THE WHAT? Activist investor Oasis Management has called on Kao to convene an extraordinary general meeting to investigate the company’s supply chain risk management and internal controls.
THE DETAILS The Hong Kong-based fund, which holds a 6.6% stake in Kao and is the company’s fourth-largest shareholder, said it had received multiple whistleblower allegations related to the company’s supply chain. These include potential links to deforestation and human rights violations among key suppliers.
Oasis has asked shareholders to support a proposal for an independent investigation. The fund cited suppliers such as Malaysian palm oil producer FGV Holdings/FELDA, which has faced a US import ban due to allegations of forced labour, child labour and abuse. It also raised concerns over Indonesian plantation operator PT Astra Agro Lestari, another supplier whose trade with Kao is reportedly increasing.
Kao said it is reviewing the request but declined to provide further comment.
THE WHY? The move reflects growing investor pressure on companies to strengthen supply chain transparency and governance, particularly regarding environmental and human rights risks.
Source: Japan Times
