Big effects from ESG mandate

KUALA LUMPUR: Crude palm oil (CPO) supply will see more restrained growth going forward due to Roundtable on Sustainable Palm Oil (RSPO) requirements and environmental, social, and governance (ESG) concerns in obtaining financing, according to Kuala Lumpur Kepong Bhd (KLK) group CEO Tan Sri Lee Oi Hian.

“I think supply will be more restrained in growth, unlike the past, in the early 2000s. You have to comply with the RSPO requirements. No deforestation. Financing from banks is very difficult. They don’t even want to get near the word ‘deforestation’,” he said during the “Sustainable Commodity Growth” discussion at the Invest Malaysia 2021 Series 3 online forum, organised by Bursa Malaysia and JP Morgan.