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  • Overall approach
    2/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      Commodity-specific commitment
      0/6
      Commodities (if applicable): Palm oil
      "NO DEFORESTATION Our revised Sustainability Policy reaffirms the existing No Deforestation commitment of applying the HCSA methodology for new oil palm development."
      Open source document
    • Signatory to an initiative tackling deforestation
      0/1
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "KLK commits to the conservation of primary forests and HCV areas within the KLK context of sustainably managed landscape. 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."
      Open source document
    • Deforestation as a business risk
      0/1
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Palm oil

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Not specified
      "At KLK, sustainability is a fundamental aspect of how it conducts its business. This requires effective governance, leadership and on-going focus on compliance procedures. By establishing a robust governance structure, we are able to carry out our sustainability strategies across the Group and monitor their progress. We endeavour to realise the above mentioned by establishing a 3-tiered governance structure that captures the voice of top Management and the relevant departments. 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"
      Open source document
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • 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?: 133,900 ha
      "To date, we have planted 72,000 and 61,900 forest/fruit trees spread over our Malaysian and IndonesianOperating Centres (“OCs”) respectively"
      Open source document
  • Commodity score
    37/84
    • Palm oil
      60/84
      • Commitment Strength
        24/28
        • Commitment to protect priority forests
          8/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "KLK adopts the Principles & Criteria (“P&C”) set out by the Roundtable on Sustainable Palm Oil (“RSPO”) as the foundation of its sustainability practices, and is committed to the following commitments that build upon the requirements of the RSPO. [...] 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."
            Open source document
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
            Commitment applies to all regions, suppliers and operation
            No
            0/2
            If no, what is excluded?: Location
            company uses other certifications for operations in other countries - "Roundtable on Sustainable Palm Oil (RSPO) is a multi-stakeholder initiative that aims to transform the market to make sustainable palm oil the norm. As part of its sustainability drive, KLK is a member and has been actively working since 2008 towards RSPO certifications at its respective management units. This includes the RSPO Supply Chain certifications as well."
            Open source document
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "KLK adopts the Principles & Criteria (“P&C”) set out by the Roundtable on Sustainable Palm Oil (“RSPO”) as the foundation of its sustainability practices, and is committed to the following commitments that build upon the requirements of the RSPO. [...] 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."
            Open source document
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            "KLK adopts the Principles & Criteria (“P&C”) set out by the Roundtable on Sustainable Palm Oil (“RSPO”) as the foundation of its sustainability practices, and is committed to the following commitments that build upon the requirements of the RSPO. [...] 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."
            Open source document
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            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 committed to NO development on peat regardless of depth. We apply Good Agricultural Practices at our existing plantations on peat. We also work with experts to explore options including environmental friendly alternative land uses or peat restoration for peat areas that are found to be unsuitable for replanting. [...] KLK commits to the conservation of primary forests and HCV areas within the KLK context of sustainably managed landscape."
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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 committed to NO development on peat regardless of depth. We apply Good Agricultural Practices at our existing plantations on peat. We also work with experts to explore options including environmental friendly alternative land uses or peat restoration for peat areas that are found to be unsuitable for replanting. [...] KLK commits to the conservation of primary forests and HCV areas within the KLK context of sustainably managed landscape."
            Open source document
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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 committed to NO development on peat regardless of depth. We apply Good Agricultural Practices at our existing plantations on peat. We also work with experts to explore options including environmental friendly alternative land uses or peat restoration for peat areas that are found to be unsuitable for replanting. [...] KLK commits to the conservation of primary forests and HCV areas within the KLK context of sustainably managed landscape."
            Open source document
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: current
            Target date is current - see 3.2
            Open source document
        • Commitment to a traceable supply chain
          8/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "KLK Palm Oil Mills (POMs) – 100% traceable to plantations by endof 2019 [....] KLK Refineries – 100% traceable to plantations byend of 2020 [...] KLK OLEO – traceable to palm oil mills for palmoil-based and palm kernel oil based feedstock byend of 2020"
            Open source document
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "KLK Palm Oil Mills (POMs) – 100% traceable to plantations by endof 2019 [....] KLK Refineries – 100% traceable to plantations byend of 2020 [...] KLK OLEO – traceable to palm oil mills for palmoil-based and palm kernel oil based feedstock byend of 2020"
            Open source document
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "KLK Palm Oil Mills (POMs) – 100% traceable to plantations by endof 2019 [....] KLK Refineries – 100% traceable to plantations byend of 2020 [...] KLK OLEO – traceable to palm oil mills for palmoil-based and palm kernel oil based feedstock byend of 2020"
            Open source document
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: Current
            Target date is current - see 3.2
            Open source document
      • Social Considerations
        11/18
        • 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
          "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 [...] Recognize the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations. ➢ Respect and uphold the rights of all workers, including 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." [...] No Forced or Bonded Labour [...] There shall be no discrimination based on nationality, race, religion or gender. [...] No Child Labour [...] Freedom of Association"
          Open source document
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: Not specified

