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Kuala Lumpur Kepong Bhd

Palm oil assessment
  • Latest update: November 2021
  • Next scheduled: November 2022

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  • Parent company:
    Batu Kawan Bhd
  • Landbank (oil palm)
    233,169 hectares
  • Market cap:
    5,376,000,000 USD
  • Thomson Reuters ticker:
    KLKK.KL
  • Bloomberg ticker:
    KLK MK
  • ISIN:
    MYL2445OO004
  • Sedol:
    6497446
  • RSPO member?
    Yes
  • Website:

Company assessment: Kuala Lumpur Kepong Bhd – November 2021

Assessment date:

Score by disclosure type:

Total: 77.9% 148.01 / 190
  • Organisation: 28 / 38 73.7%
  • Policy: 64.5 / 76 84.9%
  • Practice: 55.5 / 76 73%
  • Self-reported: 13.5 / 76 17.8%
  • External: 12.3 / 76 16.1%
  • Certified: 29.7 / 76 39.1%
  • Sustainability policy and leadership Sustainability policy and leadership
    9.75 / 11 88.6%
    • Organisation: 6 / 6 100%
    • Policy: 2 / 2 100%
    • Practice: 1.8 / 3 58.3%
    • Self-reported: 1 / 3 33.3%
    • External: 0.8 / 3 25%
    • Certified: 0 / 3 0%
    • Y
      1 / 1

      1. Sustainable palm oil policy or commitment for all its operations?

      The company meets this indicator through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank ( ≥75%) and a further commitment to be 100% certified by 2023. The company also has its own sustainable palm oil policy that covers multiple dimensions of sustainability across the company's operations covering both social and environmental issues.

    • Y
      1 / 1

      2. Sustainable palm oil policy or commitment applies to all suppliers?

      The company has a supplier code of conduct which commits its suppliers to multiple dimensions of sustainability across all company operations covering both social and environmental issues.

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      Sustainability Working Committee lead by the Group Plantations Director.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      Sustainability Steering Committee lead by the CEO.

    • Y
      1 / 1

      5. Percentage or number of women in senior management team?

      1 (14.28%) - The company has one woman out of the total seven members as a part of its senior management team.

    • Y
      1 / 1

      6. Percentage or number of women board members?

      1 (12.5%) - The company has one woman out of the total eight members as a part of its board members.

    • P
      0.75 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with palm oil production?

      [Externally verified] The company is a HCSA member.

    • Y
      1 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with palm oil production?

      The company holds meetings and engagements with NGOs and government to better understand palm oil related issues. It has also partnered with Wild Asia to support smallholders and help them maintain RSPO certification. Further, the company's subsidiary EPO has conducted many social activities to promote sustainable palm oil operations.

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      Sustainability report for 2020 is published by the company.

    • Y
      1 / 1

      10. Reports through standardised reporting systems?

      The company reports that its 2020 sustainability report is prepared in accordance with the GRI standards Core option.

    • 11. Verification report on compliance with POIG Charter, if a POIG member?

      This indicator is disabled as it is not applicable to this company.

    • N
      0 / 1

      12. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    18.5 / 27 68.5%
    • Organisation: 12 / 17 70.6%
    • Policy: 2 / 2 100%
    • Practice: 4.5 / 8 56.3%
    • Self-reported: 1.5 / 8 18.8%
    • External: 0 / 8 0%
    • Certified: 3 / 8 37.5%
    • P
      0.5 / 1

      13. Total land area managed/controlled for oil palm (ha)?

      233,169 - The company reports the total landbank controlled for palm oil as 233,169 ha in its ACOP 2020 and 263,938 ha in its Annual Report 2020. Both figures exclude the smallholder area, however, contradictory figures are reported from the same reporting period.

    • Y
      1 / 1

      14. Total oil palm planted area (ha)?

      213,411 - Figure excludes smallholder areas. Data as of 2020.

    • Y
      1 / 1

      15. Plasma/scheme smallholders planted area (ha)?

      17,128 - The company reports total land under scheme smallholders in its RSPO ACOP 2020.

    • Y
      1 / 1

      16. Unplanted (areas designated for future planting) (ha)?

      9,967 - The company reports total unplanted area in its RSPO ACOP 2020.

    • Y
      1 / 1

      17. Conservation set-aside area, including HCV area (ha)?

      19,076.7 - The company reports 9314.7 ha HCV areas and 9762 ha other conservation areas.

    • Y
      1 / 1

      18. Maps of estates/management units?

      Concession boundaries have been made available to the RSPO in 2018 and the company declares no new concession acquisition or changes in the ownership of existing concession were undertaken in 2019 or 2020.

