Latest news with #RoundtableonSustainablePalmOil
The Star
05-08-2025
- Business
- The Star
Johor Plantations in palm oil pact with state firms
PETALING JAYA: Johor Plantations Group Bhd has signed a memorandum of understanding (MoU) with YPJ Plantations Sdn Bhd (YPJP) and PIJ Holdings Sdn Bhd (PIJH) to enhance cooperation and drive transformation in Johor's palm oil sector. Both YPJP and PIJH are Johor state government-linked companies. In a statement, Johor Plantations said the collaboration covers about 13,202 ha under YPJP and PIJH. The partnership will focus on improving plantation productivity through fresh fruit bunch (FFB) procurement and processing, sustainability advisory services with an emphasis on Roundtable on Sustainable Palm Oil (RSPO) certification, and the adoption of digital technologies, agronomic practices and mechanisation. Additionally, the partners will explore centralised procurement of key inputs such as fertilisers, and implement training and upskilling programmes for plantation workers to support long-term growth. According to Johor Agriculture, Agro-based Industry and Rural Development Committee chairman Datuk Zahari Sarip, the signing of the MoU reflects a shared commitment to building an inclusive and resilient agribusiness ecosystem, particularly in the palm oil sector. Representing Johor Mentri Besar Datuk Onn Hafiz Ghazi at the signing, Zahari said the collaboration not only strengthens corporate growth but also supports the state's priorities in sustainability, digitalisation, and human capital development. He added that the partnership's strong focus on technical and vocational education and training, as well as workforce upskilling, would create quality job opportunities for Johor's youth while advancing the state's Green Deal agenda and positioning Johor as a leader in sustainable agribusiness. Meanwhile, Johor Plantations managing director Mohd Faris Adli Shukery said: 'Johor Plantations is committed to working closely with Johor state entities in building a more efficient and sustainable agribusiness ecosystem. 'By leveraging shared resources and expertise, we aim to enhance productivity, promote sustainable practices and uplift the capabilities of our plantation workforce. 'This partnership is a step forward in fostering collaboration that benefits the broader Johor agricultural sector.' Johor Plantations posted a higher net profit of RM75.93mil in the first quarter ended March 31, 2025 (1Q25), compared to RM49.97mil in the previous corresponding period. In a filing with the local bourse on its 1Q25 financial performance in May, the company said the surge in net profit was due to higher crude palm oil and palm kernel prices. Revenue in 1Q25 rose to RM340.43mil from RM294.91mil in the same period last year.
The Star
04-08-2025
- Business
- The Star
Johor Plantations partners with state-linked firms to transform palm oil sector
From left: Johor Plantations Group Bhd (JPG) chairman Tan Sri Dr. Ismail Bakar, JPG managing director Mohd Faris Adli Shukery, Johor Agriculture, Agro-Based Industry and Rural Development Committee chairman Datuk Zahari Sarip, Johor Corp president & CEO Datuk Syed Mohamed Syed Ibrahim, PIJ Holdings Sdn Bhd managing director Abdul Malik Ismail, YPJ Holdings Sdn Bhd CEO Farizal Ismail, YPJ Plantations Sdn Bhd CEO Mohd Aznawi Mohd Samin and PIJ Plantations Sdn Bhd executive director Md Rozamusliadi Roslan. KUALA LUMPUR: Johor Plantations Group Bhd has signed a memorandum of understanding with YPJ Plantations Sdn Bhd (YPJP) and PIJ Holdings Sdn Bhd (PIJH) to enhance cooperation and drive transformation in Johor's palm oil sector. Both YPJP and PIJH are Johor State Government-linked companies. In a statement, JPG said the collaboration covers about 13,202 hectares under YPJP and PIJH. The partnership will focus on improving plantation productivity through fresh fruit bunch (FFB) procurement and processing, sustainability advisory services with an emphasis on Roundtable on Sustainable Palm Oil (RSPO) certification, and the adoption of digital technologies, agronomic practices, and mechanisation. Additionally, the partners will also explore centralised procurement of key inputs such as fertilisers, and implement training and upskilling programmes for plantation workers to support long-term growth. According to Johor Agriculture, Agro-based Industry and Rural Development Committee chairman Datuk Zahari Sarip, the signing of the MoU reflects a shared commitment to building