Climate Change Data

Sime Darby Plantation Berhad

Climate Impact & Sustainability Data (2020-2021, 2023)

Reporting Period: 2020-2021

Environmental Metrics

Total Carbon Emissions:2,814,766 tCO2e/year
Scope 1 Emissions:2,653,795 tCO2e/year
Scope 2 Emissions:160,970 tCO2e/year
Renewable Energy Share:80%
Total Energy Consumption:28,405,157 GJ/year
Water Consumption:16.9 million m3/year
Carbon Intensity:1.04 MT CO2e/MT CPO/PK in 2021

ESG Focus Areas

  • Responsible Agriculture
  • Commitment to People
  • Responsible Sourcing
  • Governance & Engagement
  • Climate Change Impacts & Climate Resilience
  • No Deforestation, Conservation & Biodiversity
  • Human Rights & Labour Standards
  • Supply Chain Transparency & Sustainability
  • Quality & Safety of Products
  • Stakeholder Engagement & Transparency
  • Smallholder Inclusion
  • Governance and Business Ethics
  • Gender Equality

Environmental Achievements

  • GHG emission intensity at upstream operations reduced by 7.1% from 2019
  • 12 Biogas facilities built, contributing to almost 500,000 MT CO2e reduction in carbon emissions
  • Leased land for 20-MW solar project
  • Commissioned 5 solar PV projects for SDP operations
  • 46,892 ha set aside for conservation
  • 1,892,182 trees planted since 2008

Social Achievements

  • Provided ongoing support to workers and communities with provisions, food baskets, jobs, and vaccination drives
  • 100% of scheme smallholders covered by SDP programmes
  • 60% of grievances raised to date have been resolved
  • Improved availability and access to grievance mechanisms at Malaysia operations
  • 53 primary and secondary schools built and run by our operations in Indonesia, PNG and Solomon Islands
  • 56% of workers unionised
  • Reduced accident rates by 54% since 2017
  • Rolled-out our new Responsible Recruitment Procedure for Migrant Workers in 2022; reimbursing more than 34,000 current and former workers for recruitment costs incurred, amounting to over MYR82 million

Governance Achievements

  • Implemented ESG scorecard at management level to drive behavioural change and ensure accountability at country and regional level
  • Established new social welfare & services department to ensure a dedicated focus on worker welfare
  • Revamped human rights governance Systems: Established steering committee & working group on human rights and dedicated workstreams on key topics
  • Revised the Board Sustainability Committee’s Terms of Reference to reflect the updated Malaysian Code on Corporate Governance (MCCG)

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions
Medium-term Goals:
  • Reduce carbon emissions at upstream operations by 50% (against 2009 baseline) by 2030
  • Source from 100% MSPO certified independent smallholders in Malaysia by 2025
  • 100% traceability to plantation across our supply chain by 2025
  • 100% verified No Deforestation, No Peat and No Exploitation (NDPE) supply chain, inclusive of smallholders by 2025
Short-term Goals:
  • Resolve WRO & Impactt recommendations
  • Develop water footprint framework for SDP Malaysia
  • Achieve effluent discharge intensity limits
  • Finalise conservation and biodiversity plan for non-plantable areas in Malaysia
  • Enhanced ethical recruitment procedure for migrant workers
  • Finalise roll out of Suara Kami grievance mechanism for all workers at Malaysia operations
  • 100% of workers globally covered by effective grievance mechanisms
  • Review and upgrade housing conditions for all workers in Malaysia
  • Mapping of Scope 3 GHG emissions
  • Zero use of fire for land preparation
  • Increase man-to-land ratio to 1:17.5 through automation

Environmental Challenges

  • Labour shortages due to pandemic movement restrictions and government-mandated hiring freezes
  • Concerns about forced labour at our Malaysia upstream operations leading to a Withhold Release Order (WRO) by the United States Customs and Border Protection Agency
  • Devastating flash floods in Malaysia
  • Challenges in monitoring social risks in supply chains
  • Difficulties in tracing 4.6% of raw materials to the mill due to sourcing from indirect suppliers
  • Slow certification uptake amongst smallholders in Malaysia
  • Forest fires, especially in Indonesia
  • Challenges in obtaining land titles and meeting regulatory requirements for smallholder RSPO certification in Indonesia
Mitigation Strategies
  • Launched Project Infinity to accelerate mechanisation at plantations
  • Working with internal stakeholders and independent experts to conduct assessments and implement new policies, structures and processes
  • Mobilised resources to ensure the health, safety, and well-being of the people and communities at our operations and in the surrounding areas during the floods
  • Contracted Impactt Ltd. to conduct an independent evaluation of labour practices
  • Developed a Continuous Improvement Plan with a focus on labour rights
  • Developed Crosscheck platform to track the origin of FFB and CPO
  • Implemented a dedicated due-diligence assessment for direct third-party mills supplying our Pulau Laut refinery in Indonesia
  • Developed and rolled out DMCA and MPPA programmes for fire prevention in Indonesia
  • Implemented a new ESG Scorecard to drive behavioural change and ensure accountability
  • Developed programmes to support scheme and independent smallholder certification

Supply Chain Management

Supplier Audits: 97 new and 41 existing suppliers assessed in Indonesia in 2021

Responsible Procurement
  • Responsible Sourcing Guidelines (RSG)
  • Vendor Integrity Pledge
  • Draw the Line policy

Climate-Related Risks & Opportunities

Physical Risks
  • Rising sea levels
  • Changing weather patterns
  • Increase in temperature
Transition Risks
  • Increased regulatory requirements
  • Increased customer requirements
Opportunities
  • Development of energy-efficient products
  • Increased productivity through yield intensification

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: RSPO, MSPO, ISPO, Rainforest Alliance Sustainable Agriculture Standard (RA SAS)

Third-party Assurance: No third-party assurance

UN Sustainable Development Goals

  • SDG 12: Responsible Consumption and Production
  • SDG 17: Partnerships for the Goals

SDP's policies, programmes, and practices contribute to various SDGs, with a focus on responsible production and partnerships.

