Green Practices Guideline for Forest Operation

3.3 WAY FORWARD To remain competitive and contribute to environmental protection in forest operations, businesses must proactively adopt green practices and integrate ESG factors into their operations. This includes adopting circular business models, embracing ESG disclosure, transitioning to renewable energy sources, implementing decarbonisation efforts, and exploring green financing and investment opportunities. The integration of green practices within forest operations is essential for fulfilling environmental responsibilities and aligning with the broader ESG framework. Investors increasingly consider ESG factors when making decisions, recognising the value of sustainable and responsible forest management practices. Regulatory requirements emphasise the importance of ESG disclosure for companies in the forest operations industry. By incorporating ESG disclosure, forest companies can communicate their environmental initiatives, such as implementing sustainable logging practices, implementing waste reduction measures, utilising renewable energy sources in operations, and undertaking efforts to mitigate climate change. Effective ESG disclosure enhances a company’s reputation, attracts socially conscious investors, ensures regulatory compliance, and contributes to long-term value creation. In evaluating the long-term sustainability and resilience of forest businesses, it is crucial to consider ESG factors alongside financial performance. This holistic approach enables companies to assess their environmental impact, social responsibility, and governance practices, ensuring alignment with sustainable development goals, investor expectations, and regulatory requirements. Embracing ESG factors and integrating green practices in the forest operation not only positions businesses as responsible environmental stewards but also provides a competitive edge in the market. By proactively addressing environmental challenges, adopting sustainable forestry practices, and incorporating ESG considerations, forest companies can secure their long- term viability, attract investment, comply with regulations, and contribute positively to the transition towards a sustainable and resilient economy. 51 GREEN PRACTICES GUIDELINE FOR FOREST OPERATION