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Kuala Lumpur Kepong Bhd

Company Profile: Kuala Lumpur Kepong Bhd

  • Parent company:
    Batu Kawan Bhd
  • Landbank (total):
    269,442 hectares
  • Revenue from oil palm cultivation:
    51.61%
  • Market cap:
    6,186,605,056 USD
  • Thomson Reuters ticker:
    KLKK.KL
  • Bloomberg ticker:
    KLK MK
  • ISIN:
    MYL2445OO004
  • RSPO member?
    Yes
  • Other initiatives:
    SPOM, ISCC, ISPO
  • Activities:
    Oil palm cultivation, processing of crude palm oil (CPO) and palm kernel (PK), producing palm oil derivatives, refining
  • Locations:
    Malaysia (Johor, Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, Sabah, Selangor), Indonesia (Central Kalimantan, East Kalimantan, Riau, North Sumatra, Bangka and Belitung islands), Liberia, Papua New Guinea
  • Headquarters:
    Malaysia
  • Links to other SPOTT companies:
    Joint venture with Astra Agro Lestari Tbk and planned joint venture with IJM Plantations. FELDA holds a 4.4% stake in Kuala Lumpur Kepong
  • Notes:
    There is currently no development at KLK's land in Papua New Guinea. KLK is committed not to commence any new development without prior consent from the respective community and the relevant legal authorities.
  • Parent website:
  • Website:

Company Assessment: Kuala Lumpur Kepong Bhd

SPOTT assesses companies against more than 50 indicators across seven categories. Use the timeline to review past assessments. Click on an icon or bar to expand the category for further information, links to sources and best practice advice.

Total: 30 / 59 50.8%
  • RSPO reporting requirements 9 / 15 60%
    • Q: 1.1. Is the company an RSPO member?

      A: Yes, Kuala Lumpur Kepong Berhad (KLK) has been an RSPO member since 2004.

      1 / 1 | Source

    • Q: 1.2. Has the company submitted its most recent Annual Communication of Progress (ACOP) report to the RSPO?

      A: Yes

      1 / 1 | Source

    • Q: 1.3.1. In the company's  most recent and up-to-date RSPO ACOP report, does the company refer to itself as an oil palm grower?

      A: Yes, KLK refers to itself as an oil palm grower.

      1 / 1 | Source

    • Q: 1.3.2. In the company's most recent and up-to-date RSPO ACOP report, does the company state all the countries and regions in which it operates?

      A: Yes. KLK states all the countries and regions in which the company operates (KLK also have leased land in Papua New Guinea which is currently not developed): Indonesia (Central Kalimantan, East Kalimantan, Bangka Belitung, Riau, North Sumatra), Malaysia (Johor, Kedah, Kelantan, Negeri Sembilan, Pahang, Perak, Sabah, Selangor), Liberia

      1 / 1 | Source

    • Q: 1.4.1. Has the company RSPO-certified its first plantation estate: a) By November 2010, for companies joining prior to finalisation of the RSPO certification systems in November 2007? b) Within three years of joining the RSPO or of acquiring plantation operations as an RSPO member?

      A: Yes. Kuala Lumpur Kepong joined the RSPO in 2004 and certified its first plantation estate in 2009. Kuala Lumpur Kepong has a time-bound plan to complete certification by 2017 (this target does not include KLK's operations in Liberia).

      1 / 1 | Source

    • Q: 1.4.2. Has the company missed any of its public targets to be 100% RSPO-certified?

      A: No. However, an original target of 2014 was extended to 2015 and then 2017.

      No score | Source

    • Q: 1.5. What percentage of the company's total plantation estates is RSPO-certified?

      A: 77.4% of KLK's plantation estates are RSPO-certified.

      Calculation: 163,527 ha (total area RSPO certified) divided by 211,251 ha (stated planted area) x 100

      4 / 4 | Source

    • Q: 1.6. Are the company's RSPO Principles and Criteria certification assessments publicly available?

      A: Yes

      No score | Source

    • Q: 1.7.1. Have the first of the company's independent FFB suppliers achieved RSPO certification?

