Kao utilizes palm oil, palm kernel oil and their derivatives mainly produced in Malaysia and Indonesia as raw materials for products. As part of this, we are implementing activities to achieve sustainable palm oil production.
We joined the Stakeholder Engagement (SHE) Programme conducted by Caux Round Table Japan (CRT Japan) in Malaysia and Indonesia and visited small oil palm farmers to hold dialogue with them. We also participated in a meeting with 10 local NGOs in Jakarta that focus on environmental and human rights issues.
Continuing from last year, we visited small-scale farmers in Selangor State, Malaysia. We interviewed a small oil palm farmer who practices pesticide-free production. We also visited a collection center for oil palm fruits operated by the Malaysian Palm Oil Board (MPOB) and were given an explanation of their project that aims to achieve optimum profit allocation. Afterwards, we joined a meeting with six small farmers and MPOB staff. This enabled us to learn about the situation at small farmers' plantations and MPOB's program, called KPSM, which provides support to them.
In Jambi State, Indonesia, we took part in a meeting with small farmers to obtain information on the situation at their plantations and activities for capacity building and acquiring certifications* to enhance product value in collaboration with a local farmers association.
In Jakarta, we joined a meeting with local NGOs that are working to address environmental and human rights issues. We discussed solutions to issues caused by plantation development, including deforestation, human rights violations of people living on the land, day labor wages, and profit allocation and contract inequality in the supply chain.
At Kao, we are striving to establish a sustainable palm oil supply chain and will continue to hold dialogue with small oil palm farmers to address their issues in collaboration with our stakeholders.