Business activities can be a driver of greenhouse gas emissions. However, businesses can also contribute to solutions to prevent, mitigate, and adapt to climate change
Jakarta (ANTARA) - The United States, through the United States Agency for International Development (USAID), has partnered with Indonesian companies to promote sustainable business practices and mitigate the impacts of climate change.

The United States, through USAID’s Sustainable Environmental Governance Across Regions (SEGAR), signed a memorandum of understanding with two Indonesian companies to improve sustainable commodity production and supply chain as well as land use management, in addition to ensuring that communities receive economic benefits derived from sustainable business practices, the US Embassy in Jakarta stated in a release on Thursday.

"Business activities can be a driver of greenhouse gas emissions. However, businesses can also contribute to solutions to prevent, mitigate, and adapt to climate change," USAID Indonesia Mission Director Jeff Cohen remarked.


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The companies that inked the memorandum of understanding are PT Dharma Satya Nusantara Tbk and PT Sawit Sumber Mas Sarana Tbk.

Through SEGAR, the USAID is supporting these companies to develop more sustainable commodity production methods that include peat and land fire prevention management and human-wildlife conflict mitigation, among others.

"Sustainable economic development is everybody’s business. USAID is proud to work with both Indonesian businesses and the Government of Indonesia to achieve our shared sustainability and economic growth goals for generations to come," Cohen added.

In addition, the USAID, through SEGAR, collaborates with the Accountability Framework Initiative (Afi), an initiative that supports businesses to strengthen environmental, social, and governance (ESG) principles and practices in their supply chains.

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According to the USAID, the partnership with Afi will expand and advance work to setting, implementing, and monitoring effective commitments on deforestation, reducing the impact of ecosystem conversion from forest to productive concession, and human rights in ethical supply chains – including ensuring that companies respect the rights of indigenous people and local communities as well as workers’ rights throughout all partners.

"Catastrophic biodiversity loss is one of the major risks that could pose a threat to the climate and environment in the next 10 years alongside extreme weather, climate action failure, and natural disasters," Director of Forestry and Water Resources Conservation of the Ministry of National Development Planning (Bappenas) Nur Hygiawati Rahayu stated.

Bappenas is the implementing agency of USAID's program -- SEGAR.

Companies and businesses can contribute more actively to an inclusive and sustainable green economy through relevant ecosystem restoration and conservation programs to maintain carbon stocks as well as biodiversity conservation.

SEGAR is expected to be an avenue to foster mutual understanding and inspire more companies to implement ESG principles in the future.

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Reporter: Yuni Arisandy Sinaga
Editor: Fardah Assegaf
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