StarSpecialTHE STAR Sunday 24 August 2014

CSR

Bettering lives and the environment > 4 Bringing joy to communities during Ramadan > 6

Doing well by doing goodSupporting communities and the environment.

2 CSR StarSpecial, Sunday 24 August 2014

Seeding a sustainable future for Kinabatangan

NESTL, the worlds leading nutrition, health and wellness company, is committed to building a business based on sound human values and principles.

This commitment has been embedded deep within Nestl since 1866 when Swiss pharmacist Henri Nestl developed the worlds first milk for infants to save the life of his neighbours child who could not accept his mothers breast milk.

This marked the beginning of Creating Shared Value (CSV), Nestls business philosophy, which states that in order to create value in the long-term for its shareholders, it must also create value for the society.

Nestl focusses on three areas of great potential that benefit society greatly: nutrition, water and the environment, and rural development.

Why nutrition?

Food and nutrition are the basis of health and of the business it is the reason Nestl exists.

Why water and the environment?

Water is one of our most critical resources and its scarcity will have a drastic impact on the quality of life, food security as well as Nestls business operations.

Why rural development?

The overall well-being of Nestls various stakeholders such as farmers, rural communities, employees, small entrepreneurs and suppliers is vital to Nestls continued success and the nations development.

Nestl in Society defines Nestls commitment not only towards CSV in the three areas, but also its commitment towards environmental sustainability and compliance, as these areas are core to its business strategy and operations.

Sustaining the environment and supporting local communities

At Nestl, caring for the environment is not only an absolute necessity to ensure the future availability of agricultural

raw materials its is also the basis for future business success and food security.

In 2011, the company embarked on an ambitious journey to help rehabilitate 2,400ha of land along the lower Kinabatangan River in Sabah.

Named Project RiLeaf, the riverside reforestation and oil palm sustainability initiative was conceived as part of the companys CSV initiative, where people, nature and agriculture (oil palm) are united by their common source of vitality water. It also aims to demonstrate that mutual co-existence is possible for all stakeholders.

Project RiLeaf provides a natural buffer to filter the river from pollutants, mainly soil sediments and chemical fertiliser run-offs.

This allows the river to repair itself over the course of time. So far, more than 214,000 trees have already been planted,

with seedlings provided by KAPOK (Komuniti Anak Pokok Kinabatangan), a local community-based seedling producer.

Leveraging on its commercial agricultural experience and expertise, the project aims to speed up riparian reforestation and increase the durability of indigenous forest seedlings to ensure greater survivability.

The restored zone will also form a corridor for wildlife to thrive and move about in their migrations and food search, directly reducing human-wildlife conflict.

Engaging palm oil smallholders

In addition to the reforestation efforts and capacity building of the local communities, Project RiLeaf also enables Nestl to engage with oil palm smallholders.

Nestl shares the concern about the serious environmental threat caused by palm oil as its production has been documented as a cause of substantial and often-irreversible damage to the natural environment, with deforestation, habitat loss of critically endangered species,

and a significant increase in greenhouse gas emissions, among others.

As such, Project RiLeaf represents an ideal platform to address the issues and plays an active role in palm oil sustainability.

In collaboration with agencies under the Sabah State Government, NGOs and corporate partners, Nestl actively engages with independent palm oil smallholders.

This collaboration aims to greatly reduce the level of agricultural contaminants from oil palm plantings through the minimisation of chemical fertilisers and good agricultural practices.

Last year, Project RiLeaf received a boost as the Sime Darby Foundation came on board to collaborate for a period of two years.

In the process, the foundation establishes a mechanism to enable the professional management of funds and resources for current day-to-day operations as well as new initiatives and other activities

associated with the project to benefit the stakeholders within the Kinabatangan-Corridor of Life.

As a founding member of the Roundtable on Sustainable Palm Oil (RSPO) and the worlds largest producer of Certified Sustainable Palm Oil (CSPO), Sime Darby has also been providing valuable input and expertise in the programme with independent palm oil smallholders.

The programme subsidises and assists the smallholders to eventually attain CSPO certification while providing them with the knowledge and means to further protect the dynamic and unique biodiversity of the Kinabatangan area.

