Minimising Environmental Harm

Biodiversity

Objective
We are committed to reducing and managing biodiversity risks in a holistic manner.
Progress
Sime Darby Plantation became a signatory of the Sustainable Palm Oil Manifesto (SPOM), underscoring our existing commitment to protect primary forests, HCV areas and peatland. Furthermore, in partnership with other SPOM signatories, we are funding a research to define what constitutes as a High Carbon Stock (HCS) forest and to establish HCS thresholds that take into account environmental, socio-economic and political factors in developing and emerging economies.

As part of our Group-Wide Tree Planting initiative, Sime Darby has a target of planting one million trees by 2020. We have planted and are now maintaining over 820,664 trees to date, which range from Endangered, Rare and Threatened (ERT) species, to various fruit trees.

PONGO Alliance
Aligned with our commitment of respecting and protecting the environment by promoting sustainable consumption and production, we are now taking a step forward in enhancing our effort on orang utan and wildlife conservation through PONGO Alliance. The Palm Oil NGO (PONGO) Alliance was founded in 2015 and officially launched in June 2017. The Alliance's mission is to support the proper management of orangutans and other wildlife within oil palm landscapes.  

The PONGO Alliance works as a network or platform to encourage collaboration in pursuit of effective and sustainable solutions for protecting orangutans and their habitat in an oil-palm landscape. Researches have demonstrated that orangutans can move through large areas of oil-palm (causing minimal damage), which indicates that management plans which enhance mosaic landscapes can provide solutions for the survival of the orangutan (and other biodiversity) in harmony with development needs.

For more information on PONGO Alliance, click here.
Approach
Sime Darby operates in 26 countries and 4 territories, including Malaysia and Indonesia, which are recognised as having among the highest rates of biodiversity in the world. Both countries maintain more than 50% forest cover in wildlife reserves and regulations provide for adequate buffer zones and the maintenance of wildlife reserves adjacent to planted areas.

We strictly adhere to both national and RSPO guidelines on biodiversity conservation by carrying out environmental assessments in our areas of operations.
Our efforts to reduce the Biodiversity risk of our operations include:

  • No clearing on primary / natural forests and High Conservation Value (HCV) areas
  • Zero burning for oil palm re-plantings and new development
  • Protect and conserve endangered, rare and threatened (ERT) tree species
  • No new planting on peatlands
  • No hunting within our operations.

In accordance with our commitment to the RSPO’s Principles and Criteria 7.3, independent HCV assessments are conducted at our plantation estates prior to new plantings or developments, including plantations that have yet to be certified in Indonesia and Liberia.

The assessments aim to identify HCV areas that may be negatively affected by our operations. The HCV assessments are conducted in conjunction with independent Social and Environmental Impact Assessments (SEIA) that are also carried out prior to new developments. Where loss of HCV biodiversity has been identified, Sime Darby Plantation will develop Biodiversity Conservation Compensation Projects (BCCP) with Project-Affected Communities (PAC). Priority is given to in-situ remediation through the new planting of ERT trees in conservation areas within Sime Darby Plantation operations.

Management plans are developed to mitigate potential impacts identified, such as setting aside appropriate buffer zones.

For more information on our Biodiversity activities at Plantation Divisions, click here.
Case studies
  • ERT Planting Project
    The Jentar Nursery project began operations in September 2013 as a nursery to breed Endangered, Rare and Threatened (ERT) forest tree species as part of our initiative to conserve and enhance our set-aside areas including river buffer zones and steep slopes, among others.
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  • Ulu Segama Malua: Orang Utan Sanctuary
    Since 2009, Sime Darby Plantation and Yayasan Sime Darby has been working with the Sabah state government on the restoration of 5,400 hectares of degraded forest area in the northern Ulu Segama Malua area.
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