an inclusive and resilient agribusiness ecosystem, particularly in the palm oil sector. Representing Johor Menteri Besar Datuk Onn Hafiz Ghazi at the signing, Zahari said the collaboration not only strengthens corporate growth but also supports the state's priorities in sustainability, digitalisation, and human capital development. He added that the partnership's strong focus on TVET and workforce upskilling would create quality job opportunities for Johor's youth while advancing the state's Green Deal agenda and positioning Johor as a leader in sustainable agribusiness. Meanwhile, JPG managing director Mohd Faris Adli Shukery said: 'JPG is committed to working closely with Johor state entities in building a more efficient and sustainable agribusiness ecosystem. By leveraging shared resources and expertise, we aim to enhance productivity, promote sustainable practices and uplift the capabilities of our plantation workforce. This partnership is a step forward in fostering collaboration that benefits the broader Johor agricultural sector.'
Korea Herald
24-06-2025
- Business
- Korea Herald
Posco International leads Korean traders' pivot from brokerage to energy value chains
Marking the 50th anniversary of the General Trading Company Designation System, Korean trading companies are accelerating efforts to upgrade their business models beyond traditional trade brokerage, expanding into full-cycle energy value chains spanning development, transportation, processing and sales. As part of the nation's major export push during the economic growth era of the 1960s and 1970s, a total of 13 companies were designated as 'general trading companies' and granted government tax and financial support. The designation system was abolished in 2009, as their role diminished with large conglomerates building their own overseas sales networks. In response, trading companies began transforming their business models, reducing reliance on traditional trading and expanding into new sectors such as resources and energy. Posco International, the trading and energy arm of steel giant Posco Group, stands at the forefront of this shift. Posco International has restructured its business portfolio around three sectors: energy, agro-resources and secondary battery materials. Rather than focusing on trade brokerage-based revenue, the company has built end-to-end value chains in each sector, aiming for greater operational control and long-term resilience. In 2024, its posted 32.34 trillion won ($23.7 billion) in revenue and 1.12 trillion won in operating profit, nearly 70 percent of which came from its three strategic sectors. The company maintained its momentum into the first quarter of 2025, with operating profit reaching 270.2 billion won, roughly half of which came from the energy sector. The energy business, now vertically integrated following a merger with Posco Energy in 2023, covers the full liquefied natural gas value chain. This includes upstream operations in Myanmar and Australia, stable LNG procurement through long-term supply deals with US-based Cheniere Energy, and the use of dedicated LNG carriers. The company's Gwangyang LNG terminal is undergoing expansion to raise total storage capacity to 1.33 million kiloliters. In agro-resources, the company focuses on both efficiency and sustainability. Its Indonesian palm oil subsidiary, PT. BIA, operates under the Roundtable on Sustainable Palm Oil certification and uses AI-powered smart farming systems. A joint project with GS Caltex, a Korean energy and chemicals company, is expected to complete a 500,000-ton biofuel plant in East Kalimantan this year, enabling the production of next-generation fuels such as sustainable aviation fuel. Posco International has also built a vertically integrated supply network in coordination with other Posco companies in the battery materials business. It holds a stake in the Mahenge mine in Tanzania, providing natural graphite for Posco Future M, its sister firm specializing in producing battery materials, and other affiliates within the group. By securing key upstream assets and consolidating operations, the company aims to buffer against external shocks, including commodity price volatility and geopolitical risks. "Posco International's pivot toward cash flow-oriented businesses marks a structural shift," said Shinhan Investment Analyst Park Kwang-rae. "It reflects a broader trend in Korea's trading sector toward greater value-chain integration and risk management."