          What is the nature of that support?: Certification; Technical assistance/support; Education and training
          "Facilitate the Inclusion of Smallholders/Farmers into the Supply Chain ➢ KLK will strive to conduct continual consultations with smallholders, and together with other stakeholders/ farmers, provide technical assistance and support to smallholders/farmers to help them achieve compliance with this Policy." Support includes the following - "Kredit Koperasi Primer Scheme (KKPA Scheme)" [...] "Smallholders Project in Sabah" [...]Smallholder Tree Crops Revitalisation Support Project (STCRSP)" [...] "KLK has allocated 12,807 ha to approximately 6,400 planters under the Plasma Scheme. We actively engage with them to offer assistance in obtaining RSPO certification and have set target timelines. Our support comes in form of monetary funding, technical expertise and monitoring exercises. We are committed to certified these smallholders and small growers under RSPO three (3) years after the certification of the mill that they supply to."
          Open source document
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          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 [...] There shall be no discrimination based on nationality, race, religion or gender"
          Open source document
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          What is the status of those FPIC processes?: Current

          What percentage/number of new interests/developments/expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: Not specified
          "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. [...] 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."
          Open source document
      • Reporting and Implementation
        25/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes

            (Upstream only) How many hectares of land owned, controlled or managed is certified?: 0 Not specified

            (Downstream only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: 0 Not specified

            (Producers only) How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date on land owned, controlled, or managed by the company?: 0 not specified
            "KLK is one of its pioneer members and fully committed to certify all of its OCs. KLK’s Malaysian operations have been fully certified since 2014. For Indonesia, 11 of our 12 palm oil mills (“POMs”) are RSPO certified. The remaining, Tanjung Keliling Palm Oil Mill which was commissioned in FY2019 is targetted to be certified by 2020. As for our Indonesia estates, more than 80% are certified under RSPO with the balance to be certified by 2021. RSPO Certified Sustainable Palm Oil (“CSPO”) Our current annual production of RSPO CSPO is 707,383 mt, with Malaysia accounting for 55% of the total and the balance 45% for Indonesia. The total RSPO CSPO represented 70% of our total CPO produced during the FY. "
            Open source document
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "The revised Principles and Criteria (“P&C”) of RSPO 2018poses even more challenges to the palm oil industrywith the inclusion of NDPE policies. However, we arewell-prepared ahead of time to face these challenges withour Policy have already included these NDPE measures.KLK is one of its pioneer members and fully committedto certify all of its OCs. KLK’s Malaysian operations havebeen fully certified since 2014. For Indonesia, 11 of our 12palm oil mills (“POMs”) are RSPO certified. The remaining,Tanjung Keliling Palm Oil Mill which was commissioned inFY2019 is targetted to be certified by 2020.As for our Indonesia estates, more than 80% are certifiedunder RSPO with the balance to be certified by 2021.RSPO Certified Sustainable Palm Oil (“CSPO”)Our current annual production of RSPO CSPO is707,383 mt, with Malaysia accounting for 55% of the totaland the balance 45% for Indonesia.The total RSPO CSPO represented 70% of our totalCPO produced during the FY."
            Open source document
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            What percentage of the commodity volume in the company's supply chain is traceable to applicable supply chain levels (e.g. direct suppliers/processing facility/production unit)?: 57% traceable to plantation and 100% traceable to mill

