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Analysis by Aidenvironment, Climate Advisers and Profundo of Palm Oil Producer KLK’s Profitable Business Model

Analysis by Aidenvironment, Climate Advisers and Profundo of Palm Oil Producer KLK’s Profitable Business Model

Aidenvironment’s expertise and tools for sustainability analysis reveal opportunities to increase the positive impacts of investments – ‘do more good’ – and reduce the negative impacts – ‘do less harm’. A recent example of this expertise is the sustainability risk analysis of Malaysian palm oil producer Kuala Lumpur Kepong (KLK).

The sustainability risk analysis of KLK’s profitable business model (KLK) was performed by Chain Reaction research, a partnership between Aidenvironment, Profundo and Climate Advisers. The report gives an overview of the company, explores the environmental and social issues it faces, and presents a financial analysis of how sustainability risks may impact profitability. This is the fifth risk assessment report by the three organizations with funding from the David and Lucile Packard Foundation.

KLK is a large Malaysian palm oil company that manages more than 200,000 hectares of palm oil plantations in Indonesia, Malaysia, and Liberia, and is active in the manufacturing of oleochemicals in Malaysia, China, and Europe. This analysis found significant, unresolved sustainability and transparency issues in KLK’s supply chain, which bring significant risks to market access. Nevertheless, KLK’s organizational structure and profit centers offer a potential path forward to rethink the way it does business. More information can be found at chainreactionresearch.com.

For more information contact Annemieke Beekmans.