IOI Properties integrates sustainability across its operations
This article first appeared in The Edge Malaysia Weekly on October 20, 2025 - October 26, 2025
IOI Properties Group Bhd (KL:IOIPG) won gold in the property sector for the third year running at The Edge Malaysia ESG Awards 2025. Lee Yeow Seng, group CEO of IOI Properties, says the company’s proudest ESG achievement over the past year has been its steady progress in embedding sustainability in its operations.
“IOI City Mall now houses the largest retail mall rooftop solar PV system, with a total capacity of 7.57MWp. Many of our sales galleries have also been equipped with solar panels, extending clean energy adoption across our operations. Together, these initiatives have enabled the group to avoid 7,582 tonnes of CO2 emissions, significantly reducing our environmental footprint,” says Lee.
This led to the company achieving its highest ESG score of 4.3 out of 5, placing IOI Properties in the top 3% of FTSE4Good ratings in Malaysia, says Lee.
The FTSE4Good Index Series is designed to measure the performance of companies demonstrating specific ESG practices.
The company also paved its transition towards a sustainable future with the launch of the IOI Sustain Roadmap 2030 (ISR 2030) in late 2024.
ISR 2030 is a strategic blueprint that guides the company’s transition towards a sustainable and resilient future, anchored on 12 core strategies and aligned with Malaysia’s national aspirations and the United Nations Sustainable Development Goals, says Lee.
It also sets a clear path to achieve net zero by 2050, with near-, mid- and long-term focus areas covering both operational and embodied carbon across the group.
“It focuses on priority areas such as climate action, biodiversity conservation, circular waste management, sustainable finance, responsible supply chains, employee well-being and the management of sustainability risks and opportunities,” says Lee.
Keeping pace with rising ESG expectations of stakeholders and the growing complexity of regulatory requirements, alongside rapidly evolving standards and frameworks such as the National Sustainability Reporting Framework and International Financial Reporting Standards, is challenging, says Lee.
IOI Properties has been addressing this challenge through technology and cross-functional collaboration, as well as initiating and driving sustainability progress through its sustainability team.
“By leveraging on our centralised and digitalised platform, we will continue to strengthen sustainability data integrity and accelerate performance management. While technology is a powerful enabler of ESG progress, it is ultimately our people who bring it to life and drive meaningful impact,” says Lee.
He adds that the company is committed to enhancing ESG literacy and cultivating a sustainability-focused mindset by integrating sustainability into the core of its business strategy.
The company implements awareness programmes and training to deepen understanding of economic, environmental, social and governance (EESG) principles.
To make ESG adoption more effective in Malaysia, a deeper understanding of the complexities involved in integrating the pillars of EESG into business strategies is crucial, says Lee. This requires access to low-carbon materials, appropriate technologies and the ability to maintain cost efficiency in business operations.
He adds that there is a need for clear, sector-specific guidance on the practical implementation of decarbonisation initiatives to support the government’s commitment to net zero and the nationally determined contributions.
“Establishing dedicated agencies to provide such guidance will be vital to ensure businesses have access to suitable technologies, incentives and frameworks to decarbonise effectively, in line with the nation’s aspirations to address the climate crisis,” says Lee.
“Such measures will accelerate the net zero transition across the real estate ecosystem, foster collaboration among industry players, policymakers and stakeholders, and ultimately build long-term business resilience.”