            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "As indicated in our Policy, we have a time-bound plan to achieve 100% traceability to plantations for our POMs and refineries.During the FY, we achieved 99% traceability for all POMs in Malaysia and Indonesia except for Mill 1 in Sabah. Mill 1 remainsa challenge as it fully sources its FFB from external parties. However, we will continue to engage with the suppliers everymonth to meet our goal of 100% traceability to plantations for our POMs and refineries.To date, traceability level to POMs of our refineries and KCPs is 100%, whilst traceability level to the plantation is 57%."
            Open source document
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification

            What percent of the company’s supply volume is verified using company verification systems?: 100%

            Which processes or groups does the company use for third party verification?: RSPO Certification
            "KLK is one of its pioneer members and fully committed to certify all of its OCs. KLK’s Malaysian operations have been fully certified since 2014. For Indonesia, 11 of our 12 palm oil mills (“POMs”) are RSPO certified. The remaining, Tanjung Keliling Palm Oil Mill which was commissioned in FY2019 is targetted to be certified by 2020. As for our Indonesia estates, more than 80% are certified under RSPO with the balance to be certified by 2021. RSPO Certified Sustainable Palm Oil (“CSPO”) Our current annual production of RSPO CSPO is 707,383 mt, with Malaysia accounting for 55% of the total and the balance 45% for Indonesia. The total RSPO CSPO represented 70% of our total CPO produced during the FY. "
            Open source document
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO

            For what percent of the company’s supply volume is third-party verification of performance relative to commitments conducted?: 70%

            Which processes or groups does the company use for third party verification?: RSPO
            "The revised Principles and Criteria (“P&C”) of RSPO 2018poses even more challenges to the palm oil industrywith the inclusion of NDPE policies. However, we arewell-prepared ahead of time to face these challenges withour Policy have already included these NDPE measures.KLK is one of its pioneer members and fully committedto certify all of its OCs. KLK’s Malaysian operations havebeen fully certified since 2014. For Indonesia, 11 of our 12palm oil mills (“POMs”) are RSPO certified. The remaining,Tanjung Keliling Palm Oil Mill which was commissioned inFY2019 is targetted to be certified by 2020.As for our Indonesia estates, more than 80% are certifiedunder RSPO with the balance to be certified by 2021.RSPO Certified Sustainable Palm Oil (“CSPO”)Our current annual production of RSPO CSPO is707,383 mt, with Malaysia accounting for 55% of the totaland the balance 45% for Indonesia.The total RSPO CSPO represented 70% of our totalCPO produced during the FY."
            Open source document
          • Commitment to a traceable supply chain
            No
            0/1.3
        • 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
          "Bornion Smallholders’ Project: Together with Neste and Fuji Oil Holdings Inc. as partners, facilitated by Wild Asia, this project successfully assisted 56smallholders and 4 outgrowers in obtaining certification for approximately 824 ha and 9,629 mt of FFB."
          Open source document
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified
          "Traceability to Plantations for POMs: [...] Mapping is conducted based on the GPS coordinatescollected, followed by survey/delineation. Desktopanalysis on the suppliers is done using the riskanalysis methodology. For example, supplier’sestate which is located near protected forest isconsidered high risk and more engagement sessionsare required. A POM will only consider crop intakeafter the above-mentioned due diligence has beenconducted [...] As part of the initial stage of the project, KLK adopted the Risk-Calibrated Approach (“RCA”) to TTP designed by Daemeter.The RCA to TTP is built on two (2) premises:(a) That NDPE compliance risk varies in space; and(b) That the ‘grain’ or spatial resolution of TTP mapping should vary depending on such risk. The approach applies geo-spatial techniques to delineate high and low risk areas across the production landscapesurrounding POMs, considering three (3) simple indicators of risk: deforestation, encroachment into protected areas andnew development on peat. RCA’s aim is to prioritise mapping and other forms of engagement where it is most needed."
          Open source document
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          Relating the sustainability policy which explicitly includes all of it's palm oil operations and palm oil commitments - "Business Integrity ➢ Conduct business in an honest and ethical manner; and comply with applicable laws and regulations. [...] KLK takes the commitments in this Policy seriously and will continuously engage with its stakeholders to ensure compliance."
          Open source document
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Email and E-Grievance form

