SD Guthrie: Can Palm Oil Ever Be Sustainable?

Palm oil production has long been subject to scrutiny as a result of the environmental degradation that follows alongside it.

In places like Southeast Asia or the Amazon rainforest, palm farming has been the cause of huge amounts of deforestation, which is decried by environmentalists and the general public alike.

In Indonesia, the trend was particularly chronic. Between 1990 and 2005, palm oil farming expanded by around 60%, with virgin forests being cut down to make way for these projects.

However, recent data seems to indicate a change in tune.

In 2021, deforestation levels fell to their lowest levels since 2017 in Indonesia, Malaysia and Papua New Guinea.

Despite these green shoots, the palm oil industry will still face huge pushback from environmentalists in this part of the world, with peatland plantations in Malaysia and Indonesia accounting for roughly 16.6% to 27.9% of their total greenhouse gas emissions.

Then there's the palm oil mills, which contribute substantial pollutants that deteriorate the quality of freshwater bodies.

In response to these ecological threats, sustainable practices in palm oil production are increasingly being embraced to mitigate adverse impacts on the environment.

SD Guthrie and supply chain sustainability

Central to these sustainable endeavours is SD Guthrie (SDG), an organisation that's setting benchmarks across the industry for responsible sourcing and ethical supply chains.

By maintaining complete oversight from plantation through to distribution, SDG is achieving a traceability that is near enough unrivalled in the supply chain management sector, whilst also maintaining high-quality standards throughout the production process.

SDG's sustainability agenda is set out in the company's Beyond Zero framework, designed to not only negate detrimental environmental impacts in operations, but also to actively improve ecosystem restoration and community livelihoods.

This initiative pivots around three foundational pillars: Zero, Restore, and Transform, which collectively underscore SDG's commitment towards a zero-deforestation and fully traceable supply chain.

Such rigorous standards ensure adherence to international regulations like the European Union Deforestation Regulation (EUDR), positioning businesses sourcing from SDG at the vanguard of regulatory compliance.

“For businesses navigating an increasingly regulated landscape, SDGI’s fully traceable, EUDR-compliant CSPO offers a future-proof sourcing solution,” states Dr Shariman Alwani, CEO of SDG.

'Not All Palm Oil Is Created Equal'

SDG extends its commitment to sustainability through its downstream arm, SD Guthrie International (SDGI), which implements the group's ethical sourcing standards into practical solutions for global businesses.

SDGI shines a spotlight on the merits of Certified Sustainable Palm Oil (CSPO) with its campaign titled Not All Palm Oil Is Created Equal, which launched in 2023 and has since boosted brand perception by 39% in Europe while expanding its influence in the Asia Pacific region.

This campaign educates companies on sustainable sourcing benefits, harmonising environmental and ethical standards with uncompromised quality.

Then, by delivering its first EUDR-compliant shipment of CSPO from over 17,357 smaller landholders in Papua New Guinea and the Solomon Islands, SDGI benchmarked future compliance, allowing client businesses seamless access to responsibly sourced palm oil.

SDGI also supports stringent consumer demands and regulatory requirements through Innovation Centres located in South Africa, the Netherlands, and Malaysia, developing customised palm oil solutions that adhere to rigorous EU and halal standards.

By collaborating with global food brands, SDGI aids them in crafting high-quality, sustainable products, thereby ensuring the palm oil utilised meets all legal, ethical and quality benchmarks.

Amidst tightening regulations and a heightened consumer priority for sustainability, SDG is offering businesses the option to navigate supply chain management more sustainably.

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