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ESG

ESG

Airbus and AMIC Partner on SAF Supply Chain Research

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KUALA LUMPUR: Airbus and the Aerospace Malaysia Innovation Centre (AMIC) have entered into a strategic research and technology partnership aimed at enhancing the supply chain for Sustainable Aviation Fuel (SAF) across the Asia-Pacific region. This collaboration underscores both organisations’ commitment to accelerating the deployment of SAF by identifying key opportunities, addressing supply chain bottlenecks, and improving production scalability – all critical components in supporting the aviation sector’s decarbonisation goals. Focusing on ASEAN member states and selected Asia-Pacific economies, the joint initiative will involve comprehensive data collection and analysis to assess regional feedstock availability and production potential. Research will centre on SAF pathways approved under the ICAO-CORSIA framework, while also evaluating new, promising feedstock candidates for long-term viability. “This cooperation reflects AMIC’s strategic role in fostering high-impact innovation within the aviation ecosystem. By targeting supply chain optimisation, this research aims to unlock new economic opportunities while aligning with global sustainability imperatives,” said Dr Zakri Abdul Hamid, Chairman of AMIC. “Airbus is committed to building a robust global SAF ecosystem, and the Asia-Pacific region is central to that vision. Through this partnership with AMIC, we are deepening our engagement in Malaysia and investing in research that lays the foundation for a locally-driven, future-ready SAF industry. This initiative demonstrates how industry collaboration can translate sustainability ambitions into tangible outcomes,” said Julie Kitcher, Chief Sustainability Officer, Airbus. This initiative marks a significant step toward positioning Asia-Pacific as a key contributor in the global SAF value chain. By leveraging regional strengths in feedstock diversity and innovation capabilities, the collaboration aims to deliver scalable and sustainable solutions for aviation fuel production. Established in 2011, AMIC is a public-private partnership driving aerospace innovation in Malaysia. Its research agenda is aligned with national and industry priorities, including sustainable aviation, digital transformation, and next-generation aerostructures. SAF remains one of the most effective levers in reducing aviation’s environmental impact, offering up to an 80% reduction in lifecycle carbon emissions compared to traditional jet fuel. Today, all Airbus aircraft are certified to fly with up to 50% SAF, with the company targeting 100% SAF capability across its fleet by 2030.

ESG

NCGS2025 Sets Bold Agenda for Sustainable Finance and Climate Governance

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KUALA LUMPUR: Over the first two days of the National Climate Governance Summit 2025 (NCGS2025), global leaders, policymakers, and industry experts gathered at Sasana Kijang to chart a transformative path for sustainable finance and climate governance in Malaysia and across the ASEAN region. Organised by Climate Governance Malaysia (CGM), the summit spotlighted innovative financial instruments, forward-looking regulatory frameworks, and inclusive governance practices as critical enablers of a low-carbon economy. Transition Finance: A Cornerstone for Climate Ambition The opening sessions of NCGS2025 set a decisive tone, positioning transition finance as the cornerstone of Malaysia’s and ASEAN’s sustainable economic transformation. Keynote speakers and panellists emphasised the urgency of mobilising innovative financial mechanisms that enable both public and private sectors to accelerate the shift toward a low-carbon future. Transition finance was framed not merely as a financial tool, but as a structural driver of climate ambition and long-term economic resilience. Datuk Nor Azimah Abdul Aziz, Chief Executive Officer of the Companies Commission of Malaysia (SSM), highlighted Malaysia’s ASEAN chairmanship under the theme of “inclusive sustainability”, saying it reflects the nation’s commitment to advancing regional climate action. “While the government continues to spearhead strategic policies, this responsibility cannot rest solely on policymakers. Cross-sector collaboration is crucial to secure a resilient and sustainable future for Malaysia and ASEAN,” she said. Redefining Climate Governance A recurring theme throughout the summit was the urgent need to evolve climate governance beyond traditional corporate boundaries. Delegates called for robust accountability frameworks and stronger board-level engagement to ensure climate action is embedded in core governance and decision-making. Dato’ Mohammad Faiz Azmi, Executive Chairman of the Securities Commission Malaysia, addressed the challenges of financing essential but less commercially attractive projects such as seawalls and water systems. “While transition finance often focuses on projects with strong returns, we must innovate with blended finance tools to bridge the gap—leveraging public, private, and community capital,” he said. “A just and orderly transition demands collaboration. Only by making transition finance the foundation of our economy can we secure a sustainable and resilient future.” Sustainability as Strategic Necessity The summit also underscored that sustainability is no longer a peripheral initiative, but a central business imperative. Companies were urged to embed climate strategies within their business models—not as a compliance obligation, but as a competitive advantage in an increasingly net-zero-aligned global economy. Dato’ Henry Barlow, Chair of the Board of Directors at Climate Governance Malaysia, echoed this sentiment in his Day 2 remarks. “Sustainability must be woven into the core of business strategy to ensure long-term resilience. Investors are now demanding transparent decarbonisation roadmaps. Companies that fail to adapt risk irrelevance,” he said. “The question is no longer whether to transition, but how to do so in a way that is financially viable and strategically sound.” From Strategy to Implementation As NCGS2025 moves into its next phase—featuring specialised workshops and technical masterclasses—the focus shifts from strategy to implementation. These sessions aim to equip participants with practical tools and actionable frameworks to turn climate pledges into measurable progress. By bridging high-level dialogue with real-world solutions, the summit reinforces its role as a key platform for regional collaboration and climate resilience—empowering stakeholders across all sectors to deliver on the promise of sustainable finance and equitable governance.