Business Times
22-06-2025
- Business
- Business Times
How Musim Mas navigates palm oil's bad reputation
[SINGAPORE] Deforestation can drive wildlife to the brink of extinction, trigger transboundary haze from the fires set to clear the vegetation, and contribute to forced labour – and its association with palm oil accounts for the industry's bad reputation. The director of sustainable supply chain at palm oil conglomerate Musim Mas does not deny it. 'Unfortunately,... we are still at that stage of saying 'We are not as bad as people think',' said Olivier Tichit. 'But if you go and ask a palm oil farmer what he thinks about palm oil, a (different picture emerges). The farmer does not understand why palm oil is demonised, and the consumer might not understand why farmers or companies are still turning to palm oil. So I think we still lack that connection between palm oil farmers and the global markets.' Information gaps exist in other aspects of the sector too. In 2021, the Indonesian government reported that deforestation rates had fallen by three-quarters to their lowest levels since 1990, when tracking such data began. But two years later, French geospatial company The TreeMap found that deforestation caused by single-crop palm oil plantations was once more on the rise. To address such discrepancies, Musim Mas, one of the largest integrated palm oil players, was the first from Indonesia to join the Roundtable on Sustainable Palm Oil (RSPO), noted Tichit. Formed in 2004, the non-profit group facilitates the exchange of information on sustainability among stakeholders. It has more than 5,000 member organisations globally. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Tichit admitted, however, that 'while we have 98 per cent traceability to plantations, it is very hard to get to 100 per cent because of the dynamic nature of the supply chain'. Tichit says that since the suppliers are usually one or two steps removed from the company, they may not see the need to disclose certain information – or they may view the process of reporting their emissions as daunting. PHOTO: MUSIM MAS Musim Mas conducts its primary operations in Indonesia, working with third-party suppliers and has trained almost 47,000 smallholder farmers. This increases its exposure to Scope 3 emissions significantly, said Tichit, referring to indirect greenhouse gas (GHG) emissions that occur along a company's value chain. Given that 91 per cent of what the Singapore-headquartered company processes is from third parties, it is vital for it to monitor and control Scope 3 emissions in order to meet its 'net-zero by 2050' goal, he added. The main challenge to doing that comes from the lack of clarity on these emissions. Tichit said that since the suppliers are usually one or two steps removed from the company, they may not see the need to disclose certain information – or they may view the process of reporting their emissions as daunting. Getting a better view Musim Mas thus spends 'an inordinate amount of time' engaging with its suppliers, especially those who are not RSPO-certified, and explaining to them what deforestation and peat are. 'What we can do is to be clear about what compliance is, and how you address it when there is an issue,' he added. Tichit said that when the company needs information from its partner farms, it helps to frame the questions differently. 'For example, instead of asking them when their land use changed (and whether they have) high or low land use... often, what we need from them is just: 'Was there a crop before? When did you plant?'' Musim Mas also relies on satellite imagery to track the extent of deforestation caused by its partner farms. It also conducts risk assessments on its suppliers, based on what they disclose and the credibility of this information. The company then assigns its many suppliers 'risk levels', which indicate which of them are trustworthy, and whether their actual emissions can be monitored in real time. 'We are trying to be as conservative as we can, without making it impossible for us to buy from anybody,' noted Tichit. He added: 'We need to ensure that it is easy for the information to come to us, so we can translate it into what the actual emissions are, how we assess them, and when we need to intervene.' The company also utilises the PalmGHG Calculator, developed by RSPO to help palm oil producers estimate and monitor their GHG emissions. Musim Mas has ventured into impact investing as well, through its initiatives with the smallholder farmers who are integrated into its supply chain, said Tichit. These programmes include training the farmers on good agricultural practices. These investments are set to grow. 'We are looking beyond tomorrow – how do we keep the youth now on the farm? How do we make it so that they will have a good living income and be better equipped to be better farm managers? These are some of the programmes that Musim Mas has invested in to prepare itself and the industry for the future.'
