No Deforestation,     No Peat and             No Exploitation
HCV / HCS Protection and Management
Carbon Emission
Renewable Energy
Water Management
Responsible Chemical Use
Waste and Pollution

No Deforestation, No Peat and No Exploitation

We are committed and actively seeking to continually improve environmental performance and embraces the principle of sustainable development guided by the following policies:
KULIM will not undertake new developments in areas of Primary Forest classified as High Carbon Stock (HCS) forests and in an area containing one or more High Conservation Values (HCV) and land development undertaken by the company takes into account the conservation and maintenance of biodiversity
KULIM will not commit to any development on the peat area regardless of depth. We are committed to the application of Best Management Practices on the existing peat lands of our plantations
KULIM is committed to ensuring and protecting the rights of all people directly and indirectly impacted by our operation. Core to this, our People Policy is a commitment to our transparent respect and recognition of the rights of all our employees, including contract, temporary and migrant workers as well as people living locally nearby and adjacent communities
life-on-land

HCV/HCS Protection and Management

We are committed to preserving and protecting HCV as well as HCS sites.

We have identified the following:
  i)   1,131.1 ha as HCV areas in 2021
  ii)  276.25 ha as conservation land in our estates in 2021

Most of these areas are in the vicinity of the Endau-Rompin National Park and Labis Forest Reserve in Johor.
We have been maintaining wildlife corridors linking natural habitats within our estates since 2011

Maintenance of these natural corridors is combined with an annual tree-planting event, involving employees and members of the public
We strive to ensure that our supply chain lives up to the Group’s No Deforestation, No New Development on Peat, and No Exploitation of People and Local Communities (NDPE) Policy
In 2021, 36 incidents of elephant encroachment were reported across our estates and surrounding residential areas

To protect our local communities as well as wildlife, we work closely with the Wildlife Conservation Society  and the Johor Department of Wildlife while engaging with the state government and our smallholders
life-on-land

Carbon Emission

In 2021, our total emissions were 13.75% less than the 485,000 MT CO2e in 2020, while our emissions density was 8% lower than the 1.23 MT CO2e per MT CPO and PK.
We target of 50% reduction of carbon intensity by 2025, which translates into 0.88 MT CO2e per MT CPO and PK
To achieve our reduction target, we have lined up both short-term and long-term initiatives through the integration of waste and pollution management, renewable energy and carbon farming with our agricultural practices.

Renewable Energy

We have been generating Renewable Energy (RE) using waste from our mills since 2016. Through the generation of RE, we can significantly reduce our carbon footprint through lower electricity offtake from the national grid and lower methane emissions from our bio-waste
We strive to achieve 70% RE utilisation in our operating units.
Currently, the biogas generated is used for power generation (please refer to the table above for more information). Once the Sedenak biogas plant is commissioned, biogas generated here will be converted into biomethane and subsequently sold to Gas Malaysia Berhad. Gas Malaysia, in turn, will feed the methane into the national gas grid. Meanwhile, the biogas plants at Sindora and Tereh Palm Oil Mills will be upgraded for bio-CNG commercialisation by the year 2023, as we strive to achieve 70% RE utilisation in our operating units.

Water Management

Kulim recognises the importance of ensuring efficient water management and safeguarding its quality. This is achieved by reducing the impact of our operations. We are cognisant that FFB harvesting and CPO production require a heavy reliance on water; therefore, we seek to implement best water management practices.
Soil erosion is a common cause of water pollution. We plant fast-growing leguminous cover crops in erosion-prone areas. We monitor the Biochemical Oxygen Demand (BOD) of surrounding water bodies to ensure we do not pollute water in the vicinity of our operations.
In 2021, our consumption intensity increased by a marginal 1.8% yet remained well below our target of 1.2m3/MT FFB. To reduce our consumption, we recycle water from steriliser condensates in our mills. We have also installed water catchment areas to harvest rainwater.

Reducing Chemical Use

Waterways are also contaminated by applying chemicals such as pesticides, herbicides, and fertilisers (which, further contribute significantly to the carbon footprint of plantations). To reduce chemical usage, hence our chemical pollution as well as carbon emissions, we have adopted an Integrated Pest Management (IPM) approach leveraging animals to control pests such as weeds and rodents.
IPM  approach leveraging animals to control pests such as weeds and rodents
Livestock have been introduced into our plantations since 2008 as a natural weeding method while also improving soil fertility, recycling nutrients and reducing chemical usage
Demonstrated good agriculture practices by a competent in-house agronomist attending to soil management and conservation

Waste and Pollution

Waterways are also contaminated by applying chemicals such as pesticides, herbicides, and fertilisers (which, further contribute significantly to the carbon footprint of plantations). To reduce chemical usage, hence our chemical pollution as well as carbon emissions, we have adopted an Integrated Pest Management (IPM) approach leveraging animals to control pests such as weeds and rodents
Most of the solid waste we produce is bio-based and disposed of using environmentally-friendly methods. Our mills and estates also generate scheduled waste, stored in designated sheds for up to 180 days or until the maximum volume of 20 MT is met. Subsequently, licensed contractors approved by the DOE will dispose of the waste in accordance with Environmental Quality (Scheduled Wastes) regulations
- Adopted a zero-burning replanting technique

- Open burning on our estates and mill grounds is strictly prohibited under the 1974 Environmental Quality Act and RSPO regulations

- Briefing on our employees on fire safety as part of their training programmes
Demonstrated good agriculture practices by a competent in-house agronomist attending to soil management and conservation
Kulim (Malaysia) Berhad
Level 11, Menara Komtar, Johor Bahru City Centre, 80000 Johor Bahru, Johor Darul Takzim, Malaysia
For 80 years, we revolutionised the future of agribusiness, thus, strengthening our position as one of the key players in Malaysia's agricultural sector.
Copyright © 2023 Kulim Malaysia Berhad
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