    • N
      0 / 1

      19. Maps of scheme/plasma smallholders?

    • P
      0.5 / 1

      20. Names and locations of all third-party supplying plantations?

      The company has published coordinates of supply bases of all suppliers on its traceability webpage, but no estate boundaries are visible.

    • P
      0.5 / 1

      21. Number of company-owned mills?

      26 - The company reports to own total 25 palm oil mills in its AR 2020 and 26 mills in its ACOP 2020. Contradictory figures are published from same time period.

    • Y
      1 / 1

      22. Names and locations of company-owned mills?

      The names and locations of company owned mills are available on the company website.

    • Y
      1 / 1

      23. Number (or percentage) of company-owned mills that source from company-owned operations and/or third parties?

      The company has disclosed the supply bases for all its 25 mills. 13 mills source 100% FFB from their own plantations and 12 mills source from own as well as third-party plantations.

    • Y
      1 / 1

      24. Reports total volumes (or percentages) sourced by company-owned mills that come from company-owned operations and/or third-parties?

      The company has disclosed the percentage break-up of the sources of FFB supply for all its 25 mills.

    • Y
      1 / 1

      25. Number of third party supplying mills?

      The company reports the list of third party supplying mills in relation to the KLK OLEO traceability.

    • Y
      1 / 1

      26. Names and locations of all third-party supplying mills?

      Names and coordinates of all the supplying mills are available.

    • N
      0 / 1

      27. Number (or percentage) of third party supplying mills that source from their own plantations and/or third party plantations?

    • N
      0 / 1

      28. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and/or third parties?

    • P
      0.5 / 1

      29. Total volume (or percentage) sourced for refineries that comes from intermediary traders and/or refiners rather than directly from mills?

      The company reports percentage for refineries that comes from intermediary traders and refiners rather than directly from mills. However, this information is for 2018.

    • Y
      1 / 1

      30. Time-bound commitment to achieve 100% traceability to mill level?

      The company has already achieved 100% traceability to the mill level.

    • Y
      1 / 2

      31. Percentage of supply traceable to mill level?

      The company reports that all its refineries and KCPs have achieved 100% traceability to POMs.

    • Y
      1 / 1

      32. Time-bound commitment to achieve 100% traceability to plantation level?

      The company has achieved 100% traceability to plantation level for mills and states its action plan for refineries to achieve 100% traceability by October 2021.

    • Y
      +
      1 / 1
      1 / 1

      33. Percentage of fresh fruit bunches (FFB) supply to own mills traceable to plantation level?

      As of March 2021, KLK POMs have achieved 100% traceability to plantations. Additional points are awarded as many of the company's mills have Identity Preserved certification.

    • N
      0 / 2

      34. Percentage of supply from third-party mills traceable to plantation level?

    • P
      0.75 / 1

      35. Publishes traceability data at refinery level?

      The company reports 74.66% of supply traceable to plantation level for its refineries. However, the information is not externally verified.

    • P
      0.75 / 1

      36. Publishes traceability data at crusher level?

      Traceability to plantation level is reported by the company for all of its KCPs. However, the information is not externally verified.

  • Certification standards Certification standards
    11.77 / 17 69.3%
    • Organisation: 2 / 2 100%
    • Policy: 3 / 3 100%
    • Practice: 6.8 / 12 56.4%
    • Self-reported: 2.8 / 12 23.1%
    • External: 4 / 12 33.3%
    • Certified: 0 / 12 0%
    • Y
      1 / 1

      37. Member of the Roundtable on Sustainable Palm Oil (RSPO)?

      [Externally verified] 2,004 - The company is a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2004.

    • Y
      1 / 1

      38. RSPO-certified within three years of joining the RSPO or by November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007?

      [Externally verified] 2,009 - The company achieved its first RSPO certification in 2009.

    • Y
      1 / 1

      39. Submitted most recent RSPO Annual Communication of Progress (ACOP)?

      2020 ACOP is submitted.

    • Y
      1 / 1

      40. Listed all countries and regions in which operates in most recent RSPO Annual Communication of Progress (ACOP)?

      Indonesia (Bangka Belitung, Central Kalimantan, East Kalimantan, North Sumatra, Riau), Malaysia (Johor,Kedah,Kelantan,Negeri Sembilan,Pahang,Perak,Sabah,Selangor), Liberia.

    • P
      0.84 / 1

      41. Percentage of area (ha) RSPO-certified?

      84.33% - The company reports the percentage of area RSPO certified in its RSPO ACOP 2020.

    • P
      0.81 / 1

      42. Percentage of mills RSPO-certified?

      80.76% - 21 out of the total 26 mills of the company are RSPO-certified.

    • Y
      1 / 1

      43. Time-bound plan for achieving 100% RSPO certification of estates and mills within 5 years or achieved 100% RSPO-certification of estates?

