On recordThis profile is no longer actively maintained, with the information now possibly out of date
Send feedback on this profile
Download as PDF
Created before Nov 2016
Last update: 2017-05-08 12:08:04 BankTrack
Share this page:
About Sime Darby
Sime Darby is a Malaysian multinational conglomerate that has operations in the plantations, property, healthcare, energy and utilities sectors. It was founded in 1910 by two British businessmen involved in the rubber industry, and later encompassed the oil palm and cocoa business as well.
Sime Darby Plantation is the plantation and agri-business arm of the Sime Darby Group. It is involved in oil palm and rubber plantation management cultivation and downstream activities, agribusiness and food, as well as Research & Development (R&D).
The merger of Sime Darby Berhad, Golden Hope Plantations Berhad and Kumpulan Guthrie Berhad (completed on 27 November 2007) established Sime Darby Plantation as the largest listed plantation company in the world. It produces about 2.44 million tonnes of Crude Palm Oil (CPO) or 4% of the world's annual output.
Sime Darby has been a member of the RSPO since 7 September 2004.
Jalan Raja Laut
50350 Kuala Lumpur
Dato’ Mohd Bakke Salleh |
President & Group Chief Executive
listed on Bursa Malaysia
Sime Darby Berhad, incorporated in Malaysia and listed on the Kuala Lumpur Stock Exchange (Bursa Malaysia) has a market capitalization of USD11.74 billion (June 2016). Sime Darby is controlled by the Malasian Government as its major shareholders are government controlled companies. The majority shareholder is Permodalan Nasional Berhad which ownes 50,40% of the shares (August 2016). Two other major shareholders are the Employees Provident Fund which ownes 9,86% of the shares and Kumpulan Wang Persaraan which ownes 5% of the shares (April 2017).
PT Mitra Austral Sejahtera - PT MAS – Indonesia
Human rights and social issues
In Indonesia, Sime Darby is involed in a longstanding land grabbing conflict with the Indigenous communities of Kerunang-Entapang in the plantations of its subsidiary PT. MAS, in West Kalimantan. The communities have filed a complaint at the RSPO in 2012, which as of April 2017, is yet to be resolved.
NGOs raised serious concerns about the impact on forests and local communities of its operations in Liberia. Lack of consultation during initial agreement has resulted in continued tension between Sime Darby and local communities. Unresolved issues remain six years after community negotiations started. Full concession development would require negotiations with an additional 55 communities. This could entail decades of negotiations with uncertain outcomes, and could result in significant delays to project development.
There has not been any recent public evidence of large-scale deforestation by Sime Darby in Asia, and Sime has made significant progress in achieving RSPO certification for its Southeast Asian operations. However, NGOs have raised serious concerns about the impact on forests and local communities of its operations in Liberia. The company has signed a 63-year concession agreement in 2009 for 220,000 ha of land to be developed into oil palm and rubber plantations in Liberia. An additional 44,000 ha are to be developed under an outgrower scheme. To date, Sime Darby has planted 10,411 ha palm oil and 107 ha rubber under this agreement. Sime Darby’s undeveloped land bank in Liberia contains high-density forest; thus 45% cannot be developed responsibly.
Sime Darby led resistance to industry adoption of a "No Deforestation, No Peat, No Exploitation" policy. Instead, Sime Darby has led an initiative to create a so-called palm oil manifesto that would attempt to change the definition of what forests merit protection under palm oil industry forest conservation policies. It was only after significant pressure that Sime Darby announced in September 2014 an immediate moratorium on the clearance of high carbon stock (HCS) forests, whilst a study that aims to establish a threshold for defining what constitutes HCS forests was being carried out.
Applicable norms and standards
Press Conference at the RSPO
At a press conference in Bangkok, during the yearly meeting of the RSPO, indigenous community leaders from the Kerunang-Entapang villages, West Kalimantan, urged Sime Darby to solve its open RSPO complaint. The communities complained that they have submitted a proposal for solution to Sime Darby in May 2015, to which Sime Darby has still not responded.
Data from ForestsAndFinance.org identifies USD 1,103 million in finance raised by Sime Darby in the period 2010-2016, including USD 625 million in corporate loans, USD 155 million in revolving credit and USD 323 in bond issuances. Sime Darby has not issued any new shares between 2009 and 2016, but has issued new bonds several times. For a full list of financiers, see ForestsAndFinance.org.