Climate Action
Transitioning Towards Climate
Positive Business
Global temperatures are believed to increase by 1.5℃ before 2040. To keep the temperature fluctuation within 1.5℃, everyone needs to play a role to reduce their emission-posthaste.
We are no different, and our role in protecting and enhancing the environment guides our operations on the ground. SD Guthrie has a target; a 50% carbon intensity reduction by 2030, leading up to our Net Zero aspirations.
Our action plan is clearly mapped out. We are actively looking to restore degraded land, protect habitats, enhance responsible agricultural practices, and develop a circular economy through renewable energy. A major part of our focus is to drive deforestation out of our supply chain, a complex ecosystem.
While SD Guthrie has faced challenges in meeting our targets to climate-positive action, we have made significant investments to accelerate our ability to achieve our targets through infrastructure to support climate change adaptation and mitigation efforts.
Our Current Climate-Related Strategies
Investments to minimise upstream operational GHG Emissions
Biogas plants: Investing in biogas plants at mills to tackle SD Guthrie's largest emission source within our upstream operations.
Scope: Malaysia, Indonesia, PNG.
Solar energy: Implementing solar PV systems for SD Guthrie operations and supporting Malaysia's national schemes by leasing land for solar power generation systems.
Scope: Malaysia
Operational efficiency: Continuously finding ways to improve operational efficiency with regards to energy, water, waste and chemical use.
Scope: SD Guthrie globally.
Implementing Nature-based Solutions
Conservation areas: Identifying and setting aside areas for conservation with plans to protect and restore these areas.
Tree planting intiatives: Conducting large-scale tree planting initiatives to boost sequestration and insetting / offsetting carbon footprint.
Scope: Malaysia, Indonesia, PNG, Solomon Islands.
Eliminating Deforestation from Our Supply Chain
Monitoring, engaging and supporting suppliers and smallholders to tackle deforestation in supply chains, in line with our Draw the Line Policy.
We target to ensure our supply chains are 100% deforestation-free by 2025.
Maintaining transparency of progress with supply chains through our traceability and Crosscheck platforms. We target to achieve 100% traceability to mills and plantations across our supply chain.
Engaging in partnerships and multi-stakeholder initiatives on latest technologies and addressing challenges faced in supply chains.
Scope: Malaysia, Indonesia, PNG, Solomon Islands, Thailand.
Focus on Yield
Signficantly investing in R&D to boost yield and develop crop that is resilient to climate impacts.
Scope: Malaysia, Indonesia, PNG, Solomon Islands.
Protecting The
Environment
We are making efforts to minimise our environmental impact through carbon reduction and management of water, emissions, waste, and fire, as well as through our efforts to drive deforestation out of the supply chain. These measures are also integral contributors to the Sustainable Development Goals.
While SD Guthrie has faced challenges in meeting our targets to reduce emissions, we have made significant investments to accelerate our ability to achieve our reduction targets through infrastructure to support climate change adaptation and mitigation efforts.
Climate Governance and Risk Management
Carbon Emissions Reduction
Renewable Energy
Air Emissions Management
Fire and Haze Management
Waste Management
Water Management
Enhancing The Environment
SD Guthrie operates in some of the most biodiverse landscapes in the world, including Malaysia and Indonesia, both of which maintain a 50% forest cover. Understanding the need for and importance of conserving the natural expanse, we implement environmental management practices in our operations that are targeted at reducing biodiversity loss.
Land Use Management
Peatland Conservation
Reforestation and Restoration
Carbon Emissions Reduction
As the world's largest oil palm plantation company by planted area, we recognise the important role we play in managing carbon emissions and improving energy efficiency across our operations, to mitigate the adverse effects of climate change.
SD Guthrie developed an ambitious roadmap to achieve net-zero emissions by 2050, focusing on 3 main areas:
- Acceleration of Renewables
- Land use Transformation
- Enhancing Supplier Engagement
For more information on our Net-Zero Roadmap, please visit here
SD Guthrie uses the GHG Protocol Corporate Accounting and Reporting Standard, GHG Corporate Value Chain (Scope 3) Standard and GHG Protocol Land Sector and Removals Guidance to calculate GHG emissions. For more information, please refer to here.
