Regenerative Agriculture Framework: Water Management

SD Guthrie has conducted the Water Footprint Assessment in our Malaysia operations to measure and analyse the amount of water used in our operations. The assessment is designed to identify key water-related risks and opportunities across different stages of our operations and value chain, thereby improving the water efficiency.

Guthrie aims to decrease reliance on fertilisers and pesticides by implementing good agricultural practices, which will contribute to lower water consumption. We aim to realise a 20% increase in fertiliser use efficiency (FUE) by 2040, decreasing our reliance on inorganic fertilisers and addressing the use of chemicals that have critical pollutant loads.

To strengthen our sustainability practices, we are exploring new technologies to improve the treatment of Palm Oil Mill Effluent and achieve Zero Liquid Discharge through continuous pilot-scale testing at one of our mills and refineries. In FY2025, we invested RM1.4 million in R&D to mitigate water-related risks.

Across our operations and workers’ housing, we have installed rainwater harvesting systems and  redesigned water distribution infrastructure to minimise leakages.
 

Water withdrawn from high-stress regions is monitored and managed to minimise environmental impact and ensure sustainable supply continuity. Operating entities located in water-stressed regions are classified based on Baseline Water Stress Risk Likelihood obtained from WRI Water Risk Atlas, Aqueduct. In 2025, four operating entities are in water-stressed areas, with the following water usage and discharge: 

We regularly engage with the business operation representatives from the operating entities located in the water-stressed areas to understand and enhance their water management practices.