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TRACEABILITY
Traceability in the palm oil supply chain enables concerned consumers, buyers,
investors, and NGOs to trace palm oil products back to its origins, making sure that it
was produced responsibly and sourced legally.
With more than 600 mills, a dozen refineries, and thousands of smallholders, the palm oil supply chain is complex -
and we have set out on the journey to tackle this complex challenge and achieve full traceability.
As a vertically integrated palm oil company, the majority of the palm products processed by our refineries originate
from Sime Darby Plantation (SDP) mills which are certified to the Roundtable on Sustainable Palm Oil (RSPO). The
remaining palm-based raw materials are sourced from third party producers and traders.
Traceability to Plantations & Mills
Traceability to the mills and plantations means having the ability to assign and
identify the source of raw materials that we process and the subsequent products
that we sell. It makes clear the geographical location at each mill and plantation, as
well as the group ownership structure of mills.
A plantation and mill is considered traceable if the following information is complete.
Parent Company name
Name of Mill/Plantation
Sustainability Certification Status
Address
Longitude and latitude coordinates
Achieving this visibility on plantations and mills is the next major step toward full supply chain traceability. It allows us
to check coordinates against our mapping of the landscape to determine if our plantations or mills are located in a
high-risk area. It also allows us to detect associated risks through its link to other business partners that we may not
source from directly. In addition to facilitating monitoring using satellite imagery, that helps guide and prioritise our
actions in mitigating issues within the supply chain.
As of December 2019, 83% of our fresh fruit bunch supply comes from our own plantations, while 17% are externally
sourced crops. Of this external supply, 69% is supplied directly from plantations made up of estates, smallholders and
small growers. 31% is supplied through traders and collection centres, only in Malaysia.
94% of our directly supplied fresh fruit bunches are traceable to plantations.
The supply chain of SDP owned mills globally
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Figure shows the number of plantations, traders, collection centres and smallholders supplying to our own mills as of
2019.
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