This includes the inland wildlife corridors and degraded sanctuary areas.

How Project RiLeaf is creating shared value

Creating Shared ValueNestl believes that in order for

it to be successful in the long-term and create value for shareholders, it must also create value for society.

Benefits to society:l Local community and multi-stakeholder engagementl Income generation and capacity building for local communitiesl Environmental protection for future generations

Benefits to Nestl:l Strengthens relationships with local communities and oil palm smallholdersl Builds corporate reputation as a responsible member of the RSPOl Engagement with smallholders allows for future collaboration in ensuring a secure supply of certified sustainable palm oil

n For more information on Project RiLeaf, scan the QR code to watch a video on the initiative:

Forest seedlings are transported by boats to riparian planting areas along the lower Kinabatangan River.

Nestls multi-stakeholder approach.

Kertijah Abdul Kadir, agricultural officer at Nestl, transports the seedlings to the planting site.

At Nestl, caring for the environment is not only an absolute necessity to ensure the future availability of agricultural raw materials, it is also the very basis for future business success and food security.

StarSpecial 3Sunday 24 August 2014

4 CSR StarSpecial, Sunday 24 August 2014

Alois Hofbauer, region head, Nestl Malaysia/Singapore

Bettering livesand the environment

AT Nestl, CSR is known as a sustainable approach called Creating Shared Value based on the ancient Chinese proverb Give a man a fish and you feed him for a day, teach a man to fish and you feed him for a lifetime.

Being one of the largest food and beverage companies in the world, Nestles Creating Shared Value (CSV) commitment was embedded since its inception in 1866 when Swiss pharmacist Henri Nestl developed the worlds first milk for infants to save the life of his neighbours child who could not consume breastmilk.

This significant step marked the beginning of CSV, Nestls business philosophy, which states that in order to create long-term shared value for its shareholders, it must also create value for the society.

CSV means that in order for us to prosper in the long-term, we need to ensure the prosperity of the communities that we serve and operate in.

This is why in Malaysia we focus on creating value for society in three areas that we have identified to have the greatest potential for joint value creation.

These areas are nutrition, water and environment, and rural development. These areas are core to our business and it is also where we can contribute most to the society in Malaysia, says Alois Hofbauer, region head of Nestl Malaysia and Singapore.

The CSV approach is not something that is imposed from the outside but is rather an inherent part of Nestls business strategy and its corporate business principles, which guide the way Nestl runs its business.

Nestl believes in creating value for the communities and the societies that it operates in to ensure the sustainability of its business.

The past 100 years that we have been in Malaysia serve as a testament to the possibility of doing well as a company through doing good to our communities, says Hofbauer.

Nutrition, water and environment, and rural development are three of Nestls main focus areas. It concentrates on these three areas because:l Food and nutrition are the foundation of our lives, health

and is the cornerstone of Nestls business. This is the main reason Nestl exists.l Water is our most critical resource and the scarcity of water will not only drastically impact the quality of our lives but would also make the business operations of Nestl unsustainable.l The well-being of its many stakeholders, including farmers, rural communities, employees, small local entrepreneurs and suppliers is vital to Nestls continued long-term success and the overall development of the country.

Activities that make a difference

Nestls reforestation of the Kinabatangan riverside is known as Project RiLeaf. This initiative has seen the reforestation of approximately 2,400ha of land along the lower Kinabatangan River.

The reforestation aims to create a natural riverine buffer that will minimise the impact of soil sedimentation and chemical fertiliser run-offs. This allows the river to repair itself over the course of time.

The reforestation is done by actively reaching out and involving the local community within the river area to supply the needed forest tree seedlings and we intend to provide continuous services for their plantings as well.

To date, we have planted more than 214,000 trees along the Kinabatangan River with the help of the local community. The initiative also aims to educate local farmers to implement sustainable agricultural practices in their daily farming activities by using natural fertilisers and pesticides, reducing the usage of chemicals as well as applying more professional practices, says Hofbauer.

Last November, Nestl widened the scope of its project and signed a collaborative agreement with the Sime Darby Foundation to extend the funding for Project RiLeaf.

This agreement will enable us to provide professional management, funds and resources, which will benefit stakeholders within the Kinabatangan-Corridor of Life for years to come.

