Sime Darby Bhd.

"At Sime Darby Plantation, we believe that businesses have a responsibility to respect, support and uphold fundamental human rights as expressed, amongst others, in the Universal Declaration for Human Rights and the United Nations Guiding Principles on Business and Human Rights. Our commitment to human rights is reflected in this Human Rights Charter (‘HRC’ or ‘this Charter’), the core values of our business, and is governed by our Code of Business Conduct and Group Policies and Authorities. [....] Our commitment extends to all stakeholders affected by our business activities and relationships, including; workers in our operations and supply chains, counterparties and communities surrounding our operations. [...] Eradicating any form of exploitation, forced or bonded labour [...] Respecting Freedom of Association [...] not tolerating any form of discrimination [...] Eradicating child labour in our supply chain"

"It is not our policy to suspend smallholders. Working with smallholders needs a different approach and dedicated programmes to help build their capacity. We work actively in partnership with governments to lift smallholders to a certifiable standard of sustainability, so they can make their living in a way that does not damage the forest." [...] "We currently work with smallholders in our supply chains across Papua New Guinea, Thailand, Indonesia and Malaysia. We take a localised approach to meet the needs of communities in each of the geographical landscapes we operate in. [...] Total number of smallholders [...] 61,719"; "For us to contribute to the SDG to end poverty and hunger, and spur economic growth, it is vital for us to assure the viability of small farms in our supply chain. We understand that smallholders face numerous challenges in production. Too often, they simply lack the resources to produce palm oil sustainably. As of 2017, less than 1% of independent smallholders’ farms in Indonesia were certified as sustainable by the Roundtable on Sustainable Palm Oil (RSPO) and Indonesia Sustainable Palm Oil (ISPO)2. In Malaysia, only 643 smallholders are certified to RSPO standards"

“Promoting diversity and inclusion by providing equal opportunities and not tolerating any form of discrimination on the grounds of ethnic origin, caste, national origin, religion, disability, gender"

"At Sime Darby Plantation, we want to draw the line on deforestation and the practices that contribute to it. Therefore, in the event of a violation of NDPE standards, we will notify that supplier of our requirement that they commit to: • Stop work immediately on the affected land. • Develop a plan for remediating the damaged forest. • Develop a programme to improve their ongoing operational practices to meet NDPE standards. If the supplier concerned is unwilling to make these commitments, it is our policy to suspend them. Once a supplier has been suspended, purchases will not resume until our strict conditions are met."

"Local community engagement and partnership is fundamental to the success of our plantations. We actively engage with local community leaders and members prior to any land development by obtaining the Free, Prior and Informed Consent (FPIC) of communities. This ensures project-affected communities are well informed and have the right to customary, user and traditional land. We are guided at all times by effective conflict resolution frameworks through social impact assessments and periodic stakeholder consultations that are independently assessed before and during our operations. . We are also acutely aware that the introduction of the High Carbon Stock (HCS) approach introduces a new dimension to this ongoing FPIC process as we explain to communities why we cannot develop on their land and the importance of forest and habitat conservation"

"Local community engagement and partnership is fundamental to the success of our plantations. We actively engage with local community leaders and members prior to any land development by obtaining the Free, Prior and Informed Consent (FPIC) of communities. This ensures project-affected communities are well informed and have the right to customary, user and traditional land. We are guided at all times by effective conflict resolution frameworks through social impact assessments and periodic stakeholder consultations that are independently assessed before and during our operations. . We are also acutely aware that the introduction of the High Carbon Stock (HCS) approach introduces a new dimension to this ongoing FPIC process as we explain to communities why we cannot develop on their land and the importance of forest and habitat conservation" [...] "We actively engage with local community leaders and members before any land development to obtain Prior and Informed Consent (FPIC) from communities. This approach ensures that communities impacted by our projects are well informed and that we have obtained permission from landowners who hold legal and customary rights. Our actions are informed by effective conflict resolution frameworks based upon social impact assessments and periodic stakeholder consultations carried out by independent third parties. All our operations conduct regular formal and informal engagements with all local stakeholders, especially at those locations where communities are most affected by our projects."

"As of September 2019, 95% of all the raw materials processed by our refineries and palm kernel crushers globally are traceable to mill [...] 94% of our directly supplied FFB are traceable to plantations. [...] Sime Darby Oils - Total Traceability to Mill 95%, Total Traceability to Plantation 53%. Breakdown by raw material: CFO 100% Traceable to Mill, 47% Traceable to plantation. CPKO 74% Traceable to mill, 43% Traceable to plantation. Palm Kernel 100% Traceable to mill, 66% Traceable to plantation. Refined kernel 70% Traceable to mill, 49% traceable to plantation"

"We have a long history of operating sustainably – we have worked hard over the years to ensure that SDP is 99% certified to the Roundtable on Sustainable Palm Oil (RSPO) standards"

"In this revision we have further strengthened our position and commitments towards no deforestation, no new development on peat and no exploitation. These commitments are also extended to include actors within our supply chain and communities surrounding and affected by our operations." ; "3.2.1 Eliminating deforestation⁴ and conversion⁵ of other natural ecosystems⁶ in our operations and supply chain." [...] "Sime Darby Plantation and Sime Darby Oils are jointly committed to No Deforestation, No Peat and No Exploitation (NDPE) and today our own operations deliver to standards that go beyond those commitments. Our expectations of third-party suppliers are clear: we require them to meet NDPE standards as well."

