Camp 1_Homework and Work Plan for mangrove

Sdgi innovation

1. CHALLENGE IDENTIFICATION CAMP HOMEWORK & POST-CAMP WORK PLAN

2. PACKAGE CONTENTS Homework Discovering SDG Risks And Opportunities Love The Problem: Framing Your SDF Business Challenge Post-Camp Work Plan Step 1: Revisit The Framed SDG Business Challenge Areas Step 2:Probing Into Your SDG Business Challenge Step 3: Researching Further SDG Business Challenge 2

3. HOMEWORK

4. DISCOVERING SDG RISKS AND OPPORTUNITIES

5. UNDERSTANDING SDG IMPACTS - TOOLS YOU CAN USE 5 WBCSD SDG Sector Roadmaps SDG Tracker SDG Compass Sustainability Accounting Standards Board (SASB) WEF Global Risks Report 2024 Better World, Better Business Report SDG Stocktake

6. While keeping in mind your company’s value chain and its core business, go through the following questions and note all your knowledge , insights or assumptions from a macro level. You can expand your research through using suggested tools and reports; SDG Tracker, SDG Compass, Better Business, Better World, WEF Global Risks 2024, Sustainability Accounting Standards Board (SASB) and WBCSD SDG Sector Roadmaps. Which SDGs are currently targeted in your company and your company’s industry? Why? How are these SDGs interconnected with other SDGs? What are the current business risks and opportunities in your company/industry? And how are these associated with the currently targeted SDGs ? Which of the identified risks and opportunities run across multiple SDGs ? How? Does focusing on the risks and opportunities you have identified lead your industry to incremental improvements or breakthrough improvements ? Pick one. INDIVIDUAL BRAINSTORMING: SDG DISCOVERY OF YOUR COMPANY’S INDUSTRY STEP 1 (20 Minutes)

7. SDG DISCOVERY OF YOUR COMPANY’S INDUSTRY - Individual Brainstorming SDGs Write Risk or Opportunities Relevant Other SDG(s) Incremental or Breakthrough?   13 Technology risk -  APP prioritizes technology benchmarking for climate and energy risk assessments. They recognize the impact of outdated equipment on energy consumption and product quality, aiming to improve technology to meet environmental concerns and market demands for eco-friendly products. 6,7,15 Incremental Manufacturing 9 Investment in R&D Opportunities We are conducting tree species research to identify those that can adapt to changes in physical parameters and specific temperatures.  7,8 Incremental Manufacturing

8. SDG DISCOVERY OF YOUR COMPANY’S INDUSTRY - Individual Brainstorming SDGs Write Risk or Opportunities Relevant Other SDG(s) Incremental or Breakthrough?   12 Operations Opportunities Given the current risk associated with carbon footprint and its impact on the market and stakeholders, we are prioritizing the achievement of low carbon products in both our business expansion and current operations.  6, 8, 10,  13, 14, 15 Incremental Manufacturing 8 Risk: Labor issues, such as worker safety concerns or social inequality, can lead to reputational damage and operational disruptions. Opportunity: Prioritizing fair labor practices, promoting gender equality, fostering inclusive workplaces, and supporting local communities can enhance social license to operate and attract talent. 5, 10 Incremental Manufacturing

9. SDG DISCOVERY OF YOUR COMPANY’S INDUSTRY - Individual Brainstorming SDGs Write Risk or Opportunities Relevant Other SDG(s) Incremental or Breakthrough?   12 Regulatory risk Regulatory risk refers to the assessment of compliance with applicable regulations. For example, companies must annually report their energy consumption. 6, 13, 15 Incremental Manufacturing 12 Legal risk -  APP's legal risk management encompasses ISO 14001 certification for mills, continuous monitoring and evaluation of regulations, and compliance with sustainable forest management requirements. we are required to follow all legal regulations in this area. 13,15 Breakthrough Manufacturing

10. SDG DISCOVERY OF YOUR COMPANY’S INDUSTRY - Individual Brainstorming SDGs Write Risk or Opportunities Relevant Other SDG(s) Incremental or Breakthrough?   12 Market risk The awareness of responsible consumption is growing rapidly both domestically and overseas, and we make sure to respond to these requirements responsibly. 6,8,15 Breakthrough Manufacturing 12 Reputational risk Maintaining a positive reputation is a top priority for our organization, as it has a direct impact on our market share and revenue. 6, 8, 10, 12, 13, 14, 15 Breakthrough Manufacturing 12 Products and Services Opportunities As customer behavior is change to low environmental impact of product, we develop strategy to design our product with low carbon or environmental impact.  6, 7, 9, 13, 15 Breakthrough Manufacturing