Understanding our emissions intensity at our downstream operations can be challenging due to the range of products and various processes at each operation.
Various energy saving projects were implemented across all the Group’s refineries. These include projects to improve condensate recovery, heat recovery and insulation, and replacing large motors with high efficiency motors. In addition, SDO also focused on increasing renewable energy consumption through the installation of solar panels on rooftops and the use of biogas. At our refinery in the Netherlands, a reverse osmosis plant was built; reducing the amount of water, energy and chemicals needed in the plant’s operations.
The 2023 total emissions is 18,675,679 tCO2e excluding Scope 1 and 3 carbon removals from sequestration of oil palm, rubber and high conservation value (HCV) areas of 6,843,700 tCO2e.
Our 2023 inventory showed that 67% of our net emissions were Scope 3 emissions from our supply chain such as purchased feedstock and non-feedstock materials. We will be ramping up our supply chain engagement in the coming years to work together with our suppliers to address Scope 3 emissions.
In 2023, the Group’s operations used 28,978,121 gigajoules (GJ) of energy. About 88% of the energy consumed was from renewable sources, namely biomass, biodiesel, biogas and solar, contributed primarily by the Group’s renewable energy initiatives. The remaining 12% of the Group’s energy was derived from non-renewable sources such as fossil fuels.
Air Emissions Management
We recognise that our mill operations are challenged with significant emissions such as dust and smoke from chimneys and particles from crushing plants, unlike our refineries that operate on natural gas.
In Malaysia alone, we have invested approximately RM70 Million to improve compliance with more stringent air emission standards by installing additional pollution control systems such as Electrostatic Precipitator and Vorcep at all our 33 mills. We have always complied with local environmental regulations. With the new limits required under the Clean Air Regulations 2014, we are upgrading our pollution control system to meet Total Particulate Matter (PM) of 150mg/m3 by December 2021 (from 400mg/m3 to limit value). Individual operating units report their air emission performance through our online Continuous Emission Monitoring System (CEMS).
Fire and Haze Management
SD Guthrie pioneered and commercially introduced the 'Zero-Burning Replanting Technique' in 1985.
When clearing fields of old and unproductive palms, the trunks and fronds are cut and left on the fields to decompose as organic fertiliser. This environmentally friendly technique, improves soil quality, and has been adopted as the industry standard for oil palm replanting.
In 1992, SD Guthrie was admitted into the United Nations Environment Programme's (UNEP) Global 500 Roll of Honour for Environmental Achievement during the Rio Earth Summit for the development and commercialisation of this technique.
Fires can be caused by many factors and is most likely to occur during dry seasons. Our operations, as well as areas of our concessions occupied by local communities are susceptible to unpredictable fires.
We use satellite data to keep an eye out for fire occurrences in our estates as well as neighbouring areas. Once alerted, we immediately investigate and send our specially trained teams to put the fires out and prevent it from spreading and causing more damage.
Hotspot DashboardOur strict Zero Burning Policy extends within our own boundaries. However, because of our commitment to environmental stewardship, we have roped in our neighbours to commit to the same policy. This includes those within a 5km radius of our estate boundaries.
We not only assist our neighbours to monitor fire occurrences but also help to put out the fires as soon as we are alerted.
We have specially trained and fully equipped Fire Fighting Teams at our operations to help put out fires. They are the frontliners who safeguard our plantations and assist our neighbours as part of the 5km Zero-Burning commitment.
Masyarakat Peduli Api (Local Communities Fire Awareness Movement)
Protecting the environment is a shared responsibility and who better to help us than the local communities who live and work with us.
SD Guthrie has helped initiate 'Masyarakat Peduli Api' within neighbouring local communities in our Indonesian operations to increase their awareness and participation in fire prevention activities.
Since 2014, our subsidiary Minamas Plantation has partnered with seven universities across Indonesia to develop integrated community-based fire prevention programs (DMCA) involving all levels of stakeholders, to contribute in safeguarding the area from forest fires.
