Sustainable Palm Oil Development

Oil palm is at the heart of KLK and it is imperative for KLK that its core business, from upstream to downstream remains sustainable. This means that the oil it produces is environmentally friendly, socially just and economically profitable. This is realised through continuous balanced assessment and development of its operations while simultaneously conserving and improving the natural environment, and uplifting the socioeconomic conditions of its employees and local communities.

KLK adopts the Principles & Criteria (“P&C”) set out by the internationally recognised Roundtable on Sustainable Palm Oil (“RSPO”) as the foundation of its sustainability practices. It is also guided by additional policies which goes above and beyond the current requirements of the RSPO.



High Carbon Stock

KLK acknowledges that there is a need to have a single methodology to implement no deforestation commitments. There is now an agreement to converge the HCS Approach1 and HCS+2 methodologies to constructively develop recommendations to provide a roadmap going forward to address the outstanding issues in a collaborative and integrated manner. Decisions from this convergence exercise will be reflected in the revised HCS Approach Toolkit. In the interim, and until the results of the convergence are adopted, KLK will adopt the current HCS Approach methodology for all new oil palm development.

1 a methodology developed by a multi-stakeholder body called the High Carbon Stock Approach Steering Group. The HCS Approach distinguishes forest areas for protection from degraded lands with low carbon and biodiversity values.
2 a methodology from a study commissioned by a group of grower companies and agribusinesses. The HCS+ focused on the GHG emissions and the opportunities for improved livelihood by permitting some level of responsible conversion of land to oil palm plantations.