SD Guthrie delivers first shipment of palm oil fully compliant with EU's deforestation regulation
20/09/2024 (New Straits Times), Kuala Lumpur - SD Guthrie Bhd has delivered its first shipments of 40,250 tonnes of palm oil to Europe and the United Kingdom that is fully compliant with the European Union's Deforestation Regulation (EUDR).
The shipments arrived at SD Guthrie International Zwijndrecht Refinery in the Netherlands last week followed by another shipment of 16,000 tonnes at the SD Guthrie International Liverpool Refinery in the United Kingdom, today.
SD Guthrie group managing director Datuk Mohamad Helmy Othman Basha said as an integral part of the food system, the company recognises the profound responsibility it bears in driving responsible agriculture practices and to fortify resilient supply chains. "We are fortunate to have a small but inclusive supply chain from Papua New Guinea and the Solomon Islands, which has enabled us to map the 17,357 smallholders in our supply chain and consolidate all the information required for EUDR compliance on their behalf.
"This has allowed us to help them navigate the logistical challenges posed by the EUDR and ensure a smooth, successful implementation," he said
The plantation company said an important aspect of the compliance was the 102,337 hectares (ha) of oil palm plantations and smallholder farms within its supply chain.
"This reflects the company's efforts to build sustainable and resilient sources while enabling small palm oil producers to participate in the EU deforestation-free supply chain.
"Being EUDR-compliant means that detailed polygon maps of all plantations in SD Guthrie's supply chain are available, along with deforestation-free assessment reports that meet stringent EUDR definitions," it said in a statement.
The company said its efforts were supported by comprehensive audit reports documenting compliance with national legislation, International Labour Orgnisation (ILO) standards, and respect for native customary rights.
SD Guthrie partnered with a third-party verifier to assess a forest baseline covering six billion ha, and analysed around 600,000 ha of its plantations for deforestation risks.
Having established a No Deforestation, No Peat and No Exploitation policy in 2016, SD Guthrie also employs Crosscheck, an online tool that maps its palm oil from source to supply and allows traders and buyers to establish a chain of traceability.
Under imminent EUDR rules, products being exported into the EU including palm oil, soya, wood, coffee, cattle, cocoa and rubber require conclusive and verifiable proof they are not linked to deforestation at any point in the supply chain.
The rule came into effect on December 30 last year.