The programme aims to educate local communities in fire-prone villages around our operations about sustainable agricultural practices. We help them find sustainable and viable alternatives to generate income.
This programme operates in high risk areas, covering 34 villages approximately 161,000 ha. It enhances awareness of forest and land fire risks in the community, extending outreach to schools through programmes like “Guru Peduli Api” involving 750 teachers and principals, and “Sekolah Peduli Api” with the Indonesia Heritage Foundation. The “Penghargaan Desa Bebas Api” awards fire-free villages to encourage villagers to practice zero-burning on their farms. Minamas Plantation also conducted training sessions on forest and land fire prevention and control with smallholders and nearby communities across our operations in 2023, highlighting the importance of preserving the surrounding environment from the dangers of forest fires.
Through satellite, ground, and drone monitoring, detected hotspots are promptly reported to authorities in accordance with our fire management operational standards. In 2023, our monitoring efforts covered over 800,000 ha of land in Indonesia, utilising 50 drones to monitor our operations for potential fire risks.
Apart from drones, we utilised fire towers in Indonesia to enable early detection of wildfires across our plantation and neighbouring areas, in line with our 5km radius zero-burning commitment. Minamas Plantation is committed to monitor fire occurrences and help to put out the fires within a 5km radius of our estate boundaries as soon as we are alerted.
Waste Management
Palm oil Mill Effluent (POME) is the primary organic waste generated during the production of palm oil. SD Guthrie does not discharge untreated effluent into water streams as it will cause considerable environmental harm.
Palm oil refinery effluent (PORE) is wastewater from the refining of crude palm oil (CPO). PORE treatment usually involves a chemical process to remove oil, grease and inorganic substances before further biological treatment prior to its discharge.
Our robust management systems ensure all our mills and refinery operations are fitted with Palm Oil Mill Effluent Treatment System (POMETS) and Industrial Effluent Treatment Systems (IETS) that support the management of waste and comply with national environmental standards.
We continuously monitor the quality of discharged wastewater and wastewater treatment performance at our upstream operations. We also ensure that biological oxygen demand (BOD) remains below regulatory thresholds in the regions where we operate - Malaysia, Indonesia, and Papua New Guinea (PNG) and the Solomon Islands (SI).
Composts can be produced through a combination of the two largest constituents of mill wastes, POME and Empty Fruit Bunches (EFB), as well as other by-products, including decanter cake and boiler ash. Composts are applied in estates as a soil conditioner to enrich the soil. SD Guthrie began composting as part of its mill waste management in 2004.
Water Management
The group monitors the amount of water used and usage intensity in all its upstream operations.
Each region primarily determines its water management and monitoring approaches according to regulatory requirements. Water data is collected at the site level and may vary from operation to operation. SD Guthrie is currently reviewing our internal processes to collect this data at the Group level, as doing so will ensure consistency and comparability. We have set a 5-year target of an annual water intensity reduction of 6% against baseline of 1.4m3/tonne of FFB in 2019. We are currently streamlining our data collection approach and will refine our targets moving forward.
In FY2023, SD Plantation conducted a pilot water footprint assessment (WFA) at selected sites and a water business risk assessment to establish a baseline for SD Plantation’s water sustainability. These initiatives aimed to identify significant water risks associated with or influenced by SD Plantation's activities across various stages of our value chain and operations.
In response to the findings of the pilot study, SD Plantation endeavours to enhance productivity, thereby improving the water footprint per ton of FFB. Additionally, the Company aims to decrease reliance on fertilisers and pesticides by implementing good agricultural practices.
With good site level water management plans in place, water business risks can be continually managed.
To further enhance our sustainability practices, we introduced new technologies to efficiently treat industrial wastewater in 2019 and 2020. Patent applications have been filed in Malaysia, Indonesia and Thailand on the process of treating palm oil mill effluent using electro-oxidation means and in Malaysia on the method for treating vegetable oil refinery effluent using electro-oxidation means. These efforts have made significant inroads into reducing our energy and water footprint.