11. DISCOVERY ON OTHER INDUSTRIES - Collaborative Working SDG Write Risk or Opportunity Relevant Other SDG(s) Incremental or Breakthrough?   Shared in which Industries? 12 Regulatory risk Regulatory risk refers to the assessment of compliance with applicable regulations. For example, companies must annually report their energy consumption. 6, 13, 15 Incremental Manufacturing 13 Technology risk -  APP prioritizes technology benchmarking for climate and energy risk assessments. They recognize the impact of outdated equipment on energy consumption and product quality, aiming to improve technology to meet environmental concerns and market demands for eco-friendly products. 6,7,15 Incremental Manufacturing 12 Legal risk -  APP's legal risk management encompasses ISO 14001 certification for mills, continuous monitoring and evaluation of regulations, and compliance with sustainable forest management requirements. we are required to follow all legal regulations in this area. 13,15 Breakthrough Manufacturing 12 Market risk The awareness of responsible consumption is growing rapidly both domestically and overseas, and we make sure to respond to these requirements responsibly. 6,8,15 Breakthrough Manufacturing 12 Reputational risk Maintaining a positive reputation is a top priority for our organization, as it has a direct impact on our market share and revenue. 6, 8, 10, 12, 13, 14, 15 Breakthrough Manufacturing 12 Products and Services Opportunities As customer behavior is change to low environmental impact of product, we develop strategy to design our product with low carbon or environmental impact.  6, 7, 9, 13, 15 Breakthrough Manufacturing 9 Investment in R&D Opportunities We are conducting tree species research to identify those that can adapt to changes in physical parameters and specific temperatures.  7,8 Incremental Manufacturing 12 Operations Opportunities Given the current risk associated with carbon footprint and its impact on the market and stakeholders, we are prioritizing the achievement of low carbon products in both our business expansion and current operations.  6, 8, 10,  13, 14, 15 Incremental Manufacturing 8 Risk: Labor issues, such as worker safety concerns or social inequality, can lead to reputational damage and operational disruptions. Opportunity: Prioritizing fair labor practices, promoting gender equality, fostering inclusive workplaces, and supporting local communities can enhance social license to operate and attract talent. 5, 10 Incremental Manufacturing Industries to pick from Chemicals - Communication - Energy/Utilities - Mining - Engineering & Construction Financial Services - Healthcare - Manufacturing - Professional Services - Retail & Hospitality ICT - Food, Beverage & Consumer Goods - Transportation

12. LOVE THE PROBLEM: FRAMING YOUR SDG BUSINESS CHALLENGE

13. 2. THINKING WITHIN VALUE CHAINS 13 During the previous exercise, you have talked about the risks and opportunities in your sector that are related to different SDGs. Keeping these in mind, consider your company’s value chain. How does your company create value to its customers? Which departments, people, processes are crucial? Which external stakeholders are important and what kind of exchange do you have with them? Look again at the risks and opportunities you have identified at the previous exercise. Is there a place on your value chain where these risks and opportunities are more populated?

14. Positive Impact R&D department Procurement Comms Sustainability Corporate Social Departement Where does our business have the most direct impact — both negative and positive — in its value chain, its products and/or services? Identify where in the value chain and/or what systems (operations, supply chains, regulations, social systems) are involved in creating this impact? RAW MATERIALS PROCUREMENT MANUFACTURING COMPANY OPERATIONS DISTRIBUTION SALES PRODUCT OR SERVICE USE PRODUCT OR SERVICE END OF LIFE Negative Impact Mills - Production Distribution - logistics End of life - waste

15. After discussing with your group, write down all problem spaces that you think you can work on. While doing this, keep in mind y our company’s strategic sustainability goals and the impact areas you have identified in your value chain in the previous question. 15 3. IDENTIFYING PROBLEM SPACES   Mills/Forestry – Production -  Energy used related to emission release (GHG) (Planting and Harvesting) - (Pulp and Paper Manufacturing).  -  Conservation area dedicated for Mills / Forestry -> One of them is mangrove conservation Indah Kiat Tangerang (Project area).  -  Co-benefit value (Environment. Social, Economic)  from dedicated conservation area (Mangrove Conservation Indah Kiat Tangerang).    Distribution – logistics -   Product distribution by fossil fuel based vehicle End of life – waste -   logging residues or wood waste from forestry operation - managing domestic waste in remote area poses significant challenges.

16. Considering our company’s value chain and its components you have identified in the previous question... Maximize Positive Impact GHG / Stock Calculation in dedicated conservation area (Mangrove conservation in Indah Kiat Tangerang) (Blue Carbon Stock for this area).  Enhance mangrove conservation success rate by satelite mapping and social - local collaboration.  Conduct biodiversity monitoring in dedicated conservation area (Mangrove conservation in Indah Kiat Tangerang) Collaborating with local communities to share benefits and undertake mangrove restoration in dedicated conservation area (Mangrove conservation in Indah Kiat Tangerang) (Blue Carbon Stock for this area).  Minimize Negative Impact Renewable energy will be used  to minimize emission released.  More efficient distribution pathways and vehicle.  Installment of Biodigester to manage domestic waste in remote area.  …Where can we minimize negative impact resulting from our business activities …How can we create or maximize positive impact through our operations, products and/or services?

