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.

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 rhinoceros, 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

Reforestation by natural regeneration, enrichment and replanting in priority areas

The implementation of reforestation activities has shown remarkable progress, with the successful planting of seedlings across 150 hectares of land. 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. 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.

“Our sponsorship of the Thirty Hills initiative is part of our long-term commitment towards sustainability.”

 

- Zubin Dabu, Market Head and 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. Over the past year, 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 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

Disclaimers and Disclosures

This material is prepared by Bank of Singapore Limited (Co Reg. No.: 197700866R) (the “Bank”) and is distributed in Singapore by the Bank.

This material does not provide individually tailored investment advice. This material has been prepared for and is intended for general circulation. The contents of this material does not take into account the specific investment objectives, investment experience, financial situation, or particular needs of any particular person. You should independently evaluate the contents of this material, and consider the suitability of any product discussed in this material, taking into account your own specific investment objectives, investment experience, financial situation and particular needs. If in doubt about the contents of this material or the suitability of any product discussed in this material, you should obtain independent financial advice from your own financial or other professional advisers, taking into account your specific investment objectives, investment experience, financial situation and particular needs, before making a commitment to purchase any product.

This material is not and should not be construed, by itself, as an offer or a solicitation to deal in any product or to enter into any legal relations. You should contact your own licensed representative directly if you are interested in buying or selling any product discussed in this material.

This material  is not intended for distribution, publication or use by any person in any jurisdiction outside Singapore, Hong Kong or such other jurisdiction as the Bank may determine in its absolute discretion, where such distribution, publication or use would be contrary to applicable law or would subject the Bank or its related corporations, connected persons, associated persons or affiliates (collectively “Affiliates”) to any licensing, registration or other requirements in such jurisdiction.

The Bank and its Affiliates may have issued other reports, analyses, or other documents expressing views different from the contents of this material, and may provide other advice or make investment decisions that are contrary to the views expressed in this material, and all views expressed in all reports, analyses and documents are subject to change without notice. The Bank and its Affiliates reserve the right to act upon or use the contents of this material at any time, including before its publication.

The author of this material may have discussed the information or views contained in this material with others within or outside the Bank, and the author or such other Bank employees may have already acted on the basis of such information or views (including communicating such information or views to other customers of the Bank).

The Bank, its employees (including those with whom the author may have consulted in the preparation of this material))and discretionary accounts managed by the Bank may have long or short positions (including positions that may be different from or opposing to the views in this material or may be otherwise interested in any of the product(s) (including derivatives thereof) discussed in material, may have acquired such positions at prices and market conditions that are no longer available, may from time to time deal in such product(s) and may have interests different from or adverse to your interests.

Analyst Declaration

The analyst(s) who prepared this material certifies that the opinions contained herein accurately and exclusively reflect his or her views about the securities of the company(ies) and that he or she has taken reasonable care to maintain independence and objectivity in respect of the opinions herein.

                                                                                                   

The analyst(s) who prepared this material and his/her associates do not have financial interests in the company(ies). Financial interests refer to investments in securities, warrants and/or other derivatives. The analyst(s) receives compensation based on the overall revenues of Bank of Singapore Limited, and no part of his or her compensation was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this material. The reporting line of the analyst(s) is separate from and independent of the business solicitation or marketing departments of Bank of Singapore Limited.

The analyst(s) and his/her associates confirm that they do not serve as directors or officers of the company(ies) and the company(ies)or other third parties have not provided or agreed to provide any compensation or other benefits to the analyst(s) in connection with this material.

An “associate” is defined as (i) the spouse, parent or step-parent, or any minor child (natural or adopted) or minor step-child, or any sibling or step-sibling of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, parent or step-parent, minor child (natural or adopted) or minor step-child, or sibling or step-sibling is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.