Our top priority is to ensure our employees have access to safe drinking water and sanitation. We take periodic water samples from the river systems, and the results have shown no significant deterioration of water quality.
Our 2023 CDP Water Security responses can be accessed HERE.
Renewable Energy
We aim to create a diverse portfolio of sustainable businesses while creating a circular economy for all the direct and in-direct stakeholders within our eco-system and beyond.
Globally, the conversations around climate change have taken centre stage with renewable energy at the forefront of solutions to reduce Greenhouse Gas (GHG) emissions. To help realise our carbon emission reduction target, SD Guthrie set up subsidiary SD Guthrie Renewable Energy Sdn Bhd (SDGRE) in 2020 to establish ventures in developing our biogas plants, as well as other renewable energy initiatives such as solar and biomass.
In 2022, we announced our commitment to achieving carbon net-zero emissions by 2050. As part of the Group’s near-term net-zero target, SDGRE plays a crucial role in assisting the Group to achieve a 42% reduction in Scope 1 and Scope 2 Energy and Industrial (E&I) carbon emissions by 2030. In 2024, the rebranding of SD Guthrie was a strategic move to reflect the company’s evolution into a fully integrated industry player, with a significant downstream business such as renewable energy and industrial development at the core, and potential growth in the property development such as green industrial park and data centre.
Renewable Energy (RE) has been also included as the main business line of SD Guthrie to support the Group’s sustainability goal of achieving net-zero emissions in 2050. We also aim to create a diverse portfolio of sustainable businesses and engaging in value-adding business activities in the RE industry, while creating a principal circular economy.
Methane emissions from treating effluent mainly from mill processes, is the single largest emission source of SD Guthrie’s operations.
SD Guthrie's biogas plants initiatives are not only vital in ensuring that we remain on track towards achieving our carbon reduction target.
Our biogas plants capture methane emitted from anaerobic wastewater treatment ponds that would otherwise be released into the atmosphere. Methane is a high-impact GHG and is created when Palm Oil Mill Effulent (POME), a byproduct/waste from mill operation, is typically treated using conventional anaerobic and aerobic ponding system, before it can be discharged to either land application or watercourse.
Progress of our Biogas Plants initiative:
We aim to have a total of 45 biogas plants across our operations by 2030.
* Based on Mplan Budget 2024 planning.
In FY2023, we commissioned two new biogas plants at Seri Intan and Lavang estates, bringing the total number of biogas plants in operation to 12 with a total capacity of 22.5 MW.
To support our carbon reduction plans, SD Guthrie Malaysia began installing photovoltaic (PV) systems in 2021. These are situated on the rooftops of our buildings and our land assets.
* Based on Mplan Budget 2024 planning. LSS projects further subject to quota award by Energy Commission; Rooftop and Off-grid projects further subject to site feasibility and rooftop condition.
** For LSS1 and LSS4, as landowners, we have leased parcels of our land to partners who then build and operate the LSS plants. In such a land tenancy model, we do not own the LSS plants.
*** Consists of both land tenancy and own investment projects.
In 2023, SDGRE has successfully secured 15MW quota for the development of SD Guthrie’s first ever large solar plant in Bukit Selarong under the Corporate Green Power Programme (CGPP). The plant is targeted to be completed by 2025.
As an initiative to reduce our Scope 2 emissions and strengthen our approach towards the Group’s carbon net-zero commitment, since 2021, SD Guthrie began initiative of installing solar photovoltaic (PV) systems on rooftops of regional offices and buildings asset. As of 2023, nine (9) solar PV systems have been installed under the Net Energy Metering (NEM) and Self-Consumption (SELCO) schemes with a total capacity of about 2MW.
Besides rooftop projects, SDGRE has also started implementing off-grid solar systems equipped with Battery Energy Storage Systems (BESS) at SD Guthrie’s assets. In 2023, we have successfully commissioned off-grid solar plant with a capacity of 25.92 kWp and 77 kWh BESS at our fertigation system in Sungai Buloh Estate. In East Malaysia, we also target to complete off-grid solar project in multiple areas in Jelata Bumi Estate with total of 859 kWp solar plants and 1,482 kWh BESS by 2024.
