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  • Overall approach
    2/10
    • Overarching commitment on deforestation
      0/4
      Overall commitment
      Commodity-specific commitment - commitment that does not apply to all of the commodities the company is exposed to
      0/4
      Which commodities does the commodity-specific commitment apply to?: Palm oil

      Do they have a commitment for other non-Forest 500 commodities, if so which?: NA
      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
      Awareness
      Yes
      1/1
      "Scope of Policy This Policy Statement applies to all the palm oil related operations of KLK...Protecting High Conservation Value Areas ➢ Conservation of biodiversity by identifying, protecting and maintaining HCV areas"
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: NA

      Which commodities does it apply to?: Palm oil
      "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 SSC, formed in September 2015, headed by the 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 a monitoring role to ensure KLK meets both its compliance and sustainable development responsibilities. The SWC supports the SSC. It comprises of representatives from Plantation, KLK OLEO and the Sustainability team. Its role includes developing and driving policies with time bound action plans. "
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Reforestation disclosure
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 9,341 hectares
      "We are also committed to the HCV and HCS approaches by planting natural vegetation and forest trees. A total of 9,341 hectares has been conserved in order to protect and enhance the biodiversity value of such areas. To date, we have planted 352,217 forest/fruit trees spread over our Malaysian and Indonesian operating centres. 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
    32/90
    • Palm oil
      51/90
      • Commitment Strength
        15/17
        • Commodity-specific deforestation commitment
          8/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO

            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            When was this commitment set?: 2018
            "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...1 No Deforestation ➢ Practice a strict No Deforestation policy by applying the High Carbon Stock Approach (“HCSA”) methodology, and any associated social requirements and implementation guidance and not clearing high carbon stock forests as defined in the HCSA. ➢ New development areas will undergo integrated High Conservation Value (“HCV”) and HCSA assessments...Practice a strict No New Development and Drainage of Peatlands policy, regardless of depth...Conservation of biodiversity by identifying, protecting and maintaining HCV areas...KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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...1 No Deforestation ➢ Practice a strict No Deforestation policy by applying the High Carbon Stock Approach (“HCSA”) methodology, and any associated social requirements and implementation guidance and not clearing high carbon stock forests as defined in the HCSA. ➢ New development areas will undergo integrated High Conservation Value (“HCV”) and HCSA assessments...Practice a strict No New Development and Drainage of Peatlands policy, regardless of depth...Conservation of biodiversity by identifying, protecting and maintaining HCV areas...KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification."
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "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...1 No Deforestation ➢ Practice a strict No Deforestation policy by applying the High Carbon Stock Approach (“HCSA”) methodology, and any associated social requirements and implementation guidance and not clearing high carbon stock forests as defined in the HCSA. ➢ New development areas will undergo integrated High Conservation Value (“HCV”) and HCSA assessments...Practice a strict No New Development and Drainage of Peatlands policy, regardless of depth...Conservation of biodiversity by identifying, protecting and maintaining HCV areas...KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification."
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "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...1 No Deforestation ➢ Practice a strict No Deforestation policy by applying the High Carbon Stock Approach (“HCSA”) methodology, and any associated social requirements and implementation guidance and not clearing high carbon stock forests as defined in the HCSA. ➢ New development areas will undergo integrated High Conservation Value (“HCV”) and HCSA assessments...Practice a strict No New Development and Drainage of Peatlands policy, regardless of depth...Conservation of biodiversity by identifying, protecting and maintaining HCV areas...KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification."
        • Commitment to a traceable supply chain
          8/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: NA
            "Traceability to Plantations Level for KLK POMs KLK has achieved 100% traceability to plantations of our own mills"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            What subsidiaries are explicitly excluded?: NA

            What percentage of commodity production/sourcing is excluded?: NA

            What is the rationale for any exclusions?: NA

            What subsidiaries are explicitly included?: NA
            "Traceability to Plantations Level for KLK POMs KLK has achieved 100% traceability to plantations of our own mills"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: NA
            "Traceability to Plantations Level for KLK POMs KLK has achieved 100% traceability to plantations of our own mills"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: NA
            "Traceability to Plantations Level for KLK POMs KLK has achieved 100% traceability to plantations of our own mills"
      • Associated Human Rights Abuses
        8/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; UN Declaration for HR; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Tier 1

          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...Prohibit the use of forced or bonded labour...Prohibit the employment of child labour...Provide a safe and healthy workplace environment...Provide a safe and healthy workplace environment....Recognise and respect the right of employees to form and join trade unions of their choice and to bargain collectively....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
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          What is the nature of that support?: Certification; Education and training, Economic

