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  • Overall approach
    2/14
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      Commodity-specific
      0.00/6
      Palm oil
      "We recognise the inherent value of forests and the ecosystem services they provide,as well as the scarcity of natural resources and threats from climate change. All ouractivities will be guided by a precautionary approach, and a no-deforestation objective."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      New York Declaration on Forests; Tropical Forest Alliance 2020 partner
      Sime Darby Bhd. are signatory to the New York Declaration on Forests and are a Tropical Forest Alliance 2020 Partner. 
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "We recognise the inherent value of forests and the ecosystem services they provide, as well as the scarcity of natural resources and threats from climate change. All our activities will be guided by a precautionary approach, and a no-deforestation objective."
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
  • Commodity score
    35/86
    • Palm oil
      66/86
      • Commitment Strength
        31/36
        • Commitment to protect priority forests
          11/15
          • Commitment details
            Forest-related commitment
            6/8
            Commitment to protect priority forests
            Forest-related commitment
            6/8
            Type of commitment: Zero deforestation; Certification
            Certification schemes mentioned: RSPO
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all sourcing regions
            Yes
            1/1
            Commitment applies to all sourcing regions
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all operations
            Yes
            1/1
            Commitment applies to all operations
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all direct suppliers
            Yes
            1/1
            Commitment applies to all direct suppliers
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all indirect suppliers
            Yes
            1/1
            Commitment applies to all indirect suppliers
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Target date
            2020
            1.2/1.3
            Target date
            2020
            1.2/1.3
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Target is quantifiable
            No
            0/1.3
        • Commitment to protect High Carbon Stock areas and/or peatlands
          9/11
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all sourcing regions
            Yes
            1/1
            Commitment applies to all sourcing regions
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all operations
            Yes
            1/1
            Commitment applies to all operations
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all direct suppliers
            Yes
            1/1
            Commitment applies to all direct suppliers
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Commitment applies to all indirect suppliers
            Yes
            1/1
            Commitment applies to all indirect suppliers
            Yes
            1/1
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Target date
            2020
            1.2/1.3
            Target date
            2020
            1.2/1.3
            "All our activities will be guided by a precautionary approach, and a no-deforestation objective.""We are committed to RSPO certification as a base, as well as the commitments laid out in the Sustainable Palm Oil Manifesto (SPOM)." with the goal of implementing this throughout all their 3rd party suppliers by 2020
          • Target is quantifiable
            No
            0/1.3
        • Commitment to a traceable supply chain
          11/11
          • Commitment details
            traces to Point of production
            4/4
            Commitment to a traceable supply chain
            traces to Point of production
            4/4
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
          • Commitment applies to all sourcing regions
            Yes
            1/1
            Commitment applies to all sourcing regions
            Yes
            1/1
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
          • Commitment applies to all operations
            Yes
            1/1
            Commitment applies to all operations
            Yes
            1/1
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
          • Commitment applies to all direct suppliers
            Yes
            1/1
            Commitment applies to all direct suppliers
            Yes
            1/1
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
          • Commitment applies to all indirect suppliers
            Yes
            1/1
            Commitment applies to all indirect suppliers
            Yes
            1/1
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
          • Target date
            2020
            1.2/1.3
            Target date
            2020
            1.2/1.3
            Sime Darby's 100% traceability goal is part of their implementation plans by 2020
          • Target is quantifiable
            Yes
            1.3/1.3
            Target is quantifiable
            Yes
            1.3/1.3
            Sime Darby's 100% traceability goal is part of their implementation plans by 2020
      • Reporting and Implementation
        27/34
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Sime Darby state that 98% of palm oil currently produced is RSPO certified.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Sime Darby state that 98% of palm oil currently produced is RSPO certified.
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            Sime Darby state that as of March 2019, 95.5% of their palm oil is traceable back to the mill, and "we are committed to strive towards 100% traceability in our supply chain."
        • Reporting is independently verified
          3/4
          • Commitment to protect priority forests
            Yes
            1.3/1.3
            Commitment to protect priority forests
            Yes
            1.3/1.3
            certification
            Sime Darby state that 98% of palm oil currently produced is RSPO certified.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            1.3/1.3
            certification
            Sime Darby state that 98% of palm oil currently produced is RSPO certified.
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Monitoring and verification of supplier compliance
          Non-specific monitoring statement
          2/4
          Monitoring and verification of supplier compliance
          Non-specific monitoring statement
          2/4
          Sime Darby state there will be verification and continuous engagement towards compliance with regards to their suppliers.
        • Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          2/4
          Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          2/4