Aligning renewable energy initiatives strategy to national agenda.
The Malaysian government aims for renewable energy (RE) to constitute 40% of the primary energy supply mix by 2035 and 70% by 2050. Achieving this goal necessitates a significant expansion of RE capacity nationwide, reinforced by the National Energy Transition Roadmap (NETR) launched in August 2023. NETR outlines the ambition to achieve a 70% RE share of installed capacity by 2050, predominantly driven by solar photovoltaic (PV) installations. Significant solar capacity growth is required over the next three decades, with a target of 59 GW of installed capacity by 2050.
Leveraging the NETR agenda, SD Guthrie proactively strategise renewable energy initiatives, ensuring that all development plans align with the latest national directives. Our primary goal is to reduce the Group's carbon emissions and fulfil our Net-Zero commitments while exploring opportunities to generate additional revenue streams through renewable energy projects.
We contribute to the national energy transition by leasing our lands for the development of solar farms, aligning with the national objective of increasing the proportion of renewable energy in the energy mix. Large Scale Solar (LSS) 1 plant, with a capacity of 20 MW, was installed in Tali Ayer Estate in Penang and commenced operations in 2018. It has been generating stable income since 2019.
As of the end of FY2023, the development of 12 LSS4 projects on SD Guthrie's land assets, totalling a combined capacity of 336 MW, has seen the completion of 9 out of the 12 plants. The remaining 3 plants are expected to be fully commissioned by Q3 FY2024. Once all 12 LSS projects on SD Guthrie land assets are commissioned, in total they will produce a projected total carbon emission reduction equivalent to planting 7,390,338 carbon capture trees as part of Malaysia’s carbon reduction targets.
Throughout SD Guthrie’s upstream and downstream processes, various types of biomasses bi-products were produced such as empty fruit bunches (EFB), mesocarp fibre (MF) and palm kernel shells (PKS). The biomasses are being utilized for mulching in our estates, and as biofuels for our mill’s energy generation. In-line with our continued effort to valorize the biomasses and offset emissions, we are exploring the feasibility for converting the biomass resources into potential energy or high-value, sustainable products, and other potential opportunities.
SD Guthrie is exploring an initiative to capture carbon emissions from flue gas of boiler’s operation. To realise this, we are testing the microalgae technology as a mean to capture and sequester carbon. Also, with this initiative, we are expanding potential microalgae’s oil as our defensive strategy, thus promoting circular economy.
We have completed the installation of trial plant for microalgae carbon sequestration and the microalgae acclimatisation phase went well with biomass yield steadily increased with a significant decrease in the cultural adaptation period over time under atmospheric CO2. Due to the complex design and specifications, phase 2 site preparation of flue gas piping installation is expected to be completed by November 2024 and the project team will conduct the acclimatisation phase with the actual flue gas in order to develop required modifications to optimise the technology in the palm oil mill(s) operational environment.
Climate Governance and Risk Management
We aim to provide greater transparency on our carbon footprint by monitoring and measuring our emissions to furnish accurate data on our performance.
We are continuously working towards improving the energy efficiency of our operations. We focus on emissions directly from SD Guthrie’s operations, including land clearing and preparation, planting, fertilising, harvesting, extraction and processing of raw materials. We currently do not manage emissions that are generated by third-parties who supply fresh fruit bunches.
SD Guthrie’s climate governance covers the Board’s oversight of climate-related risks and opportunities, and the role of Management in assessing these risks and opportunities.
Our 2023 CDP Climate Change responses can be accessed HERE
SD Guthrie has implemented a proactive and ongoing process dedicated to identifying, evaluating, and managing significant climate-related risks. Climate-related risks are fully embedded in SD Guthrie’s Group Risk Management Framework and treated in a similar manner to other risks.
