Sustaining Sustainable Palm Oil - Sime Darby Plantation

Abstract

Palm oil was firmly entrenched as a major ingredient in the manufacturing of numerous food and consumer goods from margarine to shampoos and detergents. However the palm oil industry was also linked to deforestation, landing it in the crosshairs of green activists. One palm oil company, a Malaysian federal government-linked enterprise, Sime Darby Plantation (SDP), had been quietly making strides in incorporating environmental sustainability into its business. With about 580,000 ha of estates spread across Malaysia, Indonesia, Papua New Guinea and the Solomon Islands, SDP was the world's largest palm oil company by planted area and the largest producer of certified sustainable palm oil. In a cut-throat industry with a poor environmental track record, how did SDP make the transition towards sustainability?