          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: 6751
          "In an effort to encourage participation, KLK carries out socialisation which shares the benefits of the Indonesian Plasma scheme. Members of the Koperasi which manage the local community who owns plantations, also participate in the socialisation. Currently, socialisations are held at our East Kalimantan’s main complex. Similar events are expected to be held in Belitung Island and Riau...We assist them in obtaining RSPO certification and have set target timelines...The Company has allocated 9,840 hectares to approximately 6,751 schemed smallholders under the plasma Scheme. This spans over the islands of Sumatra (Riau), Belitung, Central and East Kalimantan."
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: 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 test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Tier 1
          "New development areas will undergo integrated High Conservation Value (“HCV”) and HCSA assessments to determine eligible planting areas with priority given to low carbon stock areas (e.g. grasslands and scrub areas) which have no demonstrable HCV, and where Free, Prior and Informed Consent (“FPIC”) has been obtained from rights-holders."
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        28/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          "Total CSPO uptake is 735,371 mt or 88% of total certified oil, where 69% is RSPO uptake and 31% is ISCC uptake • 87% of our total Group landbank is RSPO Certified"
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, encouraged
          0/3
          "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 initiatives does the company participate in?: Bornion Smallholders’ Project

          What is the nature of that participation?: Providing support/ advice/ experience/ expertise
          "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."
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • 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?: NA
          "In November 2020, we engaged Earthqualizer (“EQ”) for the satellite monitoring of our suppliers to ensure there is no deforestation, no new clearing on peatland and no fire hotspots. EQ will provide us biweekly report and we have regular meetings with them to discuss on the cases whereby our suppliers are alleged to be involved in any wrongdoings. With this report, we are able to proactively engage our suppliers to validate the case and discuss on the remedied plans, if any"
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "All Suppliers should respect the principles of this Supplier Code of Conduct (hereinafter referred to as “Code”) and adopt practices within their operations and supply chains that are consistent with it. [...] Regulations and Compliance ➢ Complying with applicable national and/or local laws, relevant regulations, standards, and respecting contractual obligations. [...] 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."
        • 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
          "Grievances can be submitted through the following channels:• by email: [email protected]• by e-Grievance Form The procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting non-certified/non-compliant volume: NA

          Reporting certified/compliant volume: 69%

          What product types/sectors is this in?: NA

          Total volume: NA
          "• Total CSPO uptake is 735,371 mt or 88% of total certified oil, where 69% is RSPO uptake and 31% is ISCC uptake"
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "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."
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: Restore and rehabilitate non compliant areas

          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
          "High Carbon Stock Approach (“HCSA”) KLK is a member of the HCSA. New developments in regions where KLK operates undergo integrated HCV and HCS assessments in accordance to the HCSA methodology – the HCSA Toolkit version 2.0. Areas eligible for development will undergo evaluation, taking into consideration the high carbon stock areas. We are committed to restore or rehabilitate non-compliant areas and we expect our suppliers to do the same. "
        • Upstream: Reporting production/processing locations
          Reports location of certified land holdings; Reports location of land holdings under conservation; Reports location of un-certified land holdings; Reports location of company-owned processing facilities
          4/4
          Upstream: Reporting production/processing locations
          Reports location of certified land holdings; Reports location of land holdings under conservation; Reports location of un-certified land holdings; Reports location of company-owned processing facilities
          4/4
          For what percent are boundaries disclosed?: 100%

          In what jurisdiction(s)/subnational region does the company operate and/or source material?: Bangka Belitung, Central Kalimantan, East Kalimantan, North Sumatra, Riau, Johor, Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, Sabah, Selangor

          What is the area, in hectares of production units, on which non-DCF commodities are produced or processed, by country and jurisdiction: NA

          What is the total area (in ha) of natural ecosystem on land owned, managed, or controlled by the company?: 19,076 ha

          For what percent are point locations (of holdings under conservation) disclosed?: NA

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

          For what percent are point locations (of certified land holdings) disclosed?: NA

          What types of ecosystems are these?: NA

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

          For what percent are boundaries (of certified land holdings) disclosed?: NA

          What is the volume of each forest risk commodity that the company produced/processed/sourced in the previous year from each national or subnational location?: NA

          What is the total land area owned, managed, or controlled by the company for the forest risk commodity?: 257,425 ha

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

          For what percent are point locations (of land holdings and processing facilities) disclosed: NA