Identification of Climate-related Risks
- Risks including climate-related risks are identified through risk identification, risk assessment and risk mitigation approach as well as continuous monitoring and inclusion at each division where identified significant risks are escalated to the Risk Management Committee and the Board
- The Board and other committees convene at least 4 times a year to discuss and update strategic business matters and this include climate-related matters
Managing Climate-related Risks
- The Risk Management Committee and Sustainability Committee are responsible for ensuring sustainability and climate risks are managed by monitoring anticipated or reported impacts on the Company’s operations
- The Risk Management Committee and Sustainability Committee oversee the implementation of mitigation actions for identified sustainability and climate risks
- The SD Guthrie Group Risk Management Framework adheres to the ISO31000:2018 standard on risk management, encompassing risk identification, analysis, evaluation, treatment, reporting, continuous communication, monitoring, and review
Integration of Climate-related Risk Management
- Climate-related risks are integrated into the Company’s Risk Management framework to ensure the risks are properly addressed and comprehensive oversight is implemented
Peatland Conservation
SD Guthrie has implemented a strict policy of no new planting on peat since 2014. However, currently, 32,248 hectares of its plantations are located on peat across all operations.
Peatlands store twice as much carbon as the rest of the world’s forests and are more susceptible to fire. For this reason, the Group conducts drainability assessments at its existing operations on peat in accordance with RSPO requirements and uses the results to plan the phasing out of oil palm cultivation on these lands. Suitable crops will replace oil palms on these lands to generate a higher water table or rehabilitate natural vegetation. For peatland, it is crucial to maintain an optimal water level to maintain its vast stores of carbon, prevent peat fires and minimise peat subsidence.
In the interim, SD Guthrie’s operating units continuously implement best peat management practices in compliance with the RSPO principles and criteria and the Group’s internal agriculture reference manual. In addition, the Group maintains existing vegetation in and around its oil palm plantations and engages with surrounding local communities to educate their members on sustainable management of peat areas to prevent slash and burn activities.
Land Use Management
Our large landbank enables us to meet the evolving human needs while continuing to advocate for the importance of conserving the ecological profile of our land.
We have a strict No-Deforestation policy that has been in place since July 2014. We use the High Carbon Stock Approach (HCSA) to estimate the amount of carbon and biodiversity stored in an area of land, to identify those that need to be preserved and protected.
The HCSA defines what constitutes forest landscapes in order to avoid deforestation. The methodology was developed by a broad group of companies and civil society organisations as a practical, transparent, robust, and scientifically credible approach that has become widely accepted, to implement commitments to protect forests in the tropics.
In addition to the HCSA method, we conduct independent High Conservation Value (HCV) assessments at our estates before new plantings or developments.
The assessments aim to identify HCV areas that may be negatively affected by our operations. The HCV assessments are conducted in conjunction with independent Social and Environmental Impact Assessments (SEIA) that are also carried out before new developments, including those by all of our suppliers. Where any loss of HCV biodiversity has been identified, we will develop Biodiversity Conservation Compensation Projects (BCCP) with Project-Affected Communities (PAC). Priority is given to in-situ remediation by planting Rare, Threatened and Endangered trees in conservation areas within SD Guthrie's (SD Guthrie) operations.
We have a trained team that conducts HCV assessments in all our operating units to identify, categorise, protect and maintain high-risk zones. We also train our personnel on the ground on HCV management methods and the necessity to periodically monitor these areas to ensure the effectiveness of management activities.
SD Guthrie engages Assessor Licensing Scheme (ALS) Assessors for HCV Assessment or Integrated HCV – High Carbon Stock (HCS) Assessments for all new planting activities under the Roundtable on Sustainable Palm Oil's New Planting Procedure (NPP). This commitment is extended to all our suppliers. The reports can be accessed at High Conservation Resource Network.
New Britain Palm Oil (NBPOL) has become a member of global non-profit organisation The Forest Trust (TFT) with an initial focus on assessing and defining HCS forest areas in parallel with assessments of the needs of communities who live within our new concessions.
