“We are committed to making sustainability an integral part of the Group’s strategy through broader environmental and social goals. Collectively, our pledge to cut emissions, create an energy-efficient product portfolio, and increase our investment in sustainable innovation supports the Group’s overarching agenda of delivering sustainable futures”
Group Chief Safety and Sustainability Officer
Sustainability at Sime Darby
Our Sustainability Blueprint (Blueprint) plays a pivotal role in determining the direction of our company’s strategy. We prioritise long-term sustainable value creation for our employees, clients, shareholders and the communities we serve. At the end of FY2023, we welcomed our new Core Values, which have been updated in our Blueprint to guide our culture and sustainability agenda.
Our Blueprint is embedded into our new 5-year Strategy Masterplan, making it an integral part of our organisational ethos.
Reaching our overall targets
Our Overall Targets (Targets) represent Sime Darby Berhad’s strategic vision, which guides our sustainability efforts. By addressing ESG issues, these Targets drive accountability and business performance.
30% reduction of emissions by 2030 (Scope 1 and 2 only) from 2020 levels
- Increased education and training to support our ability to better identify opportunities to cut emissions
- Increased focus on implementing renewable energy production across our facilities
- Energy and asset efficiency measures
- Sourcing of renewable energy from the grid
Minimum RM250 million investments in ESG innovation by 2025
- Develop a tracking mechanism to monitor our investments in ESG Innovation
- Continue to invest in ESG innovation
50% products in our portfolio by 2025 to be more energy efficient than the 2020 product portfolio
- Motors Division - tracking energy efficiency through a software package that identifies and accounts for the differences in energy efficiency that exists between different model variations
- Industrial Division - increased remanufacturing and refurbishment efforts to support the achievement of our energy efficiency target
Theme and Material Matters
The Blueprint outlines four Themes that collectively address and manage our material matters, while guiding us to achieve our Overall Targets. Underneath the themes, we have identified 17 material matters that influence our ability to generate value for our stakeholders in the short, medium and long term.
Optimising Our Environmental and Social Footprint
Our efforts to minimise our greenhouse gas emissions includes generation of 2,813 MWh of renewable electricity in FY2023 through installation of solar PV across our facilities.
- Energy and Emissions Management (including Renewable Energy)
- Water Management
- Waste and Effluent Management
- Labour Practices
- Health and Safety
Inspiring Our Employees to Deliver Meaningful Change
We contributed RM25 million to community enrichment initiatives through Yayasan Sime Darby. We also invested RM17.1 million in employee training and development, paving the way for a skilled and agile workforce, poised to meet the challenges of an evolving business landscape.
- ESG Oversight, Measurement & Reporting Community Contributions
- Employee Training and Development
- Community Contributions and Development
Engaging in Sustainable Partnerships
We trained over 18,000 employees on anti-corruption practices. We also collaborated with Queensland University of Technology (QUT) to establish a leadership development programme that equips our workers with the tools and capacities to become future leaders.
- Customer Satisfaction
- Business Continuity
- Business Ethics and Compliance (including Anti-Bribery/Corruption)
- Responsible Supply Chain
Driving Sustainable Innovation and Technology
We launched RockAware™ through Decoda, an AI-based hazard detection system for mining haul truck tire protection and safety. Our EV infrastructure network expanded to over 200 charging stations across Malaysia and the Chinese Mainland.
- Sustainable Product Offering
- Technology and Innovation
- Data Privacy and Security
Our approach to environmental stewardship is a balance between the pursuit of socio-economic, environmental sustainability and prosperity.
Our social responsibility is focused on our employees and the communities in which we operate.
Governance is not just about adherence to a set of recommendations. It is a way of doing business and is paramount in everything we do.
Next steps in our journey?
We aim to achieve two of our three targets by FY2025 as we continue to seek opportunities to integrate sustainable practices into our operations. We will continue to improve our journey by aligning and reporting on our flagship initiatives and activities.