      A: No information could be found using the research protocols. Kuala Lumpur Kepong has a time-bound plan to complete certification of its independent FFB suppliers by 2018 (this target does not include KLK's operations in Liberia)

      0 / 1 | Source

    • Q: 1.7.2. Has the company missed any public targets for 100% of its independent FFB suppliers to be RSPO-certified?

      A: No. However, an original target was extended from 2015 to 2017 and then to 2018.

      No score | Source

    • Q: 1.8.1. Has the company RSPO-certified its first scheme smallholders?

      A: No information could be found using the research protocols. Kuala Lumpur Kepong has a time-bound plan to complete certification of its scheme smallholders by 2017 (this target does not include KLK's operations in Liberia).

      0 / 1 | Source

    • Q: 1.8.2. Has the company missed any public targets for 100% of its scheme smallholders to be RSPO-certified?

      A: No. However, an original target was extended from 2015 to 2017.

      No score | Source

    • Q: 1.9. What percentage of the company's scheme smallholder plantations is RSPO-certified?

      A: No information could be found using the research protocols

      0 / 4

    • Q: 1.10. Does the company have any open complaints filed through the RSPO complaints system?

      A: No

      No score

  • Landbank and maps 5 / 8 62.5%
    • Q: 2.1.1. Does the company have a publicly available statement detailing its land acquisition criteria?

      A: No information could be found using the research protocols. KLK only states it respects land tenure rights.

      0 / 1 | Source

    • Q: 2.1.2. Does this statement apply to all of the company's scheme smallholders and independent FFB suppliers?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 2.2.1. Has the company publicly disclosed its total landbank area for oil palm cultivation?

      A: Yes, landbank for oil palm cultivation is 239,231 ha (including 6,628 ha of leased land in Papua New Guinea - 204,231 ha reported in 2015 ACOP excludes Papua New Guinea)

      1 / 1 | Source

    • Q: 2.2.2. Has the company publicly disclosed its total planted area?

      A: Yes, planted area is 211,251 ha

      1 / 1 | Source

    • Q: 2.2.3. Has the company publicly disclosed its total scheme smallholder area?

      A: Yes, scheme smallholder hectarage is 10,095 ha

      1 / 1 | Source

    • Q: 2.2.4. Has the company publicly disclosed its total area of land managed for conservation that is set aside (i.e. including areas of High Conservation Value)?

      A: Yes, landbank for conservation is 11,302 ha

      1 / 1 | Source

    • Q: 2.3.1. Are all of the company's concession maps publicly available for all countries in which it operates?

      A: Concession boundaries have been made available to the RSPO, but not all are publicly available due to ongoing legal issues.

      1 / 1 | Source

    • Q: 2.3.2. Are all of the company's scheme smallholders' concession maps publicly available for all countries in which it operates?

      A: No information could be found using the research protocols.

      0 / 1

  • Environmental management 7 / 14 50%
    • Q: 3.1.1. Does the company have a publicly available statement to address deforestation resulting from its operations?

      A: Yes, Kuala Lumpur Kepong has a 'no deforestation' policy, including not developing areas classified as High Carbon Stock (HCS) forests and identifying, protecting and maintaining High Conservation Value (HCV) areas.

      1 / 1 | Source

    • Q: 3.1.2. Does this statement apply to all its scheme smallholders and independent FFB suppliers?

      A: Yes

      1 / 1 | Source

    • Q: 3.2.1. Does the company have a publicly available commitment to undertake Free, Prior and Informed Consent (FPIC) prior to any new planting taking place?

      A: Yes

      1 / 1 | Source

    • Q: 3.2.2. Does the company make its Free, Prior and Informed Consent (FPIC) process publicly available?

      A: The following KLK subsidiaries have a publicly available FPIC process:

      PT Tekukur Indah (PT TI)

      LIBINCO Palm Bay Oil Palm Estate, Grand Bassa County

      1 / 1 | Source

    • Q: 3.3.1. Does the company have a publicly available commitment to conduct SEIA (Social and Environmental Impact Assessments) assessments prior to any new planting taking place?

