This article first appeared in The Edge Malaysia Weekly on October 6, 2025 - October 12, 2025

When SD Guthrie Bhd (KL:SDG) launched its “Beyond Zero” framework in 2024, the move underscored its determination to reposition itself not only as the world’s largest palm oil producer but also as a company that takes its responsibility to people and planet seriously.

That commitment has translated into measurable initiatives across communities, smallholders, employees and the environment — an approach that helped SD Guthrie, formerly Sime Darby Plantation Bhd, secure The Edge Billion Ringgit Club (BRC) Best CR Initiatives award for Big Cap Companies (RM10 billion to RM40 billion market capitalisation) this year.

“Structured around the pillars of zero, restore and transform — the framework underscores our belief that merely minimising harm to our planet is no longer enough — we must continue to drive for positive impact [on] the environment and society,” says chairman Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani in the group’s 2024 annual report.

SD Guthrie invested RM55.4 million in community programmes last year, reaching more than 272,000 beneficiaries. These included scholarships and infrastructure support in schools, healthcare initiatives in rural areas and fire-prevention awareness campaigns for teachers and students living near its estates. The Employees’ Children Education Excellence award also continued to recognise academic achievements in national examinations.

These efforts may not draw as much attention as billion-ringgit projects, but they bring tangible improvements to the daily lives of families in plantation communities — safer schools, better access to healthcare and pathways for children to succeed.

The group also placed smallholders at the centre of its responsibility agenda, recognising their role as the backbone of the industry. A total of 35,799 smallholders were supported through training, tools and certification assistance, with 19,555 attaining Roundtable on Sustainable Palm Oil (RSPO) certification across Malaysia, Indonesia, Papua New Guinea, the Solomon Islands and Thailand.

At home, another 1,290 smallholders were trained in Good Agricultural Practices, equipping them with methods to raise yields while maintaining environmental standards. Indigenous farmers were provided with access to funding, fertilisers and high-quality seeds. These initiatives allow smallholders to compete in global markets while improving livelihoods at the grassroots.

By focusing on smallholder development, SD Guthrie strengthens both its supply chain resilience and its social licence to operate.

Worker welfare was another key pillar in 2024. Recruitment fee complaints were reduced to 0.85% from 1.7% a year earlier, supported by stricter responsible recruitment checks. The company also introduced practical grievance and support channels: the Oil Palm Pal app for housing repair requests and the Suara Kami hotline for complaints.

Employees gained access to 24/7 mental health and wellness support through a partnership with Naluri, reflecting a broader understanding of workplace well-being. Meanwhile, the SD Guthrie Digital Academy and Project Lokal continued to upskill workers for higher-value, technology-driven roles, ensuring the group’s workforce is prepared for the future.

On the environmental front, SD Guthrie’s has restored 51,212ha across four countries and planted 2.7 million trees in 2024.

Supply chain traceability advanced significantly, with 96.9% traceability to mills and 84.9% traceability to plantations. These achievements are monitored publicly through Crosscheck, the group’s online dashboard that tracks supplier compliance with its “No Deforestation, No Peat, No Exploitation” (NDPE) policy.

The group also became the first palm oil company globally to have its net-zero targets validated by the Science Based Targets initiative (SBTi), giving its climate ambition credibility with independent validation.

Strong governance ties these efforts together. The group stated that sustainability key performance indicators (KPIs) are integrated into the performance scorecard of the group managing director, reinforcing accountability at the top. Free, prior and informed consent (FPIC) is observed before land development, ensuring that communities are consulted on projects affecting their rights. Engagement with non-governmental organisations (NGOs) and civil society also remains central, providing oversight and strengthening trust.

By weaving together community investments, smallholder empowerment, worker well-being and climate action, SD Guthrie has shown that corporate responsibility is not a side exercise but part of its long-term strategy.

For a sector often under scrutiny, the recognition at The Edge BRC 2025 awards affirms that SD Guthrie’s initiatives are beginning to set new benchmarks. It demonstrates that responsibility, when measured and integrated, can become a source of value — not just for the company, but also for the people and environments that sustain it.

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