ESG, News

Alliance Bank Nears RM15 Bil ESG Loan Target for SMEs

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KUALA LUMPUR: Alliance Bank Malaysia Bhd is on track to achieve its RM15 billion target in new sustainable banking business for green projects, aimed at supporting small and medium enterprises (SMEs) ahead of the 2027 financial year. As of January 2025, the bank has already disbursed RM14 billion in new sustainable financing, empowering SMEs to integrate environmental, social, and governance (ESG) practices into their operations, according to Aaron Sum, the bank’s Group Chief Strategy and Transformation Officer. The achievement comes just two years and 10 months into the initiative, having launched in November 2022. Sum attributes the success to a comprehensive suite of personalized financial solutions, including customized financing options and green funding schemes from Bank Negara Malaysia. These include low carbon transition facilities, technology and green facilities, and green mortgages. “We are ahead of schedule to meet our target, and we will announce a new goal in due course,” Sum said. “This growth reflects the increasing demand from SMEs as more of them adopt ESG practices and seek financing solutions.” The bank’s commitment to supporting SMEs on their ESG journeys continues to gain momentum. Sum pointed out that many SMEs are turning to banks and government grants for funding, instead of relying on self-financing. This shift is contributing to the bank’s strong results. SMEs’ Growing Awareness and ESG Adoption Alliance Bank’s second edition of its annual ESG report, “The Path to Sustainable Impact – Sectoral Insights of Malaysian SMEs” (ESG 2.0 Report), reveals that awareness of ESG among SMEs has surged to 80% from 14% in the span of 18 months. Additionally, ESG adoption has increased to 60% from 28% over the same period. The significant rise in awareness and adoption is driven by various factors, including regulatory pressures, cost savings, revenue growth, market positioning, and innovation. “One of the key reasons for increased ESG adoption is innovation,” Sum noted. “Businesses are no longer viewing ESG merely as a compliance requirement. The mindset has shifted to seeing ESG as an opportunity to innovate, create new products, and adopt sustainable manufacturing practices that reduce carbon footprints, lower costs, and support responsible local sourcing.” This shift is also reflected in the bank’s findings that 38% of SMEs incorporating ESG practices reported a revenue increase of more than 50%, demonstrating the financial benefits of sustainable practices. The report also highlights significant improvements in ESG awareness across various sectors: manufacturing (up from 18% to 84%), construction (up from 12% to 77%), services (up from 12% to 78%), and agriculture (up from 19% to 61%). Alliance Bank’s SME-Focused ESG Support While larger corporations are often ahead in ESG adoption due to their resources, Sum emphasized that smaller businesses face more challenges, particularly in terms of expertise and resources. “Larger corporations have had more time to prepare, but smaller businesses need more support,” he said. To help address this gap, Alliance Bank provides SMEs with diagnostic tools, workshops, and practical guidance to develop their own ESG transition roadmaps. The bank also encourages SMEs to implement cost-effective sustainability measures, such as improving energy efficiency, to make the transition smoother and more affordable. Importantly, Alliance Bank links ESG efforts to tangible financial benefits. “Once SME owners see the direct financial incentives, they are more likely to take action,” Sum explained. “It’s not just about compliance; it’s also about driving business growth and profitability.” With its proactive approach, Alliance Bank is helping to accelerate the adoption of ESG practices among SMEs, positioning them for long-term success in a sustainable economy.