HCV surveillance is carried out using the annual two-fold approach, including the use of Satellite data, drones and ground truthing. All data is entered into GIS software (either SMART or QGIS) with a bi-annual remediation plan submitted where required and verified externally during annual audits by RSPO and Rainforest Alliance.
New Britain Palm Oil (NBPOL) has become a member of the global non-profit organisation The Forest Trust (TFT) with an initial focus on assessing and defining HCS forest areas in parallel with assessments of the needs of communities who live within our new concessions.
HCV surveillance is carried out using the annual two-fold approach, including the use of Satellite data, drones and ground truthing. All data is entered into GIS software (either SMART or QGIS) with a bi-annual remediation plan submitted where required and verified externally during annual audits by RSPO and Rainforest Alliance.
All HCV sites will have the SMART methodology run once a year and updated into the SMART reporting tool. To date five out of nine HCV sites implemented the methodology with the last four in progress. We are currently working on rolling out the methodology in Poliamba Ltd. and RAIL Ltd.
Spot Checks are carried out using Landsat and Sentinel imagery looking to identify any areas that are disturbed or have changes in land use within HCV areas. These areas are then ground-truthed to ensure necessary remediation plans can be put in place. To date five out of nine Spot Checks have been carried out.
Two additional NBPOL sites, RAIL Ltd and Poliamba Ltd. will start using the methodology developed by WNB Ltd. in 2019.
SD Guthrie’s conservation areas have remained largely unchanged over the years. As at end-2023, a total of 45,396 hectares – two thirds the size of Singapore – have been identified as HCV and conservation set-aside (CSA) areas.
All HCV and CSA areas identified to date, have been set aside for conservation and are subject to dedicated management and monitoring plans. Measures include regular surveillance and patrolling for encroachment to prevent illegal development, poaching, and hunting. SD Guthrie also collaborates with the Forest Research Institute Malaysia to conduct biodiversity surveys to monitor wildlife within these areas, including endangered, rare and threatened species.
Reforestation and Restoration
SD Guthrie is committed to ensuring the restoration of degraded forests and the reforestation of areas set aside for conservation in our concession areas. Where possible, we have planted Endangered, Rare and Threatened (ERT) trees to create wildlife corridors linking patches of degraded land.
Protect-Restore-Connect in a nutshell
Protect
Areas that are in good condition and have the potential for conservation. These could be areas that have been untouched and require less maintenance, depending on their present condition and quality.
Restore
Areas that are in good condition and have the potential for conservation. These could be areas that have been untouched and require less maintenance, depending on their present condition and quality.
Connect
Areas that have the potential to be connected with important habitats, landscapes and ecosystems. SD Guthrie’s focus in these areas will be on creating corridors, connectivity, steppingstones and extensions to such habitats and ecosystems.
We have 8,883 hectares of Conservation Side Aside areas throughout our concession areas, and have planted 2.28 million trees as of 31 December 2023.
SD Guthrie pledged to assist the State Government of Sabah (represented by the Sabah Forestry Department) to conserve Orangutan habitats at the Bukit Piton Forest Reserve (previously known as Northern Ulu Segama). Bukit Piton is part of the Ulu Segama Malua Forest Reserve in the Heart of Borneo. The programme started in 2008 when an agreement was signed between the two parties to rehabilitate and restore the entire 5,400 ha of Bukit Piton Forest Reserve over a 10-year period, with a total commitment of RM25 million funded by Sime Darby Foundation.
About 300,000 trees from more than 95 species were planted in the area, also supporting the regrowth of natural vegetation. The trees and vegetation serves as food sources for Orangutans and other wildlife in the area. The project was successful, with multiple sightings of a large number of Orangutan nests in the rehabilitated areas. The success also included the reclassification from Class II Commercial Forests to Class I Protection Forests. It was renamed Bukit Piton Forest Reserve in March 2012 and had acquired the Totally Protected Area (TPA) status, which helped to improve the ecological functions of the forest.
The project was completed in 2018 and handed over to the Sabah Forestry Department during a closing ceremony held on 8 December 2018.
