In 2016, the Roundtable on Sustainable Palm Oil suspended IOI Corporation for six months for illegally clearing 11,750 ha (45 square miles) of forest and peatland in Indonesia and for failing to mitigate fire risk.
IOI’s suspension led 27 of its largest corporate buyers, including ADM, Golden Agri-Resources, Louis Dreyfus, Olam, Wilmar, Unilever, Kellogg, Mars, Nestle, and Cargill, to stop sourcing crude palm oil from IOI. As a result, IOI’s deforestation caused the company to lose $14.8 million in Q2 2016.
IOI’s suspension from the Roundtable on Sustainable Palm Oil was lifted in August 2016, after IOI improved its commitment to stop deforestation. After its suspension, IOI issued an updated sustainability policy and it also developed an NDPE commitment. In 2019, the company entered into an agreement with Aidenvironment to work on a group-level risk assessment of IOI’s third-party suppliers.
Progressive Holdings Sdn Bhd, a private company, is the top investor in IOI, while Vanguard and Standard Chartered Bank’s Singapore branch are the top Western shareholders.