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Kuala Lumpur Kepong Bhd

Palm oil assessment
  • Latest update: November 2020
  • Next scheduled: November 2021

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  • About this company:

    Kuala Lumpur Kepong (KLK) was established in 1906

  • Parent company:
    Batu Kawan Bhd
  • Landbank (oil palm)
    300,744 hectares
  • Market cap:
    5,587,451,547 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 2020

Assessment date:

Score by disclosure type:

Total: 81% 152.27 / 188
  • Organisation: 29 / 38 76.3%
  • Policy: 69 / 76 90.8%
  • Practice: 54.3 / 74 73.3%
  • Self-reported: 14.3 / 74 19.3%
  • External: 26.5 / 74 35.8%
  • Certified: 13.5 / 74 18.3%
  • Sustainability policy and leadership Sustainability policy and leadership
    9.25 / 11 84.1%
    • Organisation: 5.5 / 6 91.7%
    • 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 within five years. The company also has its own sustainability policy which covers both environmental and social aspects.

    • Y
      1 / 1

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

    • 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.

    • P
      0.5 / 1

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

      1 (12.5%) - The company has one woman as part of its "key" senior management but it is unclear if this covers the whole senior management team.

    • Y
      1 / 1

      6. Percentage or number of women board members?

      1

    • 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 an 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?

    • Y
      1 / 1

      10. Reports through standardised reporting systems?

      GRI and CDP.

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

      This indicator is disabled as the company is not a POIG member.

    • N
      0 / 1

      12. Climate risks assessment available?

  • Landbank, maps and traceability Landbank, maps and traceability
    19.57 / 27 72.5%
    • Organisation: 13.5 / 17 79.4%
    • Policy: 2 / 2 100%
    • Practice: 4.1 / 8 50.9%
    • Self-reported: 1.5 / 8 18.8%
    • External: 0 / 8 0%
    • Certified: 2.6 / 8 32.1%
    • Y
      1 / 1

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

      300,744

    • Y
      1 / 1

      14. Total oil palm planted area (ha)?

      213,377 - Figure excludes smallholders areas. Data as of 2019.

    • Y
      1 / 1

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

      13,516

    • Y
      1 / 1

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

      22,267

    • Y
      1 / 1

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

      27,144 - The company reports 15,429 ha HCV areas and 11,715 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.

    • 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.

    • Y
      1 / 1

      21. Number of company-owned mills?

      26

    • Y
      1 / 1

      22. Names and locations of company-owned mills?

    • 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 26 mills. 12 mills source 100% FFB from own plantations and 14 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 26 mills.

    • Y
      1 / 1

      25. Number of third party supplying mills?

      1,226 - The company states that it has 1,226 third party mills in relation to KLK OLEO traceability. Data as of 2018.

    • Y
      1 / 1

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

      Names and coordinates of 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?

    • Y
      1 / 1

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

    • 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 "As for refineries and KCPs, we 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 the end of 2020.

    • Y
      1 / 2

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

      As of March 2020, KLK POMs have achieved 100% traceability to plantations.

    • P
      0.57 / 2

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

      As of 30 September 2019, 57% of third-party supply is traceable to plantation.

    • P
      0.75 / 1

      35. Publishes traceability data at refinery level?

      The company reports 57% of supply traceable to plantation level for its refineries. However, the information found 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 four of its KCPs.

  • Certification standards Certification standards
    13 / 16 81.3%
    • Organisation: 2 / 2 100%
    • Policy: 3 / 3 100%
    • Practice: 8 / 11 72.7%
    • Self-reported: 4 / 11 36.4%
    • External: 4 / 11 36.4%
    • Certified: 0 / 11 0%
    • Y
      1 / 1

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

      [Externally verified] 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] 2009

    • Y
      1 / 1

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

    • 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
      0.79 / 1

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

    • P
      0.88 / 1

      42. Percentage of mills RSPO-certified?

      88.46% - 23 out of 26 mills 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?

