Malaysian palm oil grower ready for tougher ESG rules with IPO
JOHOR Plantations Group (JPG) plans to utilize RM735 million from its IPO to establish a sustainable palm oil operation powered by clean energy, aiming to meet stringent European Union Deforestation Regulation (EUDR). The mid-sized producer aims to halve carbon emissions by next year, emphasizing its certified, short supply chain as appealing to European consumers. Malaysia’s second-largest palm oil exporter faces intensified global scrutiny over environmental impact, prompting JPG to accelerate net-zero commitments amid market pressures.
JOHOR Plantations Group (JPG) will use funds raised in its RM735 million (S$211 million) initial public offering (IPO) to build a palm oil operation powered by clean energy, as it navigates increasingly tough regulations in key markets such as Europe.
The mid-sized palm oil producer is confident about appealing to European consumers thanks to its short, sustainability-certified supply chain and plans to halve its carbon output by next year, managing director Mohd Faris Adli Shukery said ahead of the listing on Tuesday (Jul 9).
Growers of the world’s most-consumed edible oil are facing heightened global scrutiny over their devastating impact on tropical rainforests, with the most immediate pressure coming from the European Union Deforestation Regulation. Due to come into effect by the end of the year, the law forces companies selling commodities such as palm oil and cocoa to make sure their products do not come from recently deforested land.
Malaysia is the world’s second-largest palm oil producer and Europe is among its biggest export markets.
For JPG, it’s a chance to accelerate its net zero plans, Faris said, adding that the company is committed to meeting “whatever developments that have been put by different jurisdictions”.
“Given that we have a restricted production volume and we are certified, we are optimising that opportunity in being able to accommodate” stricter environmental requirements including the EUDR, he said.
Source Link : https://www.businesstimes.com.sg/international/asean/malaysian-palm-oil-grower-ready-tougher-esg-rules-ipo
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