SD Guthrie International (SDGI), formerly known as Sime Darby Plantation (SD Plantation), has delivered its first shipment of palm oil compliant with the EU Deforestation Regulation (EUDR), ahead of its implementation.
The company delivered a total of 40,250 tonnes of palm oil – sourced from 102,337ha of oil palm plantations and smallholder farms – to its refineries in the Netherlands and the UK, SDGI said on 19 September.
Due to take effect on 30 December this year, the EUDR requires companies selling or exporting seven commodities in the EU (cocoa, coffee, palm oil, soyabean, cattle, rubber and timber) to ensure they are deforestation-free and legally sourced. Companies that are not compliant face fines.
In its first delivery, 24,250 tonnes of palm oil arrived at SDGI’s Zwijndrecht Refinery in the Netherlands a week prior to the report and a second shipment of 16,000 tonnes arrived at SDGI’s Liverpool Refinery in the United Kingdom on the day of the announcement.
“As the European market moves toward stricter sustainability requirements, we are proud to be at the forefront of delivering palm oil that meets the highest environmental standards,” SDGI CEO Dr Shariman Alwani said.
“SD Guthrie International’s commitment to source from deforestation-free supply chains enables us to continue offering our customers products that not only comply with regulations but also contribute to a more sustainable future for all stakeholders.”
To achieve EUDR compliance, SDGI said it worked closely with SD Guthrie’s upstream division to ensure detailed polygon maps and deforestation-free assessments of all plantations were available.
By using satellite imagery and partnering with a third-party verifier, SD Guthrie said it had been able to assess a forest baseline covering 6bn ha and had analysed around 600,000ha of its plantations for deforestation risks.
This work was supported by comprehensive audit reports that also documented adherence to national legislation, International Labour Organisation (ILO) standards and respect for native customary rights, SDGI said.
As part of its No Deforestation, No Peat and No Exploitation policy which it introduced in 2016, SDGI had been using Crosscheck since 2019, an online traceability tool that maps its palm oil from source to supply, Dr Shariman said.
The tool allows traders and buyers to pinpoint issues in the supply chain and raise alerts for necessary action. This, he said, would help SDGI ensure that its supply chain continued to follow the new EU rules.
“Our commitment to adhering to the EUDR goes beyond compliance. We view this as an opportunity to continuously improve our practices, ensuring that our supply chains remain transparent, traceable and aligned with the global shift towards responsible sourcing,” he added.
The group rebranded to SD Guthrie after receiving shareholders’ approval on 28 May.