ESG

Agrobank’s Hijrah Asnaf Programme Helps B40 group Improve Livelihoods

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KOTA BHARU: Agrobank is empowering the asnaf and B40 communities to improve their livelihoods through agro-based ventures under its Hijrah Asnaf programme, which focuses on agriculture, aquaculture, and downstream products. Since its launch in 2021, the initiative has benefited 457 participants across Malaysia—including in Perlis, Kelantan, Terengganu, Sabah, and the Klang Valley—with an additional 466 participants expected to join this year. Agrobank president and CEO Datuk Tengku Ahmad Badli Shah Raja Hussin said the programme reflects the bank’s commitment to both sustainable agricultural development and socioeconomic upliftment. “Participants are trained in modern farming techniques and relevant technologies. The programme not only increases household income but also stimulates employment in local communities,” he said. Support Tailored to Needs Support provided under Hijrah Asnaf is customised based on land size, project duration, and the nature of the venture—whether in crops, livestock, or aquaculture. Training is conducted through Agrobank’s Centre of Excellence (ACE) and supported by government agencies such as the Department of Agriculture. Success on the Ground Among the programme’s success stories is Zamri Mat Hassan, 54, a watermelon farmer in Tok Bali, Pasir Puteh. Since joining in 2023, Zamri has doubled his yield to 20,000 kilogrammes per season on his 0.8-hectare plot. “Demand has surged. Customers now come from Kuala Lumpur, Johor, Selangor—even Singapore,” he said. Meanwhile, Amaran Ibrahim, 55, credits the programme for increasing his understanding of critical farming factors such as soil type, irrigation, and fertiliser usage. “This has not only helped sustain my livelihood but has deepened my knowledge in agriculture,” he shared. Diversifying Livelihoods For P. Muhomed Ibrahim Muhomed Shariff, 64, the programme offered a lifeline. Previously growing vegetables for income, he now cultivates 40,000–50,000 shrimp seedlings every three months in Port Dickson, Negeri Sembilan. “I had no experience in aquaculture before this. Now I have regular customers from Kuala Lumpur and Perak. Agrobank helped me build a more secure future,” he said. As the programme expands, Agrobank continues to position agriculture as a viable pathway to economic resilience, particularly for vulnerable communities.

