ESG & UN SDG

What does ESG mean?

ESG stands for Environmental, Social, and (Corporate) Governance and is used to describe a group of issues that can have a material impact on the long-term success of the company and, potentially, investment returns. Examples of ESG issues include energy consumption and greenhouse gas (GHG) emissions, supply-chain risk management, gender diversity, employee productivity, independent board leadership, and CEO compensation.

What is our ESG philosophy and approach?

To Artison, ESG is not an isolated philosophy. Rather, it is linked to the Sustainable Development Goals (SDG) of the United Nation (UN). We believe in delivering our bits for the Environment, Society and Economy (ESE) through our innovative approaches of  “Developing a Better Timber Alternative to Prevent Deforestation”Through intense research, Artison has found that Bambusa Bambos, a native species of Central India, is suitable RM for Engineered Board. In fact, bamboo-based Engineered Board shows better mechanical properties than those made from timber., “Bamboo-plantation in Agro-forestry/Multi-Cropping Model”,Innovative way to increase yield per acre so that the farmer gets traditional crop and continuous his income before initial bamboo harvest. The strategy ensures Sustainable Supply of Raw Material (bamboo) for the Engineered Board Manufacturing Unit and also mitigates the biggest risk that a Board Manufacturer ever faces. “Creation of Permanent Green” Unlike the harvest of traditional timber-producing trees, the bamboo-plantation, due to cyclic harvest model, generates “Permanent Green” but does not destroy it., “Developing Employment and Entrepreneurship at the Rural Level”Through the Village Units (VU). Direct employment generated in each VU is 200 people, totaling approx 7,000 employment for 35 VUs. Local entrepreneur will manage each VU, Artison will guarantee buy-back. Indirect employment will be 2-3 times of that figure., “More Than Doubling Farmer’s Income””Expected gross income from bamboo plantation is 2.0 – 2.5 Lac Rs per acre which is much more than the expected income per acre from the traditional crop. The income also increases over time due to the increase in weight of each bamboo pole and in the number of harvestable mature bamboo pole per clump., “Generating Economic Value””Through the World’s First Bamboo-Based Engineered Board Manufacturing Unit & “Creation of Sustainable Supply of Raw Material”Through Bamboo plantation in partnership with the local farmers with a buy-back guarantee for 40 years..

We believe in Lord Krishna’s words “Karmanye Badhikaraste Ma Phaleshu Kadachana” that means “doing one’s work without the desire of success or fear of failure”. It is not for us to rate ourselves. We shall do our work and let others rate our ESG performance.

Why integrate SDG (Sustainable Development Goals) issues into the business process?

We embrace sustainability as the core of our business. Without sustainability, a business can only create a short-term value. However, we believe in the creation of long-term value that can generate happiness for our stakeholders.

Being the first mover in this sector, we are confident of creating maximum value for our stake-holders and investors.

Major SDGs

SDG 3: Good Health and Well-being

Some phoneBamboo plantation does not require inorganic manure. Thus the inter-cropped grains and vegetables will not have the traces of harmful inorganic substances – a step towards organic farming.

A mature bamboo plantation doesn’t require water and could sustain purely as rain-fed. Therefore bamboo planters will have more water for their traditional crop grown on other farm lands resulting in better productivity.

SDG 8: Decent Work and Economic Growth

Some phoneBamboo-based Engineered Board Manufacturing Units will employ 3,000+ labour and will result in the DEVELOPMENT OF A NEW SECTOR in India.

In addition there will be 7,000 – 14,000 direct employment in the Village Units.

SDG 9: Industry, Innovation and Infrastructure

Some phoneArtison is setting the World’s First Bamboo-based Engineered Board manufacturing industry. This is disruptive innovation in a very-large scale. Nobody in the engineered board sector, till date, has tried implementing such a brilliant idea.

Artison believes that the model will eventually become the norm for all engineered board manufacturers resulting in development of bamboo  plantation across India and across the world.

SDG 11: Sustainable Cities and Communities

Some phoneBamboo is a long-term crop. It is to be cultivated once, maintained for initial few years and to be harvested annually for decades (40+ years). So no recurring cost of cultivation and agri-implements.

Bamboo could be cultivated almost all types of land and could convert barren, fallow land into fertile one. Saline water area where no traditional crop could be cultivated, could also be used for bamboo cultivation.

