Liverpool, United Kingdom, 19 September 2024 - SD Guthrie International (SDGI), formerly known as Sime Darby Oils, 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 landmark pilot shipment of 24,250 metric tons (MT) of palm oil, traceable and verified to meet stringent deforestation-free standards, arrived last week at SDGI’s Zwijndrecht Refinery in the Netherlands. Another shipment of 16,000 metric tons (MT) arrived at SDGI’s Liverpool Refinery in the United Kingdom today.

As a wholly-owned subsidiary of one of the world’s largest producers of certified sustainable palm oil – SD Guthrie Berhad (SD Guthrie), formerly Sime Darby Plantation Berhad – this milestone marks a major achievement in SDGI’s commitment to sourcing sustainable palm oil, aligning with the evolving regulations in the EU market. The shipment, sourced from 102,337 hectares (ha) of oil palm plantations and smallholder farms within SD Guthrie’s supply chain, reflects the entire group’s efforts to build sustainable and resilient sources while enabling more palm oil producers to participate in the EU deforestation-free supply chain.

Dr Shariman Alwani, SDGI’s Chief Executive Officer said: “As the European market moves toward stricter sustainability requirements, we are proud to be at the forefront of delivering palm oil that meets the highest environmental standards. SD Guthrie International’s commitment to source from deforestation-free supply chains enables us to continue offering our customers products that not only comply with regulations but also contribute to a more sustainable future for all stakeholders."

To achieve EUDR compliance, SDGI worked closely with SD Guthrie’s upstream division to ensure that detailed polygon maps and deforestation-free assessments of all plantations that meet stringent EUDR definitions were available. By utilising satellite imagery and partnering with a third-party verifier, SD Guthrie has been able to assess a forest baseline covering six (6) billion ha and analysed around 600,000 ha of its plantations for deforestation risks. These efforts were supported by comprehensive audit reports that also documented adherence to national legislation, International Labour Organisation (ILO) standards, and respect for native customary rights.

SD Guthrie established its No Deforestation, No Peat and No Exploitation policy in 2016. Supporting this policy, Dr Shariman said SDGI has been utilising Crosscheck since 2019, an online traceability tool that maps its palm oil from source to supply. The tool allows traders and buyers to pinpoint where issues may arise in the supply chain and raise alerts for corrective action to be taken. This, he said, will help SDGI ensure that its supply chain continue to adhere to the new EU rules.

“Our commitment to adhering to the European Union’s Deforestation Regulation (EUDR) goes beyond compliance. We view this as an opportunity to continuously improve our practices, ensuring that our supply chains remain transparent, traceable, and aligned with the global shift towards responsible sourcing. SD Guthrie International is fully committed to staying ahead of the evolving regulations, reinforcing our role as a trusted partner in delivering sustainable palm oil to Europe.”

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.