      2023

    • Y
      1 / 1

      44. Year expected to achieve 100% RSPO certification of all palm product processing facilities?

      2020

    • P
      0.12 / 1

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

    • 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?

      2025

    • P
      0.01 / 1

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

    • P
      0.7 / 1

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

    • Y
      1 / 1

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

      Mass Balance and Identity Preserved.

    • P
      0.5 / 1

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

      All of the company's Indonesian mills are ISPO certified, however no certificates could be found.

    • Y
      1 / 1

      51. Malaysia Sustainable Palm Oil (MSPO) certified?

    • Y
      1 / 1

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

      [Externally verified] ISCC.

  • Deforestation and biodiversity Deforestation and biodiversity
    14.29 / 17 84.1%
    • Organisation: 1 / 2 50%
    • Policy: 8.5 / 9 94.4%
    • Practice: 4.8 / 6 79.8%
    • Self-reported: 0 / 6 0%
    • External: 3 / 6 50%
    • Certified: 1.8 / 6 29.8%
    • Y
      1 / 1

      53. Commitment to zero deforestation or zero conversion of natural ecosystems?

      The company has its own commitment and also 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 within five years.

    • Y
      1 / 1

      54. Commitment to zero deforestation or zero conversion of natural ecosystems applies to all suppliers?

      The company specifies commitment to "no/zero deforestation" which applies to all suppliers.

    • Y
      1 / 1

      55. Criteria 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 within five years.

    • Y
      1 / 1

      56. Evidence of monitoring deforestation?

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

    • N
      0 / 1

      57. Evidence of monitoring deforestation in supplier operations?

    • Y
      1 / 1

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

      0 - As of August 2020, no illegal or non-compliant deforestation had been recorded.

    • N
      0 / 1

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

    • P
      0.5 / 1

      60. 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 within 5 years.

    • Y
      1 / 1

      61. 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.

    • Y
      1 / 1

      62. Implementing a landscape or jurisdictional level approach?

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

    • Y
      1 / 1

      63. Commitment to biodiversity conservation?

    • Y
      1 / 1

      64. Commitment to biodiversity conservation applies to all suppliers?

    • Y
      +
      1 / 1
      0.79 / 1

      65. 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.

    • Y
      1 / 1

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

      [Externally verified] The company is committed to preserving ecosystems of conservation value and encourages holistic practices on peatlands protection. Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    12 / 14 85.7%
    • Organisation: 0 / 0 0%
    • Policy: 6 / 8 75%
    • Practice: 6 / 6 100%
    • Self-reported: 0 / 6 0%
    • External: 6 / 6 100%
    • Certified: 0 / 6 0%
    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

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

    • Y
      1 / 1

      72. High Conservation Value (HCV) assessments 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

      73. 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

      74. 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 within five years.

    • N
      0 / 1

      75. 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

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

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

      79. High Carbon Stock (HCS) assessments available?

    • Y
      1 / 1

      80. 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 within five years.

    • N
      0 / 1

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

    • Y
      1 / 1

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

      [Externally verified] Two SEIA publicly available.

  • Peat, fire and GHG emissions Peat, fire and GHG emissions
    14.29 / 20 71.5%
    • Organisation: 2 / 5 40%
    • Policy: 7.5 / 8 93.8%
    • Practice: 4.8 / 7 68.4%
    • Self-reported: 2 / 7 28.6%
    • External: 0 / 7 0%
    • Certified: 2.8 / 7 39.9%
    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • N
      0 / 1

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

    • P
      0.75 / 1

      86. 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

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

      The company has its own commitment and also 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 five years.

    • P
      0.5 / 1

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

      Commitment to BMP is available only for peat.

    • Y
      +
      1 / 1
      0.79 / 1

      89. 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.

    • Y
      1 / 1

      90. Commitment to zero burning?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

      91. Commitment to zero burning applies to all suppliers?

    • Y
      1 / 2

      92. Evidence of fire monitoring and management?

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

    • P
      0.5 / 1

      93. 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

      94. 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

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

      The company has a target to achieve 68% GHG savings compared to fossil fuel emissions by 2020.

