#SDGuthrieNetZero

Our Net-Zero Targets Validated

Our near-term 2030 targets and longer-term 2050 targets have been approved by SBTi, making us the world’s first palm oil company to do so. This milestone was achieved in December 2023, a year after we first announced our commitment to reach net-zero GHG emissions across our value chain by 2050.

SBTi's Near-Term Target Validation Report & Official Letter of Notification:

 

SD Guthrie's Net-Zero Global Webinar

 

What does this mean?
In simple terms, we have committed to a deadline to achieve an overall balance between the GHG emissions we produce and GHG emissions we take out of the atmosphere.

Our emissions baseline is 12.2 Million tCO2-e based on our 2020 emissions data. To achieve our net-zero goals, we have set short-term and long-term targets that have been SBTi approved.

Our Scope

To achieve net-zero emissions across our entire value chain, we need to tackle GHG emissions in three different scopes.

Scope 1: Direct Emissions

Scope 1 emissions or direct GHG emissions occur from sources that are owned or controlled by our company.

Effluent Treatment

Stationary Combustion

Land use change emissions

Land management/ Land use emissions

Scope 2: Indirect Emissions

Scope 2 emissions account for indirect GHG emissions that resulted from the generation of purchased electricity consumed by our company.

Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions physically occur at the facility where the electricity is generated.

Purchased Electricity

Purchased Steam

Scope 3: Indirect Emissions

Scope 3 emissions are basically all other indirect emissions (not included in Scope 2) that occur in the entire value chain of our company. Although these emissions are a consequence of our company’s activities, they occur from sources not owned or controlled by us.

Purchased Goods and Services (Feedstock and Non-Feedstock)

Capital Goods

Fuel-and Energy-Related Activities

Waste Generated in Operations

Upstream and Downstream Transportation and Distribution

Business Travel

Employee Commuting

Upstream and Downstream Leased Assets

Processing of Sold Products

Use of Sold Products

End-of-life Treatment of Sold Products

Investments

Our Approach

Addressing GHG emissions across all scopes requires a comprehensive approach, from reducing methane from our mills to promoting sustainability throughout our supply chain. By expanding renewable energy initiatives, engaging suppliers, and investing in reforestation, we’re taking meaningful steps toward a lower carbon future. Here’s how we are tackling our Scope 1, 2, and 3 emissions:

Acceleration of Renewables Programme
Up to 70% of SD Guthrie’s footprint for non-FLAG (Forest, Land and Agriculture), a SBTi definition, Scope 1 and 2 emissions come from methane produced from mill effluent treatment. We will have 46 biogas plants across our operations by 2030, which will address much of the emissions from our mill effluent.

Accelerating Engagements with Suppliers
SD Guthrie recognises that addressing Scope 3 emissions, generated from third-party suppliers or others in the value chain, presents the greatest challenge to our net-zero journey. We have therefore committed to engaging suppliers in order to ensure the replication of our measures not only within our own operations but also across our entire value chain. In FY2024, SD Guthrie achieved 78% compliance in our supply chain for our earlier ambition to be deforestation-free. Additionally 87% of our suppliers delivered on their no planting on peat commitments. As a member of the Carbon Disclosure Project (CDP) Supply Chain Programme, we engage our key suppliers on climate action and promote environmental transparency.

Land Use Transformation
We are expanding on our existing reforestation, conservation and biodiversity initiatives. This includes reforestation of non-productive agriculture land as well as large-scale tree-planting as a nature-based solution to increase carbon sinks.

For instance, the Group has set aside 400 hectares (ha) of peat plantations in East Malaysia to reforest. To date, SD Guthrie has forest set-aside programmes of more than 45,000 ha, with over 2.7 million forest trees planted. We also geotag these trees to ensure transparency, verify reforestation impact and monitor survival rates.

SD Guthrie will reinforce our NDPE commitments throughout our operations and global supply chain, with 75% of suppliers already complying.

Our Roadmap to Net-Zero

We will be sharing more details and the progress of our targets once they have been validated. We will also ensure that our targets are reviewed and updated as SBTi’s standards evolve.

Readily Available Technologies VS Undeveloped Technologies

Why is this Important in our net-zero journey?

Our Scope 1 and Scope 2 emissions reduction commitments are based on readily available technologies.

Pursuing our targets based on technologies that are already available simply means more certainty in our plans to achieve Net-Zero. Available technologies used to reduce/abate GHG emissions are already proven to be effective. This alleviates any concern that we may not achieve our Net-Zero targets if any undeveloped technologies critical to achieving the targets do not materialise or perform as intended.

SD Guthrie will also continue to explore newer technologies/methods which would enable us to accelerate our reduction efforts further, and target less material sources in the future.

Confused with some of the JARGON out there? Can’t tell the difference between Net-Zero Emissions, Net-Zero Carbon or Carbon Neutral?

Check out the glossary below:

Carbon Neutral
means that any carbon dioxide (CO2) released into the atmosphere as a result of a company’s activities is balanced by an equivalent amount being removed.

Climate Positive
means that an activity goes beyond achieving net-zero carbon emissions to create an environmental benefit by removing additional carbon dioxide from the atmosphere.

Carbon Negative
means the same thing as "climate positive".

Climate Neutral
refers to reducing all GHG to the point of zero while eliminating all other negative environmental impact that an organisation may cause.

Decarbonisation
refers to all measures through which a business sector, or an entity – a government, an organisation – reduces its carbon footprint, primarily its GHG emissions, CO2 and methane (CH4), in order to reduce its negative impact on the climate.

Net-Zero Carbon Emission
means that an activity releases net-zero carbon emission into the atmosphere. No carbon was emitted from the get-go, so no carbon needs to be captured or offset.

Net-Zero Emission
means balancing the whole amount of GHG released and the amount removed from the atmosphere. Although this term is similar to carbon neutral, it is expanded to include more than just carbon but all GHG such as methane.

SBTi
is the Science Based Target initiative. This organisation is a collaboration between the CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the United Nations Global Compact (UNGC). It independently assesses and approves companies’ net-zero targets. SBTi’s rigour and comprehensive scope enable companies to take meaningful steps toward accelerated decarbonisation.

Scope 1 Emissions
are GHG emissions that occur directly from sources that are owned or controlled by a company. Common examples of Scope 1 emissions include emissions from combustion in owned or controlled boilers, furnaces and vehicles or emissions from chemical production in owned or controlled process equipment.

Scope 2 Emissions
are indirect GHG emissions that resulted from the generation of purchased electricity consumed by a company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organisational boundary of the company. Scope 2 emissions physically occur at the facility where the electricity is generated.

Scope 3 Emissions
are basically all other indirect emissions (not included in Scope 2) that occur in the entire value chain of a company. Although these emissions are a consequence of a company’s activities, they occur from sources not owned or controlled by the company.