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  • Overall approach
    2/12
    • Overarching commitment on deforestation
      0/4
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Commodities (if applicable): Palm oil
      In their 2020 Sustainability report KLK state: "No Deforestation - Our Policy upholds KLK’s No Deforestation commitment by applying the HCSA methodology for new oil palm development. New areas will undergo integrated HCV and HCS assessments to determine the eligible planting areas with priority given to low carbon stock areas which have no demonstrable HCV, and where Free, Prior and Informed Consent (“FPIC”) has been obtained from rights-holders."
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "HCV areas include areas that contain significant concentration of biological values, areas with rare, threatened and endangered species and areas that provide nature services and is fundamental to meeting basic needs of local communities and critical to local communities’ traditional cultural identity"
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      Yes
      1/1
      "The Board of Directors (“BOD”) governs and leads KLK’s overall responsibility in integrating sustainable economic, environmental and social initiatives throughout the Group’s business strategies. The BOD is supported by the Sustainability Steering Committee (“SSC”), formed in September 2015, headed by the Chief Executive Officer (“CEO”) with members comprising the Group Plantations Director, Managing Director of KLK OLEO and representatives of the Sustainability team. The CEO reports to the BOD on key issues which impact the Group’s sustainable responsibilities and commitments. The SSC’s mandate is to develop sustainable strategies and policies, and to assist the BOD’s decision-making efforts. The SSC also has the monitoring role to ensure KLK meets both its compliance and sustainable development responsibilities. The SSC is supported by the Sustainability Working Committee (“SWC”). With representatives from Plantation, KLK OLEO and the Sustainability team, its role includes developing and driving the policies with time-bound plans. "
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 15,429 hectares
      "A total of 15,429 hectares has been conserved in order to protect and enhance the biodiversity value of such areas.To date, we have planted 243,449 forest/fruit trees spread over our Malaysian and Indonesian OCs. Our goal is to plant 1,000,000 trees so that we can make an impactful contribution to the environment."
    • Target to reduce emissions in scope 1/2
  • Commodity score
    41/88
    • Palm oil
      66/88
      • Commitment Strength
        19/20
        • Commitment to protect priority forests
          7/8
          • Commitment details
            Zero-net conversion
            5/6
            Commitment to protect priority forests
            Zero-net conversion
            5/6
            Which certification schemes are used?: RSPO
            In their 2020 Sustainability report KLK state: "No Deforestation, No Peatland and No Exploitation (“NDPE”) Compliance Verification • Appoint Certification Body accredited by RSPO"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            In their 2020 Sustainability report KLK state: "No Deforestation, No Peatland and No Exploitation (“NDPE”) Compliance Verification • Appoint Certification Body accredited by RSPO"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            In their 2020 Sustainability report KLK state: "No Deforestation, No Peatland and No Exploitation (“NDPE”) Compliance Verification • Appoint Certification Body accredited by RSPO"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            In their 2020 Sustainability report KLK state: "No Deforestation, No Peatland and No Exploitation (“NDPE”) Compliance Verification • Appoint Certification Body accredited by RSPO"
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "KLK commits to no deforestation. We adopt the High Carbon Stock Approach Toolkit through which the HCS Approach methodology is standardised and implemented, to identify areas suitable for its new oil palm development."; "KLK is pursuing sustainability via RSPO certification of its CPO production which entails best practices, care of the environment and managing the social aspects."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "KLK commits to no deforestation. We adopt the High Carbon Stock Approach Toolkit through which the HCS Approach methodology is standardised and implemented, to identify areas suitable for its new oil palm development."; "KLK is pursuing sustainability via RSPO certification of its CPO production which entails best practices, care of the environment and managing the social aspects."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "KLK commits to no deforestation. We adopt the High Carbon Stock Approach Toolkit through which the HCS Approach methodology is standardised and implemented, to identify areas suitable for its new oil palm development."; "KLK is pursuing sustainability via RSPO certification of its CPO production which entails best practices, care of the environment and managing the social aspects."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "KLK commits to no deforestation. We adopt the High Carbon Stock Approach Toolkit through which the HCS Approach methodology is standardised and implemented, to identify areas suitable for its new oil palm development."; "KLK is pursuing sustainability via RSPO certification of its CPO production which entails best practices, care of the environment and managing the social aspects."
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs, refineries and kernel crushing plants."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "KLK POMs – 100% traceable to plantations by end of 2019... As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs, refineries and kernel crushing plants... we have committed to ensuring that our palm products are traceable from estates to mills and refineries, and ultimately to buyers in both local and international markets."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            What actions or steps are identified for time-bound implementation?: The commitment to tracing back to mill is current. 
            "KLK POMs – 100% traceable to plantations by end of 2019... As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs, refineries and kernel crushing plants... we have committed to ensuring that our palm products are traceable from estates to mills and refineries, and ultimately to buyers in both local and international markets."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "KLK POMs – 100% traceable to plantations by end of 2019... As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs, refineries and kernel crushing plants... we have committed to ensuring that our palm products are traceable from estates to mills and refineries, and ultimately to buyers in both local and international markets."
      • Social Considerations
        15/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Living wage; Guaranteed safe and healthy workspaces
          "Recognise the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations, including prohibition of retaliation against Human Rights  Defenders (“HRD”) in accordance to the United Nations Declaration on HRD. ➢ Respect and uphold the rights of all workers, including local, contract, temporary and migrant  workers, with the International Labour Organisation’s core conventions, United Nations Guiding Principles on Business and Human Rights, and the principles of Free and Fair Labour in Palm Oil Production as guidance...Prohibit the use of forced or bonded labour or human trafficking. ➢ Ensure there are no restrictions on the workers’ freedom of movement.➢ Prohibit any deductions from any part of workers’ wages and withholding any property, identification cards, passports or other travel documents unless provided by law.➢ Prohibit the employment of child labour and set the minimum age for employment consistent with applicable laws.➢ Remedial actions with appropriate follow up actions shall be employed if any child labour case is uncovered to protect the welfare of the child. This includes access to comprehensive health and social protection measures, education opportunities relevant to their age and development.➢ Provide a safe and healthy workplace environment...Ensure all workers are paid a wage equal to or exceeding the legal minimum wage and are covered for work-related illness and injuries...Zero tolerance for any type of harassment, intimidation or violence. ➢ Ensure equal opportunities in the workplace.➢ There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age."
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Certification; Economic