Borneo Post
25-05-2025
- Business
- Borneo Post
Sabah's sustainable palm oil vision: Leading way for people and planet
This regular op-ed column features WWF-Malaysia's perspectives on pressing environmental issues and events unfolding in Sabah. As an environmental conservation NGO, we also use this space to share our views on potential policy shifts that Sabah's leaders can implement to foster a greener and more sustainable future for the state. Oil palm was first introduced to Malaya as an ornamental plant before 1875. Commercial planting began in 1917 in Selangor, and large-scale expansion of palm oil in Sabah took off in the 1970s. Throughout the country, the expansion was part of the government's diversification strategy to reduce its reliance on rubber and timber. The Federal Land Development Authority (FELDA) and plantation companies were tasked to drive this expansion. Rows upon rows of oil palm trees in a Sabah plantation estate. In Sabah, companies such as Sabah Softwoods Berhad started their first oil palm planting in the early 1980s. By 1998, the development of oil palm had reached more than 800,000 hectares. The industry has since grown to be a major economic force in the state. In 2023, Sabah became the largest crude palm oil (CPO) producing state in Malaysia, producing 4.5 million tonnes of crude palm oil (CPO) out of 1.5 million hectares of plantation area. While generating economic revenue, the development of the palm oil industry has impacted Sabah's rich biodiversity. In just over 15 years, between 2002 and 2017, land clearing and conversion of forest for palm oil production have reduced the population of orangutans by 30%. Recognising this, Sabah has shifted towards sustainability by emphasising the need for development to be amply balanced by biodiversity conservation. Sustainability-certified palm oil production can be a game changer for Sabah's economy, biodiversity and people. Rather than seeing the need for development and biodiversity conservation as conflicting priorities, Sabah has charted a bold path that unites them, showing that it is possible to protect forests and wildlife while cultivating prosperity. By embracing sustainability at scale, the state is emerging as a global leader in producing palm oil that works for both people and the planet. Sabah has proven that palm oil production does not have to come at the expense of the environment. In fact, it can be a solution. The future lies not in choosing between forests or farms, but in making them work together. A statewide commitment to sustainability In 2015, the state committed to achieving 100% compliance of sustainability standards for all oil palm in Sabah. This set the pathway to transform Sabah's palm oil production and supply chain by halting deforestation, restoring ecosystems and securing livelihoods. Sabah has made a bold move by becoming the first Malaysian state to achieve full RSPO (Roundtable on Sustainable Palm Oil) certification across all oil palm operations by 2030. This commitment goes beyond compliance. It signals a long-term vision where sustainable production is the foundation for global competitiveness, environmental protection, and community resilience. To fulfil this, the Sabah Jurisdictional Approach for Sustainable Palm Oil (JASPO) initiative was set up with the support of the government and stakeholders to transform the palm oil sector. Conservation through cultivation – Applying WWF's Living Landscape Approach Inspired by these progressive policies of the state of Sabah, WWF-Malaysia supports the sustainable palm oil production through an innovative Living Landscape Approach (LLA). The LLA integrates conservation, sustainable development, and responsible land use in places with high distribution of wildlife such as the iconic orangutan and Bornean elephant. This approach focuses on three pillars: 'Protect, Produce, and Restore' – advocating for the preservation of forests, wildlife, and rivers, while also supporting the sustainable production of palm oil and the restoration of degraded lands. The Living Landscape Approach aims to balance biodiversity conservation with sustainable development, providing a platform for stakeholders to build partnership towards achieving this common goal. These are not mere theories. This approach is already taking place on the ground. Plantation companies like Sawit Kinabalu, KLK, and Sabah Softwoods have voluntarily set aside areas within their estates to reforest and establish wildlife corridors. These corridors are crucial in reconnecting fragmented forests, allowing endangered species such as orangutans, Bornean elephants, and Bornean sun bears to move safely between habitats. Supporting oil palm growers through strategic