A1: Social mantra one-liner

Palmania: Empowering indigenous farmers by reviving traditional crafts and globally introducing promising sweeteners

“We empower local artisans by providing a global platform for traditional Khmer crafts, ensuring sustainable livelihoods and cultural preservation. Our vision is to foster global recognition of these unique delights, not just as international products but as cherished symbols of cultural heritage. Simultaneously, we aim to create a future where palmyra trees thrive, valued for their true worth, and where farmers enjoy improved standards of living, harmonizing nature, tradition, and prosperity.”

A2: Social impact clarity and significance

As a member of the Khmer ethnic group, our co-founder, Ms. Ngoc Diu, recognized the fading tradition of her community—the craft of producing palmyra sugar from palmyra flower nectar.

In recent years, the younger generation has shown a diminishing interest in this traditional craft. Instead, they have resorted to cutting down palmyra trees to sell to Chinese traders at low prices to supplement their income. A significant portion of this population has migrated to major urban centers, such as Ho Chi Minh City. The migration rate is… This trend is exacerbated by the insufficient income derived from traditional palmyra nectar production, with the price of raw materials falling below the average income levels in Vietnam.

Farmers are often compelled to sell their palm nectar at low prices, making it challenging to sustain their livelihoods. Economic hardships have driven many farmers to abandon traditional methods in favor of more immediate financial returns, such as cutting down the trees for timber.

With the rapid pace of industrialization, palmyra sugar has increasingly become mass-produced, often with the addition of various flavorings and chemicals, resulting in a cheaper product. Currently, palmyra sugar is sold at a low price, and its usage is largely confined to cooking and making desserts. The price of palmyra sugar is comparable to that of sugarcane, despite its significantly higher nutritional value compared to other sweeteners.

Our analysis has identified that the root cause of this issue is the lack of consumer awareness regarding the true value of palmyra sugar, both in terms of its health benefits and its cultural significance.

Goal	Indicator / Unit	Baseline 2023	Target Number
			2024	2025
To reduce carbon emissions by keeping more Palmyra trees from being cut down	CO2 prevented / metric ton	30	40	60
	Amount of Palmyra trees	300	400	600
To cooperate with more farmers	#of farmers to cooperate with	14	28	40
To create more jobs for local people	#of employees	5	7	9
To increase salaries for farmers and workers	Salary/ month (USD)	210	250	315

1.    The target issues and their root causes are clearly articulated

• Lack of Awareness of Sugar Palm Nectar’s Value: 
• Explanation: The lack of recognition of the true value of palm nectar is a foundational issue. This undervaluation affects how the product is perceived both economically and culturally, influencing market dynamics and consumer perception.
• Impact: Because palm nectar is not seen as valuable, this leads to low product pricing, which directly affects the income of farmers.

https://tuoitrenews.vn/news/business/20150923/chinese%20traders%20hunt%20for%20decades%20old%20sugar%20palm%20trees%20in%20southern%20vietnam/38610.html

• Low Income for Farmers:
• Explanation: Due to the undervaluation, farmers receive low prices for their palm nectar, making it difficult to sustain their livelihoods. Where economic hardship forces farmers to abandon traditional methods in favor of quick financial returns, like cutting down the trees for timber.
• Impact: The low income leads to financial instability and farmers cannot earn enough income to maintain sustainable livelihoods.
• Evidence: The poverty rate in Tri Tôn and Tịnh Biên (Bảy Núi area) is higher than the average in the Mekong Delta. Additionally, the unemployment rate in An Giang rose to 4.17% in 2021 from 2.35% in 2020

https://www.ceicdata.com/en/vietnam/unemployment-rate-by-provinces-annual/unemployment-rate-an-giang

• Decline in Learning Traditional Harvesting:
• Explanation: With the declining economic viability of palm nectar harvesting, fewer young people are motivated to learn and perpetuate the traditional methods. This threatens the continuity and evolution of the craft.
• Impact: As fewer people learn these traditions, knowledge and skills are lost over time.
• Evidence: Fewer people learn and practice traditional methods due to economic hardships, with many migrating to big cities for jobs, leaving rural areas understaffed

https://www.researchgate.net/publication/285867729_Poverty_Reduction_Strategies_in_an_Ethnic_Minority_Community_Multiple_Definitions_of_Poverty_among_Khmer_Villagers_in_the_Mekong_Delta_Vietnam

