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Chain Reaction Research Analysis: Palm Oil Producer KLK’s Profitable Business Model at Serious Risk

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 risk to market access especially vis-à-vis its buyers and competitors. Yet, due to its organizational structure and profit-centers, KLK has a potential path forward to rethink the way it does business.
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The Chain Reaction Research is a consortium effort of Aidenvironment, Climate Advisers and Profundo.

For more information, please contact Annemieke Beekmans.

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