      2,023 - The company reports time-bound plan for achieving 100% RSPO certification of estates and mills by 2023 in its ACOP 2020.

    • Y
      1 / 1

      44. Time-bound plan for achieving 100% RSPO certification of all palm product processing facilities?

      2,018 - The palm oil product processing facilities of the company are already 100% RSPO certified since 2018.

    • P
      0.09 / 1

      45. Percentage of scheme/plasma smallholders (ha) RSPO-certified?

      9.34% - The company reports the total percentage of scheme/plasma smallholders (ha) RSPO-certified in its RSPO ACOP 2020.

    • Y
      1 / 1

      46. Time-bound plan for achieving 100% RSPO certification of scheme/plasma/associated smallholders and outgrowers within 5 years or target already achieved?

      2,025 - The company reports to achieve 100% RSPO certification of scheme smallholders by 2025.

    • P
      0 / 1

      47. Percentage of FFB supply (tonnes) from independent smallholders/outgrowers/third-party FFB suppliers that is RSPO-certified?

      0.03% - The company reports the percentage of FFB supply (tonnes) from independent smallholders/outgrowers/third-party FFB suppliers that is RSPO-certified in its ACOP 2020.

    • P
      0.21 / 1

      48. Percentage of all palm oil and oil palm products handled/traded/processed (tonnes) that is RSPO-certified?

      20.89% - The company reports the total CSPO and CSPK (in tonnes) and the RSPO certified CSPO and CSPK (in tonnes) in its RSPO ACOP 2020.

    • P
      0.3 / 1

      49. Sells RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

      Identity Preserved- 29.99%.

    • P
      0.02 / 1

      50. Processes/trades RSPO-certified palm oil through Segregated or Identity Preserved supply chains?

      Identity Preserved and Segregated- 1.82%.

    • P
      0.5 / 1

      51. Indonesia Sustainable Palm Oil (ISPO) certified (100%)?

      The company reports that 80% of its estates and 92% of its palm oil mills in Indonesia are ISPO certified. However, no certificates could be found publicly available.

    • Y
      1 / 1

      52. Malaysia Sustainable Palm Oil (MSPO) certified?

      [Externally verified] The company reports that 100% of its estates and palm oil mills in Malaysia are MSPO certified and the certificates all these estates and mills are available on the MSPO website.

    • Y
      1 / 1

      53. Certified under voluntary sustainability certification scheme (e.g. ISCC, SAS, RSB)?

      [Externally verified] ISCC.

  • Deforestation and biodiversity Deforestation and biodiversity
    11.59 / 18 64.4%
    • Organisation: 1 / 2 50%
    • Policy: 5.5 / 10 55%
    • Practice: 5.1 / 6 84.8%
    • Self-reported: 1.3 / 6 20.8%
    • External: 0 / 6 0%
    • Certified: 3.8 / 6 64%
    • N
      0 / 1

      54. Commitment to zero conversion of natural ecosystems?

    • Y
      1 / 1

      55. Commitment to zero deforestation?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have been therefore awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to zero deforestation through its sustainable palm oil policy.

    • Y
      1 / 1

      56. Commitment to zero deforestation applies to all suppliers?

      The company commits its suppliers to zero deforestation.

    • Y
      1 / 1

      57. Criteria and cut-off date for defining deforestation?

      The company commits to no land clearing damaging primary forests or areas required to protect or enhance HCVs since November 2005, and no land clearing damaging HCVs or HCS forest since November 2018, through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • Y
      1 / 1

      58. Evidence of monitoring deforestation?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • P
      0.5 / 1

      59. Evidence of monitoring deforestation in supplier operations?

      The company reports that it has collaborated with Earthqualizer to monitor deforestation in supplier operations through satellite monitoring. The company does not report the extent of area being monitored, thus partial points. This is also not externally verified.

    • Y
      1 / 1

      60. Amount of illegal/non-compliant deforestation recorded in own operations?

      0 - The company reports that no illegal or non-compliant deforestation has been recorded as of August 2020.

    • N
      0 / 1

      61. Amount of illegal/non-compliant deforestation recorded in supplier operations?

    • P
      0.5 / 1

      62. Commitment to restoration of non-compliant deforestation/conversion?

      The company commits to applying the RSPO Remediation and Compensation Procedure where there has been land clearing without prior HCV assessment since November 2005, or without prior HCV-HCSA assessment since November 2018, through the RSPO Principles and Criteria 2018. However, a commitment covering restoration of all non-compliant deforestation/conversion was not found. Partial points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • Y
      1 / 1

      63. Commitment to restoration of non-compliant deforestation/conversion applies to all suppliers?

      The company states a commitment for its suppliers to develop a Recovery Plan for all non-compliant deforestation and peatland development with a cut-off date of 31 December 2015.

