@ AGROBiz | JULY-AUGUST. 2026

MEASURING THE CHANGE: Responsible sourcing is becoming an increasingly important consideration for palm oil companies seeking to remain competitive in global markets.

• Mewah Oil relies heavily on supplier engagement to bring sustainability requirements deeper into its palm oil supply chain.

• Malaysia can use sustainability as a competitive advantage, particularly as it competes with lower-cost palm oil producers.

• The industry ' s next challenge is decarbonisation, with companies under pressure to reduce fossil fuel use while maintaining affordable, reliable operations.

Companies are also being asked to demonstrate how responsibly their raw materials are sourced, placing sustainability alongside competitiveness as a consideration in securing international markets.

Mewah Oils Group Operations and Sustainability Deputy Vice-President Danny Chua said the shift is evident in buyers ' changing expectations, with responsible sourcing requirements now extending well beyond traditional European markets.

" When we started this NDPE( no-deforestation, no-peat and noexploitation) journey, we actually thought that it would only gain the attention of Western or other European customers, the European Union," he said.

" Fast forward to today, 2026, even the customers from China, the customers from Pakistan, customers from Turkey, customers from India, they need us to ensure that the palm oil is sourced responsibly or NDPE committed."

For Mewah Oil, which operates across the palm oil value chain from plantations and mills to refineries and biodiesel, this means sustainability has become closely tied to commercial relationships and supply-chain management.

Chua said the company ' s sustainability efforts centre heavily on stakeholder engagement, including working directly with suppliers to understand and implement requirements under the industry ' s no-deforestation, no-peat and noexploitation( NDPE) commitments.

The approach was not always straightforward.

When NDPE requirements were first

Danny Chua introduced, some plantation and mill operators viewed them as restrictions on their ability to expand, particularly the requirement to avoid forest clearing.

Chua said Mewah Oil therefore focused on explaining the rationale behind the requirements and bringing suppliers into the conversation through workshops and direct engagement.

" I guess, if I could just use two words to answer your questions, it would be stakeholder engagement," he said.

That engagement also reflects a broader shift in Malaysia ' s palm oil sector, where sustainability standards have increasingly been formalised through national requirements.

THE NEW PALM OIL EQUATION

Chua pointed to the Malaysian Sustainable Palm Oil( MSPO) certification as an important part of the country ' s governance framework, covering players throughout the supply chain.

For Malaysia, he believes such measures could also help offset one of the industry ' s biggest commercial challenges- competition.

Indonesia remains the world ' s largest palm oil producer, while Malaysia is the second-largest producer and often faces pressure to remain price competitive.

Chua explained: " So, there is something that Malaysia has to do better and more advanced than Indonesia, so that we can continue to keep our palm oil competitive.

" And one of the very important factors is sustainability."

But the industry ' s sustainability agenda is moving into a more difficult phase.

With decarbonisation becoming a growing priority, companies are now expected to look beyond responsible sourcing and address emissions from their own operations and energy use.

For Chua, the transition presents a fundamental business challenge: finding energy solutions that are simultaneously sustainable, affordable and reliable.

" I think the biggest challenge for us is to meet the expectations of the industry," he said, noting that the pathway towards deeper decarbonisation remains difficult without alternatives that can meet all three requirements.

This makes measurement increasingly important.

Speaking at the MAPAN ESG-Ready Summit 2026, where Mewah Oil also exhibited, Chua said carbon reporting could push businesses beyond making sustainability commitments towards actually tracking their performance and acting on the findings.

" Carbon reporting is important because you tell your stories ".

For Mewah Oil, therefore, the direction is not simply about reducing its environmental footprint. It is about ensuring sustainability remains embedded in how the company sources, operates, and competes, while helping Malaysia maintain its standing in an increasingly demanding global palm oil market.- @ AGROBiz