TotalEnergies to foster sustainable forestry in Southeast Asia
TotalEnergies is allocating $50mn to a venture capital fund focused on environmental, social and governance goals in Southeast Asia, the company said on March 3.
The investment in Tropical Asia Forest Fund (TAFF) 2, managed by New Forests, will support the partnership's $300mn fundraising target, which is earmarked for six to eight sustainably-managed forestry assets.
TAFF 2 is targeting certified plantations and native forest conservation in countries including Indonesia, Malaysia, Laos, Cambodia, Thailand and Vietnam, in line with the United Nations Sustainable Development Goals. It says its investments also meet International Finance Corp.'s standards and benchmarks from key international forest certification boards.
The aim is to help protect primary woodland in each forest and reinforce biodiversity. New Forests also expects the portfolio to create employment and economic development opportunities for local communities.
"We are pleased to support the first close of TAFF2, allowing us to extend our presence in Asia and diversify our portfolio of nature-based carbon sinks," said TotalEnergies' vice president for nature based solutions, Adrien Henry. "TotalEnergies' climate ambition is based on a panel of tangible actions, aiming first to prevent and then to reduce our greenhouse gas emissions, and finally to offset residual emissions."