Questions around this news
What emissions targets did IOI have validated by the SBTi?
The release says IOI’s near-term targets cover both FLAG and non-FLAG emissions. They include reductions in absolute scope 1 and 2 emissions by FY2030, and scope 3 emissions from specified purchased goods and transport categories measured per metric ton of product by FY2032. Separate FLAG targets address absolute scope 1 and scope 3 emissions, with target years of FY2030 and FY2032, respectively.
What does FLAG mean in climate targets?
FLAG stands for Forest, Land and Agriculture. In emissions target-setting, it identifies emissions and removals associated with land and agricultural activities, which are considered separately from other sources of greenhouse gas emissions. The release says IOI has both FLAG and non-FLAG targets, and that its target boundary includes land-related emissions and removals from biogenic feedstocks.
What does SBTi validation mean for a company’s emissions targets?
SBTi validation means that a company’s submitted emissions-reduction targets have been assessed against the initiative’s criteria for alignment with climate science. It is a review of the targets, not a statement that the company has already achieved the reductions. The release describes SBTi as enabling companies to set targets aligned with climate science.
What is the difference between scope 1, scope 2 and scope 3 emissions?
Scope 1 covers direct emissions from sources a company owns or controls. Scope 2 covers emissions associated with purchased energy, such as electricity. Scope 3 includes other indirect emissions across a company’s value chain, including those linked to purchased goods and transportation. The release includes targets for all three scopes, with some scope 3 categories specified.
December 19, 2025 -- IOI Corporation Berhad (“IOI”) announced that its near-term greenhouse gas (GHG) emissions reduction targets have been validated by the Science Based Targets initiative (SBTi) on 8 December 2025, just months after submission on 11 July 2025. The validation marks a significant milestone in IOI’s long-standing climate journey. We introduced Climate Change Action initiative (CCAi) in 2019 and committed to set near-term company-wide emission reductions in line with climate science with the SBTi in 2023 for both Forest, Land and Agriculture (FLAG) and Non-FLAG sectors to strengthen our climate commitment.
IOI Chief Sustainability Officer Dr Surina Ismail said: “Our focus on near-term and FLAG targets reflects where climate action matters most – on the ground. We are firmly on track to meet our SBTi’s targets through leveraging nature-based and engineered solutions to deliver emissions reductions across our diverse operations.”
IOI’s SBTi-validated near-term targets underscore the Group’s emphasis on immediate and measurable action for climate mitigation:
- For Near-Term, IOI commits to reduce absolute scope 1 and 2 GHG emissions 44.94% by FY2030 from a FY2020 base year.* The Group also commits to reduce scope 3 GHG emissions from purchased goods and services and upstream transportation and distribution 58.1% per Metric Ton of Product Produced by FY2032 from a FY2022 base year.
- For Near-Term FLAG, IOI commits to reduce absolute scope 1 FLAG GHG emissions 30.3% by FY2030 from a FY2020 base year, as well as absolute scope 3 FLAG GHG emissions 36.4% by FY2032 from a FY2022 base year.** The Group also commits to maintaining no deforestation across its primary deforestation-linked commodities.
*The target boundary includes land-related emissions and removals from biogenic feedstocks.
**The target includes FLAG emissions and removals.
With global temperatures breaching 1.5°C and extreme weather disruptions increasingly affecting supply chains and economies, IOI recognises that climate change is not a distant risk but a defining business challenge. The Group’s SBTi validation reinforces our commitment to align corporate actions with the latest climate science and global emissions reduction efforts.
The SBTi enables companies to set GHG emissions reduction targets aligned with climate science to accelerate business adoption, supporting the global economy to halve emissions before 2030 and achieve net-zero before 2050. The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
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In brief
IOI Corporation Berhad says the Science Based Targets initiative validated its near-term greenhouse gas reduction targets on 8 December 2025, following submission on 11 July 2025. The targets cover both FLAG (Forest, Land and Agriculture) and Non-FLAG emissions. They include reductions in absolute scope 1 and 2 emissions by FY2030, and scope 3 emissions intensity from purchased goods and services and upstream transport and distribution by FY2032. Separate FLAG commitments address absolute scope 1 emissions by FY2030 and absolute scope 3 emissions by FY2032. IOI also commits to maintaining no deforestation across its primary deforestation-linked commodities. Chief Sustainability Officer Dr Surina Ismail said the company plans to use nature-based and engineered approaches to pursue its targets. The company says the validation supports its climate action efforts.
Key takeaways
- SBTi validated IOI’s near-term emissions targets on 8 December 2025.
- Non-FLAG targets include reductions in scope 1 and 2 emissions by FY2030 and scope 3 emissions intensity by FY2032.
- FLAG targets set reductions for absolute scope 1 emissions by FY2030 and absolute scope 3 emissions by FY2032.
- IOI also commits to maintaining no deforestation across its primary deforestation-linked commodities.
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