Governance

The Main Board is accountable for the group’s sustainability commitments and performance. Through the establishment of a Sustainability Committee, the Board fulfils its oversight its responsibilities in relation to Sime Darby Plantation’s group of companies’ objectives, policies and practices pertaining to sustainability.

The sustainability agenda is led by our Chief Sustainability Officer (CSO), who plays an active role in our sustainability direction and performance. The CSO sets the agenda for sustainability initiatives and drives business units towards industry-leading performance.
 
 
Click here for Sustainable Committee (SC) Term Of Reference.


As part of our risk management, we have identified sustainability-related risks and mitigation measures.
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
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