RAM Sustainability reaffirms KLK’s Gold2 (G2) sustainability rating

Published on 21 Dec 2022.

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RAM Sustainability Sdn Bhd (RAM Sustainability) has reaffirmed Kuala Lumpur Kepong Berhad’s (KLK or the Group) Gold₂ (G₂) Sustainability Rating. The rating reflects KLK’s strong overall sustainability performance after taking into consideration its environment, social and governance (ESG) and positive impact attributes. The rating is also based on relevant international and domestic guidelines such as Bank Negara Malaysia’s Climate Change and Principle-based Taxonomy. 

The Group’s sustainability performance is driven by their continued improvement in sustainability governance, led by the board of directors and supported by the Sustainability Steering Committee. In March 2022, KLK appointed its first Chief Sustainability Officer. The introduction of Project SHIFT, an initiative to bridge the gaps of KLK’s sustainability practices has further enhanced their sustainability efforts. Further supporting the rating is KLK’s holistic Sustainability Policy, which addresses key sustainability obligations of the palm oil industry such as commitment to the No Deforestation, No Peat and No Exploitation (NDPE) policy, protection of High Conservation Value areas, net greenhouse gas reduction, and zero burning. The Group’s continued advocacy of sustainable palm oil production and the integration of smallholders into its supply chain are also viewed favourably.

KLK is dedicated to improving human rights measures at its operations, documenting its commitments on this front in the Group’s Sustainability Policy, NDPE policy and Code of Conduct. In August 2020, KLK engaged Business for Social Responsibility (BSR) to conduct an independent Human Rights Assessment of its operations. During FY2021, KLK became a member of BSR. 

KLK’s recent acquisition of KLK Sawit Nusantara Berhad (KSN, formerly known as IJM Plantations) will proportionately dilute the Group’s oil palm planted area that is certified by the Roundtable on Sustainable Palm Oil (RSPO), however KLK is targeting to achieve full certification by end of 2024. 

RAM Sustainability is a provider of sustainability services and Environment, Social and Governance analytics. Incorporated on 31 May 2000, it is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions. It also has the distinction of being the first Registered Observer of the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in the ASEAN region. On 12 August 2020, we became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, see https://www.ram.com.my/sustainability. 

 

Analytical contact
Intan Aasyeerin
(603) 3385 2547
aasyeerin@ram.com.my

Gladys Chua
(603) 3385 2611
gladys@ram.com.my