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Transcript of Sime Darby Plantation Decarbonizing Palm Oil ... Sime Darby Plantation Decarbonizing Palm Oil 26...

  • Sime Darby Plantation

    Decarbonizing Palm Oil

    26 September 2019

  • World’s largest producer of Certified Sustainable Palm Oil (CSPO)

    Supplying essential ingredients to world- famous brands in food and non-food products

    We are the world’s largest oil palm producer by planted area with total

    landbankof more than 600,000 hectares across Malaysia, Indonesia, PNG &Liberia

    95,537 workforce across 15 countries

    633,000 hectares of planted area in Malaysia, Indonesia, PNG, Solomon Islands (SI) and Liberia.

    250 71 11 Estates Mills Crushing Plants

    (inclusive of soy crushing plant)

    633,000 hectares of planted area in Malaysia, Indonesia, PN

    3.8 mn MT p.a. Total Refining Capacity (11 Refineries)

    Market leader in R&D Edison Award 2017 under Energy & Sustainability category (Genome Select Oil Palm Project)

    Note: Figures as at 31 December 2018 unless stated otherwise 1 Estimatedbasedon global plantedarea of 21.5 mn ha worldwide

    Business Overview Integrated Plantation Company Involved in the Entire Palm Oil Value Chain

    >15% % of global supply

  • Issues distilled to 6 key areas…

    Decarbonizing Palm Oil

    What is the carbon

    burden?

    Do we know where the

    carbon comes from?

    What’s on it?

    Can we help fix climate change?

    Are our people

    included in the solution?

    Exploitation

    Equilibrium

    Can we go beyond carbon neutral?

  • Issues: How land is cleared

    Haze is a transboundary issue

  • Risk to business

    Infrastructure Risk

    Enterprise Risk

    Biological Risk

    1

    2

    3

    Managing the risks

  • Managing the risks

    ReducingMitigatingAdapting

    AdaptingMitigatingReducing

    1 2 3

    1 2 3

  • Reducing deforestation – Crosscheck

    Tracing the supply of palm oil

    NDPE - no deforestation, no development on peatland, no exploitation

  • Reducing deforestation – Hotspot Alert

    Hotspot Dashboard tracks and reports hotspot occurring within our

    concession areas. We implemented zero burning policy for over

    three decades, and we strictly adhere to it.

  • Mitigating Climate Change – Methane capture plants

    Reduce GHG emissions from our operations by 40% by 2030

    Capture & Flare

    FIT | CNG | CoF

    Electricity generation Captive power Compressed natural gas

  • Mitigating Climate Change – Other existing initiatives

    • Sea level rise o Mangrove forest

    rehabilitation • Free Fire Alliance • Enhance carbon sequestration

    o Tree planting o Forest rehabilitation

    • Management of carbon rich area that we own

    • Biodiesel • Solar power

  • Adapting to Climate Change

    23 23 23 Once all off our Malaysian estates are planted with GenomeSelect™ palms,

    we will produce additional oil would be equivalent to what would previously require 50,000 ha of new land

    • High yield planting material – Genome Select

    • Precision agriculture • Mosaic farming • Close loop agriculture • Stability of Altered Forest

    Environment (SAFE) project

  • No deforestation and no development on peatland

    Zero burning policy

    No new planting on peat policy

    Expansion only in low

    carbon environment

    Draw the line on

    deforestation policy

    1985 2013

    2014 2019

  • THANKYOU