Sime Darby Plantation

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
Sime Darby Plantation has identified three overarching sustainability commitments covering its supply chain, the environment and human rights, with multiple focus areas under each. While the company explains how its sustainability strategy relates to and incorporates the UN Sustainable Development Goals, it does not disclose how it has identified and prioritised the topics in its strategy on which it has the most impact.

Governance and accountability for sustainable development
Sime Darby Plantation discloses that its governance system includes ultimate board-level responsibility and accountability for its sustainability strategy, and it has persons and teams who are responsible for the strategy’s implementation. However, the company has an opportunity to demonstrate that it ties sustainability performance to executive and/or board-level remuneration, to facilitate effective implementation of the strategy.

Stakeholder engagement
The company does not disclose stakeholder engagement activities, including how it selects the stakeholders, nor an overview of the topics discussed or their outcomes.

Scope 1 and 2 greenhouse gas emissions
Sime Darby Plantation reports on scope 1 and 2 greenhouse gas (GHG) emissions by source annually and demonstrates a year-on-year reduction. While the company has set a target to reduce emissions by 40% by 2030, it is unclear whether this target includes both scope 1 and 2 GHG emissions. Sime Darby has an opportunity to communicate a target for its scope 1 and 2 GHG emissions and to align this target with a 1.5-degree scenario.

Protection of terrestrial natural ecosystems
Sime Darby Plantation is committed to No Deforestation, No Peat, No Exploitation standards and expects the same of its suppliers. While the company has set a target to achieve 100% traceability to plantations by 2022 and reports progress against this, no targets for achieving deforestation and conversion-free (DCF) palm oil were found in the public domain. In addition, the company does not report on the percentage of palm oil that is DCF. Sime Darby therefore has an opportunity to strengthen its commitment by setting targets for achieving DCF palm oil supply chains as well as disclosing the proportion of palm oil that is DCF.

Soil health and agrobiodiversity
Sime Darby discloses qualitative evidence of efforts to improve soil health and agrobiodiversity through the adoption of precision agriculture techniques. However, the company has an opportunity to strengthen its commitment by setting targets to increase the percentage of production from sustainable practices that improve soil health and agrobiodiversity, reporting progress against the targets and disclosing quantifiable data on its impact on soil health and agrobiodiversity.

Fertiliser and pesticide use
Sime Darby Plantation provides evidence of efforts to optimise the use of fertilisers and pesticides, such as adopting green fertilisers and natural pest control. However, the company has an opportunity to strengthen its commitment by setting targets to increase the percentage of production from sustainable practices that optimise use of fertilisers and pesticides and reporting on progress against the targets.

Water use
Sime Darby Plantation has set 2030 water-intensity reduction targets and reports on progress annually. However, the company does not provide evidence of water-risk assessments in its operations and supply chain.

Availability of healthy foods
The company does not disclose a commitment or activities to increase the availability of healthy and nutritious foods.

Accessibility and affordability of healthy foods
The company does not disclose a commitment to address food insecurity by improving the accessibility and affordability of healthy and nutritious foods.

Workforce nutrition
Sime Darby Plantation demonstrates that it supports workforce nutrition by providing access to nutritious foods for its workers in remote locations. It further facilitates breastfeeding support for working mothers. The company could further improve disclosure on this topic by disclosing the percentage of food offerings that are healthy or setting a target to make healthy food the majority of food offerings in the workplace.

Food safety
While the company discloses compliance with national regulations on food safety, it has an opportunity to strengthen its commitment by disclosing the percentage of its own operations that are certified to a food safety scheme/certification programme recognised by the Global Food Safety Initiative or other widely recognised certification.

Land rights
The company commits to recognising and respecting the legitimate tenure rights related to the ownership and use of land and requires its suppliers to abide by the same standard. In addition, the company has a grievance mechanism that is accessible to external individuals and communities. Sime Darby Plantation has an opportunity to disclose its remediation process for when legitimate rights holders are negatively affected.

Child labour
In its supply chain, Sime Darby Plantation prevents child labour by prohibiting its suppliers from hiring anyone under the age of 18. For its operations, the company states in its code of business conduct that it ‘seeks to promote the wellbeing of children and safeguard them from child labour’. However, the company has an opportunity to disclose a statement committing to prohibit child labour in its operations.

Forced labour
In its code of business conduct, Sime Darby Plantation states that it ‘endeavours to eradicate any form of forced or bonded labour’ and requires its suppliers to adhere to the same standard. However, the company has an opportunity to disclose a statement committing to prohibit forced labour in its operations and supply chain.

Living wage
Sime Darby Plantation discloses its methods for determining a living wage for the regions where it operates, which are guided by the Anker Methodology and Global Living Wage Coalition. However, the company has not yet achieved paying all workers a living wage, nor set a target to do so. Moreover, the company has an opportunity to demonstrate that it is working towards paying a living wage across its supply chain.

Health and safety of vulnerable groups
While Sime Darby Plantation recognises the specific health and safety risks for women in its plantations, it does not provide evidence of support activities that improve the health and safety of women and other vulnerable groups.

Farmer productivity and resilience
Sime Darby Plantation demonstrates it is supporting the productivity and resilience of smallholders in its supply chain through helping them attain certification, which allows them to receive premium prices for their products, and reports on results. The company can further improve by incorporating its support activities into an overarching, holistic strategy and demonstrating that it is measuring the impact of all these activities.

Sime Darby commits to respecting the human rights of its workers. While the company addresses the ILO core labour rights in its policies, it does not disclose a sufficient commitment to respect these rights in its operations. Sime Darby has in place a human rights due diligence process which includes the identification, assessment and action plan for the salient human rights risks in its operations and supply chain. As part of this process, the company provides grievance mechanisms that are accessible to employees and external stakeholders. There remains room for improvement in Sime Darby’s disclosure on engagement with affected and potentially affected stakeholders.

Sime Darby commits to respecting the health and safety of its workers, places health and safety expectations on its business relationships and monitors their performance, but it can strengthen its quantitative reporting. Sime Darby discloses it prohibits excessive working hours and overtime in its operations but does not specify how it ensures the same standard in its supply chain. Moreover, the company supports the payment of a living wage in its supply chain but has not set a time-bound target for paying a living wage in its own operations. No sufficient commitments to collective bargaining or relevant disclosure on workforce diversity were found, highlighting key areas for Sime Darby to improve.

Sime Darby discloses a policy prohibiting bribery and corruption, a process and grievance mechanism for identifying this practice and includes clauses in its contracts with business relationships. The company also commits not to making political contributions but does not disclose its lobbying and political approach and expenditures. No commits or policies on personal data protection and tax were found in the public domain.