Climate Action | Sime Darby Plantation

Climate Action

Transitioning Towards Climate
Positive Business

Global temperatures are believed to increase by 1.5℃ before 2040. To keep the temperature fluctuation within 1.5℃, everyone needs to play a role to reduce their emission-posthaste.

We are no different, and our role in protecting and enhancing the environment guides our operations on the ground. Sime Darby Plantation (SDP) has a target; a 50% carbon intensity reduction by 2030, leading up to our Net Zero aspirations.

Our action plan is clearly mapped out. We are actively looking to restore degraded land, protect habitats, enhance responsible agricultural practices, and develop a circular economy through renewable energy. A major part of our focus is to drive deforestation out of our supply chain, a complex ecosystem.

While SDP has faced challenges in meeting our targets to climate-positive action, we have made significant investments to accelerate our ability to achieve our targets through infrastructure to support climate change adaptation and mitigation efforts.

Our Current Climate-Related Strategies

Investments to minimise upstream operational GHG Emissions

Biogas plants: Investing in biogas plants at mills to tackle SDP's largest emission source within our upstream operations. With these investments, we target to reduce emissions by 50% for upstream operations by 2030 against the 2009 baselines. Scope: Malaysia, Indonesia, PNG.

Solar energy: Implementing solar PV systems for SDP operations and supporting Malaysia's national schemes by leasing land for solar power generation systems.Scope: Malaysia

Operational efficiency: Continuously finding ways to improve operational efficiency with regards to energy, water, waste and chemical use.

Scope: SDP globally.

Implementing Nature-based Solutions

Conservation areas: Identifying and setting aside areas for conservation with plans to protect and restore these areas.

Tree planting intiatives: Conducting large-scale tree planting initiatives to boost sequestration and insetting / offsetting carbon footprint.

Scope: Malaysia, Indonesia, PNG, Solomon Islands.

Eliminating Deforestation from Our Supply Chain

Monitoring, engaging and supporting suppliers and smallholders to tackle deforestation in supply chains, in line with our Draw the Line Policy.

We target to ensure our supply chains are 100% deforestation-free by 2025.

Maintaining transparency of progress with supply chains through our traceability and Crosscheck platforms. We target to achieve 100% traceability by 2025.

Engaging in partnerships and multi-stakeholder initiatives on latest technologies and addressing challenges faced in supply chains.

Scope: Malaysia, Indonesia, PNG, Solomon Islands, Thailand.

Focus on Yield

Signficantly investing in R&D to boost yield and develop crop that is resilient to climate impacts.

Scope: Malaysia, Indonesia, PNG, Solomon Islands.

We are making efforts to minimise our environmental impact through carbon reduction and management of water, emissions, waste, and fire, as well as through our efforts to drive deforestation out of the supply chain. These measures are also integral contributors to the Sustainable Development Goals.

While Sime Darby Plantation has faced challenges in meeting our targets to reduce emissions, we have made significant investments to accelerate our ability to achieve our reduction targets through infrastructure to support climate change adaptation and mitigation efforts.


Sime Darby Plantation operates in some of the most biodiverse landscapes in the world, including Malaysia and Indonesia, both of which maintain a 50% forest cover. Understanding the need for and importance of conserving the natural expanse, we implement environmental management practices in our operations that are targeted at reducing biodiversity loss