"Conservation International and Sime Darby Plantation Berhad (SDP) today announced a partnership to help map a sustainable future for one of the world’s most important and debated commodities: palm oil.The collaboration between the global nonprofit organization and the Malaysia-based company — the world’s largest producer of certified sustainable palm oil — aims to build on SDP’s reputation as a leader in sustainability in an effort to transform the palm oil sector. [...]The partnership with Conservation International comes on the heels of SDP’s recently launched traceability initiative, Crosscheck, the first of its kind for the industry. An open access, online tool, Crosscheck is a major step forward in the Company’s efforts to achieve a supply chain that is free of deforestation and violations of other sustainable practices."

OVERVIEWMonitoring risk within the supply chain.We use a combination of internal and external evaluation methods to assess third-party and SDP-owned suppliers for the risk of deforestation and peat clearance. These methods include desktop analyses, due diligence on potential and existing suppliers’ information, and external monitoring initiatives to visually map risk areas in our supply chain.SDP is alerted on any potential deforestation through satellite monitoring detection systems, such as Earthqualizer’s platform (carried out in partnership with Aidenvironment) and Radar Alerts for Detecting Deforestation (RADD).

"From 2015 to 2021, a total of 80 cases against third-party suppliers were filed in our Supplier Grievance Register. Most of these cases are related to indirect suppliers who supply SDP via traders. As of December 2021, we have resolved 60% of these cases. We are monitoring and engaging with suppliers involved in 13% of these cases, and a further 6% are still under investigation. [...] Our grievance register can be found on our Responsible Sourcing page, under Supplier Risk Assessment" [...] "Within Sime Darby, there are firmly established grievance procedures and whistle blowing channels5 which are available to all of our employees and external parties. We commit to investigate all violations of this Charter. [...] 5 GCO Whistleblowing Unit Email: whistleblowing@simedarby.com; Toll Free Numbers (Malaysian Office Hours; GMT +8 Hours): Malaysia - 1 800 88 8880; Indonesia - 001 803 60 1932; South Africa - 0 800 983 641; The Netherlands - 0800 022 9604; Other Countries - 800 8008 8000; Hotline at: (6019)2688295."

In their 2020 ACOP report: "Total Crude Palm Oil produced [...] 2362568.0 tonnes [...] Total CSPK sold [...] 424001.0 tonnes."

"Local community engagement and partnership is fundamental to the success of our plantations. We actively engage with local community leaders and members prior to any land development by obtaining the Free, Prior and Informed Consent (FPIC) of communities. This ensures project-affected communities are well informed and have the right to customary, user and traditional land. We are guided at all times by effective conflict resolution frameworks through social impact assessments and periodic stakeholder consultations that are independently assessed before and during our operations. We are also acutely aware that the introduction of the High Carbon Stock (HCS) approach introduces a new dimension to this ongoing FPIC process as we explain to communities why we cannot develop on their land and the importance of forest and habitat conservation" [...] "We actively engage with local community leaders and members before any land development to obtain Prior and Informed Consent (FPIC) from communities. This approach ensures that communities impacted by our projects are well informed and that we have obtained permission from landowners who hold legal and customary rights. Our actions are informed by effective conflict resolution frameworks based upon social impact assessments and periodic stakeholder consultations carried out by independent third parties. All our operations conduct regular formal and informal engagements with all local stakeholders, especially at those locations where communities are most affected by our projects."

"As its standard operating procedure, SDPL undertakes Social & Environmental Impact Assessments (SEIA) before any development begins. SDPL will only start developing land after Free, Prior and Informed Consent (FPIC) has been obtained from the local communities. This is in keeping with Sime Darby Plantation's own internal policies, the FPIC guidelines under the New Planting Procedures (NPP) of the RSPO and Article 32 of UN Declaration of Rights of Indigenous People. " [...] "As a founding member of the RSPO, Sime Darby Plantation has adopted the industry’s best practices in its Upstream and Downstream operations, throughout the entire supply chain. With this focus, the Division is committed to ensuring strict Social & Environmental Impact Assessments (SEIA) standards and avoidance of High Conservation Value (HCV) areas in pursuing the development of any potential area for its plantation."

Sime Darby provides full disclosure of mills/plantations through it's portal/tool Cross Check - "At Sime Darby Plantation (SDP), we have long made a commitment towards creating a deforestation-free supply chain. We believe the frontier to halting deforestation is traceability and in 2019, we launched ‘Crosscheck’, an open source online traceability tool that is available for everyone.‘Crosscheck’ helps provide transparency by tracking supply back to its source, identifying where problems exist – and taking action that is clearly outlined in our 'Working with Suppliers to Draw the Line on Deforestation’ policy statement."