    • P
      0.75 / 1

      64. Implementing a landscape or jurisdictional level approach?

      The company reports running a collaborative forest and biodiversity conservation project in the Berau Regency (East Kalimantan) of Indonesia in collaboration with the Village Forest Management Institution in both the Dumaring and Biatan Ilir Villages (LPHD Dumaring and Biatan Ilir), as well as local authorities in Dumaring and Biatan Ilir. However, this information is not externally verified.

    • N
      0 / 1

      65. Biodiversity policy?

      The company has a biodiversity conservation policy, however it does not have time-bound targets and does not clearly apply both within and beyond HCV/HCS/set-asides.

    • N
      0 / 1

      66. Biodiversity policy applies to all suppliers?

    • Y
      +
      1 / 1
      0.84 / 1

      67. Identified species of conservation concern, referencing international or national system of species classification?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports the list of species of conservation concern, however they are not referenced as per the international or national system of species classification.

    • Y
      1 / 1

      68. Examples of species and/or habitat conservation management?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports that it works closely with nongovernmental organisations and the State Wildlife Agency when rare and endangered species are found within the HCV sites. Their habitats are conserved and appropriate management and monitoring plans are implemented.

    • P
      0.5 / 1

      69. Commitment to no hunting or only sustainable hunting of species?

      The company reports its commitment to no hunting, but only in concern of the HCV set aside areas.

    • P
      0.5 / 1

      70. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

      The company commits its suppliers to no hunting, but only in concern of the HCV set aside areas.

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    12.75 / 15 85%
    • Organisation: 0 / 0 0%
    • Policy: 6 / 8 75%
    • Practice: 6.8 / 7 96.4%
    • Self-reported: 0 / 7 0%
    • External: 6.8 / 7 96.4%
    • Certified: 0 / 7 0%
    • Y
      1 / 1

      71. Commitment to conduct High Conservation Value (HCV) assessments?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%)and a further commitment to be 100% certified within 5 years.

    • Y
      1 / 1

      72. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

      The company commits its suppliers to conduct High Conservation Value (HCV) assessments.

    • Y
      1 / 1

      73. High Conservation Value (HCV) assessments for planting undertaken prior to January 2015, and associated management and monitoring plans?

      [Externally verified] A HCV assessment summary and associated management and monitoring plan is available for PT Anugrah Surya Mandiri.

    • Y
      1 / 1

      74. High Conservation Value (HCV) assessments for all estates planted since January 2015?

      [Externally verified] HCV assessments of Kuala Gris Estate, Kemasul Estate and PT Karya Makmur Abadi are available on the HCVRN website and on RSPO NPP.

    • Y
      1 / 1

      75. High Conservation Value (HCV) management and monitoring plans for all estates planted since January 2015?

      [Externally verified] Kuala Gris and Kemasul Estate and PT Karya Makmur Abadi summary report and management plans are publicly available on RSPO NPP.

    • Y
      1 / 1

      76. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • N
      0 / 1

      77. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS) applies to all suppliers?

    • Y
      1 / 1

      78. Satisfactory review of all High Conservation Value (HCV) assessments undertaken since January 2015 by the HCV ALS Quality Panel?

      [Externally verified] Kuala Gris, Kemasul Estate HCV and PT Karya Makmur Abadi assessments were found to be satisfactory.

    • Y
      1 / 1

      79. Commitment to the High Carbon Stock (HCS) Approach?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to the High Carbon Stock (HCS) Approach.

    • Y
      1 / 1

      80. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

      The company commits its suppliers to the High Carbon Stock (HCS) Approach.

    • Y
      1 / 1

      81. High Carbon Stock (HCS) assessments available?

      [Externally verified] High Carbon Stock (HCS) assessments for many concessions of the company are available on the HCSA database.

    • P
      0.75 / 1

      82. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

      [Externally verified] Peer review of only Palm Bay Estate (LIBINCO), Plasma PT. Karya Makmur Abadi (KMA), PT. Menteng Jaya Sawit Perdana (MJSP) and PT. Tekukur Indah is available. The peer review of PT Putra Bongan Jaya and PT Steelindo Wahana Perkasa is not yet published on the HCSA database.

    • Y
      1 / 1

      83. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • N
      0 / 1

      84. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

    • Y
      1 / 1

      85. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

      [Externally verified] Three SEIAs are publicly available on the RSPO website.

  • Peat, fire and GHG emissions Peat, fire and GHG emissions
    14.61 / 20 73.1%
    • Organisation: 2 / 5 40%
    • Policy: 7.5 / 8 93.8%
    • Practice: 5.1 / 7 73%
    • Self-reported: 1.5 / 7 21.4%
    • External: 0 / 7 0%
    • Certified: 3.6 / 7 51.6%
    • Y
      1 / 1

      86. Commitment to no planting on peat of any depth?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to no planting on peat regardless of depth.