• Market Dominated by Unsustainable Substitute Products:
• Explanation: The lack of economic incentive and declining interest lead to an increased presence of mass-produced, chemically treated alternatives. These products are often cheaper and faster to produce but do not maintain the ecological balance or cultural integrity.
• Impact: These alternatives drive the market away from traditional, sustainable practices, making it even harder for local, traditional farming to compete. Mass produced products are not guaranteed to have adverse effects on people’s health.
• Evidence: https://www.phunuonline.com.vn/rung-minh-voi-duong-thot-not-deu–a59290.html
• Decline in Indigenous Crafts and Cultural Heritage
• Cause and Effect: All the above root causes lead to the decline of the craft and cultural heritage of sugar palm nectar production, affecting not only the environment (such as deforestation and biodiversity loss) but also the cultural identity of the indigenous Khmer community in the Bảy Núi region.
• Supporting Data: Deforestation caused by cutting down sugar palm trees for timber affects ecosystems, leading to climate changes and biodiversity decline
• Evidence: https://www.nature.com/articles/s41599-023-01817-5

2.    The scale and scope of the target social/environmental issues are significant

In recent years, 190 palm trees were sold for VND 250,000 to 500,000 (US$11 to US$22.5) each. Chinese traders falsely inflated demand, luring farmers to cut down their trees for quick cash, only to vanish later. This has damaged the Palmyra ecosystem and hurt local incomes. Despite warnings from authorities, the promise of easy money continues to drive deforestation.

The loss of trees has caused environmental problems like erosion and flooding. Many people, facing low incomes, have left traditional crafts behind and moved to cities, straining urban resources and worsening rural poverty.

The poverty rate in Tri Ton and Tinh Bien (Bay Nui region) is higher than the average of the Mekong Delta region. In particular, Tri Ton has a higher poverty rate than the regional average (source: https://ewsdata.rightsindevelopment.org/files/documents/44/WBP153544_1oA9vrh.pdf

The underemployment rate in An Giang in 2021 is 4.17%, up from 2.35% in 2020, making An Giang one of the provinces with the highest migration rate to big cities in the the Mekong Delta

https://www.ceicdata.com/en/vietnam/unemployment rate by provinces annual/unemployment rate an giang

Poverty and unstable income have forced Khmer people in Tinh Bien and Tri Ton to give up the traditional profession of making soft palmyra nectar, leading to migration to big cities in search of job opportunities. This causes the rural population to suddenly decrease.

(source:https://tuoitrenews.vn/news/business/20150923/chinese%20traders%20hunt%20for%20decades%20old%20sugar%20palm%20trees%20in%20southern %20vietnam/38610.html).

The decline of the traditional Khmer palm sugar craft is particularly troubling. Moreover, The government and local officials in An Giang are now working hard to preserve Khmer culture and protect the remaining palmyra trees.

Regarding the indirect consequences, Deforestation from unsustainable practices messes up climate patterns, harms water sources, and disrupts the overall balance of nature. This environmental damage affects the communities depending on these ecosystems. Moreover, the loss of traditional crafts erodes cultural identity, as centuries-old knowledge and skills fade away. This cultural erosion impacts community cohesion and identity. Relying on low-quality, unnatural products can also lead to health problems, putting a strain on the healthcare system. These indirect consequences show why it’s crucial to adopt sustainable practices to protect our environment, preserve cultural heritage, and maintain public health.

https://www.phunuonline.com.vn/rung-minh-voi-duong-thot-not-deu–a59290.html

Our ambition to solve the problems tightly align with the UN Goals as stated in the table.

A3: Solution effectiveness and ESG integration

1.    Solution Design Addressing Root Causes

• The first cause is that the true value of Palmania cannot be recognized so to address this, Palmina tends to educate and train farmers more to make them understand the value and benefits and from that they will cooperate to work effectively. They also conduct more communication campaigns to increase the perceived value of palmyra products, the company can raise awareness, increase demand, and enhance market value.
• Farmers tend to receive less from their products and do not have enough income to sustain their livelihoods. To address these issues Palmania offers farmers, especially Khmers, jobs and ensures they receive income resources which will be equal or even higher than before. It also creates works for minorities women, helping them raise their voices in the families. Palmania commit to pay a higher and stable price for the raw materials before each seasons to the farmers

• A few younger people nowadays don’t want to learn the art of traditional harvesting palm nectar because for some reasons, they tend to lose interest in this job instead choose to use the unsustainable materials to increase their performance. Palmania offers them the opportunity to have enough income by increasing the market internationally. Palmania participates in fair trade practices, ensures fair compensation to ensure stable and higher incomes for farmers, and reduces population decline.
• Mass produced from competitors who use unsustainable production is also a big concern to consumers. On the other hand, Palmania followed the B2B model, which means they only produce or increase the amount of production by having contracts from other suppliers, distributors or importers.  Besides, to make it more transparent, Palmania got organic certificates from reliable third parties that make the company stand out from the competior.
• Cultural heritage is still maintained and communicated to expand people’s perception.  The company is cooperating with BSOs such as NGOs, and industry partners to secure funding, resources, and policy support. Furthermore, Palmania establishes programs to preserve and promote traditional craft to preserve traditional methods, increase community engagement.

