Sime Darby: Sustainability as basis for entrusted Quality ... Sime Darby is committed to the...
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Anetta Nowak, Sime Darby R&D Innovation Centre Europe
MPOC symposium September 2015
Sime Darby: Sustainability as basis for entrusted Quality Palm Fruit Oils
Sime Darby: Centuries of Heritage
Kumpulan Guthrie was founded in Singapore in 1821 by Alexander Guthrie as the first British trading company in South East Asia and one that introduced rubber and oil palm in Malaysia Golden Hope Plantations, previously named Harrisons & Crosfield when founded in 1844, was a major oil palm plantation player in Malaysia Kumpulan Sime Darby, founded in 1910 by British businessmen William Sime and Henry Darby, and grew into a diversified multinational. In 2007 all three companies merged to form the new Sime Darby Berhad.
Sime Darby focuses on 6 core businesses…
Industrial Motor Energy & Utilities Healthcare
…with operations in over 20 countries
Papua New Guinea
Palm Kernel Oil
Palm fruit oils are key food ingredients
Palm fruits oil: clean(est) edible oils from nature
• No natural trans fats and erucic acid
• No hexane used
• PAH-4 low
• Non GMO Palm oil
Palm kernel oil
Hexane Pesticides Polycyclic Aromatic Hydrocarbons (PAH)
Soybean oil High Medium Medium
Sunflower oil Medium High High
Rapeseed oil Medium Medium Medium
Corn oil Low Medium Medium
Palm oil Absent Low Low
Palm kernel oil Absent Low Low
Coconut oil Absent Low Very High
Risk assessment matrix crude vegetable oils contaminants
E124 Climate change
Environmental Impact Social Impact
ALL AGRICULTURAL PRODUCTS HAS ENVIRONMENTAL AND SOCIAL IMPACTS IN PRODUCTION, BUT CAN BE PRODUCED IN A SUSTAINABLE MANNER
Palm is one of the most efficient crops
Palm produces up to 10 times more oil per hectare compared to other major vegetable oils
Source: Oil World 2013
Hectarage Area under Cultivation in 2012
(Total =258.9 mil hectares)
Volume (MT) Global Production in 2012 (Total =186.4 mil tonnes)
The Palm Footprint is very small Compared to Other Agricultural Products
Global Area Under Agriculture
Livestock Pasture Other Crops
Vegetable Oil 18%
Fibre Crops 2%
Agricultural Area Crop Planting
16.6 million ha Planted with Oil Palm
0.3% of Global Agricultural Area
1.1% of Global Cropland
Source: Analysis of FAO Statistics 2011
Oil Palm agriculture has proven to be a Major Driver of Economic Development
Approx. 36% world palm oil production Approx. 29% of world exports.
Contributes around 5% to 7% of GDP
Exports revenue 2009 – RM 50 billion 2013 – RM 80 billion Avg. 10% to total export revenue
The sector also provides
~500,000 employment opportunities
National Key Economic Area: targets to generate RM178 billion in gross national income by 2020.
Approx. 53% world palm oil production Approx. 44% of world exports.
Food and estate crops contributed around 9% of GDP in 2013
Exports revenue of USD19 bil in 2013; Avg. 10.4% to total export revenue.
An estimated 3.7 million people are believed to be employed in the palm oil industry in Indonesia.
Source: International Institute of Sustainable Development, The Star, Department of Statistics, Malaysia, Pemandu
Source: Indonesia investments, Statistics Indonesia, International Institute of Sustainable Development, Schuster Institute for Investigative Journalism, Bank Indonesia
Yield is key for sustainability Sime Darby’s unique palm genome science
1 2 3 4 5 6 7 8 9 10 11
TAG assembly, glycolysis, lipid bodies, energy, carbon sources
Mesocarp size: amino acids, nucleosides, hormones, cell division, nutrients ??
Bunch number - ?
Physically limited to ~90% dry
When will we see source limitation?
Max Yield Theoretical
Sime Darby’s Total Value Chain Strategy
Good Agricultural Practices, minimize environmental impact of plantations, animal feed applications of side-streams and biofuels
Biobased chemicals and nutritional
1965 - today 2015-2020 2015-2030
Since 1965 Sime Darby’s developed, implemented and commercialized technologies to achieve maximum use of palm fruit agriculture
control for IPM
1994 EMS-ISO 14001
utilisation as compost
Largest producer of certified sustainable
palm oil, leading total sustainable production, food safety, CSR, and
1992 Elected to UNEP
Global 500 Roll of Honour for
commercialisation of zero burning
2002 Founding member of RSPO
certification of SCCS and
Sime Darby Plantation is a leader in plantation sustainability
Pioneered the Zero Burning Policy in 1985. One of the founding members of RSPO. Largest producer of CSPO: Malaysia 100%, PNG 100% & Indonesia 96% certified. No development of primary and virgin forest. No new development on peatlands. No development of high carbon stock areas, once defined. Committed to Environmental and Social Principles – HCV & FPIC
Acquisition of New Britain
Sime Darby’s Sustainability Journey
Beyond 2015 Spearheading study on High
Carbon Stock forest and thresholds
Corporate Responsibility & Our Sustainable Practices
Stability of Altered Forest Ecosystems (SAFE) Project in Sabah, Malaysia
Sime Darby FC - Currently in the 2nd tier of the Malaysian Football League
Sime Darby has committed funding of more than RM 90 million over a period of 10 years for Corporate Responsibility activities.
Sime Darby actively supports sports such as lawn bowls
Sime Darby’s Gender Policy looks after the wellbeing of its plantation workers
Participants at Sime Darby’s Gender Policy workshop, in teambuilding activities
Sime Darby’s Mangrove Research Centre is dedicated to mangrove conservation
One of Sime Darby’s HUMANA schools in Ladang Binuang for children of foreign workers
These children receive their education at one of Sime Darby’s HUMANA schools
e. Rehabilitation of Orang Utan habitat in Ulu Segama Sabah
f. Protecting and preserving the biodiversity of Tabin Wildlife Reserve, Sabah
Protecting Endangered Species No-deforesting and Restoring
Plant Biodiversity Community Engagement Efforts
a. Rehabilitation of Orang Utan habitat in Ulu Segama Sabah. b. Wild tree species being raised in a nursery.
c. Reaching out to the less fortunate at an Aidilfitri celebration. d. Scholars attending an awards ceremony with the Sime Darby Management.
a b c d
Some Sustainability Practices Implemented
Good Water Management Ground Cover Crops for Soil and Moisture Conservation
Excellent Plantation Management Practices
Best Mill Practices
Balanced Age Profile Through New &
Integrated Pest Management
Zero Burning Replanting Technique
Palm oil mill effluent (POME) Treatment
As an industry leader