17. Mills Production – Emission released and Biodiversity related.  From the table you have filled in the previous question, pick one or more business problem(s) that you want to focus within value chain. What kind of risks and/or opportunities does that problem include? Feel free to be as broad as you want with stating your problem. Add as at least 3-5 problem that you identified 4. WHERE IT ALL COMES TOGETHER..

18. Enhance mangrove conservation for biodiversity by satelite mapping and social - local collaboration.  From the table you have filled in the previous question, pick one or more business challenge(s) that you want to focus within value chain. What kind of risks and/or opportunities does that challenge include? Feel free to be as broad as you want with stating your challenge. Add at least 3-5 challenges that you identified 4. WHERE IT ALL COMES TOGETHER..

19. 5. PRIORITIZING CHALLENGE AREAS 19 Now that you have multiple challenges to discover, we will aim to pick one to explore and deepen your understanding. Let’s see how: Look at each challenge area and remember their place in your value chain. While keeping in mind which people and processes are involved in each challenge, consider the following questions and give ratings (1-5) to each of them based on your opinion. How much system value can be created by solving this challenge? (consider economic, social and environmental gains) How much impact can we have on this challenge area? (regulations, red tapes, heavy investment required) How much is this problem space aligned with our company’s strategy? (based on sustainability or integrated reports) Write down your points on this score card , add all the points and see which one comes first. In there’s no objection, move on with the challenge area with the most points.

20. 5. PRIORITIZING CHALLENGE AREAS 20 Below is your Scorecard Score (1 - 5) How much system value can be created by solving this challenge? How much impact can we have on this challenge area? How much is this problem space aligned with our company’s strategy? Total Score Enhance mangrove conservation success rate by  satelite  mapping and social - local collaboration.  3 3 3 9

21. 01 : No Poverty 13 : Climate Action  14 : Life Below Water 15: Life on Land Looking at the business problem you selected, which SDG(s) did you end up prioritizing? 6. FINDING THE RELEVANT SDG(s)

22. POST - CAMP 1 WORK PLAN

23. WHAT’S IN THIS WORK PLAN? The following work plan provides suggested next steps for your team and actions to take following your Challenge Identification Camp. Consider this work plan as a checklist for TODOs until the next camp.Feel free to use any of the below or follow your own guidance. Use this Work plan to complete the below until the next camp ; Revisit the camp exercises and finalize the missing parts Revisit the company huddle questions Research further about missing part of your company business SDG Challenge 23

24. STEP 1: REVISITING YOUR FRAMED SDG BUSINESS CHALLENGE AREAS

25. REVISIT THE FRAMED SDG BUSINESS CHALLENGE AREAS You can revisit your previous work under the section “Love the Problem: Framing your SDG Business Challenge” (slides 66-75) to review what you already know about your challenge area(s) so you can build upon it and discover where you may have gaps. The written output of this exercise can also be used to recollect your team’s thoughts about your challenge area(s). If you and your team is satisfied with the challenge you have prioritized at the end of the challenge framing exercise (slides 73-74) you can move on to Step 2. Otherwise, you can use the same exercise in a longer session (which you can organize between camps 1 and 2) in order to re-evaluate different challenges and find the one that fits your company’s interests and priorities the best. 25

26. STEP 2: PROBING INTO YOUR SDG BUSINESS CHALLENGE

27. PROBING INTO YOUR SDG BUSINESS CHALLENGE You can revisit and continue your Problem Exploration Question to identify what you don’t know or are yet to understand about your challenge. Running your challenge through the question set should expose potential constraints and/or barriers that you may need to be cognizant of in refining your company business sdg challenge. Help your team to identify your missing knowledge or assumptions for further research about refining your company business sdg challenge 27

28. SDG PROBLEM EXPLORATION QUESTION SET 28 Understand the VALUE Why is this problem important to you? (personal connection) Why is the solution of this problem important to your target group? Why is it important for your company? (business case) Why is it important for society? (impact case)  1. Environment conservation and Company Commitment (Mangrove conservation), blue carbon stock for company – societies.  2. Environment conservation responsibility as  pulp and paper industry, carbon tax and quota related-business, and CSR – Social empowerment.  3. Downstream – customer will  focus on "green-company" which conserve environment.  4. Social-empowerment (mangrove seedling buying, biodiversity restored / local fisherman's economic increase, prevention abrasion). 