          Details of the mechanism: Social; Environmental
          "Grievance Procedure – Third Party.KLK is committed to address any grievance raised by our stakeholders relating to the implementation of its Policy within itsoperation and across its supply chain. We have established a Grievance Procedure during the previous FY, which outlines aclear, transparent and impartial methodology in dealing with the grievances throughout the entire process. KLK views suchfeedback and input to be important to have a meaningful gauge on the effectiveness in the implementation of its Policy. Grievances can be submitted through the followingchannels:• by email: sustainability@klk.com.my• by e-Grievance FormThe procedure can be viewed at https://www.klk.com.my/sustainability/grievance."
          Open source document
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 49%

          What is the certified volume?: 364,263 tons

          Which certification schemes are used?: RSPO

          What is the non-certified/non-compliant volume?: 374,801 tons
          2018 ACOP indicates that the company sold a total of 739,064 tons of palm oil (CSPO) and palm kernel oil (CSPK) in 2018. Of this, 283,828 tons of CSPO were RSPO-certified, and 80,435 tons of CSPK were certified.
          Open source document
        • 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 or rehabilitate the area

          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: 0 not specified
          "Action Plan - 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”)" [...] New areas will undergo integrated HCSA and HCV assessments to determine eligible planting areas with priority given to low carbon stock areas which have no demonstrable HCV, and where FPIC has been obtained from rights-holders. [...] 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."
          Open source document
        • Upstream: Reporting production/processing locations
          Reports location of certified land holdings; Reports location of uncertified land holdings only; Reports location of company-owned processing facilities
          3/4
          Upstream: Reporting production/processing locations
          Reports location of certified land holdings; Reports location of uncertified land holdings only; Reports location of company-owned processing facilities
          3/4
          For what percent are point locations (of land holdings and processing facilities) disclosed?: 100%

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

          What type of conservation designation and/or conservation status is used?: High Conservation Value

          For what percent are point locations (of certified land holdings) disclosed?: 100%

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

          In what country(ies) does the company operate and/or source material?: Malaysia, Indonesia, Liberia

          For what percent are point locations (of holdings under conservation) disclosed?: 0%

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

          What types of ecosystems are these?: Tropical rainforest

          What is the total area in production (in ha)?: 213,377 ha
          "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 (of consenting suppliers) below: [supplier map]". Each facility on the map contains a link to a PDF detailing the facility's raw material suppliers, along with the suppliers' GPS coordinates, and the facility's certifications (RSPO, ISPO, ISCC).
          Open source document
        • Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          Downstream: Publishing supplier lists
          Yes report direct suppliers
          2/4
          For what percent of suppliers' production areas are point locations disclosed?: 100%

          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes

          For what percent are boundaries disclosed?: 0%

          For what percent is no location data disclosed?: 0%

          From what country(ies) does the company source material?: Malaysia, Indonesia, Liberia
          "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 (of consenting suppliers) below: [supplier map]". Each facility on the map contains a link to a PDF detailing the facility's raw material suppliers, along with the suppliers' GPS coordinates, and the facility's certifications (RSPO, ISPO, ISCC).
          Open source document
        • Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using a third-party monitoring 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?: 100%