    • Y
      1 / 1

      96. GHG emissions intensity?

      The company reports GHG emission intensity figures for KLK Plantation and KLK Oleo as of September 2019 as 637.54 kg CO2 eq/dry mt CPO and 0.23 mt CO2 eq/mt prod vol respectively.

    • N
      0 / 1

      97. GHG emissions from land use change?

    • P
      0.75 / 1

      98. Progress towards commitment to reduce GHG emissions intensity?

      The company has reported a reduction in GHG emissions over the last two years. However, the information found is not externally verified.

    • Y
      1 / 1

      99. 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 within five years.

    • P
      0.5 / 1

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

      Only six mills have biogas capture.

  • Water, chemical and pest management Water, chemical and pest management
    20.12 / 25 80.5%
    • Organisation: 2 / 2 100%
    • Policy: 9.5 / 11 86.4%
    • Practice: 8.6 / 12 71.8%
    • Self-reported: 0.5 / 12 4.2%
    • External: 1.8 / 12 14.6%
    • Certified: 6.4 / 12 53.1%
    • N
      0 / 1

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

    • Y
      1 / 1

      102. Water use intensity?

      The company reports water use intensity figures for KLK Plantation and KLK OLEO for FY 2019 as 1.37 m3/mt FFB processed and 1.67 m3 /mt prod vol respectively.

    • P
      0.5 / 1

      103. Progress towards commitment on water use intensity?

      The company reports reduction in water use intensity figures for KLK Plantation from 2017 to 2019. For KLK OLEO, the intensity has increased from 2018 to 2019.

    • Y
      1 / 1

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

      The company reports its BOD and COD levels are already within legal limits.

    • P
      0.75 / 1

      105. 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
      0.79 / 1

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

      The company also mentions treatment of POME. Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • N
      0 / 1

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

    • Y
      1 / 1

      108. 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 within five years.

    • Y
      +
      1 / 1
      0.79 / 1

      109. 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

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

      The company has its own commitment and also 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 five years.

    • P
      0.5 / 1

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

      Commitment only for prohibiting pesticides found applicable to suppliers.

    • Y
      1 / 1

      112. Commitment to no use of paraquat?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

      The fertiliser consumption for Malaysia, Indonesia, and Liberia is 1.01 mt/ha. Herbicide consumption for the plantation operations was 3.25 litre/ha.

    • Y
      1 / 2

      119. 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.

    • Y
      +
      1 / 1
      0.79 / 1

      120. Integrated Pest Management (IPM) approach?

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

    • Y
      1 / 1

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

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

  • Community, land and labour rights Community, land and labour rights
    32.75 / 35 93.6%
    • Organisation: 3 / 4 75%
    • Policy: 21 / 22 95.5%
    • Practice: 8.8 / 9 97.2%
    • Self-reported: 0.8 / 9 8.3%
    • External: 8 / 9 88.9%
    • Certified: 0 / 9 0%
    • Y
      1 / 1

      122. Commitment to human rights?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

      123. Commitment to human rights applies to all suppliers?

    • Y
      1 / 1

      124. Progress on human rights commitment?

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

      131. 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% certified within five years. The company also provides formalised Free, Prior, and Informed Consent procedure ensuring the communities' rights are upheld.

    • P
      0.75 / 1

      132. Examples of local stakeholder engagement to prevent conflicts?

      The company reports stakeholder engagement in which apart from FPIC, it has mentioned about conducting periodic meetings with stakeholders, having Grievance and Redressal Procedure. However, the information found is not externally verified.

    • Y
      1 / 1

      133. 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 within five years.

    • Y
      1 / 1

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

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

    • Y
      1 / 1

      135. 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 within five years.