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 6,290 schemed smallholders
          "Facilitate Inclusion of Smallholders/ Farmers into the Supply Chain... Our Indonesian Plasma Scheme is an initiative for the development of oil palm plantations for smallholders and small growers... KLK has allocated 12,579 hectares to approximately 6,290 schemed smallholders under the Plasma Scheme. This spans over the islands of Sumatra (Riau), Belitung, Central and East Kalimantan. Todate, we have also subsidised RM18.1 million in loan interest for schemed smallholders under this plasma schemes."
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age. ➢ Reproductive rights in line with the country’s laws shall be respected"
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          Type of harm covered: Social harm
          "Remedial actions with appropriate follow up actions shall be employed if any child labour case is uncovered to protect the welfare of the child. This includes access to comprehensive health and social protection measures, education opportunities relevant to their age and development"
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "In their 2020 Sustainability report KLK state: "No Deforestation - Our Policy upholds KLK’s No Deforestation commitment by applying the HCSA methodology for new oil palm development. New areas will undergo integrated HCV and HCS assessments to determine the eligible planting areas with priority given to low carbon stock areas which have no demonstrable HCV, and where Free, Prior and Informed Consent (“FPIC”) has been obtained from rights-holders."
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        32/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            "As of August 2020, there is no illegal or non-compliant deforestation recorded in our operations."; In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil.
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "To date, our Plantation Traceability Status is as follows: For Palm Oil Mills - Traceability to plantations for  - Group: 100%, Malaysia 100%, Indonesia 100%; For Refineries and Kernel Crushing Plants Traceability to Palm Oil Mills Group 100%, Malaysia 100%, Indonesia 100%; Traceability to Plantations Group 72% traceable, Malaysia 52% traceable, Indonesia 91% traceable" 
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: RSPO

            What percent of the company's supply volume is verified using company verification systems?: 82.57%

            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
            In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: Certification scheme
            "As of August 2020, there is no illegal or non-compliant deforestation recorded in our operations."; In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil.
          • Commitment to a traceable supply chain
            No
            0/1
            Commitment to a traceable supply chain
            No
            0/1
            -
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Providing support/advice/experience/expertise

          What initiatives does the company participate in?: Bornion Smallholders Project 
          "This project started five (5) years ago. We have successfully assisted, with the facilitation by Wild Asia, the participating smallholders and out-growers to obtain the RSPO Certification. A total of 56 smallholders and four (4) out-growers continue to uphold their certification status and stay on as members of the Wild Asia Group Scheme. The journey of certification has taught them good agronomic and management practices. They continue to receive incentives from our Bornion palm oil mill as one of the preferred smallholder suppliers of FFB. They are also rewarded with token premium from “book-and-claim”. We will continue to render indirect assistance to this group of smallholders when the need arises."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: bi-weekly