      A: Yes

      1 / 1 | Source

    • Q: 3.3.2. Are all SEIA assessments conducted after November 2005 publicly available?

      A: There is public availability of some of KLK's SEIA assessments:

      East Kalimantan: PT Anugrah Surya Mandiri (PT ASM), PT Tekukur Indah (PT TI)

      Liberia: LIBINCO Palm Bay Oil Palm Estate, Grand Bassa County, Liberia

      No SEIA assessments could be found for: Bangka Belitung Islands, West Kalimantan, Sumatra, Peninsula Malaysia, Sabah, Papua New Guinea

      0 / 1 | Source

    • Q: 3.4.1. Does the company have a publicly available commitment to conduct High Conservation Value (HCV) assessments prior to any new planting taking place?

      A: Yes

      1 / 1 | Source

    • Q: 3.4.2. Has the company publicly committed to only using licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 3.4.3. Are all of the company's High Conservation Value (HCV) assessments conducted after November 2005 publicly available?

      A: There is public availability of some of KLK's HCV assessments:

      East Kalimantan: PT Anugrah Surya Mandiri (PT ASM), PT Tekukur Indah (PT TI)

      Liberia: LIBINCO Palm Bay Oil Palm Estate, Grand Bassa County, Liberia

      No HCV assessments could be found for: Bangka Belitung Islands, West Kalimantan, Sumatra, Peninsula Malaysia, Sabah, Papua New Guinea

      0 / 1 | Source

    • Q: 3.4.4. Does the company make its High Conservation Value (HCV) management and monitoring plans for all of its estates publicly available?

      A: There is public availability of one of KLK's HCV management plans:

      East Kalimantan: PT Anugrah Surya Mandiri (PT ASM), PT Tekukur Indah (PT TI)

      Liberia: LIBINCO Palm Bay Oil Palm Estate, Grand Bassa County, Liberia

      No HCV management plans could be found for: Bangka Belitung Islands, West Kalimantan, Sumatra, Peninsula Malaysia, Sabah, Papua New Guinea

      0 / 1 | Source

    • Q: 3.5. Has the company publicly committed to applying a High Carbon Stock (HCS) methodology to all of its landholdings and not developing on HCS areas?

      A: Yes

      1 / 1 | Source

    • Q: 3.6. Does the company have a publicly available Water Management Plan or equivalent for its operations?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 3.7. Does the company have a publicly available Integrated Pest Management Plan for its operations?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 3.8. Does the company have a publicly available commitment to not use WHO Class 1A and 1B pesticides and paraquat, or time-bound plan for phasing out their use?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 3.9. Has the company been mentioned in any relevant media stories and/or reports that make reference to wildlife conflict or deforestation within the company's plantation estates and/or its scheme smallholders' or independent FFB suppliers' plantations?

      A: Please find the relevant media stories listed in the media monitor below.

      No score

  • Fragile, marginal and peat soils 2 / 2 100%
    • Q: 4.1.1. Does the company have a publicly available statement stating that it is committed to a strict 'no new development on peat' policy?

      A: Yes. Kuala Lumpur Kepong has a policy of no new development on peat areas, regardless of depth.

      1 / 1 | Source

    • Q: 4.1.2. Does this policy apply to all its scheme smallholders and independent FFB suppliers?

      A: Yes

      1 / 1 | Source

    • Q: 4.2. What percentage of the company's landbank for oil palm cultivation is located on peat?

      A: No information could be found using the research protocols

      No score

  • Zero burning 2 / 2 100%
    • Q: 5.1.1. Does the company have a publicly available statement stating that it is committed to a strict policy of zero burning?

      A: Yes. KLK has strict zero burning policy for all new planting, replanting or other development.

      1 / 1 | Source

    • Q: 5.1.2. Does this policy apply to all its scheme smallholders and independent FFB suppliers?

      A: Yes

      1 / 1 | Source

    • Q: 5.2. Has the company been mentioned in any relevant media stories and/or reports that make reference to fires found within the company's plantation estates and/or its scheme smallholders’ or independent FFB suppliers’ plantations?

