Marubeni Starts Feasibility Verification for Forest Restoration Project in Malaysia

Image: Marubeni (Sabah Project)

Japanese trading giant Marubeni Corporation (Marubeni) has signed a Memorandum of Understanding (MoU) with local partner companies in Sabah and Sarawak, Malaysia, and begun feasibility verification for a forest restoration project through reforestation.

In Sabah, Marubeni is partnering with Sabah Softwoods Berhad (SSB), a plantation company, towards engaging in forest restoration on degraded lands within plantations managed by SSB.

In Sarawak meanwhile, Marubeni will contribute to maintaining and enhancing biodiversity in collaboration with KTS Resources Sdn. Bhd. (KTS), through methods such as converting degraded palm plantations into native species and converting failed coconut plantations into mangrove forests.

The objectives of the Project are to achieve economic viability while facilitating the maintenance of the social contributions of environmental conservation and global warming countermeasures upheld by the Malaysian government.

Through the projects, Marubeni ultimately aims to establish a carbon credit program through methods such as restoring biodiversity, creating employment within local communities, and forest restoration or conversion into native species for carbon absorption and sequestration.

In March 2021, Marubeni formulated its long-term vision for climate change and positioned green strategy as one of the basic policies to enhance corporate value in its mid-term management strategy “GC2024”.

Marubeni currently manages a total project area of approximately 300,000 hectares (equivalent to approximately 60% of the area of Tokyo) in Indonesia and Australia, of which approximately 130,000 hectares are plantations, and is proceeding with reforestation projects similar to this project in the Philippines and Angola.

In Japan, the company is also working to offset carbon emissions through the J-Credit System in the municipal forests of Noshiro City, Akita Prefecture, Japan, and in forests managed by the Shirakami Forestry Association.

By applying the knowledge and expertise accumulated through these undertakings to the Malaysian projects, the company aims to increase the environmental and economic value of forest resources.