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From a Seed to a Legacy: AIA Indonesia Shows Customer Appreciation through ESG Effort
The Earth has just entered its global boiling phase, breaking records of high temperatures all over the world caused by the elevated level of greenhouse gas emissions (GHG) that trap the heat emitted from the sun.
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he Earth has just entered its global boiling phase, breaking records of high temperatures all over the world caused by the elevated level of greenhouse gas emissions (GHG) that trap the heat emitted from the sun. The United Nations has concluded that the world is now warming faster than at any point in recorded history, changing weather patterns and disrupting the usual balance of nature.
As a country that is prone to natural disasters, Indonesia cannot ignore the effects of climate change any longer. The country is currently ranked as the world’s eighth-largest emitter of GHG, mainly due to land use changes and energy sector emissions.
The government has put in place several regulations to mitigate the issue, such as promoting electric vehicles, initiating the coal phase-out movement and accelerating the energy transition. They have also called on the private sector to help boost the various initiatives, recognizing the power of collective action toward a better tomorrow.
PT AIA Financial (AIA Indonesia), one of the most trusted insurance companies in Indonesia, is eager to contribute to finding a solution for the country to move forward onto a more sustainable way of life.
The company ensures to run its operations under an ESG-strategy guided by five pillars: Health and Wellness, Sustainable Operations, Sustainable Investment, People and Culture, and Effective Governance. It is with this guidance that they assist and encourage millions of families in Indonesia to live healthier, longer, better lives. Every business and operational decision that AIA takes always ensures elements of sustainability to protect the environment, promote progress and social equality.
“We are aware of the need to urgently respond and address environmental and social challenges to forge a sustainable and resilient future. That’s why, in addition to our internal and material scope in ESG efforts, we are also extending the scope by involving our customers into the larger sustainability initiative through the AIA Customer Tree Appreciation program. This is one of our concrete actions in realizing our commitment to both the country and AIA Group's ambitions, solidifying our dedication to helping millions of families in Indonesia live healthier, longer, better lives,” said Kathryn Parapak, Chief Marketing Officer for AIA Indonesia.
To realize this, the company collaborated with BenihBaik.com to launch the Customer Tree Appreciation Program back in August.
Founded by activist and former journalist Andy F. Noya, BenihBaik.com is a foundation that acts as the bridge in connecting institutions to communities to promote collaboration, for a better future.
According to AIA and BenihBaik.com, as many as 1 billion hectares of land will need to be replanted with trees to remove 25 years’ worth of carbon. With AIA’s new initiative, the company aims to start with 30,000 mangrove and hardwood trees, setting the goal to replant 14 hectares of land for conservation across the archipelago, as well as one national park. The program’s social impact is estimated to boost the local economies in the areas, in addition to absorbing up to 2,000 tons of CO2eq.
Estimated social impact
The planting of mangroves will be taken care of by 50 people who are farmers or local community members, while the planting of hardwood trees will involve 80 people, potentially boosting the local economy by Rp 200 million respectively. Moreover, the planting of durian will benefit two thousand families and increase the local economy by Rp 300 million.
Furthermore, AIA has pledged to facilitate the communities with capacity building programs, offering 50 people with various training sessions such as digital literacy and sustainable agricultural practices, and 30 percent of women will be empowered from the conservation program for income booster.
The ripple effect of the social impact from this project is also in line with the AIA One Billion initiative, which aims to bring a positive impact to 1 billion people to live healthier, longer, better lives by 2030. It is expected that the carbon absorbed by the trees will contribute to the goal of reducing GHG and achieve net-zero emissions by 2050. More importantly, the program will further AIA’s ambition to become an industry leader in the ESG sector.
Locations
The cities, communities and locations for the first batch of the Customer Tree Appreciation program were strategically picked through a rigorous process. In total, there are four cities in Java, one each in Kalimantan and Sulawesi, and one in the Island of the Gods, Indonesia’s most popular tourist destination, Bali.
“We truly appreciate the upcoming collaboration between AIA and BenihBaik, underscoring our alignment with ESG practices. Through the ‘Customer Tree Appreciation Program’, AIA and BenihBaik plan to plant one tree in regions including Bogor, Cilacap, Semarang, Banyuwangi, Makassar, Denpasar and Berau, for every registered insurance policy, which will be monitored closely. This partnership showcases the broad impact of benefiting customers, society and the environment for a sustainable future,” said Andy F. Noya, activist and founder of the BenihBaik.com Foundation.
From a seed to a legacy
The program implementation is designed to ensure transparency and a way for customers to keep track of the growth and development of each tree planted in their name. When someone registers an AIA insurance policy order, he or she will automatically be registered as a tree planting donor.
Customers will be given a tree ownership certificate and the tree planting will be carried out by BenihBaik.com and AIA. Customers’ trees will be cared for and monitored by the planting partners in the different communities, as previously mentioned.
Customers can check in on the development through the Tree Planting Monitoring System developed by BenihBaik.com.
In addition to being part of AIA’s larger ESG commitment, the company also hopes for the tree planting activity to act as an invitation for customer’s involvement in sustainability efforts. Therefore, customers are encouraged to consistently monitor their impact through the monitoring microsite developed by BenihBaik.com.