Another one of Nestls

main projects is its Paddy Club. Launched in February 2012, this initiative sees Nestl working with local farmers in Kedah and Sarawak in employing a new rice-growing process known as the Semi-Aerobic Rice Intensification (SARI) that is both innovative and sustainable.

We need environmentally friendly rice for the manufacturing of our high-quality infant cereals. This initiative will also provide additional income to our paddy farmers while bringing about environmental benefits through more efficient water usage and the reduction of greenhouse gas emissions, explains Hofbauer.

The Nestl Paddy Club membership began with just 20 members cultivating more than 49ha of paddy.

During last years harvest between August and September, a total of 312 farmers successfully harvested 5,658MT of paddy over 807ha of paddy fields.

The national average rice yield currently stands at 3.7MT per hectare and with SARI, the farmers were successfully able to exceed this by achieving an average yield of 7MT per hectare.

Making aglobal impact

Nestl also engages in a number of global CSV initiatives. One such initiative is its Global

Nestl Healthy Kids programme. This programme was born out

of the need to address complex issues that burden society under nutrition and obesity and aims to improve the nutrition, health and wellness of school-going children through improved diets, physical activities and better hygiene.

The Nestl Healthy Kids programme in Malaysia is divided into two components the Primary School Component and the Secondary School Component.

Launched in August 2010, the Primary School Component aims to improve the knowledge of nutrition and promote active lifestyles among children aged between seven and 12.

This programme was implemented in collaboration with the Nutrition Society of Malaysia and focuses on nutrition education, physical activities, parent-teacher engagement and awareness through its website healthykids.org.my, says Hofbauer.

The Secondary School Module Component was launched in 2012 in collaboration with the Ministry of Education and Universiti Putra Malaysia and it aims to enhance the knowledge and practice of healthy living among lower secondary school students, teachers, wardens and food operators from 100 selected boarding schools across the nations.

The Nestl Cocoa Plan is another global initiative by the company to improve the lives of cocoa farmers and the quality of their products.

The Cocoa Plan is currently active in Cte dIvoire, Ecuador, Ghana, Indonesia, Mexico and Venezuela.

The Cocoa Plan has three main pillars. The first pillar is to enable farmers to run more profitable farms by training them on better agricultural practices to increase yields and incomes, introducing new plantlets to help rejuvenate cocoa fields and by rewarding farmers for high-quality cocoa.

The second pillar of the plan aims to improve social conditions where we intend to eliminate child labour from our cocoa supply chain and promote and facilitate school attendance for these children, says Hofbauer.

The third pillar of the Cocoa Plan entails sourcing sustainable, good quality cocoa.

Through this pillar, Nestl aims to develop a sustainable supply chain, ensure a long-term supply of good quality cocoa for its business, ensure traceability to the farmers and protect the environment by avoiding deforestation.

To achieve these objectives, we work with international partners such as UTZ Certified, a programme for sustainable faming, Fairtrade, the Fair Labor Association, our suppliers, national plant research institutes, local training agencies as well as NGOs. We are committed to openness and transparency of progress and reporting, says Hofbauer.

Personal gains

Nestl believes that CSV provides its employees with a holistic approach to work, knowing that their skills and contributions not only benefit the company but also societyas a whole.

On a personal level, Hofbauer says that as CSV is an integral part of how Nestl runs its business, it is essential for him to be personally involved in CSV strategies and policies.

I am accountable for the success of the company, and success is not limited to profits but also how much value we create for the Malaysian society.

I am accountable for the success of the company and success is not limited to profits but also involves how much value we create for the Malaysian society.

The Nestl Healthy Kids Programme aims to improve the nutrition, health and wellness of school-going children through improved diets, physical activities and better hygiene.

Corporate giants do their part TODAY, large corporations make corporate social responsibility (CSR) programmes a part of their business model. By carrying out CSR programmes, a company can effectively give back to the community as well as the environment. Here are some interesting CSR activities that corporations across the world carried out.

The World Wildlife Foundation (WWF) and the Coca-Cola Company are working together to raise awareness and funds to conserve the home of polar bears and create a better future for the Arctic.

As the climate gets warmer due of global warming, the ice in the Arctic is slowly melting away.