ESG

NTU Scientists Create Energy-Efficient ‘Fungi Tiles’ for Cooling Buildings

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A team of scientists from Nanyang Technological University (NTU) Singapore has unveiled an innovative new solution to reduce heat in buildings without consuming energy. Their groundbreaking creation, called “fungi tiles,” combines the root network of fungi with organic waste to create an eco-friendly material that could revolutionise building insulation. These mycelium-based tiles are designed with a textured surface that mimics the heat-regulating properties of an elephant’s skin. Elephants, which lack sweat glands, have wrinkled skin that helps them cool down by trapping air and increasing surface area for evaporative cooling. The NTU team, in collaboration with local biomimicry design firm bioSEA, has replicated this natural design, enhancing the mycelium tiles’ cooling properties. A Game-Changer for Sustainable Building Materials Research has already shown that mycelium-bound composites outperform conventional insulation materials in terms of energy efficiency. The NTU team’s latest tests reveal that their elephant skin-inspired tiles are 25% more effective at cooling than flat mycelium tiles. Additionally, the cooling effect improves by a further 70% under simulated rain conditions, making the tiles particularly well-suited to tropical climates. “The construction industry accounts for nearly 40% of global energy-related emissions, and finding sustainable insulation materials is crucial,” said Associate Professor Hortense Le Ferrand, who led the study. “Mycelium-based composites offer a biodegradable, porous material that rivals synthetic alternatives in thermal conductivity while helping to reduce environmental impact.” A Natural Cooling Solution for Hot, Humid Climates To test the tiles’ effectiveness, the team used a hot plate to heat the tiles and measured their temperature changes using infrared cameras. The elephant skin-inspired texture helped the tiles absorb heat more slowly, improving their thermal performance by 25%. When exposed to humid conditions, the tiles showed an even more dramatic cooling effect, offering a 70% improvement in efficiency when misted with water. “This design is inspired by how elephants regulate their body temperature in hot and humid climates without sweating,” explained Dr. Anuj Jain, Founding Director of bioSEA. “By incorporating this natural cooling mechanism, we’ve created a material that mimics nature’s strategies for heat regulation.” The Path Ahead While the mycelium tiles show great promise, scaling up their production poses challenges. The growth process for these tiles takes three to four weeks, and there may be resistance to adopting them due to the entrenched infrastructure of synthetic building materials. Nonetheless, the team is working to improve the tiles’ mechanical stability and durability, as well as exploring different mycelium strains. “Through these tiles, we’re not just creating a more sustainable product but rethinking the way we approach thermal management in buildings,” concluded Assoc Prof Le Ferrand. “This innovation opens up the possibility for more nature-inspired designs and solutions in the construction industry.”

ESG, The Executives

Carbon Credits in Months, Not Years—TRST01’s Breakthrough

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In an exclusive interview with The Exchange Asia, Manoj Vembu, Director of TRST01, shared insights into how the company is leveraging blockchain to enhance data integrity, sustainability reporting, and carbon credit verification. “Our goal is to build trust in supply chains by ensuring transparency and accountability at every stage,” Vembu emphasized. As a leader in supply chain traceability, TRST01 is at the forefront of integrating digital Measurement, Reporting, and Verification (dMRV) solutions to help businesses navigate evolving regulatory landscapes. Data Immutability at the Core of Sustainability Unlike traditional blockchain solutions, TRST01 embeds data immutability at the point of collection. Through mobile-based photo documentation and IoT sensors, the company ensures real-time, tamper-proof data that strengthens sustainability claims. “This innovation has reduced the carbon credit verification process from two years to just six months,” Vembu explained, making it more accessible for businesses and smallholder farmers. For example, TRST01’s dMRV system measures methane reduction in biogas projects and paddy fields, converting the metrics into tokenized carbon credits. With carbon credits valued at $20 per credit, small biogas digesters can generate up to 20 credits, increasing farmer revenue while driving climate-positive change. Enhancing Supply Chain Traceability TRST01’s flagship solution, TRST01Chain®, is transforming traceability across industries like natural rubber and coffee. Currently, 85% of the world’s natural rubber used in tire manufacturing is being traced through the platform, helping companies such as Apollo Tyre and JK Tyre meet ISCC and EUDR compliance standards. Beyond large enterprises, TRST01 also supports small-scale producers. OVO Farm, an agricultural business in India, uses TRST01’s Footprint® solution to enhance transparency in egg production. “By enabling consumers to scan a QR code and access detailed supply chain data, we are empowering them to make informed choices while ensuring food safety compliance,” Vembu noted. Overcoming Traceability Challenges Businesses face several hurdles when implementing traceability solutions: Data Fragmentation: A lack of unified tracking systems. Regulatory Compliance Burden: Detailed proof of sourcing is required under regulations like EUDR. Cost and Complexity: Many solutions are expensive and inaccessible to smallholder farmers. TRST01 addresses these challenges through: Seamless Integration: TRST01Chain® works with existing ERP systems, reducing adoption barriers. Blockchain for Data Integrity: Preventing data tampering and ensuring credibility. Scalability & Accessibility: Enabling even smallholder farmers to comply with global standards. Expanding into New Industries TRST01 is extending its solutions to palm oil, cocoa, rice, and regenerative agriculture. Each sector has unique sustainability challenges: Palm Oil: High deforestation risks and labor concerns. Cocoa: Child labor issues and fair trade certification challenges. Rice: Methane emissions from flooded paddy fields. In rice farming, TRST01’s dMRV system is enabling sustainable practices like Alternate Wetting and Drying (AWD), which: Reduces water use by 60%. Cuts methane emissions by 70%. Increases crop yields by 10-15%. “By integrating blockchain-based carbon credit verification, we are helping rice farmers monetize their sustainability efforts, earning up to $60 per hectare per year,” Vembu highlighted. Automating ESG Reporting with Footprint® As ESG reporting becomes mandatory, TRST01’s AI-driven Footprint® solution automates Scope 1, 2, and 3 emissions tracking. The platform aligns with global frameworks such as SGX, ISSB, TCFD, and EU Sustainability Reporting Standards, helping companies reduce compliance risks while maintaining transparency. Palmolive (India) is one example of a company that has improved its ESG strategy using Footprint®, streamlining sustainability tracking and enhancing investor confidence. Making Carbon Credits More Accessible Small-scale farmers often struggle to participate in carbon markets due to verification complexities. TRST01’s dMRV system bridges this gap by: Using IoT sensors to quantify emissions reductions. Tokenizing carbon credits on blockchain for security. Reducing verification time from two years to six months. Enabling farmers to earn additional income through carbon credits. “We want to democratize access to carbon credits, making sustainability financially rewarding for every stakeholder in the supply chain,” Vembu stated. The Future of Sustainable Supply Chains TRST01 is expanding into Latin America, Africa, Europe, and Southeast Asia to drive sustainability in agriculture, carbon credit verification, and ethical sourcing in fashion. The company is also forming Public-Private Partnerships (PPP) to standardize global sustainability reporting. One such initiative is iSNR, a collaboration between TRST01 and the India Rubber Board, covering 888,400 hectares of rubber plantations and 1.2 million farmers. “Through such partnerships, we aim to improve economic opportunities for farmers while ensuring compliance with global sustainability standards,” Vembu affirmed. As regulatory landscapes evolve, businesses must adopt end-to-end traceability, automate ESG reporting, and leverage carbon credits to stay competitive. With blockchain-driven innovations, TRST01 is shaping the future of sustainable supply chains—ensuring transparency, compliance, and real climate impact.

