KUALA LUMPUR: Sime Darby Plantation Bhd (SDP) has achieved a global milestone as the first palm oil company to have its net-zero targets approved by the Science Based Targets initiative (SBTi).
The SBTi is a global body enabling businesses and financial institutions to set ambitious emissions reductions targets in line with climate science.
The validation by the SBTi came a year after SDP first announced its commitment to reach net-zero greenhouse gas (GHG) emissions across its value chain by 2050.
According to SDP's group managing director, Datuk Mohamad Helmy Othman Basha, this latest development will spur the company to achieve its net-zero targets with even more urgency.
"The validation of our targets by the SBTi proves our commitment is real, meaningful and most importantly, measurable. The ongoing initiatives to reduce GHG emissions across our business includes collaborative efforts with stakeholders throughout our value chain," he added.
SDP is also one of the first global companies to have both near and long-term science-based emissions reduction targets originating from 'Forest, Land and Agriculture' (FLAG) as well as energy and industrial sources approved by the SBTi. These targets include the reduction from base year 2020 of absolute scope 1 and 3 reduction of 30.3 per cent by 2030 and absolute scope 1 and 3 reduction of 72 per cent by 2050 for FLAG GHG emissions; and absolute scope 1 and 2 reduction of 42 per cent by 2030 and absolute scope 1, 2 and 3 reduction of 90 per cent by 2050 for energy and industrial GHG emissions.
In achieving net-zero GHG emissions with the above targets, SDP will be prioritising direct emissions reductions (decarbonisation) whilst all residual emissions will be neutralised in line with SBTi criteria.
This goes along with efforts to eliminate deforestation in the supply chain and further engagement with its suppliers on emissions reduction.
SDP has operationalised a three-pronged approach to achieve its net-zero targets, namely acceleration of its renewables programme, land use transformation and accelerating engagements with suppliers.
