Sime Darby Plantation (SDP) recently published its ‘Working with Suppliers to Draw the Line on Deforestation’ policy statement to strengthen its commitment to achieve a sustainable supply chain. The policy builds on SDP’s existing practice and maps a step forward to meet the No Deforestation, No Peat, No Exploitation (NDPE) standards as well as SDP’s expectation that suppliers adhere to those same standards. SDP’s Group Managing Director, Mohamad Helmy Othman Basha, said that the policy makes clear the action the Company will take when an issue is identified. “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,” he added. Based on the policy, if a supplier is found to be in violation of SDP’s NDPE standards:
- The supplier would have to immediately cease work on the land (when non-compliance is confirmed)
- The supplier must also develop two types of plan: a time-bound plan for the restoration of cleared land, and a time-bound plan to upgrade their operational practice.
- If that supplier is unwilling to meet those conditions, they will be suspended

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