ESG

Sulzer’s New Pump Optimisation Service Boosts Efficiency by 30%

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Sulzer has unveiled the Sulzer Energy Optimisation Service, an innovative energy efficiency and carbon reduction initiative aimed at setting a new benchmark for centrifugal pump performance across their lifecycle. Targeting energy-intensive industries such as power generation, oil and gas, chemicals, and water desalination, the service promises significant operational, environmental, and financial improvements. Launched in response to the increasing demand for industrial energy efficiency, the solution integrates digital analysis, machine learning, and continuous monitoring with Sulzer’s extensive engineering expertise. By optimising pump performance, the service aims to reduce carbon emissions, enhance reliability, and lower energy costs. A mere 1% increase in global pump efficiency could save approximately 59TWh of electricity—equivalent to New Zealand’s annual power consumption—while some pumps could see efficiency gains of up to 20-30%. Driving Efficiency and Cost Savings Announcing the new service, Ravin Pillay-Ramsamy, Services Division President at Sulzer, stated: “Inefficient and unreliable pumps cost industrial operators millions in unnecessary downtime, energy expenses, and carbon emissions every year. The Sulzer Energy Optimisation Service provides a comprehensive solution to tackle this inefficiency—from identification to implementation and ongoing monitoring.” A pilot project in Spain has already demonstrated the impact of the service, enabling a customer to save €1 million annually in energy costs while cutting over 2,300 tonnes of carbon dioxide emissions. By rerating five pumps, energy efficiency improved from 72% to 83%, delivering annual electricity savings of 5,000MWh. A Four-Step Approach to Energy Optimisation The Sulzer Energy Optimisation Service follows a structured four-step process: Pump Energy Audit – Using Sulzer’s proprietary PumpWise calculator, an initial audit identifies inefficiencies and outlines potential energy, carbon, and cost savings. Customised Retrofit Proposal – Sulzer’s expert team provides a tailored proposal detailing various retrofit options to restore the pump’s best efficiency point. These may include hydraulic re-rates, specialised coatings, and optimised wear clearances. Each option is assessed for operational cost, investment, downtime, payback period, and efficiency guarantees. Implementation and Upgrades – Sulzer’s dedicated retrofit team, which has delivered over 4,000 projects worldwide since 2010, executes the upgrades with support from Sulzer’s extensive global service network of over 120 locations. Performance Monitoring and Maintenance – Post-retrofit, Sulzer offers a performance agreement to sustain reliability and efficiency. This includes access to Blue Box™, Sulzer’s proprietary machine learning technology, which converts pump performance data into actionable insights. Futureproofing Industrial Operations Pillay-Ramsamy added: “For operators facing constant pressure to do more with less, improving energy efficiency is a win-win. With pumps accounting for 20% of the world’s electricity demand, we are offering a streamlined, future-proofed solution that enhances efficiency across all pump brands.” “By combining our engineering expertise with cutting-edge digital innovations in a collaborative and customer-focused approach, we are establishing a new industry benchmark for pump operation, helping businesses remain competitive and sustainable in the evolving energy landscape.”

