Sustainability Governance

The Main Board is accountable for sustainability strategy and performance while our Group Chief Executive has overall management responsibility for sustainability; and the Group Chief Operating Officer is responsible for overall operational sustainability performance.

The Plantation Division is led by our Managing Director (MD) who plays an active role in our sustainability direction and performance. The MD sets the agenda for sustainability initiatives and drives business units towards industry-leading performance. 

The Plantation Division’s Flagship Board assumes accountability for the Division’s sustainability strategy and performance. The MD heads the Plantation Sustainability Committee and is a member of the Group Management Sustainability Committee which reviews overall sustainability direction. The Plantation Sustainability Blueprint is reviewed annually with inputs from business units and receives final approval from the MD. The Blueprint guides our strategic actions in delivering sustainability performance.

Sime Darby Plantation has a zero-tolerance approach towards bribery and corruption in any form and is committed to behaving professionally, fairly, and with integrity in all our business dealings throughout our operating areas. We regularly engage with external agencies to support efforts to eradicate corruption, including with the Malaysian Anti-Corruption Commission (MACC) and Transparency International- Malaysia (TI-M). We also conduct regular training sessions to raise awareness among employees in eliminating corruption.

Human Rights
Sime Darby’s respect for fundamental human rights is enshrined within our Group Policies and Authorities, which governs all Sime Darby’s operations and our Code of Business Conduct, which outlines the standard of behaviour expected of Sime Darby Directors, employees, counterparts, and business partners. Sime Darby Plantation also subscribes to the principles of the Roundtable on Sustainable Palm Oil (RSPO) where human rights is a key part of sustainability certification. We are signatories to the UN Global Compact’s Food & Agriculture Business Principles (FABP) in which human rights is enshrined in Principle 4: Respect Human Rights, Create Decent Work and Help Communities To Thrive. A summary of our UNGC FABP commitments can be found in our Sustainability Report.

Grievance and Whistle- Blowing Policy
We aim to address any grievance or complaints that may arise in the course of employment or with stakeholders affected by our operations as soon as feasibly possible and with the highest ethical standards. Our Grievance Policy provides a framework for non-discriminatory and fair treatment of all cases involving all parties. The whistleblowing processes ensure that all stakeholders are able to report actual, potential, or suspected wrongdoings anonymously without facing repercussions.

Risk Management
Key Plantation Sustainability-Related Risks and Mitigation Measures
Risk Description Mitigation Measures
Safety and Health Major accidents due to noncompliance to policies and procedures that may lead to death or severe injury
  • Environment, Safety & Health (ESH) and Emergency Response policies & procedures established and implemented
  • ESH performance monitoring & reporting implemented
  • Regular safety training, dialogues & roadshows, and dedicated OSH departments / committees
Local Community Grievances Challenges arising from local community grievances due to real or perceived concerns that may lead to operational disruptions and loss of goodwill
  • Establishment of clear Free, Prior & Informed Consent (FPIC) procedures
  • Grievance mechanisms implemented and issues resolved
  • Regular engagement with stakeholders
Climate Change Impacts from climate change i.e. rainfall patterns, water scarcity, drought may adversely impact operations
  • Water and soil conservation efforts
  • Flood mitigation measures
  • Reduction in operational carbon emissions as part of national and international reduction efforts
  • R&D efforts into resilient planting material (e.g. drought-resistance)
Plant Disease Outbreak The potential threat of disease outbreak and/or pests either not being identified in a timely manner or not being mitigated effectively could potentially result in significant tracts of plantation being affected and/or being wiped out.
  • Breeding & utilisation of disease tolerant planting materials
  • Regular on-site monitoring and control vis-à-vis pests and disease outbreak at estates
Stakeholder Engagement & Material Disclosures
At Sime Darby Plantation, stakeholder engagement is recognised as an integral part of our sustainability strategy and continual improvement efforts. Stakeholders are engaged at various platforms and help us gauge our performance in meeting expectations and provide feedback. Our key stakeholder groups have been identified through our activities in the palm oil sector and include shareholders, customers, employees, non- governmental organisations, industry groups, and government agencies. 

Our engagement approach varies from formal to informal, but all issues are given due consideration and evaluated on the impact they make on both Sime Darby and the stakeholder. 
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