Cover Professor Sadruddin Saidfudin of Planters International
Professor Sadruddin Saidfudin of Planters International
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Professor Sadruddin shares how Planters International focuses on the environment when it comes to ESG
The latest buzzword to be thrown about, that all companies seem to be jumping on the bandwagon to implement is the acronym for Environment, Social and Governance (ESG). But do the companies truly know what they’re getting into, or just claiming the title for the sake of doing the right thing—much like how rainbows emerge in June but are nowhere to be seen or spoken about before or after.
We take an educational hike into a forest reserve with professor Muhammad Sadruddin Saidfudin of Planters International, which mainly champions the environmental aspect of ESG, and find out how the organisation is helping other corporations do the right thing.
First, let’s get into each of the initials to understand what companies should be looking out for. In terms of the environment, the recent floods locally and other weather calamities are a clear sign that we need to do better in protecting the environment. We already notice car manufacturers producing electric vehicles to cut down on emissions for one. When it comes to the social aspect, we look to see how the company benefits society as a whole—both in and outside of the organisation. Think of companies running CSR programmes or giving incentives for staff to take public transport. And when it comes to governance, it’s mainly about doing the right thing, abiding by the law, following SOPs, and being regulated. These are but a few examples.
Read more: Environment Minister Nik Nazmi on how Malaysia is charting a sustainable course
Above Professor Sadruddin Saidfudin is also a member of the Gen.T community
Professor Sadruddin Saidfudin is also a member of the Gen.T community
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“Many people don’t really know what ESG is about. It’s been conceptualised relatively recently, and one simple way I help enlighten others about it is by explaining the difference between stakeholders and shareholders. Shareholders are mainly invested monetarily in a business; meanwhile, stakeholders are those who are impacted by said business. So, the environment, and communities surrounding the business are essentially stakeholders, and companies must look after the interests of both shareholders as well as stakeholders to thrive,” explains Sadruddin.
Having previously been involved in policy-making and strategic planning for government agencies, including the development of the Central Forest Spine Master Plan, Sadruddin started Planters with the main aim of healing our local forests. Not only does Planters replant and conserve trees, but it also reaches out to the local communities within the area it is working in, and help empower them by giving them some training to educate then employ the people within those communities as well.
“When we first initially started, we had a lean core team of about six members, and had to put in a lot of our own effort—with each member bringing their own set of expertise to the field—including my own capital to start the programme. It’s sometimes difficult to relay passions, as noble as it may be; I believe that this is a true cause and invested in it. Now thankfully others are starting to believe as well, and traction has been gaining, and there’s a growing number of parties keen on enriching the ecosystem and reforestation as well,” he shares about the beginnings of Planters.
Now, with slightly over 80 people within the organisation, Sadruddin still hasn’t enough manpower for the number of forests and reserves they’ve been tasked to help make healthy again. Ideally, they would need about 1,000 people per site alone—a lot of work needs be done to help our forests recover.
On that note, Sadruddin also shares on how certain unscrupulous companies take advantage of the forests and explains how illegal logging takes place via legal loopholes.
See also: Planters International launches satellite to monitor SEA’s jungles
“Most people only think of flora and fauna when it comes to looking after the environment but forget that the Orang Asli is also part of an environment, especially within forests”
“It’s not fair to just put the blame on our government when rampant deforestation happens. Logging licenses or permits are tough to get. Firstly, there are multiple background checks done, and there are proper ways and limitations set to ensure you only fell a certain number of trees, in a selective manner that’s sustainable for all. What sometimes happens is that unethical companies, who only care about profits and disregard any aspect of ESG, will send in an application to do forest farming.
“On paper it’s a sustainable practice, because you open up a particular land area and only work there—you’re not supposed or allowed to open up new areas in the future. However, the chosen area would have ample timber trees, and then as part of ‘land clearance’, the company will fell those trees, and eventually just abandon the land. While checks can be made, it takes a few years for crops to grow, and within those years, the company might have shut down, or will come up with an excuse as to why its project didn’t work,” Sadruddin says.
In efforts to reduce the negative impact of carbon emissions, Sadruddin is also looking forward to the emergence of a carbon tax, which will be good for the environment. How it works is that companies must reduce their emissions, and or have to pay accordingly for each tonne of greenhouse gas the business emits. These funds are then channelled towards the development of the environment—including entities like Planters International, which will help plant more trees to reduce emissions overall.
Technically, if you focus solely on the conservation and protection of the environment, half the battle is already won. You would be abiding to governance laws, and the communities around will also benefit thanks to the upkeep of the surroundings. However, Sadruddin notes that one aspect is often forgotten when it comes to taking care of the surroundings. “Most people only think of flora and fauna when it comes to looking after the environment but forget that the Orang Asli is also part of an environment, especially within forests.” Thus, Planters International is also developing a framework to include all of these aspects into its ESG programme.
It will definitely cost not only businesses, but also entire populations more if ESG procedures aren’t implemented. The most obvious impact would be towards the company itself, as research has shown that better ESG scores translate to about 10 per cent lower cost of capital. But despite the clear merits and advantages of ESG, there is still a lack of understanding on the subject matter as well as experts to advise accordingly. Regardless, a step in the right direction is what it takes to move forward.
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If tall, dark and handsome is what you're looking for, Aaron Pereira ticks two out of three. This fine chocolate man (that is, a connoisseur of fine chocolate), enjoys the theatre, futsal, real-life conversations and of course, the English language. He believes that language should first be used to express, but the business of a sub-editor is to impress.
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