          For what percentage of material produced or sourced by the company has forest risk been assessed?: 0 not specified
          "In late 2020, we engaged Earthqualizer, a non-profit organisation, for satellite-monitoring of our supplier groups’ past and current non-compliance with NDPE policy with a cut-off date of 31 December 2015. Bi-weekly supplier monitoring reports will be provided to us, which will enable us to take proactive action by engaging with the suppliers ahead of time should any non-compliance occur."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Conduct business in an honest and ethical manner; and comply with applicable laws and regulations... KLK is committed to ensuring its products are produced in a sustainable manner. This is realised through continual assessment of its suppliers, ..." 
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism

          Which issues does the grievance mechanism cover?: Environmental
          "Grievances can be submitted through the following channels:• by email: sustainability@klk.com.my• by e-Grievance FormThe procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 1045486.0 tonnes
          In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil. 
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          What third-party verification is used?: RSPO

          What is the non-certified/non-compliant volume?: 571650 tonnes

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 82.57%

          What is the compliant volume?: 473836.0 tonnes

          What is the certified volume?: 473836.0 tonnes
          In the 2020 RSPO ACOP report, KLK report producing 1045486.0 tonnes of palm oil with 473836.0 tonnes of certified palm oil.
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance. KLK understands that Suppliers might face difficulties in implementing some or all of the above stated principles. Therefore, KLK aims to hold regular engagement sessions with its Suppliers in order to achieve compliance with this Code; understand Suppliers’ concerns on the same and work towards resolving them. KLK (or 3rd party appointed by KLK) may carry out announced audit or visit on the Suppliers, their facilities and business practices to verify compliance with this Code. Should there be non-compliance with any aspect of the Code, KLK reserves the right to take action as stipulated in the KLK Sustainability Policy Non-Compliance Protocol."
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: 0 not specified

          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Restore or rehabilitate
          "New Development Area•Conduct integrated HCV and HCSA assessments•Engagement with Civil Society Organisations (“CSOs”) and local communities during the course of preparing Integrated Conservation and Land Use Planning (“ICLUP”)...KLK’s strengthened commitment in this area is clearly illustrated via two (2) major initiatives. First, on 2 October 2018, KLK was officially inducted as a member of the HCSA. Second, our revised Policy in August 2018 brought about refinement to the Company’s No Deforestation pledge.With these commitments in place, new developments in regions where KLK operates will undergo integrated HCV and HCS assessments in accordance to the HCSA methodology – HCSA Toolkit version 2.0. As a result, areas eligible for development will undergo evaluation, taking into consideration of the high carbon stock areas. In case there is any non-compliant clearing, KLK is committed to restore or rehabilitate the area. We expect our suppliers to do the same."
        • Upstream: Reporting production/processing locations
          Reports location of land holdings under conservation; Reports location of un-certified land holdings; Reports location of company-owned processing facilities
          3/4
          Upstream: Reporting production/processing locations
          Reports location of land holdings under conservation; Reports location of un-certified land holdings; Reports location of company-owned processing facilities
          3/4
          What is the total area in production (in ha)?: 213,377 ha

          What types of ecosystems are these?: Tropical rainforest

          What type of conservation designation and/or conservation status is used?: HCV

          What is the total area of land (in ha) that is available for future production, e.g. concessions?: 7,417 ha

          What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 7,417 ha

          For what percent are boundaries (of holdings under conservation) disclosed?: 100%

          What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 213,377 ha

          In what country(ies) does the company operate and/or source material?: Indonesia, Malaysia and Liberia 
          KLK published on its website a document with "LOCATION OF THE GROUP’S PLANTATION OPERATIONS AS AT 30 SEPTEMBER 2020" in Indonesia and Malaysia and an interactive map with locations in Indonesia, Malaysia and Liberia with detailed reports. 
        • Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes, report direct suppliers
          2/4
          From what country(ies) does the company source material?: Malaysia, Indonesia
          "As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs, refineries and kernel crushing plants. Traceability to Plantations Level for KLK POMs During the year under review, we faced challenges in data collation relating to land ownership and licensing requirements e.g. MPOB licence from collection centres/dealers on 2nd tier suppliers, due to the COVID-19 travel restrictions." KLK also provide a suppliers map on their website. 
        • Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using a third-party verification system
          4/4
          Does the company use a jurisdictional monitoring mechanism?: No

