One of the key policy recommendations to the COP29 climate conference this week has been a call on the Convention to increase investment into nature-based solutions to strengthen climate action. A marriage between economy and ecology, as one advocate put it. At its heart, the policy aims to accelerate the transition to regenerative agriculture, encouraging farmers to adopt new sustainable land practices that positively impact on biodiversity and ensure healthy soils.
This shift towards regenerative agriculture is gaining momentum, driven by the rising demand for food, the impact of climate change and the global depletion of arable soils. Alongside renewed efforts to secure funding for farmers, FMCG giants have increased investment in food produced from regenerative methods, and products labelled as regenerative have started to hit the supermarket shelves.
But what is regenerative agriculture and why does it matter? And what does it mean for the palm oil industry?
Put simply, regenerative agriculture is producing food that at the same time improves the environment, an approach to farming that goes beyond sustainability to not only “do no harm” to the land, but actually improve it. Definitions and practices vary, but the core principles seek to restore ecosystem health, address inequities and leave our land, waters and climate in a better shape for the future. Crucially, any strategies must also support the social and economic wellbeing of communities.
The need to conserve, restore and use land sustainably is clear. Scientists estimate that 33% of the world’s soils are “moderately to highly degraded” with soil erosion, water degradation and biodiversity loss. According to the UN, “The strong relationship between soil health and food security calls for strategic and immediate actions."
Whilst the palm oil industry has already made great strides to reduce its negative environmental footprint, the growing trend towards regenerative farming offers a further incentive for those already using regenerative practices to do much more. As the NGO Regeneration International puts it, “the solution to global warming and climate crisis lies right under our feet, and at the end of our knives and forks.”
One of the challenges is that there is no standard definition of regenerative agriculture, nor is there an agreed approach for the palm oil sector. Some practices focus on strong soil health, others have deforestation and social aspects. Where it gets more complicated is that some of the core principles of regenerative agriculture being embraced in other sectors do not easily apply to palm oil production.
For producers like SD Guthrie that are already aligned to strict sustainability and zero-deforestation policies, as well as a No Deforestation, No Peatland or No Exploitation commitment since 2016, it will be critical to understand and identify where potential new practices overlap with existing best management practice, and where there are gaps. Indeed, many palm oil producers already apply some regenerative practices; in SD Guthrie’s case this includes it’s zero burning technique for clearing and replanting, the age-old practice of stacking fronds and old trunks in fields to decompose naturally, as well as new initiatives to achieve net-zero emissions, building wildlife corridors and increasing conservation areas and investment in local communities.
Efforts by the WWF to develop a potential new framework for regenerative agriculture in the palm oil sector, and by leading FMCG companies and farmer co-operatives to develop a globally aligned definition of regenerative agriculture, are positive signs. But while other projects currently underway in Malaysia focus on smallholder farmers, any new framework will need to include standards and definitions for the implementation and evaluation of regenerative agriculture in large-scale industrial operations.
With so many questions around this potential transition, SD Guthrie, as one of the world’s leading producers of certified sustainable palm oil, has committed to developing a Regenerative Agriculture Framework for Palm Oil by 2025. The framework will be developed in collaboration with strategic partners and implemented as a pilot programme in its operations by 2028, with the aim of creating a path forward to scale up the industry’s response to climate challenges.
This is a key project under SD Guthrie’s Beyond Zero framework that also encompasses biodiversity conservation, reforestation, and peatland restoration, as well as specific projects to protect local economies and communities. As part of these efforts, SD Guthrie aims to rehabilitate or conserve over 100,000 hectares of land across its global operations.
Adopting regenerative farming practices in palm oil production will be complex but with ever growing challenges, businesses need to accept that they have a responsibility to contribute positively to the planet, people and society in general. Regenerative agriculture may be the answers.
Appeared in The Edge's ASEAN 2025 Magazine