          From what sub-national jurisdiction(s) does the company source material?: NA

          What is the total area in production (in ha)?: 247,458 ha

          In what country(ies) does the company operate and/or source material?: Malaysia, Indonesia, Liberia
          KLK provide a document titled "LOCATION OF THE GROUP’S PLANTATION OPERATIONS AS AT 30 SEPTEMBER 2021" on their website that list locations in Indonesia, Malaysia and Liberia including an interactive map. Land areas are specified in their 2020 RSPO ACOP report.
        • Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          For what percent of suppliers' production areas are point locations disclosed?: 100%

          What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA

          What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA

          For what percent is no location data disclosed?: NA

          For what percent are boundaries disclosed?: NA

          For what percent of smallholder suppliers is location disclosed?: NA

          From what country(ies) does the company source material?: Indonesia

          From what sub-national jurisdiction(s) does the company source material?: North Sumatra ; Riau ; Bangka Belitung ; Central Kalimantan ; East Kalimantan

          Does the company disclose location of suppliers' production areas or primary processing sites?: No
          "The palm products produced at KLK are traceable right up to its respective palm oil mills (POMs), refineries and kernel crushing plants (KCPs)...KLK has taken steps to understand the practices of its third-party suppliers and to include them in its traceable data. To further improve transparency towards traceable palm products, KLK has made available the GPS coordinates of its POMs, KCPs, Refineries and their respective supply bases below:..." KLK provide a map showing the various sites within Indonesia from which they source palm oil.
        • 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
          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?: NA

          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          How frequently is compliance assessed?: Not specified

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

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

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
          "• Conduct engagement with first tier suppliers, including NDPE Compliance Verification at “high risk” suppliers • Data collation from collection centres/dealers on second tier suppliers (indirect) • Conduct engagement with second tier suppliers together with collection centres/dealers including NDPE Compliance Verification at “high risk” suppliers - In Progress"
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          How frequently is compliance assessed?: Continuously

          How is compliance monitored?: Internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: NA

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: NA
          "This Policy Statement applies to all the palm oil related operations of KLK, its subsidiaries, jointventures 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 sustainability policy

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Discuss remedy plans
          "In November 2020, we engaged Earthqualizer (“EQ”) for the satellite monitoring of our suppliers to ensure there is no deforestation, no new clearing on peatland and no fire hotspots. EQ will provide us biweekly report and we have regular meetings with them to discuss on the cases whereby our suppliers are alleged to be involved in any wrongdoings. With this report, we are able to proactively engage our suppliers to validate the case and discuss on the remedied plans, if any"
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
    • Pulp & Paper *
      13/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        6/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Other workers' rights commitments: Living wage; Guaranteed safe and healthy workspaces

          How far back in the supply chain does this commitment apply?: Tier 1

          Details of commitment: ILO; 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...Prohibit the use of forced or bonded labour...Prohibit the employment of child labour...Provide a safe and healthy workplace environment...Provide a safe and healthy workplace environment....Recognise and respect the right of employees to form and join trade unions of their choice and to bargain collectively....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
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: 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 test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Unspecified
          "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 respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        7/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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

          Which issues does the grievance mechanism cover?: Social; Environmental
          "Grievances can be submitted through the following channels:• by email: [email protected]• by e-Grievance Form The procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: Regular engagement sessions - strong enough evidence?

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "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."
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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 *
      13/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        6/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: Tier 1

          Other workers' rights commitments: Living wage; Guaranteed safe and healthy workspaces

          Details of commitment: ILO; 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...Prohibit the use of forced or bonded labour...Prohibit the employment of child labour...Provide a safe and healthy workplace environment...Provide a safe and healthy workplace environment....Recognise and respect the right of employees to form and join trade unions of their choice and to bargain collectively....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
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: 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 test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: Unspecified
          "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 respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        7/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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
          Which issues does the grievance mechanism cover?: Social; Environmental

          What is the nature of the grievance mechanism used by the company?: Own mechanism
          "Grievances can be submitted through the following channels:• by email: [email protected]• by e-Grievance Form The procedure can be viewed at https://www.klk.com.my/sustainability/grievance"
        • Report volumes of commodity sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What is the status of those FPIC processes?: NA

          What steps has the company taken to implement their labour rights commitment?: Regular engagement sessions - strong enough evidence?

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          "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."
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          No
          0/4
          Downstream: Reporting suppliers
          No
          0/4
          Does the company disclose location of suppliers' production areas or primary processing sites?: No
        • 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: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    8/17
    Avg. score
  • Implementation and Reporting
    17/56
    Avg. score
  • Associated Human Rights Abuses
    7/17
    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 
Agricultural Products, Construction & Engineering, Distributors, Paper Packaging
Segments
Producer, Trader, Processor, Manufacturer
HQ
HQ 
Malaysia
Company Type
Company type 
CO
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.