Petaling Jaya, 19 September 2024 - SD Guthrie Berhad (SD Guthrie), formerly Sime Darby Plantation Berhad, has delivered its first shipments of 40,250 metric tons (MT) of palm oil to Europe and the United Kingdom, that is fully compliant with the European Union’s Deforestation Regulation (EUDR).

The successful pilot shipments saw 24,250 metric tons (MT) of fully traceable and verified palm oil arrive at SD Guthrie International Zwijndrecht Refinery in the Netherlands last week followed by another shipment of 16,000 metric tons (MT) at the SD Guthrie International Liverpool Refinery in the United Kingdom, today. An important aspect of SD Guthrie’s EUDR-compliance is the 102,337 hectares (ha) of oil palm plantations and smallholder farms within its supply chain. This reflects the company’s efforts to build sustainable and resilient sources while enabling small palm oil producers to participate in the EU deforestation-free supply chain.

SD Guthrie International is a wholly owned subsidary of SD Guthrie, representing its entire downstream operations.

Being EUDR-compliant means that detailed polygon maps of all plantations in SD Guthrie’s supply chain are available, along with deforestation-free assessment reports that meet stringent EUDR definitions. These efforts were supported by comprehensive audit reports documenting compliance with national legislation, International Labour Orgnisation (ILO) standards, and respect for native customary rights.

Using satellite imagery, SD Guthrie partnered with a third-party verifier to assess a forest baseline covering six (6) billion ha, and analysed around 600,000 ha of its plantations for deforestation risks. Having established a No Deforestation, No Peat and No Exploitation policy in 2016, SD Guthrie also employs Crosscheck, an online tool that maps its palm oil from source to supply and allows traders and buyers to establish a chain of traceability.

Under imminent EUDR rules, starting December 30, products being exported into the EU including palm oil, soya, wood, coffee, cattle, cocoa and rubber require conclusive and verifiable proof they are not linked to deforestation at any point in the supply chain.

Datuk Mohamad Helmy Othman Basha, SD Guthrie’s Group Managing Director said: “As an integral part of the food system, we recognise the profound responsibility we bear in driving responsible agriculture practices and to fortify resilient supply chains. We are fortunate to have a small but inclusive supply chain from Papua New Guinea and the Solomon Islands, which has enabled us to map the 17,357 smallholders in our supply chain and consolidate all the information required for EUDR compliance on their behalf. This has allowed us to help them navigate the logistical challenges posed by the EUDR and ensure a smooth, successful implementation.

He added: “Managing our own plantations gives us the ability to enforce stringent controls and the confidence that we can provide evidence if we are asked specific questions, allowing us to build fully compliant EUDR supply chains.”

Founded 200 years ago, SD Guthrie integrates robust business practices with Environmental, Social, and Governance (ESG) aspirations, focused on climate resilience, fair labour practices, and responsible agricultural methods.