Sime Darby Plantation unveils net-zero emissions commitment roadmap


SDP group managing director Mohamad Helmy Othman

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

In a statement filed 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.

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 400-hectare (ha) 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 per cent 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 today will 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. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In Business News

Mega First’s net profit rises to RM116.64mil in 3Q
Fajarbaru net profit triples to RM8.42mil in 1Q25
Globetronics Partners with Taiwan's ChipMOS for Integrated Circuit Services
Hap Seng 3Q24 net profit soars nearly fourfold to RM193.11mil
Ringgit rises against US dollar for third consecutive day
KTI Landmark records RM230mil in sales, surpassing 2023 figures
MSM Malaysia’s 3Q net loss widens to RM49.7mil on forex loss
UEM Sunrise on track to hit RM1bil sales target
Perodua teams up with PETRONAS Dagangan and Gentari to improve services and EV support
Karex 1Q net profit tumbles 73.4% to RM1.4mil

Others Also Read