In fact, KLK was among the pioneering members of the Roundtable on Sustainable Palm Oil (“RSPO”) which was established in 2004. The Sustainability Policy, which was last reviewed and endorsed by the CEO on 30 August 2018, applies to all palm oil-related operations of the Group, including all subsidiaries and joint ventures in which the company has management control. Continuous improvement of palm oil traceability mechanisms from mills and refineries to oil palm plantations (Third party suppliers are also subject to traceability).
Improve the farming practices of smallholder farmers with sustainable options and raise awareness of the policy and commitment to sustainable palm oil production. Raise awareness of KLK's policy and commitment to sustainable palm oil production and their role in this. Raise awareness of the KLK policy, supplier code of conduct, non-compliance protocol and commitment to sustainable palm oil production and the role of suppliers in this.
The material sustainability issues identified in 2021 were reviewed to determine their relevance to the Group's current state of operations as well as global and local factors affecting the palm oil industry.
MARKetpLACe
This year, workshops were held in Kuala Lumpur (28-29 September), Sabah and Riau (both 5-6 October) targeting all crude palm oil and palm kernel suppliers to all KLK's KCPs and refineries. Going forward, we plan to use this information to increase our awareness efforts in our supply chain and refine the data requirements in the TTP portal. Defined as traceable to POM level for both palm oil-based and palm kernel oil-based feedstock, excluding internal transfer within the KLK Oleo group of companies, for FY2022.
The percentages disclosed are tabulated based on the origin-weighted average purchases of palm oil processed at participating operating centers. These certifications, along with traceability, give our products greater credibility to compete in the global market. A global sustainable palm oil initiative with the objective of promoting the growth and use of sustainable palm oil products through credible global standards and multi-stakeholder governance.
A set of standards that governs the Malaysian palm oil industry and covers the entire supply chain including plantations, independent growers, smallholders and palm oil mills. A mandatory set of standards created to improve the sustainability and competitiveness of the Indonesian palm oil industry and to support Indonesia's greenhouse gas reduction and environmental protection goals. In addition to monitoring greenhouse gas emission levels, we closely monitor our palm oil mill effluent to ensure that it meets regulatory limits for biological oxygen demand ("BOD").
In addition, we have built biogas power plants that use methane obtained from palm oil processing as a source of renewable energy. As part of our efforts to reduce the introduction of chemical compounds into the natural environment, KLK strives to reduce the use of potentially harmful compounds such as pesticides, herbicides and fertilizers. Konservasi Hutan Desa (“KONTANDES”) is a forest and biodiversity conservation project in the Berau region (East Kalimantan) of Indonesia, which includes the village forest of Dumaring and Biatan Ilir.
As a result of the above, LPHD Dumaring of KONTANDES won third place in the national competition Wana Lestari 2022 in the category of holders of village forest management rights. There are 26 species of flora and 75 species of fauna that are in the extinct and threatened category, according to the IUCN Red List.
WoRKpLACe
As at 30 September 2022, we have a total of approximately 43,000 employees (including Malaysian and non-Malaysian staff of all ranks) across all our operations in Malaysia, Indonesia, Liberia, Europe and China. Having employees representing both genders and a variety of cultures and nationalities at all levels of the KLK Group (from the Board to Senior Management to non-Management employees) is the main reason why we have introduced strong policies on Diversity, Equality and Inclusion. The physically demanding nature of the work involved in harvesting and processing palm oil is the reason why our workforce is geared more towards men.
We are proud advocates of our employees' Freedom of Association and protect their rights to collective bargaining. Since the reopening of the economic sector after COVID-19, we have implemented the necessary precautions to prevent outbreaks at our offices and sites. We also regularly conduct OSH awareness trainings to inform our employees about the company's current safety statistics, safety procedures based on MS Occupational Safety and Health Management Systems, the types of injuries and occupational hazards that may occur.
Following our standard operating procedures, we have conducted detailed investigations into each of these unfortunate incidents to determine what went wrong and how it can be prevented in the future. It is imperative to continuously benchmark against the key industry players in the Oleo industry to appear competitive, safe and sustainable. Our Safety and Health Committee meets periodically to address safety issues and improve safety procedures as needed.