ESG, News

Maybank & TikTok Shop Aim for 25% Women-Led SME Growth by 2026

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KUALA LUMPUR: Maybank and TikTok Shop Malaysia have partnered to introduce the ASEAN SME Upskilling and Digitalisation Programme, aiming to accelerate digital adoption among small and medium enterprises (SMEs) across the region. According to Bernama, the initiative will kick off in Malaysia next month with a pilot programme featuring webinars, workshops, and a six-month accelerator plan to help SMEs enhance their digital capabilities. Driving Digital Transformation for SMEs Maybank’s Group Chief Executive Officer of Community Financial Services, Syed Ahmad Taufik Albar, highlighted that the programme is designed to equip entrepreneurs with practical experience in digital solutions, content-driven e-commerce, and account management optimisation. These skills are critical for future-proofing businesses and driving long-term growth in an increasingly digital economy. As part of the first phase, Maybank will focus on supporting women entrepreneurs under its HERpower initiative. Currently, women-led SMEs account for 20% of the sector in Malaysia but continue to face challenges in securing funding and scaling their businesses. The bank aims to increase this share to at least 25% by 2026 through targeted financial solutions, mentorship, and business development support. Scaling SMEs from Local to Regional Markets TikTok Shop Malaysia’s Director of Strategic Partnerships, Nur Azre Abdul Aziz, emphasised that the platform will take both a qualitative and quantitative approach to SME development. Beyond enhancing social media visibility, TikTok Shop will provide resources to help businesses expand from local markets to the regional stage. The platform has already facilitated success stories, with SMEs transitioning from night market stalls to online sales, physical store expansions, and participation in major regional events like the ASEAN Investment and Business Summit. The partnership between Maybank and TikTok Shop Malaysia marks a significant step in bridging the digital gap for SMEs, equipping them with the necessary tools to thrive in a competitive digital landscape.

