MARC Solutions has assigned a “Gold” Impact Assessment to both the Sustainable Finance and Sustainability-linked Finance components of SD Guthrie Berhad’s (Guthrie) Sustainability Financing Framework. The framework was established to outline the group’s approach to undertaking sustainability finance transactions to deliver environmental and social (E&S) benefits.

Guthrie is a global producer of certified sustainable palm oil with a history spanning over 200 years. The group operates 234 plantation estates across Malaysia, Indonesia, Papua New Guinea, and the Solomon Islands, alongside 11 refineries with a combined processing capacity of four million metric tonnes per annum, contributing approximately 12% of the world’s certified sustainable palm oil production. The group’s sustainability strategy is guided by its “Beyond Zero” framework. It is also the first palm oil company globally to have net-zero targets validated by the Science Based Targets initiative (SBTi).

The framework was developed with an integrated approach, encompassing the green, social, and sustainability (GSS) and sustainability-linked components. Proceeds raised using the GSS component will be channelled towards eligible green and social projects listed in the framework. Conversely, the sustainability-linked component aligns Guthrie’s sustainability ambitions with its business strategies, supported by four key performance indicators that are relevant, core, and material to the company’s primary business.

We opine that the framework is aligned with the core components of the applicable guidelines, frameworks, and principles published by the Securities Commission Malaysia, ASEAN Capital Markets Forum, and the International Capital Market Association, among others.

The Gold assessment of the framework reflects the view that the sustainability finance transactions would provide relevant E&S benefits that support 12 of the 17 United Nations Sustainable Development Goals.