      A: Please find the relevant media stories listed in the media monitor below.

      No score

  • Greenhouse gas emissions 1 / 6 16.7%
    • Q: 6.1.1. Does the company have a publicly available time-bound plan to reduce greenhouse gas (GHG) emissions?

      A: Yes. KLK has a target to achieve 50% GHG savings by 2017.

      1 / 1 | Source

    • Q: 6.1.2. Does this time-bound plan apply to all its scheme smallholders and independent FFB suppliers?

      A: No information could be found using the research protocols

      0 / 1

    • Q: 6.2. Does the company publicly report on progress made towards achieving its time-bound plan?

      A: No. KLK only reported on its GHG savings for all its existing palm oil mills in Malaysia as at end of December 2015.

      0 / 1 | Source

    • Q: 6.3. Does the company publicly report its GHG emissions from land use change associated with new planting?

      A: No information could be found using the research protocols.

      0 / 1

    • Q: 6.4. Has the company made a public commitment to report and to reduce effects from Palm Oil Mill Effluent (POME)?

      A: No. KLK only states that it treats POME into an environmentally friendly fertiliser.

      0 / 1 | Source

    • Q: 6.5. Has the company made a public commitment to eliminate methane emissions from all of its palm oil mills?

      A: No. However, KLK has 5 methane capture facilities and plans to install another at one of its mills in East Kalimantan.

      0 / 1 | Source

  • Traceability 4 / 12 33.3%
    • Q: 7.1. Are all of the company's mill locations publicly available for all countries in which it operates?

      A: Mill locations have been made available previously, which are viewable on the SPOTT map. However, ZSL is currently unable to ascertain if the maps disclosed constitute 100% of the company's palm oil mills.

      0 / 1

    • Q: 7.2. What percentage of the company's total palm oil mills is RSPO-certified?

      A: 65.4% of KLK's palm oil mills is RSPO-certified.

      Calculation: 17 (stated number of palm oil mills RSPO-certified) divided by 26 palm oil mills (stated number of palm oil mills operated) x 100

      3 / 4 | Source

    • Q: 7.3. What percentage of the company's total fresh fruit bunches (FFBs) purchased from independent suppliers (not including outgrowers and scheme smallholders) is RSPO-certified?

      A: No information could be found using the research protocols

      0 / 4

    • Q: 7.4. Does the company have a public commitment to move towards Segregated and/or Identity Preserved certified sustainable palm oil (CSPO)?

      A: No information could be found using the research protocols. KLK only states that Bornion Palm Oil Mill has an objective to be upgraded from Mass Balance to Identity Preserved.

      0 / 1 | Source

    • Q: 7.5. Does the company prioritize certified sustainable palm oil (CSPO) from Segregated or Identity Preserved supply chain models over Mass Balance or GreenPalm?

      A: Mass Balance, Segregated, Identity Preserved

      1 / 2 | Source

Trend Tracker: Kuala Lumpur Kepong Bhd

SPOTT's Trend Tracker displays score changes across seven indicator categories over time. Return to the full company assessment for more detail, and check the Updates page for a narrative of changes.

Click an icon to show only the corresponding category tracking line and the axis will adjust accordingly. Please note that trends are only available for companies with previous assessments.

Media Monitor: Kuala Lumpur Kepong Bhd

SPOTT's Media Monitor gathers reports and stories from global media sources, covering specific company activities related to the environmental management (deforestation and wildlife conflict) and zero burning (fires and haze) categories. ZSL does not assess the validity of these reports and stories, and cannot guarantee their substantiation.

Deforestation and wildlife conflict

Fires and haze

Map of Concessions: Kuala Lumpur Kepong Bhd

Explore our interactive mapping tool for a satellite view of deforestation and fires in and around concession sites of companies featured on the SPOTT scorecard. These data can support SPOTT users in conducting further research to verify whether or not company commitments are being implemented on the ground.

Use the map search bar to find specific company concessions or locations. Click the concession sites marked by pins to zoom in for more information, then go to the company pages of featured concessions to view their assessments.