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 workforceacross 15 countries

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

250 71 11Estates Mills Crushing Plants

(inclusive of soy crushing plant)

633,000 hectaresof planted area in Malaysia, Indonesia, PN

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

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

Note: Figures as at 31 December 2018 unless stated otherwise1 Estimatedbasedon global plantedarea of 21.5 mn ha worldwide

Business OverviewIntegrated 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 riseo Mangrove forest

rehabilitation• Free Fire Alliance• Enhance carbon sequestration

o Tree plantingo Forest rehabilitation

• Management of carbon rich area that we own

• Biodiesel• Solar power

Adapting to Climate Change

23 23 23Once 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 burningpolicy

No new planting on peat policy

Expansion only in low

carbon environment

Draw the line on

deforestation policy

19852013

20142019

THANKYOU