KLK – Green Tigers Index Rankings

SCORE

50.5

KLK has had serious issues with deforestation in Kalimantan, and the Indonesian National Police named KLK as a suspect in deliberate forest burning. More recently, KLK has claimed the right to develop palm oil plantations on 40,000 hectares in the Collingwood Bay area of Papua New Guinea—an area rich in primary forests. KLK’s claims conflict with the rights of the nine tribes that live in the area, whose members have vehemently contested KLK’s right to destroy their forests and establish palm oil plantations. Both PNG Courts and the Roundtable on Sustainable Palm Oil have ordered KLK to stop work in the area. Bloomberg Businessweek also published a lengthy exposé showing that KLK has made extensive use of forced labor. KLK has said that its subsidiary was responsible for failure to pay wages and other violations, and that it has taken remedial action.

In January 2015, KLK made progress by announcing that it will employ the industry standard for HCS forests that has been developed by TFT, GAR, and Greenpeace. The move clarifies how KLK will define HCS areas while awaiting the results of its own HCS study, which is underway. In December 2014, KLK announced its own “sustainability policy.” The policy was widely criticized for not applying to the company’s suppliers, trading partners, or joint ventures, and it did not commit to using the standard HCS approach. KLK has since committed to the standard HCS methodology, but its policy still does not bind KLK’s suppliers and partners to any No Deforestation practices, making it significantly weaker than other companies.’

POLICY

1.A

The company has a forest policy for palm oil produced, traded or processed that applies to its global operations including all subsidiaries and joint ventures. The company also requires its suppliers to follow the policy.

HALF

1.B

The policy excludes the sourcing of  raw materials or products originating from natural forests including both primary and secondary forests.

NO

1.C

The policy specifically excludes the sourcing of raw materials or products originating from High conservation Value (HCV) areas.

YES

1.D

The palm oil policy specifically excludes development on peat soil regardless of depth.

YES

1.E

The palm oil policy excludes the sourcing  of raw materials and products from developments in High Carbon Stock (HCS) Forests.

YES

1.F

The palm oil policy excludes the sourcing of raw materials and products from lands where burning has been used to clear vegetation.

YES

1.G

The company has pledged to use (or uses) a third party for compliance verification of its policy.

NO

1.H

The company has developed and published a non-compliance procedure that outlines thresholds for the suspension and/or cancellation of contracts with suppliers in breach of the policy.

NO

1.I

The company has committed to developing a traceability system that documents palm oil back to the plantation of origin within its entire supply chain.

NO

1.J

The company specifically commits (and requires its suppliers to do so) to respect the rights of Indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to development on their lands.

HALF

1.K

The company has programs that support small holders in its supply chain with support that goes beyond purely financial considerations and the palm oil supply chain but addresses longer term development.

YES

1.L

The company has policy to reduce the environmental and health impacts of chemical pesticides and/or fertilizers.

NO

IMPLEMENTATION & TRANSPARENCY

2.A

Date by which the company aims to achieve full traceability to plantation for its entire supply chain.

NO

2.B

The company or the relevant third party publishes detailed processes and results of the policy verification assessments.

NO

2.C

The company has established and published an accessible and transparent grievance and dispute resolution mechanism.

YES

2.D

The company reports on its progress towards meeting its policy goals at least annually against measurable indicators.

YES

2.E

The company has published the  names or  detailed locations (that allow for coordinates to be obtained) of all palm oil mills in its supply chain.

HALF

3.A

Points are deducted for the following (occurring since January 1, 2015). There is public evidence that since January 1, 2015 the company has in its own operations not met criteria 1.C, 1.D, 1.E or 1.J (or uses palm oil from protected areas). Or the company has sourced from suppliers that have not met these criteria. Or the company had its RSPO license revoked or suspended since that date. Or there is evidence of significant workers rights violations or social conflicts.

NO

See all of the rankings of major palm oil and soy companies on their adherence to forest conservation requirements on the Green Tiger and Green Jaguar index.