Conflict of Interest Declaration

The Bank is a licensed bank regulated by the Monetary Authority of Singapore in Singapore. Bank of Singapore Limited, Hong Kong Branch (incorporated in Singapore with limited liability), is an Authorized Institution as defined in the Banking Ordinance of Hong Kong (Cap 155), regulated by the Hong Kong Monetary Authority in Hong Kong and a Registered Institution as defined in the Securities and Futures Ordinance of Hong Kong (Cap.571) regulated by the Securities and Futures Commission in Hong Kong. The Bank, its employees and discretionary accounts managed by its Singapore Office/Hong Kong Office may have long or short positions or may be otherwise interested in any of the investment products (including derivatives thereof) referred to in this document and may from time to time dispose of any such investment products. The Bank forms part of the OCBC Group (being for this purpose Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) and its subsidiaries, related and affiliated companies). OCBC Group, their respective directors and/or employees (collectively “Related Persons”) may have interests in the investment products or the issuers mentioned herein. Such interests include effecting transactions in such investment products, and providing broking, investment banking and other financial services to such issuers. OCBC Group and its Related Persons may also be related to, and receive fees from, providers of such investment products. There may be conflicts of interest between OCBC Bank, the Bank, OCBC Investment Research Private Limited, OCBC Securities Private Limited or other members of the OCBC Group and any of the persons or entities mentioned in this report of which the Bank and its analyst(s) are not aware due to OCBC Bank’s Chinese Wall arrangement.

The Bank adheres to a group policy (as revised and updated from time to time) that provides how entities in the OCBC Group manage or eliminate any actual or potential conflicts of interest which may impact the impartiality of research reports issued by any research analyst in the OCBC Group.

If this material pertains to an offer, it may only be offered (i) in Hong Kong, to qualified Private Banking Customers and Professional Investors (as defined under the Securities and Futures Ordinance); (ii) in Singapore, to Accredited Investors (as defined under the Securities and Futures Act 2001); and (iii) in the Dubai International Financial Center, to Professional Clients (as defined under the Dubai Financial Services Authority rules). No other persons may act on the contents of the material.  

Other Disclosures

 

Singapore

 

Where this material relates to structured deposits, this clause applies:

The product is a structured deposit. Structured deposits are not insured by the Singapore Deposit Insurance Corporation. Unlike traditional deposits, structured deposits have an investment element and returns may vary. You may wish to seek independent advice from a financial adviser before making a commitment to purchase this product. In the event that you choose not to seek independent advice from a financial adviser, you should carefully consider whether this product is suitable for you.

Where this material relates to dual currency investments, this clause applies:

The product is a dual currency investment. A dual currency investment product (“DCI”) is a derivative product or structured product with derivatives embedded in it. A DCI involves a currency option which confers on the deposit-taking institution the right to repay the principal sum at maturity in either the base or alternate currency. Part or all of the interest earned on this investment represents the premium on this option.

By purchasing this DCI, you are giving the issuer of this product the right to repay you at a future date in an alternate currency that is different from the currency in which your initial investment was made, regardless of whether you wish to be repaid in this currency at that time. DCIs are subject to foreign exchange fluctuations which may affect the return of your investment. Exchange controls may also be applicable to the currencies your investment is linked to. You may incur a loss on your principal sum in comparison with the base amount initially invested. You may wish to seek advice from a financial adviser before making a commitment to purchase this product. In the event that you choose not to seek advice from a financial adviser, you should carefully consider whether this product is suitable for you.

Hong Kong

This document has not been delivered for registration to the Registrar of Companies in Hong Kong and its contents have not been reviewed by any regulatory authority in Hong Kong. Accordingly: (i) the shares/notes may not be offered or sold in Hong Kong by means of any document other than to persons who are "Professional Investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong and the Securities and Futures (Professional Investor) Rules made thereunder or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance; and (ii) no person may issue any invitation, advertisement or other document relating to the shares/notes whether in Hong Kong or elsewhere, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the shares/notes which are or are intended to be disposed of only to persons outside Hong Kong or only to "Professional Investors" within the meaning of the Securities and Futures Ordinance and the Securities and Futures (Professional Investor) Rules made thereunder.

The product may involve derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you have any doubt, you should seek independent professional financial, tax and/or legal advice as you deem necessary.

Where this material relates to a Complex Product, this clause applies:

Warning Statement and Information about Complex Product

(Applicable to accounts managed by Hong Kong Relationship Manager)

  • Investor should exercise caution in relation to Complex Products;
  • Investor should take note that the past performance of a Complex Product is not indicative of future performance;
  • All Complex Products offered by the Bank are only available to Professional Investors (except for derivative fund without loss absorption features which have been authorized by the Hong Kong Securities and Futures Commission (“SFC”) and listed derivatives); and
  • All Complex Products are not principal protected.

