On 5 March 2026, an activist fund Oasis Management called on Kao to convene an extraordinary general meeting, seeking an independent investigation into the Japanese company’s supply-chain risk management and internal control. Oasis said it received numerous whistleblower allegations concerning Kao’s supply-chain practices, including potential links to deforestation and human rights violations. Kao’s suppliers mentioned in the report include FGV, Astra Agro Lestari (AAL), RGE Group, First Resources, and Grupo Oleoflores, with allegations of forced labour, child labour, sexual abuse, land grabbing, and attacks on, as well as threats to, the heritage and livelihoods of Indigenous communities.

On 27 March 2026, Kao published a statement to "oppose the proposal." Kao states they "...determined that no facts have been identified that indicate any material deficiencies in the Company’s internal control system. Accordingly, the Company has determined that there is no need to conduct any additional investigation by external experts at this time..."

On 2 April 2026, Oasis responded to the statement.

Business and Human Rights Centre invited FGV, First Resources, and Grupo Oleoflores to respond to the allegations. RGE's subsidiary (Toba Pulp Lestari) and AAL were invited to respond previously.