2.    Recommended solutions:

To adapt to the market’s demands, the company can innovate new products, collaborate with chefs and influencers to open new market segments, and diversify revenue streams.

3.    ESG Practices Integration:

To promote sustainable farming practices and reduce environmental impact, Palmania will implement various initiatives aimed at ensuring the long-term sustainability of palmyra trees. These efforts will focus on teaching farmers sustainable cultivation techniques, reducing the use of harmful chemicals, and encouraging biodiversity. Supporting local communities is a key priority for Palmania. By ensuring fair wages and providing comprehensive training programs, the company aims to improve the living standards of farmers and their families. These initiatives will also enhance community welfare by fostering a more stable and prosperous local economy. Palmania is committed to implementing transparent and ethical business practices. This includes maintaining clear communication with stakeholders, adhering to strict compliance with regulations, and ensuring that all business operations are conducted with integrity. These practices are intended to build trust with consumers, partners, and the broader community.

Palmania focuses on sustainable organic products and operates mostly in the overseas market both in Europe and Southeast Asia. And with the main purpose of creating jobs for ethnic Khmers, Palmania can solve the root causes in a positive way.

In Vietnam, Palmania confidently positions itself as a pioneer in the natural and organic production of palmyra sugar, with international certifications, bringing the true value of palmyra sugar to the global market. All our efforts are aimed at elevating the value of palmyra sugar, thereby addressing employment and poverty issues for the Khmer people and the An Giang region.

Profits earned from palmyra and organic palmyra products are 1,5 – 2 times higher than conventional processing practices.

  B1: Mechanisms to Accelerate impact

The Khmer people living in An Giang have a custom of building dykes to separate land plots, and the palmyra trees are usually wild and not cared for by humans. Palmania will collaborate with farmers to certify the entire area of rice and palmyra trees as organic. Currently, Palmania owns 1 hectare of organic palmyra, on which there are about 55 palmyra trees that are harvested alternately. On average, a farmer can climb up to 25-30 trees a day. On average, 20 palmyra trees yield 2.3 tons of palm syrup annually; previously, it could yield up to 5.6 tons, but due to climate change, this has decreased. From 2 to 3 tons of palm syrup, one can obtain between 14,000 to 21,000 liters of palm nectar.

A family can harvest from 60 to 100 palmyra trees. Palmania is currently collaborating with 20 households and is looking to cooperate with more. The next target is to cooperate with at least 200 more farmers to supply partners in South Korea, which would involve approximately 8,000 to 20,000 wild palmyra trees. For the organic rice and palmyra project, around 30 households will grow rice, and 25 households will handle palmyra in the An Tuc field to harvest 600 palmyra trees and certify the entire area as organic. Each household will include one male and one female of the Khmer ethnic minority. This initiative helps create jobs for both men and women in remote areas, significantly benefiting the ethnic group as a whole and the ethnic women in particular.

Currently, An Giang Province is home to over 35,000 wild palmyra trees, providing a substantial source of raw materials that Palmania can leverage to scale its social business. By harnessing the power of word-of-mouth and demonstrating tangible benefits—such as creating stable income streams for indigenous farmers—Palmania can build trust among other farmers in An Giang. These farmers will be encouraged to collaborate with Palmania in harvesting and utilizing the abundant resources of wild palmyra trees.

As Palmania expands its reach and partners with more households, the company will further its mission of generating additional employment opportunities for local farmers, thereby reducing the cutting down of palmyra trees.

Moreover, by scaling up production, Palmania’s palmyra sugar products will penetrate more global markets, elevating the value of both the palmyra sugar and the traditional craft—a cultural heritage of the Khmer people.

1. Current strategies from Palmania:

• To achieve the above goals, Palmania needs the unity and support of the people, requiring communication and collaboration with them.
• Training and educating the people to obtain organic certification for both the rice and palmyra growing areas. To accomplish this, Palmania will ensure farmers’ benefits by guaranteeing their income through purchasing their entire rice output, ensuring their income is equal to or higher than before. Palmania is already collaborating with companies specializing in high-quality rice cultivation.
• Support from the province is essential to connect and work with farming households.
• Hire more people to climb trees and collect the nectar.
• Actively seek support from Business Support Organizations (BSOs) regarding funding, communication, technical assistance, etc.

2. Strategies to Scale-Up:

Main purpose: create impacts toward society, empowering farmers, minorities and womens, ensure their income.

