Eng - IOI Group

management’sdiscussionandanalysis • review of core business operations cont’dBOOSTING LONG-TERM SUSTAINABILITYAs the core business division of the Group, the Plantation Division strictly adheres to the principles of Vision IOI whichemphasise commercial success in a responsible and balanced manner by addressing the interests of all stakeholders. Wesubscribe to the adage that “what goes around comes around”. We strongly believe that it is simply not possible tosustain commercial success over the long term without appropriate consideration for the environment and withoutcaring for the interests of the community in which we operate. Hence, the Group has always been committed tosustainable agricultural practices. However, we also believe that as with all good practices, they are expected to evolveand to be refined over time and to be measured against moving targets. Over the years, we have made significantimprovements in enhancing yields, productivity and cost efficiency in order to optimise returns from our oil palmplantations in a manner that will ensure long term sustainability through optimising the use of renewable resources,environmental friendly agricultural practices such as zero burning, soil and water conservation, site specific fertilisation,land application of digested palm oil mill effluent, integrated pest management, by-product utilisation, including energyrecycling.During the year, the Group completed the acquisition of the Pamol estates from Unilever which practices the sustainableagriculture system introduced by Unilever. This has afforded us the opportunity to cross benchmark our practices and tofurther improve on the progress made thus far. Some of the more significant areas are highlighted below.IOI Corporation BerhadAnnual Report 200358