partnerships and cooperatives The transition to sustainable oil cultivation in Sabah has its own challenges. Companies embarking on certification often require initial investment in training their employees, adopt new technologies, and becoming familiar with third party auditing processes. For most independent smallholders and mid-sized palm oil growers, high certification cost hinders them from pursuing stringent RSPO certification. WWF-Malaysia works with smallholders and mid-sized growers to help them pursue RSPO certification. To address this, WWF-Malaysia has supported the formation of grower cooperatives to make RSPO certification more accessible and affordable. An alphabet soup of cooperatives has been established including Koperasi Landskap Kelapa Sawit Sabah Bhd (LKSS); Koperasi Lestari Penanam Sawit Sabah Berhad (KLASS); and Koperasi Pekebun Kecil dan Sederhana Sawit Lestari Sabah Berhad (KOSALESA). Through these cooperatives, growers share the cost of audits and training, while also benefiting from technical guidance and group support. All financial benefits from the certification will go back to the growers as an incentive for their sustainability efforts. When WWF first engaged growers in priority landscapes like the Tawau-Kunak Districts and Tabin in Lahad Datu, only 25 smallholders were willing to pursue certification. When the pioneer cooperative began earning premiums and selling RSPO Credits, interest grew among the growers. Today, three times that number are in the process of getting certified. This growing momentum, coupled with supportive policies from the state government and progressive actions by large plantation groups, is putting Sabah at the forefront of sustainable palm oil globally. How sustainable palm oil benefits Sabah The palm oil industry remains a major contributor of GDP in Sabah as well as an economic engine that creates employment opportunities for the people. Sustainability isn't just good for the environment — it's smart for business. RSPO certified producers enjoy a range of benefits such as premium market access in Europe and North America. Certified growers obtain higher prices for certified Fresh Fruit Bunches (FFB) and are able to trade RSPO Credits as an extra income stream. They too benefit from increased returns as a sustainable approach to palm oil cultivation results in improved productivity from better soil, water and pest management. Through responsible practices, growers also become stewards of the land, protecting high conservation value (HCV) areas, preserving ecosystem services, and strengthening their relationships with local communities and workers. Beyond its direct benefits to oil palm growers, support for sustainable palm oil is crucial for addressing environmental, social, and economic concerns associated with palm oil production. Sustainable palm oil embraces the People, Planet, Profit framework, also known as Triple Bottom Line (TBL) sustainability framework that expands the traditional focus of business beyond financial profits to include social and environmental performance. Under the TBL framework, sustainable palm oil incorporates social equity aspects throughout its supply chain. These are fair labour practices, wages and working conditions, employee well-being, community engagement, as well as diversity, equity and inclusion. TBL environmental sustainability commits to the goal of minimising negative environmental impacts and contributing positively to environmental health by reducing carbon footprint, employing responsible waste management, conserving water and energy, sustainable sourcing of materials, and protecting biodiversity. Lastly, the TBL framework's economic viability aspect aims at not only maximising financial performance based on revenue, expenses and profitability. It also takes into account its overall economic impact on a society as represented by job creation and economic stability, responsible tax payments, as well as ethical and fair financial practices. Consumers are the answer In environmentally conscious markets, consumers drive the demand for sustainable palm oil. Over the last 30 years, arising from consumer pressure, supermarkets and retail companies in consumption countries have required their suppliers to supply sustainability-certified palm oil products. Slowly but surely, growing consumer awareness from Asia Pacific countries including the affluent and middle class from China and India will drive producers to adopt more responsible practices, protecting the environment and supporting livelihoods. Sabah being a global leader on environmental protection, biodiversity conservation and sustainable palm oil production will stand to gain by becoming an even more globally competitive state.
