability and RSPO were communicated to management and employee within IJMP and IJM Corporation Berhad. F. Recognition and awards for excellence in promoting sustainable palm oil.

G. Suggestions on how the RSPO can play an active role in enhancing your organisation’s sustainability performance, particularly in relation to promoting sustainable palm oil

H. Other activities IJMP contributed to the RSPO Secretariat a collection of photographs by professional photographer Cede Prudente as per-commissioned by IJMP which portray IJMP’s palm oil operations throughout Sabah for the use in communicating sustainable palm oil production. All copyrights reserved.

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