We have a total of 2,830 Safety and Health Committee representatives in our plantation segment (including Peninsular Malaysia, Sabah, Indonesia and Liberia) and KLK Oleo. Nevertheless, OSH visits are conducted twice a year to ensure that KLK locations strictly adhere to our safety procedures without exception. Through our Safety and Health Committees, we ensure that sufficient training programs are conducted to help all our employees, especially from the foreign worker group, understand the safety protocols with great clarity.
31 December 2021
The KLK Manufacturing business unit continuously works to improve and upgrade its quality, safety, health and environmental certifications and accreditations. The gender distribution of these representatives reflects the overall gender distribution of our workforce, with 84% male representatives and 16% female representatives on the committees.
13-15 september 2022
12-14 september 2022
4, 14, 19 & 29 July 2022
March 2022
14 June 2022
30 November 2021 & 13 June 2022
KLK is committed to implementing appropriate labor standards so that its employees receive fair wages/salaries for fair hours of work. We stand strongly against human trafficking, forced labor and child labour, as stated in our code of conduct and sustainability policy. In protecting the rights of our foreign workers, we have a zero recruitment fee policy, where we ensure that workers are not financially burdened or taken advantage of during the recruitment process.
KLK is committed to providing a safe and healthy environment for its employees, not only in terms of safety and health at work, but also personally. As employees return to the workplace post-Covid, we are committed to making health, wellness and safety a top priority and setting new standards that support healthier and more balanced lifestyles. As mental health awareness grows stronger, KLK is doing its part to encourage its employees to break the stigma, speak up and seek help if they need it.
We care about the physical and mental health of our employees and prioritize investing in the well-being of our employees. We believe that providing our employees' children with access to quality education is a critical factor in protecting their well-being and creating a sustainable future. Our plantation operations are spread over a wide geographical area (Malaysia, Indonesia, Liberia) and KLK is committed to providing education to children of all ages, to improve and transform future generations.
KLK has spent a prudent RM5.6 million annually to operate 140 childcare and learning facilities on our plantations and so far more than 25,000 students have been educated annually in these learning facilities. CLCs have given Indonesian children on our oil palm plantations the opportunity to continue their studies at secondary level when they return to their homeland. In order to provide a sustainable mechanism for improved access to education, special partnerships have been established with prominent organizations such as Humana Child Aid Society Sabah, Indonesia Heritage Foundation and the Ministry of Education in Liberia to ensure the long-term sustainability of our initiatives.
CoMMuNitY
KLK provides education to the children of plantation workers and marginalized communities in rural settings in Sabah (Malaysia), Indonesia and Liberia. KLK has equipped the Sekolah Menengah Kebangsaan Simpang Pulai ("SMKSP") computer lab with new laptops, refurbished computers, laser printers, air conditioning units and televisions to help make learning more conducive for students. Flood aid returns to school curriculum In the wake of the December 2021 floods that involved.
As part of a commitment we have made to support all our employees in every way possible, KLK has allocated a total of RM670,000 to help ease the burden of its employees who were affected by the floods. Under our Community Pillar of Corporate Responsibility, we strive to ease the financial burden of vulnerable communities in our areas of operation and contribute to their social and economic development. After assessing and considering the needs and priorities of the local community, we work closely with local governments and non-governmental organizations to ensure that the programs we support are beneficial to the people who need them most.
We hope to bring relief to some of the underprivileged families who may continue to face tough financial situations as a result of the pandemic. At KLK, we strive to strengthen the socio-economic status of the communities in areas where we operate. According to the latest National Tiger Survey, the estimated Malaysian tiger population is less than 150.
To give our tigers a fighting chance, KLK has donated RM140,000 to Persatuan Pelindung Harimau Malaysia (“RIMAU”) so that they can put “boots on the ground” with a specialized patrol team called the Menraq, made up of members from the Jahai tribe who have been living in the Royal Belum-Temengor Forest for centuries to combat poaching activities. This community patrol project will not only raise their awareness about the plight of the Malayan tiger and its habitat, but also provide an alternative livelihood to the members and their village as a whole. KLK presented a pilot check to RIMAU to put boots on the ground to reduce poaching activities.
