RAM Sustainability affirms KLK’s Gold1 Sustainability Rating

Published on 08 Jul 2026.

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RAM Sustainability has affirmed Kuala Lumpur Kepong Berhad’s (KLK or the Group) overall Sustainability Rating at Gold₁ (G₁). The Group’s Environmental (E), Social (S) and Governance (G) ratings were also affirmed at G₁. The Gold rating awarded to KLK indicates that it follows best practices in sustainability and displays outstanding sustainability performance.

KLK’s E rating is underpinned by its decarbonisation plan and progress towards its targets of a 25% reduction in emissions intensity by FY 2029/30 and net zero emissions by 2050, supported by energy efficiency initiatives, biogas and other renewable energy projects. The Group remains committed to its No Deforestation, No Peat and No Exploitation (NDPE) policy and adheres to standards of the Roundtable on Sustainable Palm Oil (RSPO), Malaysian Sustainable Palm Oil and Indonesian Sustainable Palm Oil, having achieved full RSPO certification for plantations in Malaysia and Liberia. Its product carbon footprint assessments have also expanded, alongside its compliance readiness for the European Union Deforestation Regulation.

The S rating reflects KLK’s commitment to human rights and responsible labour practices in a sector where effective management of these issues is particularly important. This is supported by comprehensive policies, including its Sustainability Policy, No Recruitment Fee Policy, Supplier Code of Conduct (updated in 2026) and Non-Compliance Protocol, alongside adherence to NDPE principles. With a zero-tolerance stance on forced and child labour, the Group’s independent human rights risk assessments and structured supplier oversight reinforce safeguards against labour-related risks and enhance supply chain accountability.

KLK’s G rating reflects continued enhancements in corporate governance practices such as achieving 30% female board representation and the appointment of a director leveraging on an external independent source.  KLK has adopted the International Financial Reporting Standards Sustainability Disclosure Standards in line with the National Sustainability Reporting Framework. Limited assurance has been extended to cover a broader range of Global Reporting Initiative indicators and operational metrics, improving transparency for stakeholders.

 

Analytical contacts
Raz Amira Razlan
(603) 2708 8295
raz@ram.com.my

Gladys Chua
(603) 2708 8292
gladys@ram.com.my

Media contact
Sakinah Arifin
(603) 2708 8212
sakinah@ram.com.my

 

This external review or second-party opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability. It is also not a credit assessment on the proposed Green, Social or Sustainability Bonds/Sukuk.

About RAM Sustainability

RAM Sustainability Sdn Bhd (RAM Sustainability) is a provider of sustainability services and ESG analytics. Incorporated on 31 May 20`00, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of ESG ratings and second opinions and has the distinction of being the first Registered Observer of ICMA’s Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines and Sustainability-Linked Bond Principles in ASEAN. For further details, please refer to https://www.ram.com.my/sustainability.

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