          Does the company use a certification system?: Yes

          Does the company use a jurisdictional monitoring mechanism?: No

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%

          How frequently is compliance assessed?: Annually

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: third party certification & RSPO
          "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."
          Open source document
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using internal monitoring and verification systems; Using third party verification

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          How frequently is compliance assessed?: Continuously
          "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."
          Open source document
        • 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
          Relating the sustainability policy which explicitly includes all of it's palm oil operations - "KLK will together with the relevant stakeholders, develop and publish a time-bound action plan by December 2018 that will outline actions which will be taken to achieve the Commitments in this Policy in full by 31 December 2020. [...] KLK takes the commitments in this Policy seriously and will continuously engage with its stakeholders to ensure compliance. In cases of chronic non-compliance or serious violations, KLK will take appropriate action including their removal from the Group’s supply chain. KLK will, together with the relevant stakeholders, develop and publish a non-compliance protocol by December 2018. [...] KLK will undertake third-party verification to ensure compliance. KLK recognises that third party verification system must be established in addition to RSPO certification"
          Open source document
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
    • Pulp & Paper *
      13/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/12
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          0/8
          • Commitment details
            No
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
        • Commitment to a traceable supply chain
          0/8
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1.3
          • Interim target date
            No
            0/0.7
      • Social Considerations
        7/18
        • 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
          "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 [...] Recognize the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations. ➢ Respect and uphold the rights of all workers, including 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." [...] No Forced or Bonded Labour [...] There shall be no discrimination based on nationality, race, religion or gender. [...] No Child Labour [...] Freedom of Association"
          Open source document
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          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 [...] There shall be no discrimination based on nationality, race, religion or gender"
          Open source document
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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."
          Open source document
      • Reporting and Implementation
        6/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • 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
          "All Suppliers should respect the principles of this Code and adopt practices within their operations andsupply chains that are consistent with it. [...] Conduct business in an honest and ethical manner; and comply with applicable laws and regulations [...] Suppliers shall take the commitments in this Code seriously and should continuously 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."
          Open source document
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Email and E-Grievance form

          Details of the mechanism: Social; Environmental
          "Grievance Procedure – Third Party.KLK is committed to address any grievance raised by our stakeholders relating to the implementation of its Policy within itsoperation and across its supply chain. We have established a Grievance Procedure during the previous FY, which outlines aclear, transparent and impartial methodology in dealing with the grievances throughout the entire process. KLK views suchfeedback and input to be important to have a meaningful gauge on the effectiveness in the implementation of its Policy. Grievances can be submitted through the followingchannels:• by email: sustainability@klk.com.my• by e-Grievance FormThe procedure can be viewed at https://www.klk.com.my/sustainability/grievance."
          Open source document
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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 *
      13/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        7/18
        • 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
          "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 [...] Recognize the inherent dignity of an individual and supports the Universal Declaration of Human Rights by the United Nations. ➢ Respect and uphold the rights of all workers, including 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." [...] No Forced or Bonded Labour [...] There shall be no discrimination based on nationality, race, religion or gender. [...] No Child Labour [...] Freedom of Association"
          Open source document
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          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 [...] There shall be no discrimination based on nationality, race, religion or gender"
          Open source document
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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."
          Open source document
      • Reporting and Implementation
        6/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • 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
          "All Suppliers should respect the principles of this Code and adopt practices within their operations andsupply chains that are consistent with it. [...] Conduct business in an honest and ethical manner; and comply with applicable laws and regulations [...] Suppliers shall take the commitments in this Code seriously and should continuously 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."
          Open source document
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: Own mechanism

          Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: Yes
          KLK provides a grievance mechanism for complaints about adverse social or environmental impacts associated with their operations. The mechanism is open to any involved party or member of the general public.
          Open source document
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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
    12/28
    Avg. score
  • Reporting and Implementation
    16/38
    Avg. score
  • Social considerations
    9/18
    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.

Full corporate sector performance data Forest 500 assessment methodology

Related articles and press coverage

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CGF Forest Positive Coalition Calls For Stronger EU Laws Against ‘Imported Deforestation’

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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.