Mature bamboo can withstand draught, heavy-rain and flood condition without any problem. Thus bamboo-plantation ensures almost risk-free return for the bamboo farmers and the communities.

SDG 12: Responsible Consumption and Production

Some phoneArtison believes in responsible sourcing of raw material. Hence all our bamboo crop will be FSG (Forest Stewardship Council) certified. This is to ensure that all the sourced RM is cultivated as cash crop thus preventing any attempt by middlemen to source and supply RM from forests lands.

SDG 13: Climate Action

Some phoneArtison follows a “Cyclic Harvest Model” whereby only 25% matured bamboo from a bushel is harvested. Therefore, unlike the harvest of traditional timber-giving trees, the bamboo-plantation generates “Permanent Green” but does not destroys it.

As per our estimate, the 4 years’ mature bamboo-plantation captures 124 MT/acre Carbon. This figure increases to 220 MT/acre and 312 MT/acre respectively when the bamboo-plantation is 6 years’ and 8 years’ old.

For further details please see Bamboo Plantation – Environmental Benefits.

Minor SDGs

SDG 1: No Poverty

Some phoneIncreased income per acre from the proceeds of the bamboo crop will help in reducing poverty in the rural level.

SDG 7: Affordable and Clean Energy

Some phone

Artison will be using Green Energy as far as possible for the Bamboo-based Engineered Board Manufacturing unit. The energy will come from burning agro-waste in the Energy Unit and through a combination of Solar and Wind power units. The agro-waste will be sourced from the farmers. Thus the farmers, instead of burning them on the farm lands and causing air-pollution, will generate revenue from them.

SDG 10: Reduced Inequalities

Some phone

Increased income level of the marginal bamboo farmers will create disposable income at the village level resulting in reduced inequalities.

SDG 15: Life On Land

Some phoneBamboo helps soil to hold moisture through its rhizome thus supporting life for the very basic strata of our eco-system.

SDG 17: Partnership For The Goal

Some phoneWe are in the process of forming partnership with the state governments so that bamboo could be cultivated in waste revenue and degraded forest land. It will result in creation of permanent bamboo forests and a sustainable stream of revenue for the government and the poor village people/tribal who would maintain those bamboo plantation.

Artison is also setting up skill development centers with a buy back guarantee that can provide livelihood support the poor people at the rural level.

This way the benefits of the model could reach a wide number of people and the Environmental, Social and Economic (ESE) goals of the model could be fulfilled.

Bamboo Plantation – Environmental Benefits

  • Good timber substitute, prevents deforestation
  • Cyclic harvest creates Permanent Green, harvested for 40 years
  • Organic manure is sufficient, avoids harmful effects of inorganic manure
  • Holds up top soil, reduces soil erosion
  • Holds up moisture & bamboo leaves turn into organic manure
  • Absorbs more CO2 than any other species, reduces Green-house effect
  • Can co-exists with traditional crops – multi-crop with bamboo
  • Grows on all kinds of soils including stony, red & alkaline soil
  • Can be cultivated with moderately saline water
  • Reclaim & transform barren land
  • Low water requirement, raises water-table & attracts rain-bearing clouds

Bamboo Plantation – Social Benefits

  • High yield per acre leading to higher income per acre
  • Durable Species – once matured, bamboo lasts for over 40 years
  • Inter-cropping Model of Agriculture possible (income from day 1)
  • One-time investment on the Bamboo Plantation. Reduced cost of implements
  • Can generate huge direct and indirect employment – handicrafts as well as industrial skills through large-scale Engineered wood manufacturing
  • Efficient usage of agro-waste for energy creation (additional revenue)
  • Works as natural wind-barrier for other crops, preventing damage
  • Good timber substitute, preventing deforestation

Bamboo Plantation – Economic Benefits

  • Employment intensive: Job creation in manufacturing, logistics, MSME sectors.
  • Capital Goods development can develop Intellectual Property (IP), auxiliary industries, service industries.
  • Boost to Indian Economy through exports (foreign currency)
  • Huge Global bamboo market (USD 70 Bn in 2018), China dominates
  • Bamboo-based engineered boards are better than timber-based board
  • Supply of timber is limited and costly. Bamboo can replace it, creating a sustainable supply of bamboo will ensure increased availability and cheaper price
  • Directly links agriculture with industry
  • Bamboo waste could be a good “cotton replacement” and/or could be used for Bamboo-Plastic Composite

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