Sime Darby Plantation unveils net-zero emission roadmap


The world’s largest producer of certified sustainable palm oil said it has aligned its action plans with the Paris Agreement targets to limit global temperature rises to no more than 1.5°C.

KUALA LUMPUR: Sime Darby Plantation Bhd (SDP) has unveiled its net-zero emission commitment with a clear roadmap, aiming to achieve 100% absolute overall emission reduction under Scope 1 and 2 by 2050 with all unabated Scope 3 emissions balanced by an appropriate amount of carbon removals or offsets.

In a filing with Bursa Malaysia, the world’s largest producer of certified sustainable palm oil said it has aligned its action plans with the Paris Agreement targets to limit global temperature rises to no more than 1.5°C.

“SDP has taken a three-pronged approach including acceleration of its renewables programme, by having more than 40 biogas plants across its operations by 2030, which will address much of the emissions from mill effluent,” it said, Bernama reported.

The group will expand its existing reforestation, conservation and biodiversity initiatives, including the reforestation of non-productive agriculture land as well as large-scale tree-planting as a nature-based solution to increase carbon sinks.

“The company has decided to reforest a 400ha area of peat plantations in Sabah and Sarawak, and to date, it has forest set-aside programmes of more than 40,000ha, with over 1.9 million forest trees planted.”

Additionally, it will accelerate its engagement with suppliers to ensure the replication of its own measures not only within its own operations but also across its entire value chain.

SDP’s net-zero strategy is science-based and in line with the latest guidance by Science Based Targets initiative (SBTi), including the Forest, Land and Agriculture Guidance launched by SBTi on Sept 28, 2022.

It had submitted both its near-term 2030 targets and longer-term 2050 targets to SBTi on Nov 10, 2022 for validation.

The SBTi is a collaboration between the Carbon Disclosure Project, World Resources Institute, World Wide Fund for Nature, and the United Nations Global Compact.

Meanwhile, SDP’s Responsible Agriculture Charter, which was launched in 2016, forms the backbone of its climate action workstream. In 2021, it had committed to 50% carbon reduction by 2030.

SDP group managing director Mohamad Helmy Othman said the company has developed a comprehensive strategy to ensure that the commitments announced would be met.

“This is a landmark moment for the global palm oil industry. With technological improvements, we may be able to do even better.

“With the net-zero commitment, SDP will continue to act with urgency and focus. We know that our challenge is significant, and time is short. We are committed to delivering the food the world needs in the most sustainable way possible,” he said.

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