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Digital annual report 2016
Sustainability Report - Profit
Long-term sustainable growth is the goal of any organisation. Clearly, making money is essential to business success. However, Kulim recognises that its own sustainability rests on its ability to work harmoniously within its social and environmental settings. Thus, while we owe it to our shareholders to be profitable, we are also responsible to our other stakeholders. For this reason, the costs of reducing our environmental footprints and other social factors must be factored into our profit calculations.
RSPO CERTIFICATION

There is increasing concern globally that commodities must be produced without harming the environment or society. Certification to RSPO is an assurance to the customer that the production of palm oil is sustainable through strict verification of the production process to the stringent RSPO Principles & Criteria (“RSPO P&C”) for Sustainable Oil Palm production by accredited certifying bodies. The certification can be withdrawn at any time in the event of an infringement of the rules and standards. As at the end of 2015, four of our five mills had their RSPO certification successfully renewed after completing the annual surveillance audit 2. For Pasir Panjang Palm Oil Mill the RSPO and ISSC certification program commenced in February 2016, the mill being audited in October 2016 and February 2017 respectively. The mill was successfully certified with both standards in March 2017.

The materiality matrix presented here lays out the business, social and environmental issues that affect our business activities and can be used to help guide our decisions and prioritise our actions.



From the materiality analysis and our engagements with stakeholders, we have determined that the material issues that are of highest concern to us and our stakeholders are as follows:
  • Use of chemicals such as paraquat, herbicides and pesticides in our estates
  • Water usage at our estates and mills
  • Safety and health standards at the workplace
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