The Arctic Home campaign was introduced to gather donations from the public to fund research and works that are being done to save the habitat of polar bears whose numbers are already very low.

For any donation from the public that was received before March 15, 2014, Coca-Cola in Canada and the United States pledged to match each of the donations to a maximum of US$1mil (RM3.1mil).

The donations gathered so far are being put to good use with the creation of detailed ice condition models, which are being used to project how polar bears and whales will respond to changing ice conditions in the future.

With the information gathered from the ice condition models, scientists can understand the current and future conditions of the Arctic.

The donations have also helped scientists survey the polar bear populations, collect traditional knowledge about the Arctic and the local animals by working with indigenous people living there.

In addition, scientists have started discussions with the indigenous people on how to manage ice caps melting and additional polar bear-related works.

The campaign also aims to demonstrate the importance of the Arctic to the ice-dependant animals that live there and the indigenous people who call the Arctic their home.

With the theme For the Next Generation, Sony focuses on helping children around the world unlock their full potential and get a taste of their desired ambitions by creating various programmes in areas such as science, music, film and photography.

At the same time, Sony aims to create a generation of tech-savvy and environmentally conscious children for the future.

Sony conducted the Sony Science Programme (SSP) to give children a hands-on experience with science-related activities, allowing them to learn about scientific principles and technology.

These activities were carried out through demonstrations using Sony products.

Among the activities carried out in the programme were workshops and interactive science museums.

Career education services were also provided during the programme to give children the opportunity to think about pursuing careers in the field of technology and ways in which they can contribute to society.

In Indonesia, Sony Indonesia conducted the Tell the World programme with the aim of raising public awareness about forest conservation efforts in Indonesia.

This was done by handing out Sony Xperia smartphones to local school students and demonstrating how technology can be used to write interesting stories to raise awareness.

Students were asked to take photographs of the environment and conservation efforts and upload them on the Tell the World blog.

In South Korea, Sony Korea conducted the Eco Science School programme, which hosted 60 children from low-income families to give them the opportunity to experience basic science, photography and ecology education.

The children took photographs of plants at Nanji Park and were educated on the features of waterside plants.

The aim of the programme was to educate the children on the importance of nature through photography.

The Hands On Search machine was developed by Hakuhodo Kettle Inc, an advertising company, together with Yahoo! Japan for the Hands On Search campaign.

By creating a machine that combines a search engine and a 3D printer, Yahoo! Japan aims to help visually impaired children engage their sense of touch to identify the features of nature and shapes around them.

The machine works by using voice

recognition technology and a MakerBot 3D printer, which can print anything a child speaks into the microphone into a plastic object.

The voice recognition technology first sends data to the search engine, which looks for an image of the object. The printer then prints the object based on the image. It takes 15 minutes to print an object.

The machine was introduced at the

Special Needs Education School for the Visually Impaired, an affiliation of the University of Tsubasa. The visually impaired child holds the printed object in his hands and feels its curves and edges to learn how the object may look like.

The Hands On Search machine won the 18th Webby Awards, which is an award given for excellence on the Internet, for Hands On Research video that was posted on YouTube last year.

The video demonstrates how the machine is used and showed the positive response from the children towards the machine.

The makers of the machine, Hakuhodo Kettle Inc, are looking to donate the Hands On Search machines to organisations that are able to utilise them.

The introduction of this machine will bring joy to many people, especially the visually impaired.

World Wildlife Foundationand Coca-Cola CompanyCampaign: Arctic Home

SonyCampaign: For the Next Generation

Yahoo! JapanCampaign: Hands On Search

StarSpecial, Sunday 24 August 2014 CSR 5

6 CSR StarSpecial, Sunday 24 August 2014

Bank Islam staff distributing meals to the staff at the Immigrations, Customs and Quarantine Centre at Padang Besar in Perlis.

Bringing joy to communities during Ramadan

THE holy month of Ramadan is more than just observing the fasting ritual during the day and attending dutifully to religious practices.

It is also the time of personal reflection, sacrifice and giving, where individuals are encouraged to adopt a generous attitude towards the less fortunate.

It is also an ideal time for business leaders to reflect on corporate philanthropy and how organisations can contribute to society in a meaningful way through a coordinated series of corporate responsibility (CR) initiatives.

