Yayasan Sime Darby: 40 years of enhancing lives, delivering sustainable impact

Summary

In this interview, Dr. Yakila Zainal Abedin, CEO of Yayasan Sime Darby (Sime Darby Foundation), discusses the foundation’s long-standing commitment to Environmental, Social, and Governance (ESG) practices. She highlights the foundation's efforts in areas such as education, environment conservation, and community health. The foundation's work includes reforestation, biodiversity preservation, and partnerships with local communities to tackle climate change and wildlife protection. Dr. Abedin stresses the importance of integrating ESG into corporate governance for long-term sustainability, even for smaller businesses and across Malaysia’s corporate landscape.

Takeaways

• 🌱 Sime Darby Foundation is the philanthropic arm of three major companies in Malaysia: Sime Darby Plantation, Sime Darby Property, and Sime Darby Berhad.
• 🏛️ The foundation's mission is to deliver sustainable value through five pillars: education, environment, community & health, sports, and arts & culture.
• 💡 The foundation has been actively engaging in ESG (Environmental, Social, and Governance) practices long before the term became widely recognized.
• 🌳 Key environmental initiatives include reforestation, biodiversity conservation, and species protection, such as efforts to rehabilitate orangutan habitats.
• 🐘 The foundation supports research and projects to manage human-elephant conflict, aiding co-existence and conservation efforts in plantation areas.
• 📚 The foundation provides scholarships to support environmental research and conservation, funding postgraduate studies in biodiversity and wildlife protection.
• 🌍 Sime Darby Foundation works with various organizations, such as Sabah Forestry Department, to restore degraded forest land and support wildlife conservation.
• 👥 ESG principles help companies become more sustainable, attract better talent, and gain investments by focusing on long-term social and environmental impact.
• 🏆 The foundation collaborates with NGOs, local communities, and government bodies to spread climate change awareness and promote sustainability efforts.
• 📽️ The foundation uses media and educational tools like documentaries to raise awareness about conservation and biodiversity issues, aiming to inspire protective actions.

Q & A

Who is Dr. Yakila Zainal Abedin, and what is her role in the context of this conversation?

Dr. Yakila Zainal Abedin is the Chief Executive Officer of Yayasan Sime Darby (Sime Darby Foundation). In this conversation, she discusses the foundation's role in carrying out Corporate Social Responsibility (CSR) initiatives and its ESG (Environmental, Social, and Governance) efforts on behalf of the three Sime Darby companies.

What is the mission of the Sime Darby Foundation, and what are its five main pillars?

The mission of the Sime Darby Foundation is to lead and make a sustainable impact in the lives of others. The five pillars of the foundation are education, environment, community and health, sports, and arts and culture.

What role does ESG play within Sime Darby companies and the foundation?

ESG plays a crucial role within Sime Darby companies and the foundation. While the companies have their own ESG initiatives for sustainability and ethical responsibility, the foundation uses part of the profits donated by these companies to further its own ESG work across various sectors. ESG is embedded in their DNA, and the foundation has been practicing ESG principles long before the term became popular.

Why is integrating ESG policies into organizational governance important?

Integrating ESG policies into organizational governance is important because it ensures sustainability for the company, its stakeholders, and society at large. It addresses environmental conservation, social impact (e.g., diversity and inclusivity), and governance through transparency, accountability, and ethical practices. Companies that prioritize ESG can attract investors, gain employees, and create long-term financial and ethical resilience.

What specific environmental initiatives does the Sime Darby Foundation undertake?

The Sime Darby Foundation focuses on tree planting, ensuring the survivability of trees, biodiversity conservation (e.g., orangutan rehabilitation), and supporting research related to conservation. They work with local governments and NGOs, such as Sabah Forestry Department and Nottingham University Malaysia, on projects like forest reforestation and human-elephant conflict management.

Can you explain the foundation's involvement with indigenous communities in its environmental efforts?

The foundation works closely with indigenous communities by employing them as rangers to help protect biodiversity. These communities, who have a deep knowledge of the forests, play a crucial role in conservation work, such as patrolling and protecting endangered species. The foundation also provides these communities with sustainable livelihoods and educates them about the importance of environmental conservation.

How does the foundation approach reforestation and what successes have they seen?

The foundation has undertaken large-scale reforestation projects, such as reforesting 5,400 hectares of highly degraded forest in Sabah, Malaysia. One success story involves the rehabilitation of orangutan habitats in this area. After 10 years of reforestation efforts, the forest is now thriving with wildlife, including orangutans, who have built nests in the trees.

How does the foundation support research in conservation efforts?

The foundation provides scholarships for postgraduate research in conservation, supporting studies that aim to mitigate human-wildlife conflicts and develop sustainable environmental policies. One example is their work with Nottingham University Malaysia, where researchers focus on human-elephant conflict management to help plantation companies coexist with elephants.

What are some of the long-term benefits of companies embracing ESG practices, particularly for small and medium enterprises (SMEs)?

For SMEs, adopting ESG practices can lead to long-term savings and profitability by reducing waste, conserving resources, and attracting top talent. While it may seem costly initially, investing in ESG can help companies build a sustainable future, making them more competitive and appealing to both investors and employees.

How can the government and society support the ESG movement in Malaysia?

The government can promote ESG through tax incentives and awareness campaigns. Collaborations between government, corporations, and philanthropic organizations can help spread the message of sustainability. The Sime Darby Foundation suggests that knowledge about climate change mitigation and adaptation, especially among the underprivileged communities, is crucial for the ESG movement to succeed.