Sustainable Products & Innovation

  • GenomeSelect™ seeds

Awards & Recognition

  • PROPER Awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18,675,679 tCO2e/year (excluding carbon removals)
Scope 1 Emissions:9,379,764 tCO2e/year
Scope 2 Emissions:167,688 tCO2e/year
Scope 3 Emissions:9,128,227 tCO2e/year
Renewable Energy Share:88%
Total Energy Consumption:28,978,121 GJ/year
Water Consumption:23,649,124 m3/year
Waste Generated:182,810 tons/year
Carbon Intensity:4.10 tCO2e/tonne of refined products

ESG Focus Areas

  • Climate Change
  • Nature
  • Biodiversity
  • Water Conservation
  • Health and Safety
  • Environment
  • Social Wellbeing
  • Supply Chains
  • Communities

Environmental Achievements

  • Net-zero targets approved by SBTi
  • 88% of energy consumed from renewable sources
  • 11% reduction in total energy consumption compared to 2020
  • Planted 2.28 million trees as of FY2023
  • 16 methane capture plants operational
  • 8 solar rooftop installations in Malaysia

Social Achievements

  • 8.7% reduction in work-related injuries
  • RM47 million allocated budget for training
  • 93.2% supply chain traceability to mills
  • Resolved 134 reported whistleblowing cases
  • Overall satisfaction rate of 96.2% from Workers Satisfaction Survey
  • 3,237 employees received anti-corruption training
  • RM56,748,562 in community investments
  • Zero reported cases of customer privacy breach and data losses
  • Achieved 70.9% supply chain traceability to plantations

Governance Achievements

  • Assessed 100% of operations for corruption-related risks
  • Achieved 100% MSPO certified mills
  • Modification of forced labour finding by the United States Customs and Border Protection (USCBP)

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050
Medium-term Goals:
  • Implement biodiversity and conservation plans for unplanted areas in Indonesia and PNG by 2025
  • Rehabilitation of 400 ha of peat areas in Sarawak
Short-term Goals:
  • Reduce absolute Scope 1 and Scope 2 GHG emissions 42% by 2030 from a 2020 base year
  • Reduce absolute Scope 1, Scope 2 and Scope 3 GHG emissions 90% by 2050 from a 2020 base year
  • Reduce absolute Scope 1 and Scope 3 FLAG GHG emissions 30.3% by 2030 from a 2020 base year
  • Reduce absolute Scope 1 and Scope 3 FLAG GHG emissions 72% by 2050 from a 2020 base year
  • Ensure 79% of emissions of customers and suppliers have science-based targets by 2027
  • Achieve 100% traceability to mills and plantation across supply chain
  • Achieve 100% verified NDPE supply chain by 2025
  • Ensure more than 50,000 smallholders adopt responsible agriculture practices by 2025

Environmental Challenges

  • Climate change impacts on oil palm growth and yield
  • Transition risks (policy and legal changes, technology transition, market shifts)
  • Physical risks (extreme weather events, sea level rise)
  • Deforestation in supply chain
  • Supply chain traceability
  • Worker shortages (due to pandemic restrictions)
  • Adverse weather impacting production (Indonesia, PNG & SI)
  • Corruption incidents
Mitigation Strategies
  • Implementing adaptive technologies
  • Promoting sustainable practices throughout supply chain
  • Net-zero roadmap (accelerating renewables, land use transformation, supplier engagement)
  • Crosscheck traceability tool
  • Supplier engagement and performance assessment
  • Accelerated intake of foreign workers
  • Automation and mechanisation efforts
  • Annual Fraud and Corruption Risk Assessment
  • Anti-corruption training
  • Whistleblowing channels
  • Investigations of suspected cases

Supply Chain Management

Supplier Audits: 100% of supplying mills assessed using NDPE-IRF

Responsible Procurement
  • Responsible Sourcing Guidelines
  • NDPE commitments
  • Supplier risk assessment
  • Supplier engagement
  • Crosscheck traceability tool
  • Grievance management system

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Sea level rise
Transition Risks
  • Regulatory changes (EU Deforestation Regulation, carbon pricing)
  • Technology transition
  • Market shifts (demand for palm oil)
Opportunities
  • Development of energy-efficient products
  • Solar energy ventures
  • Biogas development

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Securities Main Market Listing Requirements, Bursa Malaysia’s Sustainability Reporting Guide (3rd edition), TCFD recommendations, RSPO, MSPO, ISPO, ISCC

Certifications: ISO 37001 (Anti-Bribery Management), FSSC 22000, BRCGS Global Food Safety Standard, ISO 22000, HACCP, Halal, Kosher, GMP, ISCC

Third-party Assurance: PricewaterhouseCoopers PLT, Malaysia (PwC) (limited assurance on GHG emissions data)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 15 (Life on Land)

Initiatives contribute to these goals through renewable energy projects, emissions reduction, water management, fair labor practices, and biodiversity conservation

Sustainable Products & Innovation

  • GenomeSelect™ seeds

Awards & Recognition

  • Prime Minister’s Hibiscus Award