29. SDG PROBLEM EXPLORATION QUESTION SET 29 Understand the CONTEXT What type of problem is it? (business, technical, process, cultural) Why does the problem exist? Where does this problem take place? To which SDG(s) target(s) is most relevant for your problem? Review the list of SDG targets for your selected Goals on the SDG Knowledge Platform and use the ones that you think your company would be uniquely positioned to addres s. Who experiences or is impacted by the problem the most in your context? (your target group) How is the problem experienced by your target group? Who are the key stakeholders in the context of the problem? (Customers (both users and buyers), influencers, beneficiaries, etc.) Over what time horizon are you looking to start addressing the problem?

30. SDG PROBLEM EXPLORATION QUESTION SET 30 Understand the CONTEXT 1. Technical problems 2. - Some mills may use outdated or inefficient technologies that result in higher emissions of pollutants such as greenhouse gases, particulate matter, and wastewater contaminants. - Inadequate pollution control measures and wastewater treatment systems can contribute to the release of harmful substances into the environment, affecting biodiversity and ecosystem health. 3. Environmental surrounding operation areas 4. SDGS related: 01 : No Poverty 13 : Climate Action  14 : Life Below Water 15: Life on Land 5. Local communities, stakeholders, government, employees & workers 6. Local communities (People living near mills, especially in remote or rural areas, may experience direct impacts), Stakeholders (may be impacted by reputational risks, financial liabilities, and sustainability concerns associated with emission release and biodiversity impacts.), employees & workers (impacted by occupational health and safety risks due to emission and biodiversity-related issues.) 7. Mangrove restoration project has been started since 2019 technical problems .

31. SDG PROBLEM EXPLORATION QUESTION SET 31 Understand the DELIVERY What is stopping it from being solved right now? What future scenarios could exist that will impact your problem space? (e.g. future competition, materials, political environment)   Who is already working on the problem? Who could you partner with to help tackle the problem? It is not entirely stopped, but we are in the process to develop the system for monitoring the growth of mangrove in IKP conservation area. Developing the technological framework is a long process. Technological adjustment. Since we are planning to use free/open sources satellite, there might be period when the access is limited, so we might have to adjust the data source for monitoring We are internally preparing another data sources LAPAN  or  governmental - based satellite provider

32. STEP 3: RESEARCHING FURTHER INTO YOUR SDG BUSINESS CHALLENGE

33. Work with your company team to plot out what additional research you will need to conduct in order to fill in the gaps for your challenge. Your team should agree on the length of the research before your start and divide roles accordingly. Aim for a combination of online/desk research as well as “fieldwork” (speaking to relevant colleagues/experts). Your research should not take more than 1-2 hours in total. Conduct Research on SDGs There are several resources available to you to guide your research on your SDG challenge. The below resources can help you conduct research on your SDG challenge. They are intended to help you refine your company challenge, providing you with SDG business opportunities and trends, as well as SDG priorities by country. 33 General SDG Knowledge SDG Prioritization SDG Business opportunities and trends SDG Knowledge Hub Sustainable Development Report Better World, Better Business Report Blueprint on Business Leadership for the SDGs SDG Compass Generation Investment 2022 Sustainability Trends Report RESEARCHING FURTHER INTO YOUR SDG BUSINESS CHALLENGE

34. Gather Stakeholder Input Aside from your Mentor or Champion, you may want to consult with some knowledgeable people within your company or SDG experts to ensure that your challenge is on the right track. Write down some suggested colleagues or experts in your company and from other sources that you would find useful to consult. You can use template in the next slide Meet with your Mentor and/or Champion Schedule a meeting with your Mentor and/or Team Champion to get their input into your refined challenge. This is also a good opportunity to share with them any issues you are facing in trying to define your company challenge. 34 RESEARCHING FURTHER INTO YOUR SDG BUSINESS CHALLENGE

35. 35 RESEARCHING FURTHER INTO YOUR SDG BUSINESS CHALLENGE Who will you talk to? What do you expect to to learn from them? Write the questions that you planned to ask Mangrove Expert Mangrove expert (pest-disease prevention, success rate, local community engagement).  Identification of co-existing potential (survival rate) of red-listed mangroves with pre-planting land conditions. Recommendations for treatment / sharing knowledge to the community regarding mangrove care to increase survival rate and enhance the diversity of surrounding biota. Has there been any sharing of knowledge regarding specific methods for calculating blue carbon in mangroves? Updated conditions related to survival rates influenced by incidents of mangrove pest and disease attacks? (Pests and diseases at the seedling to sapling level). Local Community  The Impact of mangrove planting activities Impact of mangrove planting activities on the community (before/after). Involvement of the community in monitoring/caring for mangroves (weaving/pest control). Community management organization structure and initial discussions/surveys on community understanding of the environment (values related to SDGs Life on Land) and the benefits of mangrove planting for the surrounding environment. Economic/operational aspects of mangrove conservation by the community (Village-Owned Enterprises), absorption of funds into which aspects? (if not confidential).