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Creating Sustainable Value

Case Study

Due diligence for KfW - Indonesia

KfW, one of the world’s largest development banks, is providing long term financing into this tropical forest landscape in Sumatra, Indonesia.

Hutan Harapan, 98,550ha, is a vital ecological steppingstone and critical habitat and refuge for a range of threatened and enigmatic species, including the Sumatran tiger, elephant and orangutan. It is also fundamental to the survival of the traditional lifestyles of local and indigenous communities such as the Batin Sembilan. The forest acts as a large carbon sink, playing an important part in regulating carbon and oxygen levels. Various competing land users, including many applying extractive practices on a commercial scale, pose a significant threat to the natural habitat.

Alongside Monkey Forest Consulting, Earth Active conducted environmental and social due diligence for KfW on the management of risks and impacts by the Hutan Harapan management team. The due diligence included remote interviews with management staff and other key stakeholders that understand the complexities of the landscape, coupled with desk-based research. Satellite imagery and GIS allowed the team to visualise the various competing land uses and users and map areas of high encroachment.

Earth Active provided expert environment, biodiversity and OHS services to identify and assess management systems for governing associated risks and impacts in the area. Since KfW’s due diligence assignment, Earth Active has gone on to support the Hutan Harapan partners (Burung Indonesia, RSPB, Birdlife International and NABU) in assessing the potential alternatives and mitigation options to a permitted coal road planned to be passed through the Hutan Harapan forest, which will likely result in large scale adverse impacts for local biodiversity and people.

Please get in touch to find out more about this project or others in your sector.

KEY

SERVICES

E&S Risk Assessment

E&S Gap Analysis

Development of ESAP

Road Alternatives Appraisal

Road Mitigation Plan

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