ESG, News

Koltiva is Turning EUDR Challenges into Opportunities for Indonesia

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JAKARTA: The evolving European Union Deforestation-Free Regulation (EUDR) continues to reshape global trade dynamics, placing sustainability at the core of market access requirements. Designed to prevent products linked to deforestation from entering the EU market, its implementation has faced hurdles, including delays, proposed amendments, and ongoing political discussions. These evolving dynamics present both challenges and strategic opportunities for commodity-producing nations like Indonesia. To address these pressing issues, BeyondTraceability Talks, a hybrid forum hosted by Koltiva, brought together key industry stakeholders to discuss the evolving landscape of EUDR compliance. The discussion featured insights from Ainu Rofiq, Co-Founder and Board Member of Koltiva, Diah Suradiredja, from the Secretariat National Dashboard Development at Indonesia’s Coordinating Ministry of Economic Affairs (CMEA), and Insan Syafaat, Executive Director at PISAgro. The forum delved into the complexities of the regulation, the economic implications for Indonesian exports, and strategies for enhancing sustainability in global supply chains. The recent 12-month delay in EUDR enforcement reflects the complexities surrounding its implementation. While this postponement offers flexibility, it also highlights concerns from various stakeholders regarding its impact on global trade. For Indonesia, the regulation demands substantial investment in traceability systems, capacity building, certification processes, and supporting technologies—posing significant challenges, particularly for smallholder producers.  “The current regulatory framework presents significant challenges for smallholders,” says Ainu Rofiq, Co-Founder and Board Member of Koltiva, a leading agricultural technology company focused on sustainable supply chains. “Without proper support, these producers could be left behind, unable to meet compliance requirements and ultimately excluded from global trade.” Despite these challenges, there is a clear path forward—one that leverages technology, direct field engagement, and inclusive business models to bridge the gap between smallholder producers and regulatory compliance. Koltiva has developed an integrated approach that ensures transparency, accountability, and sustainability, enabling businesses to navigate the complexities of EUDR while supporting smallholder inclusion. With EUDR set to be fully enforced by 2026, the time for action is now. As the global market shifts toward sustainable, deforestation-free commodities, collaboration between government bodies, industry leaders, and technology providers is critical in ensuring Indonesia remains a key player in the international trade landscape.   Technology-Driven Traceability for Compliance   Indonesia’s agricultural sector plays a crucial role in the economy, with agricultural exports reaching USD 52.9 billion and imports at USD 30.3 billion in 2023, reflecting a positive trade balance (Antara, 2023). However, the sector faces deforestation and greenhouse gas emissions from land-use changes and lags in global value chain integration due to limited technological capabilities, affecting product quality and production efficiency (World Economic Forum, 2024; World Bank, 2022). To support smallholders impacted by restrictive European regulations, Indonesia’s government is working on protection measures initiative such as developing National Dashboard, an integrated data system designed to ensure transparency and traceability in commodity supply chains.  According to Rofiq, businesses must shift from reactive to proactive supply chain management by investing in technology-driven traceability solutions. He explains that companies failing to monitor their sourcing practices risk losing market access, facing legal consequences, and damaging their brand reputation. To stay competitive, businesses must demonstrate complete traceability and accountability across their supply chains. One of the key aspects of EUDR compliance is supply chain traceability. Koltiva’s flagship solution, KoltiTrace, provides real-time insights into product origins, supplier compliance, and sustainability risks. The platform enables businesses to conduct risk assessments, implement mitigation strategies, and ensure alignment with evolving regulations frameworks. Field Verification and Direct Engagement   While digital solutions are important, Rofiq highlights that compliance cannot be attained solely through data collection. The on-ground team collaborates directly with producers, cooperatives, and suppliers to verify sustainability practices in the field. These experts perform field audits, offer training on sustainable farming techniques, and assist farmers in meeting regulatory standards. “Relying on digital reports alone is not enough,” says Rofiq. “Sustainability claims must be verified in the field to ensure credibility. That’s why the hybrid approach—combining technology with hands-on field engagement— is the most effective way to build trust and ensures real impact.” Empowering Smallholders Through Capacity Building   Beyond compliance, empowering smallholder producers with the necessary knowledge and tools is crucial for ensuring their competitiveness in global markets. Programs that combine digital and in-person training sessions play a key role in equipping farmers with essential skills, including good agricultural practices, financial literacy, and regulatory requirements. These initiatives help smallholders navigate complex sustainability standards and strengthen their market access.  “Education is critical in ensuring that smallholders are not excluded from global supply chains,” says Rofiq. “By equipping them with the right skills, we help them improve productivity, increase income, and meet international standards. “ As the debate over the EUDR continues, businesses must take proactive steps to future-proof their supply chains. While the regulation presents challenges, it also offers an opportunity to drive meaningful change in sustainable sourcing. Companies that invest in traceability, verification, and smallholder inclusion will not only meet compliance requirements but also position themselves as leaders in ethical trade. “With the right combination of technology, field engagement, and capacity building, we can turn compliance into a competitive advantage,” concludes Rofiq. As regulatory landscapes continue to evolve, businesses that embrace transparency and innovation will be best positioned to thrive. Navigating EUDR compliance while driving positive impact for smallholder producers and ensuring long-term sustainability in global trade. Watch the discussion featuring Ainu Rofiq in recent BeyondTraceability Talks, hosted by Koltiva, at https://www.koltiva.com/beyond-traceability-talks-vol2

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