    • Y
      1 / 1

      87. Commitment to no planting on peat of any depth applies to all suppliers?

      The company commits its suppliers to no planting on peat regardless of depth.

    • N
      0 / 1

      88. Landbank or planted area on peat (ha)?

    • P
      0.5 / 1

      89. Implementation of commitment to no planting on peat of any depth?

      The company reports that there has been no new development on peatlands as per its ""Action Plan FY2018"". The information is not externally verified.

    • Y
      1 / 1

      90. Commitment to best management practices for soils and peat?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to good agriculture practices for peatland and best soil conservation practices.

    • P
      0.5 / 1

      91. Commitment to best management practices for soils and peat applies to all suppliers?

      The company only commits its suppliers to best management practices for peat.

    • Y
      +
      1 / 1
      0.84 / 1

      92. Evidence of best management practices for soils and peat?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports its own progress on applying management practices to conserve soils and peat which includes constructing earth terraces, silt pits and bunds, and maintaining natural covers along palm avenues. Empty fruit bunches and oil palm trunks and fronds are mulched, composted and recycled as organic materials to maintain soil properties at an optimum level. It also introduces additional holistic practices on peatlands protection such as periodical monitoring of water table level and evaluating peatlands planted with oil palm for its suitability for replanting and drainability requirement.

    • Y
      1 / 1

      93. Commitment to zero burning?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to zero burning.

    • Y
      1 / 1

      94. Commitment to zero burning applies to all suppliers?

      The company commits its suppliers to zero burning.

    • Y
      +
      1 / 1
      0.77 / 1

      95. Evidence of fire monitoring and management?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports examples on fire monitoring and management in its sustainability report.

    • P
      0.5 / 1

      96. Details/number of hotspots/fires in company estates?

      The company only states ""the prolonged extremely dry spell experienced in Sumatra and Central Kalimantan during the Fourth Quarter of the FY led to several minor fire incidents inside and outside our concessions"".

    • P
      0.5 / 1

      97. Details/number of hotspots/fires within surrounding landscape/smallholders?

      The company only states ""the prolonged extremely dry spell experienced in Sumatra and Central Kalimantan during the Fourth Quarter of the FY led to several minor fire incidents inside and outside our concessions"".

    • Y
      1 / 1

      98. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

      The company has a target to achieve 69% GHG savings by 2021.

    • Y
      1 / 1

      99. GHG emissions intensity?

      The company reports GHG emission intensity as 0.24 (mt CO2 eq/mt prod vol) for FY 2020.

    • N
      0 / 1

      100. GHG emissions from land use change?

    • P
      0.5 / 1

      101. Progress towards commitment to reduce GHG emissions intensity?

      The company reports progress in GHG intensity but intensity is not improving. The GHG emissions intensity for FY 2019 and FY 2020 was same- 0.24 mt CO2eq/mt prod vol. Also, the information reported is not externally verified.

    • Y
      1 / 1

      102. Methodology used to calculate GHG emissions?

      The RSPO requires companies to assess their GHG emissions through the Palm GHG calculator. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • P
      0.5 / 1

      103. Percentage of mills with methane capture (100%)?

      Only six mills have biogas capture, three in Malaysia and three in Indonesia plus one is in the pipeline.

  • Water, chemical and pest management Water, chemical and pest management
    21.29 / 25 85.2%
    • Organisation: 2 / 2 100%
    • Policy: 9.5 / 11 86.4%
    • Practice: 9.8 / 12 81.6%
    • Self-reported: 0.8 / 12 6.3%
    • External: 0.8 / 12 6.3%
    • Certified: 8.3 / 12 69.1%
    • N
      0 / 1

      104. Time-bound commitment to improve water use intensity?

    • Y
      1 / 1

      105. Water use intensity?

      The company reports that during the FY 2020, plantation segment's water usage was 1.32/mt FFB processed and the water usage for KLK Oleo was 1.43/mt FFB processed.

    • P
      0.75 / 1

      106. Progress towards commitment on water use intensity?

      The company reports reduction in water use intensity figures for both KLK plantations and KLK Oleo from 2018 to 2020. However, the information reported is not externally verified.

    • Y
      1 / 1

      107. Time-bound commitment to improve water quality (BOD and COD)?

      The company reports that during the FY 2020, both BOD and COD levels were within the parameters set by the countries' regulations in which it operates.

    • P
      0.75 / 1

      108. Progress towards commitment on water quality (BOD and COD)?

      [Externally verified] The company's BOD and COD figures can be found in RSPO audit reports for certified mills. However, not all mills are certified, and data is not available for successive years.

