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SD Guthrie Bhd (KLSE: SDG) has continued to strengthen its sustainability commitments under its Beyond Zero framework, a strategy built around emissions reduction, nature restoration, and social impact. The Malaysian palm oil producer recently won the plantation sector award at The Edge Malaysia ESG Awards 2026.
The company's chief sustainability officer, Rashyid Redza Anwarudin, attributes the recognition to the continued rollout of the Beyond Zero framework and the development of its Regenerative Agriculture Framework in partnership with WWF-Malaysia.
'This initiative represents a significant step in transforming oil palm cultivation from a model focused on compliance and minimising negative environmental impacts to one that promotes healthier soils and better yields, positive environmental impacts, and stronger socioeconomic well-being,' Rashyid said.
Beyond Zero is built on three pillars: Zero, Restore, and Transform. The framework aims to move beyond merely mitigating environmental and social impacts toward generating positive outcomes for people and the planet.
Key targets include restoring and conserving 100,000 hectares of land by 2030, developing a Regenerative Agriculture Framework for palm oil by 2025, piloting its implementation by 2028, and improving the livelihoods of 50,000 smallholders by 2035.
The group has achieved 98.8% traceability to mill and 97.1% traceability to plantation for palm-based raw materials, with 89% of volumes sourced from deforestation-free origins.
'This is important because traceability gives us the visibility needed to manage supply chain risks and strengthen responsible sourcing. These were achieved through the disciplined implementation of our Beyond Zero framework,' Rashyid noted.
The group has expanded its biogas capture facilities from nine plants in 2020 to 20 plants in 2025, increased renewable energy adoption, strengthened supplier engagement programmes, and invested in traceability systems and 'no deforestation, no peat and no exploitation' (NDPE) compliance across its operations and supply chain.
Rashyid said the company's progress has been validated externally through strong performance in the Sustainable Palm Oil Transparency Toolkit, an assessment administered by the Zoological Society of London that evaluates the palm oil industry's transparency, sustainability commitments, and ESG disclosures.
One of SD Guthrie's biggest challenges has been addressing ESG risks beyond its direct operations, particularly in supply chain traceability, deforestation-free sourcing, and Scope 3 emissions.
'Approximately 67% of our net emissions originate from our supply chain, making collaboration with suppliers and smallholders critical to achieving our sustainability goals,' he said.
To address this, the company continues to engage 187 key suppliers on emissions calculation and target setting, enhance traceability systems, and support smallholders through training, certification, and responsible sourcing programmes. It has also engaged 37,793 smallholders through various sustainability initiatives and maintained governance and monitoring mechanisms across the value chain.
Rashyid emphasised that sustainability is fundamental to SD Guthrie's long-term business resilience and growth as the industry faces increasing risks from climate change, biodiversity loss, evolving regulations, and changing stakeholder expectations. The Beyond Zero framework guides the company in minimising harm and moving towards creating positive outcomes for climate, nature, and communities.
'Effective ESG adoption requires collective action. We hope to see continued collaboration between government, industry, investors, customers, and civil society to create an enabling ecosystem that supports sustainable growth,' he said.
'For policymakers, clear and practical sustainability requirements, alongside support for renewable energy and smallholder inclusion, will accelerate progress,' he added.
SD Guthrie plans to continue building on the three pillars of its Beyond Zero framework to accelerate its net zero journey, expand renewable energy initiatives, strengthen supply chain traceability, protect and restore landscapes, and improve the livelihoods of workers, communities, and smallholders across its value chain.
'Ultimately, our goal is to help shape a palm oil industry that is not only sustainable, but also regenerative, inclusive, and future-ready,' Rashyid concluded.
Source: The Edge Malaysia