RAM Consultancy Services Sdn Bhd (RAMC), a provider of sustainability services and environment, social and governance (ESG) analytics, has assigned a Gold Sustainability Rating to Kuala Lumpur Kepong Berhad (KLK or the Group). The rating reflects KLK’s outstanding sustainability performance after taking into consideration its ESG and positive impact attributes.
The Group’s strong sustainability performance is driven by a robust sustainability governance structure led by the CEO through the Sustainability Steering Committee and the establishment of an overarching Sustainability Policy that is aligned to the Principles and Criteria of the Roundtable of Sustainable Palm Oil (RSPO). The rating is further supported by KLK’s periodic review and subsequent improvement of its Sustainability Policy, which addresses key sustainability issues of the palm oil industry. The Group is also viewed favorably by advocating for sustainable plantation practices through their smallholder and small grower programmes.
The rating is also driven by the Group’s aspirations toward constant improvement in its sustainability practices within human resources. KLK is expected to establish special task forces to streamline labour practices across their regional operations and ensure employee rights are continuously upheld.
The Group’s implementation of biogas plants and filter belt press systems to reduce the negative impacts of methane gas emitted from palm oil mill effluent is viewed positively. That said, there is room for stronger performance indicators that would demonstrate KLK’s efforts to reduce its environmental footprint.
RAMC is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, it is a wholly owned subsidiary of RAM Holdings Berhad. RAMC is the first ASEAN-based provider of sustainability ratings and second opinions, and has the distinction of being the first Registered Observer of the International Capital Market Associations’ Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in ASEAN. For further details, please refer to https://www.ram.com.my/sustainability.
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© Press Release 2019