          If so, what jurisdictions and mechanisms does the company use?: RSPO

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: RSPO

          How frequently is compliance assessed?: not specified

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 0 not specified

          For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: 0 not specified

          Does the company use a certification system?: Yes
          "Action Plan...No Deforestation, No Peatland and No Exploitation (“NDPE”) Compliance Verification, Appoint Certification Body accredited by RSPO, Quality review by High Conservation Value Resource Network (“HCVRN”)* and High Carbon Stock Approach (“HCSA”) quality panels• Internal audit by KLK Sustainability Team•Engagement with independent party to verify NDPE Compliance Verification"
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          How frequently is compliance assessed?: Continuously 

          Details of monitoring: Using internal monitoring and verification systems
          "This Policy Statement applies to all the palm oil related operations of KLK, its subsidiaries, joint ventures and companies over which it has management control. KLK would also require all its business dealings and trading activities to comply with this Policy. [...] KLK takes the commitments in this Policy seriously and will continuously engage with its stakeholders to ensure compliance. [...] KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification."
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What criteria does the policy specify for blacklisting or exclusion?: Non-compliance

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Proactive action to engage 
          "As part of our commitment to transparency, we update and publish suppliers’ list half yearly on our website. In late 2020, we engaged Earthqualizer, a non-profit organisation, for satellite-monitoring of our supplier groups’ past and current non-compliance with NDPE policy with a cut-off date of 31 December 2015. Bi-weekly supplier monitoring reports will be provided to us, which will enable us to take proactive action by engaging with the suppliers ahead of time should any noncompliance occur. We will continue to engage with suppliers and update the status in our Grievance List if there is any non-compliance identified either by our own satellite-monitoring initiative or other stakeholders."
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      15/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/8
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to reduce use of virgin wood fibre
          0/5
          • Commitment details
            No
            0/3
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
        • Commitment to a traceable supply chain
          0/6
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/1.3
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        9/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          Other workers' rights commitments: Living wage; Guaranteed safe and healthy workspaces
          "Recognise the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations, including prohibition of retaliation against Human Rights  Defenders (“HRD”) in accordance to the United Nations Declaration on HRD. ➢ Respect and uphold the rights of all workers, including local, contract, temporary and migrant  workers, with the International Labour Organisation’s core conventions, United Nations Guiding Principles on Business and Human Rights, and the principles of Free and Fair Labour in Palm Oil Production as guidance...Prohibit the use of forced or bonded labour or human trafficking. ➢ Ensure there are no restrictions on the workers’ freedom of movement.➢ Prohibit any deductions from any part of workers’ wages and withholding any property, identification cards, passports or other travel documents unless provided by law.➢ Prohibit the employment of child labour and set the minimum age for employment consistent with applicable laws.➢ Remedial actions with appropriate follow up actions shall be employed if any child labour case is uncovered to protect the welfare of the child. This includes access to comprehensive health and social protection measures, education opportunities relevant to their age and development.➢ Provide a safe and healthy workplace environment...Ensure all workers are paid a wage equal to or exceeding the legal minimum wage and are covered for work-related illness and injuries...Zero tolerance for any type of harassment, intimidation or violence. ➢ Ensure equal opportunities in the workplace.➢ There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age. ➢ Reproductive rights in line with the country’s laws shall be respected"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "All Suppliers should respect the principles of this Code and adopt practices within their operations and supply chains that are consistent with it. Respect, uphold and recognise the rights of indigenous and local communities, to give or withhold their Free, Prior and Informed Consent (“FPIC”) to operations on lands to which they hold legal, communal or customary rights in accordance with the United Nations Declaration on the Rights of Indigenous Peoples."
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        6/50
        • Reporting against commitments
          0/2
          • Commitment to protect priority forests
            No
            0/1.7
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.7
          • Commitment to a traceable supply chain
            No
            0/1.7
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            No
            0/1
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Conduct business in an honest and ethical manner; and comply with applicable laws and regulations... KLK is committed to ensuring its products are produced in a sustainable manner. This is realised through continual assessment of its suppliers, .
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism

