Sime Darby – Green Tigers Index Rankings

2018 SCORE

2016 SCORE

73.5

56

Sime Darby Plantations score improved in the 2018 assessment, moving to 73.5 from 56 in 2016 because of the improvements in Sime Darby Plantations transparency, grievance mechanisms, and verification of its sustainability policies.

The Malaysian-based Sime Darby Plantations is one of the largest palm oil companies in the world with a total landbank of 989,451 ha. There has not been recent public evidence of large-scale deforestation by Sime Darby Plantations in Asia, and the company has made significant progress in achieving Roundtable on Sustainable Palm Oil certification for its Southeast Asian operations. It is currently the world’s largest producer of certified sustainable palm oil.

However, NGOs have raised serious concerns about the impact on forests and local communities of its operations in Liberia. In 2009, the company has acquired a 63-year lease for 311,187 ha of land in Liberia, with 220,000 ha slated for development. Sime Darby has conducted some mitigation activities, but its plans for addressing deforestation and exploitation of communities in additional expansion remain unclear.

In 2014, Sime Darby Plantations endorsed the New York Declaration on Forests. Sime Darby is a member of the Roundtable on Sustainable Palm Oil.

POLICY

1.A

The company has a forest policy for palm oil produced, traded or processed that applies to its global operations including all subsidiaries and joint ventures. The company also requires its suppliers to follow the policy.

YES

1.B

The policy excludes the sourcing of  raw materials or products originating from natural forests including both primary and secondary forests.

NO

1.C

The policy specifically excludes the sourcing of raw materials or products originating from High conservation Value (HCV) areas.

YES

1.D

The palm oil policy specifically excludes development on peat soil regardless of depth.

YES

1.E

The palm oil policy excludes the sourcing  of raw materials and products from developments in High Carbon Stock (HCS) Forests.

YES

1.F

The palm oil policy excludes the sourcing of raw materials and products from lands where burning has been used to clear vegetation.

YES

1.G

The company has pledged to use (or uses) a third party for compliance verification of its policy.

YES

1.H

The company has developed and published a non-compliance procedure that outlines thresholds for the suspension and/or cancellation of contracts with suppliers in breach of the policy.

HALF

1.I

The company has committed to developing a traceability system that documents palm oil back to the plantation of origin within its entire supply chain.

YES

1.J

The company specifically commits (and requires its suppliers to do so) to respect the rights of Indigenous and local communities to give or withhold their Free, Prior and Informed Consent (FPIC) to development on their lands.

YES

1.K

The company has programs that support small holders in its supply chain with support that goes beyond purely financial considerations and the palm oil supply chain but addresses longer term development.

YES

1.L

The company has policy to reduce the environmental and health impacts of chemical pesticides and/or fertilizers.

YES

IMPLEMENTATION & TRANSPARENCY

2.A

Date by which the company aims to achieve full traceability to plantation for its entire supply chain.

Full points are given if this date is by 2018. Half points are given if the date is 2019 or 2020. No points are given if the date is after 2020, no date is given or if the company does not commit to full traceability to plantations including for its third party suppliers.

NO

2.B

The company or the relevant third party publishes detailed processes and results of the policy verification assessments.

NO

2.C

The company has established and published an accessible and transparent grievance and dispute resolution mechanism.

YES

2.D

The company reports on its progress towards meeting its policy goals at least annually against measurable indicators.

YES

2.E

The company has published the  names or  detailed locations (that allow for coordinates to be obtained) of all palm oil mills in its supply chain.

YES

3.A

Points are deducted for the following (occurring since January 1, 2015). There is public evidence that since January 1, 2015 the company has in its own operations not met criteria 1.C, 1.D, 1.E or 1.J (or uses palm oil from protected areas). Or the company has sourced from suppliers that have not met these criteria. Or the company had its RSPO license revoked or suspended since that date. Or there is evidence of significant workers rights violations or social conflicts.

HALF

See all of the rankings of major palm oil and soy companies on their adherence to forest conservation requirements on the Green Tiger and Green Jaguar index.