RSPO

KLK adopts the Principles & Criteria (“P&C”) set out by the Roundtable on Sustainable Palm Oil (“RSPO”)
as the foundation of its sustainability practices, and is further guided by the following policies:No deforestation

1. Protection of peat areas
2. Drive positive socio-economic impact for people and communities

KLK ensures that our palm oil is produced in a manner that is environmentally sustainable.
In practice this means:Use of best practices including zero burning and good water management

• Improving yield which translates to efficient use of land
• Protecting of high conservation value areas including areas with rare, threatened and endangered species
• Prudent use of fossil fuels
• Driving positive socio economy development in areas where KLK operates

Source: KLK sustainability policy

Our portfolio of certified sustainable products is very broad as shown in the table below. This enables our customers to create formulations claiming all the palm oil is certified as sustainable.

With increased focus on sustainability and brand integrity, we expect that the demand for certified sustainable palm oil derivatives will increase in the coming years. KLK has many years of experience in managing the supply chain and created an excellent, integrated setup. Our customers can profit from that to have a reliable and trustworthy source for their key raw materials.

Consumer awareness about palm oil is significant and growing, both for food and non-food products. The industry has to source sustainably in order to retain customer loyalty in the sector where brand is the main equity. We offer the choice to buy palm (kernel) oil derivatives with RSPO certification.
You can challenge us with the products you need as MB or SG, as this enables you to integrate sustainability in your business.

The journey of full sustainability and traceability is ongoing and you are invited to join us.

RSPO is a not-for-profit organisation that unites stakeholders from the 7 sectors of the palm oil industry: oil palm producers, processors or traders, consumer goods manufacturers, retailers, banks/investors, and environmental & social non-governmental organisations (NGOs), to develop and implement global standards for sustainable palm oil.

The RSPO has developed a set of environmental and social criteria, which companies must comply with, in order to produce Certified Sustainable Palm Oil (CSPO). They ensure the smallest possible impact of palm oil cultivation on the environment and communities in palm oil-producing regions.
The RSPO has more than 1,700 members worldwide who represent all links along the palm oil supply chain. They have committed to produce, source and/or use sustainable palm oil certified by the RSPO.

Source: www.rspo.org

RSPO P&C are made up of eight core principles that plantations and mills
must comply with in order to attain certification.

8 Principles of Sustainable Production of Palm Oil

• Commitment to transparency
• Compliance with applicable laws and regulations
• Commitment to long-term economic and financial viability
• Use of appropriate best practices by growers and millers
• Environmental responsibility and conservation of natural resources and biodiversity
• Responsible consideration of employees and of individuals and communities affected by growers and mills
• Responsible development of new plantings
• Commitment to continuous improvement in key areas of activity

Source: RSPO Impact Report 2014

The Mass Balance (MB) Model allows mixing of certified oil and non-certified oil at any stage of the supply chain, provided that the overall certified oil quantities used are controlled and accounted for. The key point for the MB models is that the volume of products shipped must never exceed the volume received by the end user. The basis of the supply chain requirements for the MB model consists of reconciliation between the quantity of RSPO material bought, and the quantity of RSPO certified products delivered. There are no additional requirements for separate storing or control in the production process. (source KLK)

The Segregation (SG) Model assures that all of the physical products originate from only RSPO-certified oil. This approach requires that RSPO-certified palm oil is kept separate from materials of non-RSPO certified origin at every stage of production, processing, refining, and manufacturing, throughout the supply chain. This model, however, does allow the mixing of RSPO certified palm oil and its derivatives from various sources. (source KLK)