Activist fund Oasis Management is calling 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 received numerous whistleblower allegations concerning Kao¡¯s supply-chain practices, including potential links to deforestation and human rights violations, it said in a statement Thursday. The Hong Kong-based fund urged shareholders to support a proposal to commission an independent review.

Kao said it¡¯s reviewing the request by Oasis and declined to give further comment, according to a company spokesperson. Kao shares pared early gains and dipped as much as 0.8% in Tokyo.

Oasis¡¯s campaign on Kao comes days after another activist investor, Elliot Investment Management, ended a high-profile standoff with the Toyota group over the buyout deal of Toyota Industries.

Oasis has been steadily increasing its stake in the Japanese maker of household goods and chemical products while pressing the company to improve underperforming brands and strengthen overseas expansion. It currently holds a 6.6% stake, making it Kao¡¯s fourth-largest shareholder as of January, data shows.

The fund revealed a 3% stake in Kao in April 2024 and called on the company to improve its business, saying the stock has the potential to exceed ?10,000 ($64). It raised its stake to 5.2% in December that year and bought more shares in January this year. Oasis submitted a proposal in 2025 calling for changes to the company¡¯s outside directors.

In its latest documents, Oasis said Kao relies on several high-risk suppliers and cited eight examples. It said FGV Holdings/Federal Land Development Authority, a major Malaysian palm oil supplier, were subject to U.S. import ban over allegations of forced labor, child labor and sexual abuse from 2020 to 2026. Unilever has suspended trading with FGV and FELDA since 2018, Oasis said.

The fund also identified Indonesian plantation operator PT Astra Agro Lestari, another key supplier, with whom Kao¡¯s trade is increasing. Norges Bank Investment Management excluded the group from its investment universe, it said.

Kao¡¯s portfolio includes premium skincare line SK-II, Molton Brown bath and beauty products and Biore facial cleansers and sunscreen. The company generates roughly 60% of its revenue in Japan.

Operating profit rose 11.9% to ?164 billion ($1 billion) last year on revenue of ?1.68 trillion. The company forecasts operating profit to rise 11% to ?182 billion for the current year.