Climate Strategy & Carbon Management

Sustainability

Driving Sustainable Practices for a Greener Future

At TSH, we are committed to integrating sustainable practices into every aspect of our operations, with a focus on reducing our environmental impact, promoting renewable energy, and fostering responsible land management.

Our Commitment to Climate Strategy

At TSH, environmental sustainability is at the core of our operations. Through responsible land management, renewable energy projects, and comprehensive waste management strategies, we are dedicated to reducing our environmental footprint while promoting sustainable growth.

Driving Renewable Energy Adoption

As part of our commitment to reducing greenhouse gas emissions, TSH continues to invest in renewable energy optimization. Our efforts include the installation of solar panels and the optimization of energy usage across our operations. By generating renewable energy on-site, we reduce our reliance on the national grid and minimize emissions associated with electricity consumption. This initiative is a key component of our climate strategy, helping us reduce our environmental impact and move towards a more sustainable future.

Harnessing Waste for Renewable Energy

At TSH, we are committed to reducing our carbon footprint by transforming waste into valuable renewable energy. Our Bio-Integration Complex in Sabah utilizes the by-products of our plantation and mill operations, including palm oil mill effluent (POME) and biomass waste. By converting these materials into biogas and biomass for power generation, we not only reduce reliance on fossil fuels but also contribute to national renewable energy goals. This initiative plays a crucial role in mitigating climate change by producing green energy while reducing greenhouse gas emissions.

Reducing Emissions through Fire Prevention

Forest fires are a significant source of carbon emissions, particularly in plantation areas. At TSH, we strictly enforce a no-burning policy as part of our proactive approach to fire prevention and mitigation. We utilize advanced satellite imagery and drone monitoring alongside fire towers to keep a vigilant watch over fire-prone areas. Additionally, we engage local communities through Focus Group Discussions (FGDs), providing training and fostering collective efforts to prevent fires. Our comprehensive fire management system ensures early detection and rapid response, reducing the risk of forest fires and their associated emissions. By combining technology, community involvement, and strict policies, we protect the environment, reduce carbon emissions, and support the livelihoods of nearby communities.

Transforming Waste into Energy

At TSH, we are committed to reducing waste and its environmental impact through sustainable waste management. By applying the 4Rs principle—reduce, reuse, recycle, and recover—we convert agricultural waste like empty fruit bunches (EFBs) and palm kernel shells into bioenergy. This process not only diverts waste from landfills but also generates renewable energy, reducing our carbon footprint and contributing to the development of a circular economy. Through these efforts, we lower emissions while enhancing operational efficiency.

Sustainable Forest Management & Industrial Tree Plantations

TSH Resources Berhad is committed to mitigating climate change and advancing carbon management through sustainable forestry initiatives. In 1997, the company signed a 100-year Sustainable Forest Management License Agreement (SFMLA) with the Sabah Government to manage 123,385 hectares in the Ulu Tungud Forest Reserve (Forest Management Unit 4). The area was designated as a Class II Commercial Forest Reserve for sustainable timber production while conserving carbon stocks and biodiversity.

In 2016, TSH surrendered 28,375 hectares of the licensed area, which was reclassified as Class I Protection Forest for conservation purposes. This reduced the licensed area to its current 95,010 hectares, underscoring TSH’s dedication to responsible forest management and environmental preservation.

  • Sustainable Forest Management (SFM): Around 50,000 hectares are managed under a Natural Forest Management (NFM) regime to maintain ecological integrity.
  • Industrial Tree Plantations (ITP): Around 10,000 hectares are planted with ITP species including Rubber (Hevea brasiliensis), Laran (Neolamarckia cadamba), Binuang (Octomeles sumatrana), Akasia (Acacia mangium), Batai (Albizzia falcataria), Teak (Tectona grandis)
  • Carbon Stock Contribution: The Ulu Tungud Forest Reserve contributes significantly to carbon sequestration. Based on LiDAR assessments conducted in 2016, aboveground carbon stocks in the project area have significantly increased over time due to limited harvesting and consistent annual growth, reflecting enhanced biomass and carbon sequestration capacity.
  • Biodiversity and Community Impact: The reserve supports high biodiversity, including several IUCN-listed flora and fauna. Adjacent communities of about 2,000 individuals also benefit from sustainable development initiatives, improving livelihoods while promoting environmental stewardship.

Through sustainable forestry, TSH Resources Berhad demonstrates a balanced approach to carbon management, biodiversity conservation, and community support, contributing to global climate action and sustainability goals.

Protecting Biodiversity for Climate Resilience

Our commitment to High Conservation Value (HCV) protection ensures the preservation of areas that are vital for both biodiversity and carbon sequestration. These HCV areas help maintain ecosystems that act as natural carbon sinks, such as forests and wetlands. By safeguarding these environments, we support climate resilience and help offset carbon emissions, contributing to both biodiversity conservation and the global effort to combat climate change.