SD Guthrie Offers Sustainable Palm Oil Sourcing Solution

Palm oil production, notably in Southeast Asia, has historically driven deforestation. Between 1990 and 2005, a significant 55-60% of oil palm expansion in Indonesia was at the expense of virgin forests.

Yet, there's a declining pattern in the deforestation associated with palm oil. In 2021, the levels in Indonesia, Malaysia, and Papua New Guinea reached a record low since 2017.

Moreover, palm oil plantations on peatland are responsible for contributing a substantial 16.6% to 27.9% of the total greenhouse gas emissions from Malaysia and Indonesia. The industry also affects water quality as palm oil mills produce significant effluent that can contaminate freshwater sources.

Despite these ecological challenges, innovative sustainable palm oil production methods are emerging to mitigate the environmental impacts.

Leading the way in these efforts, SD Guthrie Bhd (SDG) sets benchmarks in responsible sourcing, environmental conservation and ethical supply chain practices, controlling its palm oil value chain from plantation to distribution. This control allows for unmatched traceability and quality assurance at every stage.

SDG's sustainability commitment

At the core of its sustainability mission, SDG has introduced the Beyond Zero framework, aimed at not only negating negative environmental impacts but also at restoring ecosystems and enhancing community livelihoods.

The framework's three main pillars—Zero, Restore, and Transform—showcase SDG’s firm resolve towards a deforestation-free and fully traceable supply chain that adheres to strict global regulations such as the European Union Deforestation Regulation (EUDR).

Dr. Shariman Alwani, CEO at SDG, highlights: “For businesses navigating an increasingly regulated landscape, SDGI’s fully traceable, EUDR-compliant CSPO offers a future-proof sourcing solution.”

Responsible procurement

Downstream, SD Guthrie International (SDGI) translates SDG’s commitments into tangible sourcing solutions tailored for businesses. Through its Not All Palm Oil Is Created Equal campaign, launched in 2023, SDGI educates buyers on the merits of Certified Sustainable Palm Oil (CSPO), distinguishing itself in a crowded marketplace.

This campaign has significantly enhanced SDGI’s brand perception, seeing a 39% increase in Europe and expanding further into the Asia Pacific region.

SDGI's initiative provides businesses the information needed to make sourcing decisions that align with environmental and ethical standards without sacrificing quality.

Key benefits of sourcing from SDGI include:

• Regulatory compliance – SDGI’s EUDR-compliant palm oil mitigates legal and reputational risks for businesses.
• Advanced traceability – Digital tracking systems provide transparency, allowing buyers to verify sourcing origins.
• Science-Based Targets Initiative (SBTi) validation – SDGI’s net-zero targets position it as a leader in ESG (environmental, social and governance) sourcing.

With global regulations becoming stricter, SDGI is ahead of its competitors with its first fully EUDR-compliant shipment sourced from 17,357 smallholders in Papua New Guinea and the Solomon Islands, thus assuring sustainable palm oil that complies with evolving regulations.

What next for sustainable palm oil sourcing?

In support of businesses engaged in responsible procurement, SDGI operates Innovation Centres in South Africa, the Netherlands, and Malaysia, developing custom palm oil formulations that meet consumer and regulatory demands, including stringent EU and halal certifications.

By collaborating with global food brands, SDGI supports creating high-quality, sustainable products, driving the palm oil industry towards more responsible sourcing practices. This ongoing transformation, driven by compliance and sustainability, positions SDG and SDGI as primary suppliers for responsible palm oil, offering regulatory-compliant solutions that safeguard businesses from financial and reputational risks.

Recognising the increasing global demand for sustainable products, SDGI's CSPO equips businesses to remain competitive while making environmentally responsible choices.

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