"The first requirement for reinstatement is that they immediately cease work on the affected land, preventing any further clearing for new plantings, and agreeing to the relevant HCV and HCS assessments to be conducted by external bodies. Following that, the steps to reinstatement in our supply chain that we are putting in place are as follows: Public acknowledgement of the clearing and the necessity for remediation. Development within 2 months of time-bound plans for the recovery of High Carbon Stock (HCS) and High Conservation Value (HCV) forests and/or peatland cleared, plus agreement not to use the area cleared for commercial production. Development within 2 months of NDPE policies and time-bound implementation plans for operational improvement to meet those standards, covering their group-wide operations. Independent annual audits of continued compliance"

"The first requirement for reinstatement is that they immediately cease work on the affected land, preventing any further clearing for new plantings, and agreeing to the relevant HCV and HCS assessments to be conducted by external bodies. Following that, the steps to reinstatement in our supply chain that we are putting in place are as follows: Public acknowledgement of the clearing and the necessity for remediation. Development within 2 months of time-bound plans for the recovery of High Carbon Stock (HCS) and High Conservation Value (HCV) forests and/or peatland cleared, plus agreement not to use the area cleared for commercial production. Development within 2 months of NDPE policies and time-bound implementation plans for operational improvement to meet those standards, covering their group-wide operations. Independent annual audits of continued compliance" [...] "We commit to monitor our progress in implementing this Charter and to develop, where appropriate, performance indicators and other measurements that assist in determining our progress. [...] The commitments in this Charter are effective immediately for all of our palm oil operations, both upstream and downstream, including associated smallholders."

At Sime Darby Plantation, we want to draw the line on deforestation and the practices that contribute to it. Therefore, in the event of a violation of NDPE standards, we will notify that supplier of our requirement that they commit to: • Stop work immediately on the affected land. • Develop a plan for remediating the damaged forest. • Develop a programme to improve their ongoing operational practices to meet NDPE standards. If the supplier concerned is unwilling to make these commitments, it is our policy to suspend them. Once a supplier has been suspended, purchases will not resume until our strict conditions are met. [...] At Sime Darby Plantation, we believe that in the event of suspension we need to provide the opportunity for that supplier to be reinstated. Constructive engagement has proved to be critical to systematically resolving issues and building the capacity of suppliers to improve their practices. Also simply suspending suppliers can have the unintended consequence of driving poor practice elsewhere into the system, making it less visible and harder to act on [...] Following that, the steps towards re-instatement in our supply chain are as follows: • Public acknowledgement of the clearing and the necessity for remediation. • Development within 2 months of time-bound plans for the recovery of High Carbon Stock (HCS) and High Conservation Value (HCV) forests and/or peatland cleared, plus agreement not to use the area cleared for commercial production. • Development within 2 months of NDPE policies and time-bound implementation plans for operational improvement to meet those standards, covering their group-wide operations. • Commitment to regular progress reports against our stepped Operational Improvement Programme, with third party verification. • Independent annual audits of continued compliance."

"Sime Darby Plantation, the world’s largest palm oil planter, has suspended a supplier for failing to meet its environmental standards and identified 54 others as “high-risk” in Malaysia and Indonesia in recent months as it fights against deforestation." [...] "As of December 2021, SDP ceased purchasing from three direct suppliers due to non-conformance. Two of these three are no longer in our supply chain for violating our Draw the Line Policy. SDP is currently engaging with these suppliers to assess their progress against their NDPE commitments. If they meet our strict conditions, we may resume commercial relationships with them"

"At Sime Darby, we believe that businesses have a responsibility to respect, support and uphold fundamental human rights as expressed, amongst others, in the Universal Declaration for Human Rights and the United Nations Guiding Principles on Business and Human Rights. This is reflected in our business core values and governed by our Code of Business Conduct and Group Policies and Authorities [....] Our commitment extends to all persons within our sphere of influence, which includes all our employees, workers in our operations, counterparties1 and communities surrounding our operations. We are also committed to working with our counterparties and business partners2 to encourage them to uphold respect for human rights as outlined in our policies and to encourage them to have similar commitments within their own business practices. [...] The internationally recognized principles & standards including the International Labour Organization (ILO) core labour standards and relevant industry standards and protocols." [...] Respecting Freedom of Association [...] child labour [...] will not condone discrimination [...] eradicate any form of forced or bonded labour"

"Our commitment extends to all persons within our sphere of influence, which includes all our employees, workers in our operations, counterparties1 and communities surrounding our operations ... Within Sime Darby, there are firmly established grievance procedures and whistle blowing channels5 which are available to all of our employees and external parties. We commit to investigate all violations of this Charter." Whistleblowing Unit Email: whistleblowing@simedarby.com Environmental grievances are published in the Supplier Grievances Register