    • Y
      +
      1 / 1
      0.84 / 1

      109. Treatment of palm oil mill effluent (POME)?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • N
      0 / 1

      110. Treatment of palm oil refinery effluent (PORE)?

    • Y
      1 / 1

      111. Commitment to protect natural waterways through buffer zones?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports that riparian reserves are maintained to act as a filter to preserve the quality of water entering the waterways.

    • Y
      +
      1 / 1
      0.84 / 1

      112. Implementation of commitment to protect natural waterways through buffer zones?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      113. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment in its sustainability report.

    • P
      0.5 / 1

      114. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

      The company only commits its suppliers to prohibit use of highly toxic, bio-accumulative and persistent pesticides.

    • Y
      1 / 1

      115. Commitment to no use of paraquat?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to no use of paraquat and reports that it has ceased using paraquat since 2017.

    • Y
      1 / 1

      116. Commitment to no use of paraquat applies to all suppliers?

      The company commits its suppliers to to no use of paraquat.

    • Y
      1 / 1

      117. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides.

    • Y
      1 / 1

      118. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

      The company commits its suppliers to no use of World Health Organisation (WHO) Class 1A and 1B pesticides.

    • Y
      1 / 1

      119. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention.

    • Y
      1 / 1

      120. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

      The company commits its suppliers to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention.

    • Y
      1 / 1

      121. Chemical usage per ha or list of chemicals used?

      The company reports that the average fertiliser consumption for Malaysia, Indonesia and Liberia is 1.26 mt/ha and the average herbicide consumption for plantation operations is 2.57 litre/ha as of 2020.

    • Y
      +
      1 / 1
      0.77 / 1

      122. Implementation of commitment to minimise inorganic fertiliser use?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports its own information, however the average fertiliser consumption for 2020 (1.26 mt/ha) has increased as compared to 2019 (1.01 mt/ha).

    • Y
      +
      1 / 1
      0.84 / 1

      123. Integrated Pest Management (IPM) approach?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports using Integrated Pest Management System ("IPMS") for pest management by promoting the breeding of beneficial insects and plants. It reports that the Barn owls help to control rat population and minimise rodent damage, while plants such as antigonon leptopus, turnera subulate and cassia cobanensis provide shelter and supplementary food such as nectar for beneficial insects. Shredded palm biomass spread across the field effectively destroys the potential breeding grounds of pests such as rhinoceros beetles and rodents.

    • Y
      1 / 1

      124. Waste management system in place to avoid negative impacts?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports having its own waste management system in place to avoid negative impacts.

  • Community, land and labour rights Community, land and labour rights
    31.25 / 34 91.9%
    • Organisation: 3 / 4 75%
    • Policy: 19.5 / 21 92.9%
    • Practice: 8.8 / 9 97.2%
    • Self-reported: 0.8 / 9 8.3%
    • External: 0 / 9 0%
    • Certified: 8 / 9 88.9%
    • Y
      1 / 1

      125. Commitment to human rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to support the Universal Declaration of Human Rights.

    • Y
      1 / 1

      126. Commitment to human rights applies to all suppliers?

      The company commits its suppliers to support the Universal Declaration of Human Rights.

    • Y
      1 / 1

      127. Progress on human rights commitment?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports that it in 2020, it engaged with BSR, a global non-profit sustainable business consultancy, to conduct a Human Rights Assessment on three of its OCs in Sabah and the findings are reported in the company's sustainability report.

    • Y
      1 / 1

      128. Commitment to respect indigenous and local communities' rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to respect indigenous and local communities' rights in accordance with the United Nations Declaration on the Rights of Indigenous Peoples.

    • Y
      1 / 1

      129. Commitment to indigenous and local communities' rights applies to all suppliers?

      The company commits its suppliers to respect indigenous and local communities' rights in accordance with the United Nations Declaration on the Rights of Indigenous Peoples.

    • Y
      1 / 1

      130. Commitment to respect legal and customary land tenure rights?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to respect legal and customary land tenure rights but only in relation to FPIC.

    • P
      0.5 / 1

      131. Commitment to legal and customary land rights applies to all suppliers?

      The company commits its suppliers to respect legal and customary land tenure rights but only in relation to FPIC.

    • Y
      1 / 1

      132. Commitment to free, prior and informed consent (FPIC)?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to respect free, prior and informed consent (FPIC).

    • Y
      1 / 1

      133. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

      The company commits its suppliers to to free, prior and informed consent (FPIC).

    • Y
      1 / 1

      134. Details of free, prior and informed consent (FPIC) process available?

      The RSPO Principles and Criteria 2018 contain guidance and requirements on the process to conduct free, prior and informed consent (FPIC). Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%)and a further commitment to be 100% by 2023.