In Malaysia, the month of Ramadan has always seen a number of organisations at their most charitable, stepping up to fulfil their CR obligations by making donations or organising events to benefit a number of charities or non-profit organisations.

While our culture generally frowns upon the practice of public declaration of personal charitable endeavours as it can be construed as boasting about ones personal wealth, for corporations, the practice can have the desired effect on the publics mindset.

If there is anything the month of Ramadan has taught us, it is that there is something unique about practising generosity with others as it creates a collective sense of goodwill that we associate with this time of the year.

Contributions with a difference

For Bank Islam, the act of giving is in its DNA. The month of Ramadan provides the opportunity for the bank to step up and increase its CR endeavours to increase the health and wealth of the community it operates in.

For more than 30 years since it was established, Bank Islam has been travelling across the country, visiting people in rural areas and making contributions to the less fortunate and underprivileged, including orphans, single mothers, the poor and the elderly.

The bank has organised a number of events designed to acknowledge their needs and highlight their plight to the public.

This year, however, Bank Islam organised the same series of events with a difference.

Acts of kindness

During the breaking fast ritual many people often forget people in uniform, including policemen, firemen, soldiers, doctors and nurses who often have to work around the clock to serve the country and those in need.

Bank Islam acknowledged their contributions by preparing buka puasa meals for these dedicated people.

For this purpose, the bank visited the Immigrations, Customs and Quarantines (ICQ) centre at Padang Besar, Perlis, and engaged its own workforce to distribute the meals to the ICQ staff who were manning the centre.

We recognise the sacrifice they have to make to keep our

nation safe and this is our way of acknowledging their dedication while thanking them for their efforts, says Hizamuddin Jamalluddin, head of strategic management and the managing directors office at Bank Islam.

The bank also organised a buka puasa event in collaboration with the Royal Malaysia Police.

The event was also attended by members of the Royal Malaysian Customs Department and the Immigration Department of Malaysia.

Bank Islam also went to Malacca to celebrate the month of Ramadan with the staff and patients of Hospital Besar Melaka where buka puasa meals were distributed to doctors, nurses and patients.

A Bank Islam employee handing out meals to a patient at Hospital Besar Melaka.

For Bank Islam, the act of giving is in its DNA. The month of Ramadan provides the opportunity for the bank to step up and increase its CR endeavours to increase the health and wealth of the community it operates in.The bank has organised a number of events designed to acknowledge their needs and highlight their plight to the public.

As Bank Islam tries to improve the livelihood of the less fortunate, the doctors and nurses here have also been tirelessly working to improve the well-being of their patients and their sense of duty should not go unrewarded.

We hope that the banks small contribution will brighten the mood of both the staff and patients, says Ustaz Mohd Nazri Chik, head of the Syariah Division at Bank Islam.

In addition, Bank Islams 2014 Ramadan programmes were also extended to the communities at Kampung Sera in Baling, Kedah, Kampung Rancangan Klias in Beaufort, Sabah, and the Rumah Tunas Harapan Darul Hilmi in Kuala Terengganu, Terengganu.

In total, Bank Islams Ramadan CR contributions this year made an impact on the lives of 754 orphans and students, 660 poor people,57 single mothers and elderly people, 49 converts, 30 disabled people and 27 police retirees.

The banks contributions also benefited 12 schools and 11 welfare organisations across the country.

In addition, Bank Islam has made more than RM600,000 worth of Zakat contributions to 1,600 people from the disenfranchised community.

Collective responsibility

Bank Islam believes in the value of CR in its businesses.

Participation in such activities enable the bank to support causes that are close to its heart, give back to the community and enhance its reputation.

Through identifying causes

aligned with the vision and values of a business, and implementing proper coordination of its CR activities and initiatives, the bank is in the process of reinforcing its corporate identity together with the minds of its employees and external stakeholders.

Bank Islam also believes in engaging its workforce and involving the stakeholders in itsCR initiatives.

This collective responsibility ensures that employees, customers and the government are aware of Bank Islams CR initiatives and, the opportunity of engage with them in carrying these initiatives out.