          Which issues does the grievance mechanism cover?: Social; Environmental

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
          "Grievances can be submitted through the following channels:• by email: sustainability@klk.com.my• by e-Grievance Form The procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance. KLK understands that Suppliers might face difficulties in implementing some or all of the above stated principles. Therefore, KLK aims to hold regular engagement sessions with its Suppliers in order to achieve compliance with this Code; understand Suppliers’ concerns on the same and work towards resolving them. KLK (or 3rd party appointed by KLK) may carry out announced audit or visit on the Suppliers, their facilities and business practices to verify compliance with this Code. Should there be non-compliance with any aspect of the Code, KLK reserves the right to take action as stipulated in the KLK Sustainability Policy Non-Compliance Protocol."
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Timber *
      15/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/11
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        9/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Other workers' rights commitments: Living wage; Guaranteed safe and healthy workspaces

          Details of commitment: ILO; UNGP; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association
          "Recognise the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations, including prohibition of retaliation against Human Rights  Defenders (“HRD”) in accordance to the United Nations Declaration on HRD. ➢ Respect and uphold the rights of all workers, including local, contract, temporary and migrant  workers, with the International Labour Organisation’s core conventions, United Nations Guiding Principles on Business and Human Rights, and the principles of Free and Fair Labour in Palm Oil Production as guidance...Prohibit the use of forced or bonded labour or human trafficking. ➢ Ensure there are no restrictions on the workers’ freedom of movement.➢ Prohibit any deductions from any part of workers’ wages and withholding any property, identification cards, passports or other travel documents unless provided by law.➢ Prohibit the employment of child labour and set the minimum age for employment consistent with applicable laws.➢ Remedial actions with appropriate follow up actions shall be employed if any child labour case is uncovered to protect the welfare of the child. This includes access to comprehensive health and social protection measures, education opportunities relevant to their age and development.➢ Provide a safe and healthy workplace environment...Ensure all workers are paid a wage equal to or exceeding the legal minimum wage and are covered for work-related illness and injuries...Zero tolerance for any type of harassment, intimidation or violence. ➢ Ensure equal opportunities in the workplace.➢ There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          "There shall be no discrimination based on ethnic origin, caste, disability, sexual orientation, nationality, race, religion, gender identity, union membership, political affiliation or age. ➢ Reproductive rights in line with the country’s laws shall be respected"
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "All Suppliers should respect the principles of this Code and adopt practices within their operations and supply chains that are consistent with it. Respect, uphold and recognise the rights of indigenous and local communities, to give or withhold their Free, Prior and Informed Consent (“FPIC”) to operations on lands to which they hold legal, communal or customary rights in accordance with the United Nations Declaration on the Rights of Indigenous Peoples."
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        6/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/2
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance."
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "Conduct business in an honest and ethical manner; and comply with applicable laws and regulations... KLK is committed to ensuring its products are produced in a sustainable manner. This is realised through continual assessment of its suppliers, ..."
        • Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          Accessible grievance mechanism
          Yes, publicly accessible grievance mechanism
          2/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, etc.)?: Own mechanism

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Grievances can be submitted through the following channels:• by email: sustainability@klk.com.my• by e-Grievance FormThe procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          "Suppliers shall take the commitments in this Code and KLK Sustainability Policy seriously and should continually engage with its suppliers, contractors or trading partners to ensure compliance. KLK understands that Suppliers might face difficulties in implementing some or all of the above stated principles. Therefore, KLK aims to hold regular engagement sessions with its Suppliers in order to achieve compliance with this Code; understand Suppliers’ concerns on the same and work towards resolving them. KLK (or 3rd party appointed by KLK) may carry out announced audit or visit on the Suppliers, their facilities and business practices to verify compliance with this Code. Should there be non-compliance with any aspect of the Code, KLK reserves the right to take action as stipulated in the KLK Sustainability Policy Non-Compliance Protocol."
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    10/20
    Avg. score
  • Reporting and Implementation
    19/50
    Avg. score
  • Social considerations
    12/18
    Avg. score

Profile

Kuala Lumpur Kepong (KLK) is a Malaysian agribusiness company active in the cultivation, processing and manufacturing of palm oil and rubber, as well as being involved in property development. The company has one of the largest landbanks among palm oil producers across Malaysia, Indonesia and Liberia. It also owns several mills and two refineries and is among the top importers and exporters of palm oil in Indonesia. Kuala Lumpur Kepong Bhd. is selected as a powerbroker for palm oil and is also assessed for its exposure to timber and paper packaging.

Sector
Industry sector 
Agri commodities, Agriculture, Oils & fats
Segments
Producer, Trader, Processor, Manufacturer
HQ
HQ 
Malaysia
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.