Sustainability, to APP Group (APP), is more than just protecting forests. It’s also about empowering communities to thrive in a lifestyle that benefits the environment, with lasting positive impacts on both their livelihoods and the planet.
This is why, as part of ongoing efforts to foster economic resilience and environmental stewardship, APP implements various Community Empowerment (CE) programs which directly engage the communities living in and around the company’s concession areas.
One such program is the Desa Makmur Peduli Alam (DMPA) program, which is based on integrated forestry and farming system concepts. Launched in 2015, the program aims to provide sustainable livelihoods while protecting forests and preventing land fires. Through community education and engagement, DMPA directs farmers from local communities away from traditional slash-and-burn agriculture, which can be harmful to surrounding forests. By providing training, tools, and materials, we can instead promote more sustainable alternative sources of income, and the DMPA program has enabled villagers to flourish through various jobs from honey farming to basket weaving.
Now the main question is, how exactly does APP measure the true value of these efforts?
The answer lies in the Social Return on Investment (SROI) methodology which focuses on quantifying the economic, social, and environmental benefits generated by APP’s CE programs. This allows us to truly evaluate whether programs like DMPA are making a truly positive impact on our surrounding communities and the environment.
By implementing SROI assessments, we are able to track the true results of our programs by seeing how much forest and land fires have been reduced after shifting farmers to sustainable agriculture methods, or how much livelihoods have improved in the community from increased income.
So how do we track the SROI? After assigning monetary value to the social and environmental improvements seen in the SROI assessments, we measure the total value of benefits against the total value of investments. If the calculated value is over 1, we can safely say that the program has successfully garnered great benefits as the benefits outweigh the investments made. However, if the calculated value is under 1, we’ll need to adjust our DMPA strategy to maximise its impact.
Now, a number of implemented programs have shown good progress, good profits, and a high return value – including farming, cattle breeding, composting, and rattan weaving. With continuous effort and investment in implementing the DMPA program in various communities, APP hopes to continue to increase the SROI and change lives while protecting our forests.
Although the return on investment (ROI) calculated from DMPA outcomes is certainly encouraging, the most gratifying part of evaluating the effectiveness of DMPA is seeing how local communities benefit from the program. This can be through their improved livelihoods, better independent living, and increased income. Most importantly, seeing how the forests have benefited from decreased forest and land fires is also just as inspiring.