ESG

Bank of Singapore is helping to tackle climate change and protect Central Sumatra’s last intact lowland forest

19 January 2024 • 7 mins read

© Neil Ever Osborne / WWF-US / Isong, a honey farmer from the Talang Mamak tribe, attempts to collect honey from a Sialang tree in Sumatra, Indonesia.

Updated on 12 December 2024

Bank of Singapore is helping to tackle climate change and protect Central Sumatra's last intact lowland forest.

Bank of Singapore is proud to be a sponsor of WWF-Singapore’s conservation project in Sumatra, Indonesia, known as the Thirty Hills Ecosystem Restoration Concession Initiative. The sponsorship contributes towards the goal of protecting over 38,000 hectares of rainforest in the Bukit Tigapuluh Ecosystem Restoration Concession, including 6,000 ha dedicated to reforestation.

Through this initiative, we also aim to create awareness amongst our employees and clients on issues relating to conservation and climate action.

This sponsorship is the latest initiative the Bank has with WWF. In 2021, we collaborated with WWF to pilot a newly developed sustainability e-learning module under the WWF ASFI Academy, which was extended to all Bank of Singapore employees globally before the program was rolled out to the broader private banking sector. As a continuation of this initiative, we are also leveraging on our contribution to educate employees on forest conservation.

Sumatra's Last Stand: The Quest to Protect a Vital Ecosystem and its Inhabitants

The Bukit Tigapuluh landscape in Indonesia – also known as “Thirty Hills” – represents a critical area for ecosystem preservation and restoration, with far-reaching benefits for climate change mitigation, the conservation of biodiversity and natural resources, as well as the indigenous communities who call it home.

“As a forest concession company, PT Alam Bukit Tigapuluh stands at the forefront of ecosystem restoration. Together with our valued donors, we are planting the seeds of transformation. Yet, to truly scale up our conservation impact, we recognize the pivotal role of the private sector. Their support is the cornerstone upon which we'll build a sustainable future for the environment and our communities, creating a legacy of restoration and biodiversity for generations to come.”

 

- PT Alam Bukit Tigapuluh

This invaluable asset requires collaborative effort and a united front from its diverse stakeholders to ensure its enduring ecological integrity. Together with the Frankfurt Zoological Society (FZS) and The Orangutan Project (TOP), WWF founded PT Alam Bukit Tigapuluh (PT ABT), a concession company focusing on safeguarding the integrity of intact forests and breathing life back into deforested or degraded areas within the concession.

Climate Change Mitigation: The landscape comprises the largest remaining block of intact, lowland forest in central Sumatra, Indonesia, storing an estimated 11.5 million metric tons of carbon dioxide equivalent (MtCO2e). Rainforests are known as carbon sinks and play a vital role in mitigating climate change by absorbing carbon dioxide from the atmosphere and storing carbon in their biomass and soil, thus reducing carbon emissions resulting from human activities.

Conservation of Biodiversity and Natural Resources: While being home to some of the world’s most iconic and critically endangered species including the Sumatran tigers, orangutans, and elephants, the Indonesian Island of Sumatra is also a deforestation hotspot due to immense pressure on its forests. Forest loss and degradation are pushing these magnificent species to the brink of extinction. Preserving this landscape and the integrity of its ecosystem services is a vital step towards safeguarding the vanishing habitats of biodiversity and homes of the indigenous people and local communities.

Sustainable Livelihoods for Indigenous Communities: The Talang Mamak and Orang Rimba are the two indigenous tribes living in the area that rely on forest resources for their livelihoods. Working alongside these communities to protect and restore this landscape ensures their access to these critical resources, while opening up conversations on sustainable business practices that can be implemented by the communities.

WWF Thirty Hills Map

© WWF / Map of the Bukit Tigapuluh National Park and the PT ABT Ecosystem Restoration Concession

Through its Ecosystem Restoration Concession (ERC), PT ABT seeks to achieve the following goals:

  1. Monitor forest carbon stocks in the standing forest to show positive impacts in emissions reductions and ecosystem restoration practices.
  2. Strengthen protections against illegal logging and encroachment.
  3. Take critical steps to protect and restore over 38,000 hectares of rainforest and improve wildlife connectivity.
  4. Partner with local communities, including two forest-dwelling indigenous tribes to develop sustainable livelihoods.
  5. Conduct pilot activities and research into cost-effective, large-scale tropical reforestation of wildlife habitat.

