Our Approach



As the world’s largest producer of Certified Sustainable Palm Oil (CSPO), we recognize the necessity of balancing the expectations of a wide range of stakeholders in the way that we implement responsible agricultural practices. Everything that we do around sustainability is in line with the sustainable development goals (SDG) 2030 and is guided by our sustainability purpose.
 


Sustainable Development Goals

The Sustainable Development Goals (SDGs) are global goals set by the United Nations and it is a call to action for all stakeholders globally on sustainable development. Sime Darby Plantation aligns all its sustainability efforts to the SDGs, and we have developed an articulation on how we approach and contribute to the SDGs.
 
Click here to see our Sime Darby Plantation's Approach to SDG.


Our Position on No-Deforestation
 
The rapid rate of deforestation is an urgent challenge for the world that demands a meaningful response. There is also a worldwide concern that palm oil production is contributing to the problem. As the leading producer of sustainable palm oil, we share this concern.

Sime Darby Plantation has for a long time worked to produce palm oil responsibly. We made our Zero-burning pledge more than 3 decades ago and was one of the founding members of the RSPO.  Yet, we are still continuing to improve on our own standards and practices.

In 2019, we took our sustainability journey a step further with the launch of ‘Crosscheck’, to reaffirm our commitment towards No-Deforestation. Our aim was to take serious action by becoming part of the solution and eradicating deforestation in our supply chain by making it an unviable way to participate in the industry.

‘Crosscheck’ helps provide traceability which we believe is crucial in halting deforestation by tracking supply back to its source, identifying where problems exist – and taking action.
 
The tool was designed to be developed further and after a year of collaborations with NGOs and other relevant stakeholders, the new and improved version - ‘Crosscheck 2.0’, is now available, providing further visibility on our plantations, mills, refineries and third-party suppliers. 

With this upgraded version, we will be an open book; revealing to the world, our supply chain and operations as a company.  (Click here for more details on this initiative)

We set out on this journey fully aware that this is a complex challenge involving thousands of producers, and hundreds of thousands of small holders. 

We also recognise that we do not have all the answers but we are determined to work with others to raise the bar for the industry and to make the most of ‘Crosscheck’ as a tool to drive deforestation out of the palm oil industry.

 
What does No-Deforestation mean to Sime Darby Plantation?
 
We use the High Carbon Stock Approach (HCSA), which estimates the amount of carbon and biodiversity stored within an area of land, to identify areas that need protection from deforestation.

The HCSA has been established by external parties to define what constitutes forest landscape in order to avoid deforestation. The methodology was developed by a broad group of companies and civil society organisations as a practical, transparent, robust, and scientifically credible approach that has become widely accepted as a way to implement commitments to halt deforestation in the tropics.
 
In accordance with the HCSA:
 
  1. We do not operate on land with 35+ tonnes of carbon value per hectare or above. The HCSA requires that such areas must be protected because they are considered high density forests that are intact, or young regenerating forests that, if left alone, will regenerate themselves. We abide by that definition in our operations.
  2. We will abide by High Conservation Value (HCV) and protect the rights of local communities.
  3. Our commercial operations and new developments will be limited to scrub and grass land which are low carbon stock areas and have no demonstrable conservation values.
Find out more about our High Carbon Stock approach.

 
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