    • P
      0.75 / 1

      135. Examples of local stakeholder engagement to prevent conflicts?

      The company reports to adopt an open, timely and proactive approach in engagement with key stakeholders which also includes land matters, complaints and grievances of local communities and stakeholders. However, the information reported is not externally verified.

    • Y
      1 / 1

      136. Details of process for addressing land conflicts available?

      The RSPO Principles and Criteria 2018 contain requirements for addressing land conflicts. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • Y
      1 / 1

      137. Supports the inclusion of women across palm oil operations, including addressing barriers faced?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      138. Commitment to mitigate impacts on food security?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • Y
      1 / 1

      139. Progress on commitment to mitigate impacts on food security?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

      140. Commitment to provide essential community services and facilities?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also report its commitment to support the development of local communities where it operates, in terms of enriching their lives and uplifting their socio-economic status through various initiatives.

    • Y
      1 / 1

      141. Progress on commitment to provide essential community services and facilities?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports multiple examples in its Corporate Responsibility report on its progress to provide essential community services and facilities.

    • Y
      1 / 1

      142. Commitment to provide business/work opportunities for local communities?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023.

    • Y
      1 / 1

      143. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to all Core ILO Conventions.

    • Y
      1 / 1

      144. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

      The company commits its suppliers to all Core ILO Conventions.

    • Y
      1 / 1

      145. Progress on commitment to respect all workers' rights?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports its own progress on commitment to respect all workers' rights in its Annual Report.

    • Y
      1 / 1

      146. Commitment to eliminate gender related discrimination with regards to employment?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to eliminate gender related discrimination with regards to employment.

    • Y
      1 / 1

      147. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

      The company commits its suppliers to eliminate gender related discrimination with regards to employment.

    • Y
      1 / 1

      148. Progress on commitment to eliminate gender related discrimination with regards to employment?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports to consider taking a range of measures (for example, affirmative action and professional development support) to ensure equal representation of women in the workforce at all levels, including at senior management level and has a Gender Committee in place to deal with relevant matters.

    • 149. Percentage or number of temporary employees?

      This indicator is disabled as it is not applicable to this company.

    • Y
      1 / 1

      150. Percentage or number of women employees?

      8,193 - The company reports 7392 women employees and workers in plantations and 802 women employees and workers in its KLK Oleo division.

    • Y
      1 / 1

      151. Commitment to pay a Decent Living wage?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to pay a Decent Living Wage.

    • N
      0 / 1

      152. Commitment to pay a Decent Living wage applies to all suppliers?

    • Y
      1 / 1

      153. Progress on commitment to pay a Decent Living wage?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports having a Decent Living Wage Task Force which has developed a template for assessment of Prevailing Wage and in-kind benefit provided to workers. However, no further details are reported on this.

    • N
      0 / 1

      154. Reporting of salary by gender?

    • Y
      1 / 1

      155. Commitment to address occupational health and safety?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to address occupational health and safety.

    • Y
      1 / 1

      156. Commitment to address occupational health and safety applies to all suppliers?

      The company commits its suppliers to address occupational health and safety.

    • Y
      1 / 1

      157. Provision of personal protective equipment and related training?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company's own information only reports one pictorial example of a worker performing his job wearing PPE.

    • Y
      1 / 1

      158. Time lost due to work-based injuries?

      The company reports Lost Time Injury Frequency (LTI- Incidents/1 million man-hours worked) rates for KLK plantation: Malaysia (28.83), Indonesia (62.91), and KLK OLEO: Malaysia (2.34), Indonesia (0.00), Other Countries (4.98).

    • Y
      1 / 1

      159. Number of fatalities as a result of work-based accidents?

      3 - The company reports three occupational fatalities during the FY 2020 in its plantations. The causes of these fatalities were work-related, two involving motor vehicles and one involving a POM steriliser.

  • Smallholders and suppliers Smallholders and suppliers
    10.5 / 16 65.6%
    • Organisation: 0 / 0 0%
    • Policy: 5.5 / 6 91.7%
    • Practice: 5 / 10 50%
    • Self-reported: 3 / 10 30%
    • External: 0 / 10 0%
    • Certified: 2 / 10 20%
    • Y
      1 / 1

      160. Commitment to support smallholders?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to support smallholders.

    • Y
      1 / 1

      161. Programme to support scheme/plasma smallholders?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company reports to have Indonesian Plasma Scheme which is an initiative for the development of oil palm plantations for smallholders and small growers.

    • P
      0.75 / 1

      162. Percentage of scheme/plasma smallholders involved in programme?

      6,290 - The company states that it has allocated 12,579 hectares to approximately 6,290 schemed smallholders under the Plasma Scheme. However, the information reported is not externally verified.

