Commitment to Our Sustainability Linked-Loan
At DSN Group, we recognize the importance of environmental stewardship and the need for sustainable practices within our industries. We are proud to announce that we have secured sustainability-linked loans (SLL) from Stichting andgreen.fund (&Green) for our palm oil business unit and from the Asian Development Bank (ADB) for our wood product business unit.
These financial partnerships signify a crucial step in our commitment to reducing the environmental impact of our operations and promoting sustainability throughout our supply chains. As part of our deliverables to &Green, we have developed a Landscape Protection Plan (LPP) and an Environmental & Social Action Plan (ESAP) to ensure responsible management of natural resources and communities in our palm oil operations. For our wood product business unit, our deliverables to ADB involve the implementation of a sustainable agroforestry-driven landscape that balances ecological, economic, and social needs.
Discover more about our journey, progress, and accomplishments with our stakeholders as we tirelessly strive to meet the sustainability objectives outlined by our green investors, &Green and ADB below.
DSN Group has obtained a 10-year loan facility of USD 30.0 million from &Green, an international impact investment fund that finances sustainable commodity production to protect tropical forests. This second Indonesian investment by the &Green fund has helped us to implement NDPE strategy. The long-term loan facility also offers DSN Group the flexibility to diversify our funding sources amidst an unpredictable global credit market affected by the COVID-19 pandemic.
In partnership with &Green’s investment advisor, SAIL Ventures, as part of the SLL commitment, DSN Group have developed a Landscape Protection Plan (LPP), detailing the collaborative efforts across DSN Group’s various concessions. Additionally, an annually-reviewed Environmental and Social Action Plan (ESAP) will guide DSN Group through the complexities of managing the concessions sustainably within dynamic social and economic settings. The LPP is a sustainable land-use and management plan that considers “Environmental Return and Social Inclusion” and addresses the impacts generated during the financing period within the landscape or project area. The ESAP is a comprehensive plan that follows applicable standards, including national regulations, International Finance Corporation Performance Standards (IFC PSs), and Roundtable Sustainable Palm Oil Principles and Criteria (RSPO P&C).
Since 2021, the company has consistently engaged an independent party to audit the Company’s commitment to &Green financing. The audit aims to ensure compliance with various operational guidelines which are referred by LPP and ESAP. The audit findings serve as a reference for recommendations from the auditor, which then become the Company’s ESAP for the following year.
The audit report is published on both &Green and DSNG’s websites as part of their commitment to transparency for their stakeholders. The report can be accessed at https://www.andgreen.fund/portfolio/pt-dharma-satya-nusantara-tbk-dsng/
In 2022, DSNG worked towards obtaining a USD$15 Million Loan Facility from the Asian Development Bank (ADB) for its wood product business. The said loan, which is expected to be in place by the first quarter of 2023, shall be utilized to help the company expand sustainable wood processing, rural livelihood development, and climate-resilient agroforestry in Java, Indonesia. This financing is a tangible manifestation of DSNG and ADB’s commitments to preparing for a low-carbon and climate-resilient future.
The proceeds from this financing will be used to improve rural livelihoods and climate resilience through innovative programs and trainings held to local farmers. The trainings will include materials relating to climate-resilient practices for complex agroforestry systems and financial literacy provided to approximately 4,000 farmers, of whom 1,200 are female farmers. Through the program, the company shall actively support its sengon and jabon farmers to obtain certifications from the Forest Stewardship Council (FSC).