ByteDance, the company behind TikTok, invests in forest preservation in Malaysia, where its largest data centre outside China is located.

In a significant move towards corporate responsibility and sustainable development, ByteDance, the parent company of TikTok, has announced its investment in forest conservation in Malaysia. The company has signed a conservation agreement with the Malaysia Forest Fund and Bina Darulaman to protect and conserve the 92-hectare Darulaman Sanctuary, located on the island of Langkawi, off Peninsular Malaysia's northwestern coast.

The Darulaman Sanctuary is home to a rich biodiversity, with 73 avian species, 169 butterfly varieties, 160 herbal species, and 80 timber types. Several species in the sanctuary are listed as endangered, near-threatened, or vulnerable on the International Union for Conservation of Nature (IUCN) Red List.

Under the agreement, both ByteDance and Bina Darulaman's infrastructure unit will contribute towards forest conservation initiatives at the Darulaman Sanctuary, valued at RM700,000 (US$157,619) over a one-year period. This investment is part of ByteDance's broader strategy to invest RM10 billion (US$2.3 billion) in building Malaysia as a regional artificial intelligence hub.

The company also plans to expand its MY06 data center in Johor with an additional investment of RM1.5 billion (US$337.5 million). The Malaysian data center, which is ByteDance's biggest data center outside China, will contribute to the country's sustainable development by adhering to the guidelines introduced by the ministry of international trade and industry in December 2021 for the sustainable development of data centers.

The Malaysian Forest Fund is putting together a forest carbon offset protocol to be launched next year. This protocol will allow businesses to develop and invest in forest-based carbon offsets to help them meet their climate commitments. However, international carbon standards such as Verra are accepted and used in Malaysia, but they require different criteria that could make forest carbon projects too expensive for local project developers.

The government of Malaysia is also exploring innovative financing mechanisms, such as green bonds, sukuk, carbon tax, and sustainable investments, to bridge the funding gap between what is needed to keep trees standing and what the government can afford. According to the Malaysia Forest Fund, the funding gap is huge, requiring RM2.1 billion (US$472.6 million) annually.

The move by ByteDance to invest in forest conservation aligns with the Sustainable Development Goals (SDGs) related to this story, including SDG 7 (Energy), SDG 12 (Consumption), SDG 13 (Climate), SDG 15 (Biodiversity), and SDG 17 (Partnerships). The ministry of natural resources and environment in Malaysia, Nik Nazmi Nik Ahmad, NRES minister, stated that forests should be regarded as an invaluable asset, not just a resource to be harvested.

Representatives of TikTok Malaysia and Bina Darulaman signed the conservation agreement with the Malaysia Forest Fund, marking a significant step towards sustainable development and forest conservation in Malaysia.

ByteDance, the company behind TikTok, invests in forest preservation in Malaysia, where its largest data centre outside China is located.