 

Progress to date

The following progress was made possible with the support from Bank of Singapore and other donors.

Reforestation by natural regeneration, enrichment and replanting in priority areas

The implementation of reforestation activities has shown remarkable progress, with deforestation rates decreased by 50% compared to 2023. Since then, at least 57,000 seedlings were successfully planted over 502 hectares of degraded and burnt forest areas through enrichment and replanting activities. The replanting efforts – focused on areas and zones previously affected by fires – will continue to take place throughout the year with the support from various local partners and community members.

© WWF-Indonesia/PT Alam Bukit Tigapuluh /Footage of planting activities at Pemayungan Village

 Community health support

To enhance healthcare accessibility for the communities residing within and around the concession area, a close collaboration with the Suo Suo Community Health Center has been established, facilitating regular medical visits to three distinct locations monthly. To date, over 50% of communities from two villages recieved free health services through regular medical visits. This approach underscores the unwavering commitment to foster harmonious relations with local communities and ensure their well-being as integral partners in the conservation and restoration efforts.

WWF Thirty Hills Health Visit

© WWF-Indonesia/PT Alam Bukit Tigapuluh / Monthly health visit to community living within and around ABT concession

Reducing deforestation through regular patrols

In an effort to curb deforestation, a robust system of regular patrols, led by a dedicated Forest Protection and Security Personnel (PPH) has been implemented to safeguard the concession. In parallel, community engagement to educate local communities on the importance of forest preservation and activities prohibited within state forest zones continue to be a priority. Since 2023, patrol activities and land cover monitoring through satellite imagery analysis have successfully enabled the natural regeneration of 11,000 hectares of degraded forest.

“We are proud to continue our sponsorship of WWF-Singapore’s Thirty Hills initiative. This is an important part of our long-term commitment towards sustainability by working with ecosystem partners.”

 

- Teh Kihui, Chair of BOS Sustainability Forum, Bank of Singapore 

 

Sustainable business development for the long-term protection of forest resources

Supporting local communities in developing sustainable business practices is a central objective of the concession. The harvesting or cultivation of locally grown commodities such as Sialang honey and rubber have been identified as having strong potential to support sustainable livelihoods of the local communities due to their market value. PT ABT will maintain its collaboration with KTH (Kelompok Tani Hutan or forest farmer groups) in order to establish quality standards and ensure fair compensation. A sustainable business plan for PT Alam Bukit Tigapuluh has also been developed to identify and quantify potential revenue streams of the concession and devise an implementation road map to operationalise the business model in a way that brings tangible benefits to the local communities.

Biodiversity conservation in the ecosystem restoration concession

Living alongside the local communities are a number of endangered species, including the Sumatran tiger, Sumatran elephant, tapir, orangutan and various other wildlife. The monitoring of these species is conducted in collaboration with partners, with FZS taking an active role in the reintroduction and monitoring of orangutans in the area. Since 2023, 47 camera traps deployed to monitor wildlife activities have provided a glimpse of the rich biodiversity within the concession area, capturing remarkable scenes such as a Sumatran tiger and its two cubs, orangutans and elephants.

WWF Thirty Hills Tiger Footage

© WWF-Indonesia/PT Alam Bukit Tigapuluh / Footage from camera traps installed at the concession

Over the past year, WWF has witnessed effective execution of workplans and activities, albeit not without its share of challenges. The persistence of isolated fires and community conflicts remain the two biggest challenges to the restoration activities, particularly the planting initiatives and concession boundary demarcation process. Contributions from partners committed to enhancing nature resilience are critical to safeguard Southeast Asia’s ecosystems. Through sponsorships from organisations like Bank of Singapore, WWF is dedicated to furthering the restoration efforts within the concession, taking action to mitigate climate change, improving indigenous peoples and local communities' livelihoods, as well as curbing biodiversity loss.

WWF x Bank of Singapore Badge

Source of information and data points: WWF-Singapore

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