Where this material relates to a Complex Product – funds and ETFs, this clause applies additionally:

  • For Complex Products where offering documents or information provided by the issuer have not been reviewed by the SFC, investors should exercise caution in relation to the offer and take note that such offering documents have not been reviewed by the SFC;
  • For Complex Products described as having been authorised by the SFC, investors should take note that the authorisation does not amount to an official recommendation and that the SFC’s authorisation is not a recommendation or endorsement of that Complex Product nor does it guarantee the commercial merits of that Complex Product or its performance.

Where this material relates to a Complex Product (Options and its variants, Swap and its variants, Accumulator and its variants, Reverse Accumulator and its variants, Forwards), this clause applies additionally: 

  • Investor may incur losses which exceed the amount invested.

Where this material relates to a Loss Absorption Product, this clause applies:

Warning Statement and Information about Loss Absorption Products

(Applicable to accounts managed by Hong Kong Relationship Manager)

Before you invest in any Loss Absorption Product (as defined by the Hong Kong Monetary Authority), please read and ensure that you understand the features of a Loss Absorption Product, which may generally have the following features:

  • The product is subject to the risk of being written down or converted to ordinary shares (as the case may be);
  • The contingent write-down or conversion may happen upon certain circumstances (e.g. at the point of non-viability or the capital ratio falls to a specified level), and the product may potentially result in a substantial loss;
  • The product is a high risk transaction and a Complex Product, as the circumstances in which the product may be required to bear loss are difficult to predict and ex ante assessments of the quantum of loss will also be highly uncertain;
  • The product is targeted at professional investors only and is generally not suitable for retail clients;
  • The credit ranking of the product is usually subordinated. In the event of liquidation or insolvency of the issuer, investors would only be entitled to be paid after other senior creditors are paid and this may result in a substantial loss of the amount invested.

Where this material relates to a certificate of deposit, this clause applies:

It is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.

Where this material relates to a structured deposit, this clause applies:

It is not a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong.

Where this material relates to a structured product, this clause applies:

This is a structured product which involves derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you are in any doubt about the risks involved in the product, you may clarify with the intermediary or seek independent professional advice.

 

Dubai International Financial Center

Where this material relates to structured products and bonds, this clause applies:

The Distributor represents and agrees that it has not offered and will not offer the product to any person in the Dubai International Financial Centre unless such offer is an “Exempt Offer” in accordance with the Market Rules of the Dubai Financial Services Authority (the “DFSA”).

The DFSA has no responsibility for reviewing or verifying any documents in connection with Exempt Offers.

The DFSA has not approved the Information Memorandum or taken steps to verify the information set out in it, and has no responsibility for it.

The product to which this document relates may be illiquid and/or subject to restrictions in respect of their resale. Prospective purchasers of the products offered should conduct their own due diligence on the products.

Please make sure that you understand the contents of the relevant offering documents (including but not limited to the Information Memorandum or Offering Circular) and the terms set out in this document. If you do not understand the contents of the relevant offering documents and the terms set out in this document, you should consult an authorised financial adviser as you deem necessary, before you decide whether or not to invest.

Where this material relates to a fund, this clause applies:

This Fund is not subject to any form of regulation or approval by the Dubai Financial Services Authority (“DFSA”). The DFSA has no responsibility for reviewing or verifying any Prospectus or other documents in connection with this Fund. Accordingly, the DFSA has not approved the Prospectus or any other associated documents nor taken any steps to verify the information set out in the Prospectus, and has no responsibility for it. The Units to which this Fund relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers should conduct their own due diligence on the Units. If you do not understand the contents of this document you should consult an authorized financial adviser. Please note that this offer is intended for only Professional Clients and is not directed at Retail Clients.

These are also available for inspection, during normal business hours, at the following location:

Bank of Singapore

Office 30-34 Level 28

Central Park Tower

DIFC, Dubai

U.A.E

Cross Border Disclaimer and Disclosures

Refer to https://www.bankofsingapore.com/Disclaimers_and_Disclosures.html for cross-border marketing disclaimers and disclosures.

Author:
Others
Was this page useful?