Sime Darby Plantation : is World’s First Palm Oil Company with Fully Validated Net-Zero Targets

Sime Darby Plantation is World's First Palm Oil Company with Fully Validated Net-Zero Targets

• The world's first palm oil company to have both its near and long-term net-zero GHG emissions reduction targets approved by the Science Based Targets initiative (SBTi)
• Among the first global companies with validated reduction targets for emissions from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources

Petaling Jaya, 14 December 2023 - Sime Darby Plantation Berhad (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi)ⁱ. The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.

According to SDP's Group Managing Director, Datuk Mohamad Helmy Othman Basha, this latest development will spur the company to achieve its net-zero targets with even more urgency.

"The validation of our targets by the SBTi proves our commitment is real, meaningful and most importantly, measurable. The ongoing initiatives to reduce GHG emissions across our business includes collaborative efforts with stakeholders throughout our value chain," said Mohamad Helmy.

SDP is also one of the first global companies to have both near and long-term science-based emissions reduction targets originating from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources approved by the SBTi. These targets include the reduction from base year 2020 of:

Category	2030 Target	2050 Target
FLAG GHG Emissions	Absolute scope 1 and 3 reduction by 30.3%	Absolute scope 1 and 3 reduction by 72%
Energy and Industrial GHG Emissions	Absolute scope 1 and 2 reduction by 42%	Absolute scope 1, 2 and 3 reduction by 90%

In achieving net-zero GHG emissions with the above targets, SDP will be prioritising direct emissions reductions (decarbonisation) whilst all residual emissions will be neutralised in line with SBTi criteria, along with efforts to eliminate deforestation in the supply chain and further engagement with its suppliers on emissions reduction.

Emphasising the importance of rapid and deep emission cuts to tackle global emissions, in line with the deal which was reached in the COP28 summit yesterday in Dubai, where nearly 200 countries agreed to reduce fossil fuel consumption, Mohamad Helmy urged other industry players to commit to science-based net-zero targets as well as to limit global temperature rise to 1.5°C.

"Given the urgency of the current climate crisis, achieving our net-zero targets has never been more important. It's not just a goal, it is our responsibility to address these pressing environmental challenges.

"If we all commit to these targets, we can work together to ensure the sustainability of our industry. It must be a collective effort; there is no other acceptable or responsible solution," he stressed.

SDP has operationalised a three-pronged approach to achieve its net-zero targets, namely acceleration of its renewables programme, land use transformation and accelerating engagements with suppliers. SDP's net zero targets are an integral part of its Sustainability Focus Areas under three key elements: Climate Action, Human Rights and Responsible Sourcing.

For further details of the SDP's approved near and long-term science-based emissions reduction targets and roadmap, please visit the company's dedicated net-zero section on its website: www.simedarbyplantation.com/net-zero-emissions/.

ⁱ The Science Based Targets initiative (SBTi) is a global body enabling businesses and financial institutions to set ambitious emissions reductions targets in line with climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050. The SBTi defines and promotes best practice in science-based target (SBT) setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies' targets. For more information visit https://sciencebasedtargets.org/.