    • Y
      1 / 1

      163. Programme to support independent smallholders?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports running a Bornion Smallholders' Project which helps the participating smallholders and out-growers to obtain the RSPO Certification with the facilitation by Wild Asia.

    • P
      0.75 / 1

      164. Percentage of independent smallholders/outgrowers involved in programme?

      The company reports that a total of 56 smallholders and four out-growers continue to uphold their certification status and stay on as members of the Wild Asia Group under the Bornion Smallholders' Project. However, the information reported is not externally verified.

    • Y
      1 / 1

      165. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

      The company aims to hold regular engagement sessions with its suppliers in order to achieve compliance with its Supplier Code of Conduct; understand suppliers' concerns on the same and work towards resolving them.

    • P
      0.5 / 1

      166. Number or percentage of suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

      4 - The company reports that field assessments were undertaken for three external suppliers and one dealer. However, the information is more than two years old and not externally verified.

    • Y
      1 / 1

      167. Suspension or exclusion criteria for suppliers?

      The company has a Sustainability Policy Non-Compliance Protocol, which lists the sustainability criteria by which suppliers are excluded, including steps that will be taken and timeframes for action.

    • Y
      1 / 1

      168. Time-bound action plans (including Key Performance Indicators) for suppliers to be in compliance with palm oil sourcing commitments?

      The company lists action plans and targets for suppliers to achieve policy compliance, for 95% of total 3rd party volume to KLK OLEO. The remaining 5% covers KLK's own supply.

    • N
      0 / 1

      169. Proportion of direct and indirect supply that comes from palm oil plantations which are compliant with palm oil sourcing policies?

    • Y
      1 / 1

      170. Time-bound plan to engage with all high risk mills within 3 years?

      The company has a target to conduct engagement on NDPE Compliance Verification of high risk suppliers in FY 2021.

    • P
      0.5 / 1

      171. Programme to support high risk mills to become compliant with sourcing policies?

      The company only states it will hold regular engagement sessions with its suppliers in order to achieve compliance with its Supplier Code of Conduct. However, the type of support for high risk mills to be compliant with sourcing policies is not reported.

    • N
      0 / 1

      172. Regularly engages with a subset of high risk mills?

    • P
      0.5 / 1

      173. Procedures in place to assess all own and third party supplying palm oil mills for risk level?

      The company has implemented a risk-based sustainability sourcing framework, however only limited details of the procedure to assess mills are available.

    • P
      0.5 / 1

      174. Regularly assesses and categorises the risk level of all their own and third party supplying mills?

      The company states it initiated NDPE compliance verification of external suppliers however it is not clear that the mills are reassessed on an annual basis for risk.

    • N
      0 / 1

      175. Regularly reports the risk level of all own and third party supplying mills identified in its supply chain?

  • Governance and grievances Governance and grievances
    6 / 7 85.7%
    • Organisation: 0 / 0 0%
    • Policy: 4 / 5 80%
    • Practice: 2 / 2 100%
    • Self-reported: 1 / 2 50%
    • External: 0 / 2 0%
    • Certified: 1 / 2 50%
    • Y
      1 / 1

      176. Commitment to ethical conduct and prohibition of corruption?

      The company makes this commitment through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also reports its own commitment to ethical conduct and prohibition of corruption.

    • Y
      1 / 1

      177. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

      The company commits its suppliers to ethical conduct and prohibition of corruption.

    • Y
      1 / 1

      178. Progress on commitment to ethical conduct and prohibition of corruption?

      Points for external verification have been awarded on the basis of the company's RSPO-certified landbank. The company also reports to have appointed an independent external consultant to conduct an Anti-Bribery and Anti-Corruption Adequate Procedures Review ("Review") in 2020. Amongst others, the Review entails a corruption risk assessment and gap analysis, to identify gaps as well as analyse, assess and prioritise corruption risks within the Group, as well as relevant training and awareness programmes for the Directors and employees.

    • N
      0 / 1

      179. Disclosure of the company's management approach to tax and payments to governments?

    • Y
      1 / 1

      180. Whistleblowing procedure?

      The RSPO Principles and Criteria 2018 contain guidance and requirements on whistleblowing procedures. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also has its own whistleblowing policy in place.

    • Y
      1 / 1

      181. Own grievance or complaints system open to all stakeholders?

      The company adheres to this criteria through the RSPO Principles and Criteria 2018. Full points have therefore been awarded on the basis of the company's RSPO-certified landbank( ≥75%) and a further commitment to be 100% certified by 2023. The company also has its own Group Employee Grievance Redressal Policy ("GEGRP") and the Third-Party Grievance Procedure ("TPGP") in place.

    • Y
      1 / 1

      182. Details of complaints and grievances disclosed?

      The company has disclosed the details of complaints and grievances on its website.

Media monitor: Kuala Lumpur Kepong Bhd

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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