    • N
      0 / 1

      136. Commitment to mitigate impacts on food security applies to all suppliers?

    • Y
      1 / 1

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

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

    • Y
      1 / 1

      138. Commitment to provide essential community services and facilities?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

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

    • Y
      1 / 1

      140. 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 within five years.

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

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

    • Y
      1 / 1

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

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

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

    • 147. Percentage or number of temporary employees?

      This indicator is disabled as the company has no temporary employees.

    • Y
      1 / 1

      148. Percentage or number of women employees?

      8,195

    • Y
      1 / 1

      149. Commitment to pay at least minimum wage?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

      150. Commitment to pay at least minimum wage applies to all suppliers?

    • Y
      1 / 1

      151. Progress on commitment to pay at least minimum wage?

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

    • N
      0 / 1

      152. Reporting of salary by gender?

    • Y
      1 / 1

      153. Commitment to address occupational health and safety?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

      155. Provision of personal protective equipment and related training?

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

    • Y
      1 / 1

      156. Time lost due to work-based injuries?

      The company reports Lost Time Injury Frequency (LTI) rates for KLK plantation: Malaysia (25.36), Indonesia (4.3), and KLK OLEO: Malaysia (2.42), Indonesia (0.00), Other Countries (5.16) respectively. Also, a unit of measurement is Incidents/1 million man-hours worked.

    • Y
      1 / 1

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

      1 - The company reports one fatality which occurred in its own plantation (Indonesia).

  • Smallholders and suppliers Smallholders and suppliers
    11 / 16 68.8%
    • Organisation: 0 / 0 0%
    • Policy: 5.5 / 6 91.7%
    • Practice: 5.5 / 10 55%
    • Self-reported: 3.5 / 10 35%
    • External: 2 / 10 20%
    • Certified: 0 / 10 0%
    • Y
      1 / 1

      158. Commitment to support smallholders?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

      159. Programme to support scheme/plasma smallholders?

      [Externally verified] Kredit Koperasi Primer Scheme (KKPA Scheme), Smallholder Tree Crops Revitalisation Support Project (STCRSP). Points for external verification have been awarded on the basis of the company's RSPO-certified landbank.

    • P
      0.75 / 1

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

      The company states it has 6,400 planters under the Plasma Scheme, and that it actively engages them to offer assistance in obtaining RSPO certification, and supports them through monetary funding, technical expertise and monitoring exercises.

    • Y
      1 / 1

      161. Programme to support independent smallholders/outgrowers?

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

    • P
      0.75 / 1

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

      The company states that "Bornion Smallholders' Project is successfully assisted 56 smallholders and 4 outgrowers in obtaining certification for approximately 824 ha and 9,629 mt of FFB". However, the information found is not externally verified.

    • Y
      1 / 1

      163. 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

      164. 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 found is more than two years old.

    • Y
      1 / 1

      165. Suspension or exclusion criteria for suppliers?

    • Y
      1 / 1

      166. 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

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

    • Y
      1 / 1

      168. 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 2020.

    • P
      0.5 / 1

      169. 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. No further details on the types of support could be found.

    • P
      0.5 / 1

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

      The company only states that regular audit checks will be done and that it will perform on-site audits for selected high-risk suppliers, but does not state how often the audits will be done.

    • P
      0.5 / 1

      171. 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

      172. 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

      173. 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: 1 / 2 50%
    • Certified: 0 / 2 0%
    • Y
      1 / 1

      174. Commitment to ethical conduct and prohibition of corruption?

      The company has its own commitment and also 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 five years.

    • Y
      1 / 1

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

    • Y
      1 / 1

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

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

    • N
      0 / 1

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

    • Y
      1 / 1

      178. 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 within five years. The company also has its own whistleblowing policy which establishes a framework where stakeholders can raise in confidence possible corporate misdemeanours.

    • Y
      1 / 1

      179. 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 within five years. The company also has its grievance redressal policy which contains a form to be filled by stakeholders if they have any complaint.

    • Y
      1 / 1

      180. Details of complaints and grievances disclosed?

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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