SD Guthrie collaborated with Sime Darby Foundation, the Management and Ecology of Malaysian Elephants (MEME) and the University of Nottingham Malaysia (UNM) to conduct research and obtain information on Human-Elephant Conflict (HEC) found in our Malaysian operations from 2011 to 2018.
This collaboration between the private sector, academia and the conservation world is a pioneering step for SD Guthrie to establish the science that can help manage HEC issues and protect wildlife while continuing to deliver value for the business. We have also established a standard operating procedure for human-wildlife conflict mitigation in the plantation.
In 2020-2022, Sime Darby Foundation further supported with the development of conflict management approaches that cater to smallholders and other growers. The grant assisted in the development of a science-backed mechanisms to support the co-existence of human beings and endangered species.
This marks an overall contribution of RM8.11 million by the foundation since 2012, towards research and conservation management of wild Asian elephants.
Case Study SOP for Human-Wildlife Conflicts Mitigation in PlantationWe recognise that our plantations are habitats for diverse species that are endemic to the locations we operate in. Our plantations are also migratory corridors for wildlife that roam the forests. Thus, efforts are in place to connect some of these important wildlife corridors. For example, our operations in Papua New Guinea are home to the Queen Alexandra's Birdwing Butterfly (QABB) (Ornithoptera Alexandrae). The QABB is the world's largest butterfly, with wingspans of between 19cm and 30cm. It is endemic to northern Papua New Guinea, east of the Owen Stanley Mountains, and has an extremely small home range. The QABB is commonly found in Papua New Guinea's lowland rainforests, up to 900m above sea level. It mainly feeds on Aristolochia Dielsiana, a toxic pipevine species that plays a central role in its reproduction.
Through ongoing assessments, we have identified various species that are on International Union for Conservation of Nature (IUCN) red lists in our Papua New Guinea operations. We shall continue efforts to monitor and manage the species currently present in our plantations to ensure ecosystems continue to be protected.
With support from Sime Darby Foundation, a special lab has been constructed to facilitate the captive breeding of QABB. We aim to enhance the remaining population of this rare species by releasing adult bred specimens into areas of remaining forests where the pipevine plant is known to grow.
Tucked away in our Carey Island operations is Malaysia's first mangrove research centre that SD Guthrie established in 2019.
Located within the Company's West Estate, MRC is the research platform on the mangrove ecosystem and coastal zone management.
Among the objectives of the research centre are:
- To conduct phenology studies on mangroves seedlings available in and around Carey Island.
- To collect, establish, raise and manage mangroves nursery at Mangrove Research Centre, Carey Island.
- To plant, install and test the saplings using various methods at the eroded river buffer zone.
- To monitor and evaluate the survival and growth rates of the planted saplings.
- To expose and elevate the competency of internal researchers on mangrove science.
The latest project the centre is focusing on is the Carey Island River Rehabilitation Project. SD Guthrie's team has been planting Mangrove tree species to address major issues the island faces, including bunds breaking, riverbank erosion and mangrove degradation.
Planting Process
In 2022, SD Guthrie enhanced its Sime Darby Plant-A-Tree Programme. Going beyond planting trees, the Group launched the geotagging programme, an initiative to monitor the survival and mortality rate of the planted trees. To further increase awareness of the Group’s conservation efforts, SD Guthrie invited its employees to participate in the geotagging project as volunteers as part of the Group-wide “200 Years of Volunteerism” programme, which is aimed at giving back to the community in conjunction with SD Guthrie’s bicentennial.
Geotagging is the act of adding geographical identification data to photos, video, and other media recorded with smartphones or GPS-enabled electronic devices. The data consists of latitude and longitude coordinates and could also include timestamps or other contextual information. By geotagging a digital photo of a tree, we are also able to pinpoint the exact location of the geo-tagged tree and monitor it through satellites.
- In 2022, the Group conducted five geotagging exercises across its estates which involved 323 volunteers from across the Group. In total, 36,446 trees were geotagged.
- In 2023, two geotagging activities involving 163 volunteers were conducted. Some estates have also conducted their own geotagging initiatives. In total, 11,490 trees were geotagged.