Delivering
Sustainable
Futures

The supply chain stands as the backbone of operations because businesses are more and more interconnected. Understanding the value of an integrated supply chain is more than a necessity—it's a strategic advantage.

An integrated supply chain offers transparency from the plantation to the final product. You can trace the origin of the palm oil, ensuring it comes from sustainable sources. Without a seamless supply chain integration, there's a risk of 'greenwashing', where claims of sustainability are merely superficial.

An integrated supply chain also ensures efficiency and quality. Without it, controlling sustainable practices becomes a risk that modern businesses cannot afford to take. Moreover, eco-friendliness is a significant selling point.

SD Guthrie International plays a leading role in the development and promotion of sustainable practices in the Oils and Fats industry. With an integrated supply chain and an extensive network of refineries, we seek to advance the production, procurement, and use of sustainable oil in line with our promise of Delivering Sustainable Futures.

Sustainability is not a buzzword or a passing trend. It's a comprehensive approach to doing business that ensures long-term viability, fosters innovation, meets stakeholder expectations, and fulfills ethical responsibilities.

There are many benefits to emphasizing sustainable practices. The most important are:

• Economic Resilience: Sustainable practices often align with long-term business health. By considering environmental and social impacts, businesses can avoid potential future costs. For instance, a company that relies on a resource that is being depleted may face supply shortages or increased prices in the future. Sustainable sourcing can mitigate these risks.
• Regulatory Compliance & Risk Mitigation: Governments and international bodies are implementing regulations around sustainability and ethical business practices. For example, the new EU deforestation regulation will be active in 2024. By adopting sustainable practices, you can stay ahead of the curve, avoiding penalties and ensuring uninterrupted operations.
• Reputation & Brand Value: If you focus on sustainability, you can enhance your brand image. Using Sime Darby's sustainable palm oil you differentiate from your competitors. This can lead to increased customer loyalty and potentially command premium prices.
• Stakeholder Expectations: Stakeholders, including investors, employees, and customers, expect companies to operate sustainably. Strong sustainability practices as an indicator of long-term viability and risk management.
• Ethical Responsibility: Businesses should ensure that growth doesn't come at the expense of the environment or vulnerable communities.

It's essential to understand what sustainable palm oil is. In simple terms, it's palm oil produced without causing harm to the environment, respecting the rights of workers and local communities, and in a way that can meet current needs without compromising future generations. This contrasts with conventional palm oil production, which often involves deforestation, land degradation, and social injustices.

Sustainable palm oil addresses these issues head-on:

• Environmental Stewardship: Certified sustainable palm oil ensures that production doesn't contribute to deforestation or habitat loss. It emphasizes maintaining the health of the soil, water, and ecosystem.
• Social Responsibility: Workers on certified plantations are ensured fair wages, safe working conditions, and respect for their rights. Additionally, local communities are engaged in decision-making processes, ensuring their voices are heard and rights are protected.

Sime Darby's Smallholder Engagement for Sustainable Palm Oil Farming

We actively engage with a wide range of stakeholders - from farmers to consumers, NGOs and governments - and work closely with our business partners to achieve our targets for sustainable development, in line with the UN’s Sustainable Development Goals. We are dedicated to providing employment in remote rural areas, contributing to community services, and supporting local smallholder farmers.

Through our smallholder program, we reach out to local farmers and educate them on good agricultural practices and sustainable farming. As a result, these smallholders obtain access to the international market to receive a fair price for their goods. Our European palm oil supply chain includes over 17,000 smallholders who have all been fully certified by the Roundtable for Sustainable Palm Oil (RSPO) since 2012.

Recognizing the urgency of the situation, the Roundtable on Sustainable Palm Oil (RSPO) was established to promote the production and use of sustainable palm oil. Their certification system ensures that member companies adhere to rigorous environmental and social criteria.

The RSPO is the leading certifying body for sustainable palm oil in the world and has developed a set of environmental and social criteria. Companies must comply with these criteria to produce Certified Sustainable Palm Oil (CSPO). This significantly reduces the negative impact of palm oil cultivation on the environment and communities in palm oil-producing regions. Sime Darby is a founding member of the RSPO. We have been a frontrunner when it comes to sustainability and transparency of our supply chain since our Zero burning in plantations pledge in 1985. Every year our sites are audited by the RSPO to ensure ongoing compliance. You can download the most recent RSPO certification for Sime Darby Oils Zwijndrecht Refinery (SDOZR) here.

Our journey of propelling and promoting sustainable agricultural practices is not limited to the production of palm oil. We can provide our customers with certified sustainable Soybean oil suitable for various types of applications. ProTerra Foundation is our partner for the certification of Soybean oil.

ProTerra Foundation has set a comprehensive standard for human rights and good labor practices. This pertains to workplace safety, equal opportunities, and the prevention of child and forced labor. Moreover, it guarantees that any oil sourced is non-GMO and is the product of good agricultural practices. This regards soil fertility, water management, and continuous efforts to reduce the use of fertilizers and pesticides.

You can access our Proterra certification for Sustainable Soy here.