SD Guthrie: Spearheading Sustainable Palm oil Production

Palm oil production, particularly in Southeast Asia, has long been a major driver of deforestation. Between 1990 and 2005, an estimated 55–60% of oil palm expansion in Indonesia came at the cost of virgin forests.

However, deforestation linked to palm oil is showing signs of decline. In 2021, forest loss associated with palm oil plantations in Indonesia, Malaysia and Papua New Guinea fell to its lowest level since 2017.

Despite this progress, palm oil plantations on peatland remain a significant source of greenhouse gas emissions, accounting for between 16.6% and 27.9% of total emissions from Malaysia and Indonesia. The industry also impacts water quality, as effluent from palm oil mills can pollute freshwater sources, posing risks to local ecosystems and communities.

Advancing sustainability in palm oil production

While palm oil production has long posed environmental challenges, new sustainable practices are emerging to reduce its impact.

SD Guthrie Bhd (SDG) is leading the way in responsible sourcing, environmental conservation and ethical supply chain management. By overseeing its entire palm oil value chain—from plantation to distribution—SDG ensures unparalleled traceability and quality control at every stage.

At the heart of its sustainability efforts is the Beyond Zero framework, which goes beyond minimising harm to actively restoring ecosystems and supporting local communities.

Built on three key pillars—Zero, Restore and Transform—the framework reflects SDG’s commitment to a deforestation-free, fully traceable supply chain that complies with stringent global regulations, including the European Union Deforestation Regulation (EUDR).

“For businesses navigating an increasingly regulated landscape, SDGI’s fully traceable, EUDR-compliant CSPO offers a future-proof sourcing solution," says Dr. Shariman Alwani, CEO at SDG.

A responsible approach to procurement

SD Guthrie International (SDGI) turns SDG commitments into practical sourcing solutions for businesses. Through its Not All Palm Oil Is Created Equal campaign, launched in 2023, SDGI educates buyers on the benefits of Certified Sustainable Palm Oil (CSPO), setting itself apart in an increasingly crowded marketplace.

This campaign has notably improved SDGI’s brand perception, with a 39% growth in Europe, while also extending its reach into the Asia Pacific region.

SDGI’s initiative equips businesses with the information they need to make sourcing choices that align with environmental and ethical standards, without compromising on quality.

The key advantages of sourcing from SDGI include:

• Regulatory compliance – SDGI’s EUDR-compliant palm oil helps businesses mitigate both legal and reputational risks.
• Advanced traceability – Digital tracking systems ensure transparency, enabling buyers to verify sourcing origins.
• Science-Based Targets Initiative (SBTi) validation – SDGI’s net-zero targets position it as a leader in ESG (environmental, social and governance) sourcing.

As global regulations tighten, SDGI stays ahead of competitors with its first fully EUDR-compliant shipment, sourced from 17,357 smallholders in Papua New Guinea and the Solomon Islands, ensuring sustainable palm oil that meets evolving regulations.

The future of sustainable palm oil production

To support businesses in responsible procurement, SDGI runs Innovation Centres in South Africa, the Netherlands and Malaysia, where they develop tailored palm oil formulations that meet both consumer and regulatory requirements, including strict EU and halal certifications.

Through collaboration with global food brands, SDGI plays a key role in creating high-quality, sustainable products, helping to push the palm oil industry toward more responsible sourcing practices. This ongoing transformation, driven by compliance and sustainability, positions SDG and SDGI as leading suppliers of responsible palm oil, offering regulatory-compliant solutions that protect businesses from financial and reputational risks.

Acknowledging the growing global demand for sustainable products, SDGI’s CSPO enables businesses to stay competitive while making environmentally responsible choices.

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