This inclusiveness can generate pride, boost morale and create a unique sense of shared purpose between the bank and its most important stakeholders, which will multiply the impact of CR initiatives.

A meaningful time

The phrase traditionally used during the fasting month, Ramadan Kareem, literally wishes people a generous Ramadan.

More than just a greeting, this is a call for action that spans every aspect of our lives, including our business interests.

With this in mind, Bank Islam is more than hopeful that its yearly Ramadan programmes will encourage other corporations and organisations in Malaysia to reflect on their own existing CR programmes and consider how to make them even more meaningful in the year ahead.

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8 CSR StarSpecial, Sunday 24 August 2014

Creating sustainable marine ecosystemsFUJI Xerox Malaysia had planted 2,346 mangrove trees prior to 2012 and is committed to planting up to 10,000 trees by 2015 to raise awareness of climate change. It chooses to contribute to the community and Earth by planting mangrove trees as it is a declining resource that is essential in nourishing and protecting local marine ecosystems.

Fuji Xerox Malaysia engages with the local forestry department and NGOs to establish a location and choose the species of mangrove trees to be planted.

Its tireless effort proved fruitful as the company has successfully planted 10,800 trees as of this year, meeting its goal earlier than expected.

Natural buffers

The company began its green journey in 2005 at the Forest Research Institute of Malaysia, Kepong, with 80 rare species of trees. Its mangrove chain started in 2007 at the Kuala Selangor Nature Park.

Since then, Fuji Xerox Malaysia has pledged its commitment towards mangrove conservation and its staff have travelled from the Klang Valley to Sabah, Sarawak, Penang, Kuching and Johor Baru to continue the mangrove tree-planting effort. In the coming years, the company aims to involve its distributors in

the tree-planting programmes. Fuji Xerox drives the programme

to engage with its employees, customers and the community.

The programme is also aimed at increasing awareness of climate change and the importance of preserving mangroves as well as to encourage the collective actions required to address environmental challenges.

This effort has received an encouraging response and more volunteers are expected to join the

tree-planting event in the coming years.

Mangroves, located between land and sea, are an important part of the ecosystem as they are responsible for optimal ecological conditions. Mangroves are vital for food security and for the protection of coastal communities. They provide a wide diversity of forest products and are nurseries for aquatic species.

Mangroves are also important as fishing grounds for carbon

Tuan Wan Shardini Wan Salleh (in green), deputy director of the Forestry Department of Sarawak officiating at the tree-planting ceremony at Muara Tebas, Bako National Park in Sarawak.

sequestration and crucial natural coastal defences that mitigate the impact of erosion and storm action.

Global climate change, the associated risks of rising sea levels and extreme weather have also increased the importance of mangroves. Calls for mangrove conservation have also increased in recent years with growing evidence that mangroves may have an important role as natural buffers in protecting coastlines from the impacts of storms and extreme wave action.

According to research, mangrove trees are able to conserve three times more carbon dioxide than other species of trees.

Collaboration andjoint efforts

Fuji Xerox Malaysias collaborations with a number of state forestry departments have been very fruitful.

The cooperation from these departments is expected to get stronger with each passing year. It has even attracted other organisations to follow suit in engaging the forestry department.

Since 2012, Fuji Xerox Malaysia has been assisting the Penang Inshore Fisherman Welfare Association that initiated the mangrove planting

and preservation in 1997, to protect eco-marine life and help generate more income for local fishermen.

Fuji Xerox is also the first corporate company to have collaborated with the Forestry Department of Sarawak.

As the pioneering company to do so, it was allocated a five-acre plot of land specifically for the planting of mangrove trees in the Kuching Wetland Ramsar site.

Fuji Xerox Malaysias historic 10,000th tree was also planted at the site.

In the future, Fuji Xerox Malaysia intends to go back to its planting sites and measure not only the trees that have been planted before but the amount of carbon dioxide it has preserved.

This will soon be possible as the companys research and development programme with University Putra Malaysia is approaching its site-activity level after going through a few rounds of discussions.

The Selangor West Coast Forestry Department is also involved in this project by providing the site and logistic requirements as well as its expertise.

Fuji Xerox Malaysia has also pledged to continue planting mangrove trees in the future to create a more sustainable marine ecosystem.

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