Palm Oil Sustainability

Connecting responsible production with river health and resilient livelihoods

Oil palm is an important part of the Mid-Segama economy and the livelihoods of many families who live there. It also forms a major part of the working landscape between the protected forests of the upper catchment and the conservation areas and wetlands downstream.

Production land accounts for approximately 27.47% of the Segama catchment, with oil palm forming an important part of this landscape. How these areas are managed therefore has direct implications for water quality, riverbanks, ecological connectivity and local livelihoods.

The Living Integrated Catchment Management Plan (ICMP) provides an opportunity to connect improvements in production practices with the wider health and resilience of the Segama River Basin. This watershed-scale effort also contributes to Sabah's wider transition towards more sustainable palm oil production.

Learn more about Sabah's jurisdictional palm oil sustainability efforts through JASPO

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‍The challenge

Sustainable oil palm production is shaped by more than what happens within an individual farm or estate. It also depends on how riverbanks are protected, runoff and agrochemicals are managed, remaining natural areas are retained, and opportunities for restoring ecological connectivity are incorporated into the wider production landscape.

Malaysian and international sustainability standards provide important guidance, but meeting these standards can be challenging, particularly for smallholders.

Forever Sabah's earlier field research with oil palm smallholders across eastern Sabah showed that farming decisions are shaped by interconnected realities including land tenure, productivity, access to markets and finance, labour, farming practices, environmental conditions and household priorities. The study also demonstrated why changing practices often requires sustained engagement, organisation and practical support rather than one-off training or technical assistance.

Read the full Smallholder Readiness for RSPO report‍

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Connecting the production landscape

The Mid-Segama production landscape lies between the Danum Valley and Ulu Segama forest complex upstream and the Tabin, Kulamba and Lower Kinabatangan-Segama wetland landscapes downstream.

Maintaining and rebuilding connections between these areas is important for river health and biodiversity, particularly under a changing climate. Protecting and restoring riparian corridors within the oil palm landscape is one practical way of strengthening these connections.

This requires partnerships between communities, smallholders, landowners, oil palm producers and conservation actors. Detailed progress on this work is covered under the Riparian Restoration pathway.

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Our approach

Forever Sabah is working with smallholders, communities and oil palm land managers to connect responsible production with the wider goals of the Living ICMP.

This includes:

• supporting smallholders to improve farm management and progress towards sustainability certification;
• strengthening smallholder organisation through Koperasi Segama Lahad Datu Berhad (KOPSA) as a local platform for continued sustainability efforts;
• encouraging land-management practices that protect rivers, riparian buffers and other important natural areas;
• working with oil palm land managers to identify opportunities for restoration and improved ecological connectivity across the production landscape; and
• building partnerships between communities, nurseries, landowners and producers to support better landscape management.

As of August 2026, 127 smallholders have been engaged through workshops, training, outreach and sustainability activities in the Segama landscape. Of these, 80 smallholders are registered with KOPSA, providing an organised pathway through which members can progressively address the requirements for more sustainable production and certification.

Learn more about KOPSA through its RSPO membership page‍