          "The commitments of this Charter are effective immediately for all of our palm oil operations, both upstream and downstream, including associated smallholders [...] we strive to jointly find innovative solutions to ensure a balanced outcome and avoid exclusion. Where breaches occur we will work through constructive engagement with our business partners to resolve and prevent further non-compliances. In cases where breaches are repeated, we will cease to conduct business with them untilthey are able to demonstrate compliance to our Charter."
        • Publishing supplier lists
          Discloses both supplier list and detailed sourcing regions
          4/4
          Publishing supplier lists
          Discloses both supplier list and detailed sourcing regions
          4/4
          Simar Darby provide a detailed palm oil sourcing list with supplier names and GPS coordinate locations. 
        • Accessible grievance mechanism
          Yes
          4/4
          Accessible grievance mechanism
          Yes
          4/4
          Both
          Simar Darby's traceability system 'Crosscheck' is available for "anyone to contact us if they identify a problem in our supply chain. In addition, Crosscheck provides a link to our Supplier Grievance Register which is published on our website. It contains a full list of all reported concerns and the status of the action being taken."
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          Attending & contributing to meetings
           Sime Darby is a member of the Sabah Jurisdictional Approach for Sustainable Palm Oil Production and is a signatory to the Sustainable Palm Oil Manifesto. 
        • Report volumes of commodity
          Full
          4/4
          Report volumes of commodity
          Full
          4/4
          2,710,910.30 tonnes
          Sime Darby report on their website and to RSPO through an annual acop.
      • Social Considerations
        8/16
        • Commitment to ensure Free, Prior and Informed Consent
          Yes
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes
          4/4
          "We fully respect the customary rights of the communities in the areas that we operate, and fulfils the Free, Prior and Informed Consent requirement enshrined under the RSPO Principles & Criteria [...] Sime Darby Plantation will not proceed with development in an area where the leaders and the community have not given their express approval."
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          ILO; Discrimination; Forced Labour; Child Labour; Freedom of association
          Simar Darby state that they abide by the minimum standards for social security and human rights as set by the ILO and the UN Declaration on Human Rights. They require their suppliers to ensure their workers' have freedom of association, and to be free from forced labour, child labour and discrimination. 
        • Gender equality in the supply chain
          No commitment
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
    • Pulp & Paper
      4/86
      • Commitment Strength
        0/36
        • Commitment to protect priority forests
          0/15
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all sourcing regions
            No
            0/1
          • Commitment applies to all operations
            No
            0/1
          • Commitment applies to all direct suppliers
            No
            0/1
          • Commitment applies to all indirect suppliers
            No
            0/1
          • Target date
            No deadline
            0/1.3
          • Target is quantifiable
            No
            0/1.3
        • Commitment to reduce use of virgin wood fibre
          0/11
          • Commitment details
            No
            0/4
          • Commitment applies to all sourcing regions
            No
            0/1
          • Commitment applies to all operations
            No
            0/1
          • Commitment applies to all direct suppliers
            No
            0/1
          • Commitment applies to all indirect suppliers
            No
            0/1
          • Target date
            No deadline
            0/1.3
          • Target is quantifiable
            No
            0/1.3
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all sourcing regions
            No
            0/1
          • Commitment applies to all operations
            No
            0/1
          • Commitment applies to all direct suppliers
            No
            0/1
          • Commitment applies to all indirect suppliers
            No
            0/1
          • Target date
            No deadline
            0/1.3
          • Target is quantifiable
            No
            0/1.3
      • Reporting and Implementation
        0/34
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to reduce use of virgin wood fibre
            No
            0/2
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/1.3
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Monitoring and verification of supplier compliance
          No monitoring
          0/4
        • Engagement with non-compliant suppliers
          No engagement or exclusion
          0/4
        • Publishing supplier lists
          No disclosure
          0/4
        • Accessible grievance mechanism
          No
          0/4
        • Collaborative actions
          No
          0/2
        • Report volumes of commodity
          No reporting
          0/4
      • Social Considerations
        4/16
        • Commitment to ensure Free, Prior and Informed Consent
          No
          0/4
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          ILO; Discrimination; Forced Labour; Child Labour; Freedom of association
          Simar Darby state that they abide by the minimum standards for social security and human rights as set by the ILO and the UN Declaration on Human Rights. They require their suppliers to ensure their workers' have freedom of association, and to be free from forced labour, child labour and discrimination. 
        • Gender equality in the supply chain
          No commitment
          0/4
        • Inclusion of small-scale farmers
          No
          0/4
  • Commitment strength
    15/36
    Avg. score
  • Reporting and Implementation
    13/34
    Avg. score
  • Social considerations
    6/16
    Avg. score

Profile

The Sime Darby Group is a Malaysian conglomerate involved in diverse industries, including logistics, industrial equipment, property and plantations. Sime Darby Plantation is the agribusiness arm of the group which has a landbank of approximately 1 million hectares with 600,000 hectares of planted oil palm. This is one of the largest landbanks globally among palm oil producers. In 2015, the group processed more than 10 million metric tons of fresh fruit bunches and produced more than 2 million metric tons of crude palm oil. It also produces products such as oleochemicals, fats, biodiesel and other derivatives.

Sector
Industry sector 
Agri commodities, Agriculture, Oils & fats
Segments
Producer
HQ
HQ 
Malaysia
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.