ESG & Investing

Malaysian Palm Grower Ready for Tougher ESG Rules With IPO

  • Johor Plantations shares climb on launch in Kuala Lumpur
  • Firm is confident about appealing to green-minded Europeans
A worker tends to palm tree saplings at a nursery at the Johor Plantations Group Bhd. Sindora Estate in Johor.Photographer: Aparna Nori/Bloomberg
Lock
This article is for subscribers only.

Johor Plantations Group Bhd. will use funds raised in its 735 million ringgit ($156 million) initial public offering to build a palm oil operation powered by clean energy, as it navigates increasingly tough regulations in key markets like Europe.

The mid-sized 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 in an interview ahead of the listing on Tuesday.