Thursday 28 Mar 2024
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KUALA LUMPUR (July 3): Sime Darby Plantation Bhd (SDP) said today that it is committed to working with suppliers via constructive re-engagement, instead of outright suspension, to ensure they meet SDP's 'no deforestation, no peat, no exploitation' (NDPE) standards.

In a statement today, SDP group managing director Mohamad Helmy Othman Basha said SDP does not believe in reinstating suspension without a path for suppliers who violate SDP’s NDPE standards.

SDP's statement is in conjunction with the publishing of its "Working with suppliers to draw the line on deforestation" policy statement to strengthen their commitment to achieve a sustainable supply chain. 

Mohamad Helmy said the policy makes clear the action that the company will take, when an issue is identified.

“Constructive re-engagement to introduce new and improved practices is critical to systematically resolving non-compliance to NDPE. Simply suspending suppliers can have the unintended consequence of driving poor practice elsewhere into the system, making it less visible and harder to act on. This is not the intention of our policy. Our priority is to find solutions to the issues and we believe this must be done via engagement with the suppliers and giving them the opportunity to redress the problem.

“The rapid rate of deforestation is an urgent challenge for the world that demands a meaningful response. As the leading producer of sustainable palm oil, SDP shares this concern. This policy was crafted to ensure that our suppliers provide us and others with deforestation-free palm oil, and at the same time, improve their NDPE operational standards too," Mohamad Helmy said.

According to SDP's statement, the policy states that if a supplier is found to be in violation of SDP’s NDPE standards, the supplier will have to immediately cease work on the land, when non-compliance is confirmed.

SDP said the supplier must also develop time-bound plans to restore cleared land and upgrade its operational practice.

"If that supplier is unwilling to meet those conditions, they will be suspended. The development and execution of landscape restoration plans, as well as operational improvement plans, will be externally verified and monitored on an ongoing basis," SDP said.

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