by SHAZNI ONG/ pic by BLOOMBERG

SIME Darby Plantation Bhd (SD Plantation) has issued an updated policy focusing on strengthening its no-deforestation commitments.

This is a bid by the edible oils producer to draw the line on deforestation by working together across the industry to create a sustainable and deforestation-free supply chain.

The policy known as “Working with Suppliers to Draw the Line on Deforestation” was built on SD Plantation’s exist- ing practices and mapped a step forward to meet the No Deforestation, No Peat, No Exploitation (NDPE) standards.

It also meets SD Platation’s expectation that suppliers would adhere to those same standards.

Its group MD Mohamad Helmy Othman Basha said the policy clarifies any actions the company will take when an issue is identified.

“The rapid rate of deforestation is an urgent challenge for the world that demands a meaningful response. As the leading producer of sustainable palm oil, SD Plantation shares this concern.

“This policy was crafted to ensure that our suppliers provide us and others with deforestation-free palm oil, and at the same time, improve their NDPE operational standards too,” he said.

Based on the policy, if a supplier is found to be in violation of SD Plantation’s NDPE standards, the supplier would have to immediately cease work on the land (when non-compliance is confirmed).

“The supplier must also develop two types of plans, namely a plan for the restoration of cleared land, and a plan

to upgrade their operational practice. If that supplier is unwilling to meet those conditions, they will be suspended,” SD Plantation stated.

The plantation giant added that the development and execution of land- scape restoration plans, including operational improvement plans, will be externally verified and monitored on an ongoing basis.

Mohamad Helmy noted that the goal is to expand the sphere of oil palm companies operating to NDPE standards. SD Plantation will also re-engage with them and support their progress if a non-compliant supplier commits to meeting conditions.

He said the company does not believe in suspension without a path for the supplier to be reinstated.

“Constructive re-engagement to introduce new and improved practices is critical to systematically resolving non-compliance to NDPE.

“Simply suspending suppliers can have the unintended consequence of driving poor practice elsewhere into the system, making it less visible and harder to act on. This is not the intention of our policy.

“Our priority is to find solutions to the issues, and we believe this must be done via engagement with the suppliers and giving them the opportunity to redress the problem,” Mohamad Helmy said.

He added that SD Plantation is committed to working with suppliers in the development of their plans, and with non-governmental organisations to build capacity for operational improvements to raise suppliers’ NDPE compliance.
The policy comes on the heels of the launch of Crosscheck, SD Plantation’s new open-access online tool that allows traceability of its palm oil supply chain right down to the mill level.

The company stated that it firmly believes the frontier to halting deforestation is traceability.

“By tracking supply back to its source, it is now easier to identify where problems exist — and to take action,” the plantation giant said.

Through this tool, users can choose to view a map showing all the mills that supply each of its refineries, and information on who owns these mills.

Users can also view a risk map showing the 50km radius around each mill, highlighting areas of risk like forest, animal habitats and bio- diversity, and satellite maps that show any evidence of deforestation on the ground.

“The new policy will mirror the efforts we are putting forth through Crosscheck to drive deforestation out of our supply chain.

“Our hope is that, by working together with our suppliers, we can transform the palm oil industry and achieve our ambition to draw the line on deforestation,” Mohamad Helmy said.