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This report details our sustainability journey for the year 2019. It shows how we continue to keep apace with the new paradigm for sustainability: that is, People, Planet, Prosperity, Peace and Partnership, better known as 5Ps. By defining all that we do within the 5Ps, we have embraced the more comprehensive 17 Sustainable Development Goals (“SDG”), now the global standard for sustainability. As a plantation company, we are aware that the world is watching us. Even before sustainability became a global clarion call, Kulim had adopted many agricultural practices now deemed as sustainable. Today, Kulim’s business policies, strategies and operations are aligned to both global and industry sustainability frameworks. With this, we can stand up to scrutiny as a responsible plantation company committed to enhancing value for diverse stakeholders – from shareholders to the wider community and the environment.



OUR SUSTAINABILITY POLICY

Kulim is one of the earliest plantation companies in the world to be recognised as a sustainable palm oil producer. Today, the Group continues to break boundaries in global palm oil markets by continuing to embrace innovative and sustainable practices in palm oil production.
This recognition is the outcome of Kulim making sustainability an integral part of the Group’s strategies and business operations. This has paved the way for Kulim to successfully comply with the stringent standards of international trade in palm oil products.
To ensure sustainability is embedded in all operations, Kulim established the Sustainability and Initiative Council (“SIC”). It is chaired by the Plantation Inspectorate, and consists of 14 members who represent various operating units and departments.
Every month, the SIC meets to review the Group’s sustainability performance across various economic, social and environmental indicators.
In addition, Kulim has a dedicated Sustainability and Quality Department (“SQD”) responsible for matters relating to certifications and compliances, as well as audits and social impact assessments, among others.
Kulim is aware that sustainability goalposts keep shifting. This knowledge serves to push ourselves harder and set our sights higher, as reflected in the latest revision of our Sustainability Policy (May 2018), which incorporated the following policies: No Deforestation; Protection of Peat Areas; and No Exploitation of People and Communities.
SIGNIFICANT MILESTONES Officially, the Group’s sustainability journey began in 2004, when it became one of the earliest oil palm companies in Malaysia to subscribe to the RSPO. Our R&D initiatives helped Kulim developed its own Sustainable Management System (“SMS”) based on the defined structures, practices and responsibilities set out in the RSPO’s Principles and Criteria.

ENVIRONMENT

In 2009, Kulim published its first Sustainability Report, the first by any plantation company. In 2013, we published the Carbon Footprint Report, the first of its kind in Malaysia. In 2009, we launched our Wildlife Defenders Programme to reach out to schools and smallholders to protect and conserve Malaysia’s unique wildlife. Since 2015, we have invested in biogas plants as a carbon reduction strategy and established of guidelines for the responsible use of chemicals, fertilizers and water at our estates.

SOCIAL

Kulim conducts the Annual Social Impact Assessment that look into the welfare of our workers and local community, with the view to raise their living standards. We also engage regularly with our stakeholders to understand their concerns better.
Through our Women OnWards (“WOW”) programme, we promote gender equality and empower the knowledge and skills of women. Our WOW programme was recognised at the 11th Annual Global CSR Summit Awards Ceremony 2019, when it won the Empowerment of Women Award in Bronze Category.