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Report

16 Feb 2016

Author:
BankTrack

BankTrack: Labour standards violations in IOI Corporation’s Malaysian plantations

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IOI Corporation is one of Malaysia’s largest conglomerates and one the world’s largest palm oil growers and traders, estimated as representing around one-tenth of the global trade in palm oil. A 2014 investigation by the Finnish corporate responsibility NGO Finnwatch found severe violations of labour standards in a number of the company’s Malaysian plantations. These include withholding workers’ passports, denying their rights to join trade unions, and failure to pay the minimum wage. Fifteen of the world’s largest commercial banks have been found to have been involved in financing IOI Corporation over the last five years, primarily by providing corporate loans, underwriting bond issuances for the company or owning or managing its shares....We contacted the 15 banks identified as linked to the company to request details of the due diligence processes they have used to assess the risks of actual or potential human rights impacts caused by the company, and how they have responded to the issues identified. We analyse the response of the 14 banks which responded below.