• Diversify creative products from palm syrup to meet market demand.
• Strengthen cooperation with Business Support Organizations (BSOs) to expand the market and create job opportunities for Khmer households.
• Expand training programs for farmers so they can cooperate and support organic certification, as well as ensure the maintenance of organic certification. Train farmers to help them become more aware and capable of using agricultural tools.
• Ensure fairness in benefits among farming households.
• Increase manpower, field staff, harvesting teams, and maintain a strong management team to ensure consistency.
• Invest in additional infrastructure and facilities, integrating technology to reduce human labor and increase efficiency.
• Actively participate in international trade fairs to enhance brand identification and introduce products and their significance to international audiences.
• Develop targeted marketing campaigns to educate consumers on the health benefits and sustainability of palm syrup products.
• Establish a feedback loop with consumers to continuously improve product quality and address any concerns.
• Develop community engagement programs that go beyond just providing jobs, such as educational scholarships for children of farming families or health initiatives for the community
• Seek long-term partnerships with international distributors and retailers to secure consistent demand for products

• Palm trees are currently grown in the two districts of Tinh Bien and Tri Ton with over 35,000 trees.

• According to the development orientation of the People’s Committee of An Giang province, by 2025, the number of palm trees in the two border districts of Tri Ton and Tinh Bien will be exploited to produce organic products reaching 200 trees over 40 years old, divided equally between the two districts. Along with that, the rate of organic palm products will reach 1 – 2% of the total product of the whole province
• By 2030, the number of palm trees in An Giang exploited to produce organic products will reach 500 trees. Of which, Tri Ton district has 200 trees and Tinh Bien has 300 trees. Accordingly, the province will form at least 1 new production chain linked to the consumption of certified organic palm trees; the rate of organic palm products will reach 3% of the total product of the whole province.

source: https://vneconomy.vn/an-giang-tien-toi-hinh-thanh-vung-san-xuat-thot-not-huu-co.htm

B2: Financial Stability and Profitability

• Palmania captures value through diversified revenue streams, including B2B sales and partnerships, while optimizing costs and fostering brand loyalty by preserving sustainable and culturally significant traditional crafts.

1. Revenue Streams

• B2B Sales: Target large retailers, manufacturers, and restaurants, offering bulk pricing and long-term contracts.
• Retail Sales: Sell directly to consumers and small retailers through online platforms and organic stores.

2. Cost Structure

• Variable Costs: Includes raw materials (organic palmyra), production, packaging, and logistics.
• Fixed Costs: Covers labor, marketing, social impact investments, and capital expenditure on equipment and infrastructure.

3. Pricing Strategy

• B2B Pricing: Offer competitive bulk pricing with discounts for larger orders.
• Retail Pricing: Position the product as a premium organic sweetener, balancing affordability with the value of ethical production.

4. Market Demand & Profitability

• Target Market: Focus on health-conscious consumers, high-end retailers, and restaurants.
• Revenue & Growth: Estimate sales volumes, forecast revenues, and project growth based on market trends.
• Profit Margins & Sustainability: Monitor profitability, control costs, and ensure long-term viability while fulfilling social impact goals.

Start since 2017, Palmania has gradually move the product from the domestic market into the international market. In 2019, exported to Finland, 2020 reached the Netherland and Dutch market, 2022 exported to the Dutch Market, 2023 exported to Japan and UK and Korea market

In 2023, our revenue reached 5.191.814 VND in both domestic and international market

In 2023, our ROI was 1.29%, largely due to significant investments in technology, machinery, and expanding partnerships with more farmers as we scaled up our business and focused on organic certification. However, with our current growth trajectory, we predict our ROI will increase to 65% over the next five years.

5. Solution of risk

Palmania has implemented several strategies to mitigate the identified ESG risks, including

• Organizing Training: Palmania organizes training sessions and technical support for locals on how to produce palmyra flower nectar using traditional methods, helping them achieve stable and sustainable income from this craft.
• Educating and Preserving Folk Knowledge: Transmitting traditional production techniques to younger generations, preserving folk knowledge
• Seek for financial support from different source range from: the government authorities, NGOs, Business Support Organistion…
• Ensure the traánparency and trâcbility practices among stakeholders

These strategies not only help mitigate the identified risks but also create sustainable values for the community and the living environment.

6. Raise fund

Online crowdfunding campaign:

• Choose the platform: Kickstarter, Indiegogo, or GoFundMe
• Prepare below materials to present Palmania to online investors

Strategy to Connect with Potential Backers

• Compelling Storytelling: Clearly narrate the journey and mission of Palmania. Highlight the uniqueness of using natural palm nectar, emphasizing health benefits and the organic nature of the products.

• Product Benefits: the health benefits of natural palm nectar and its advantages over chemically processed alternatives.

• Social Impact: how the campaign will create jobs and increase income for Khmer people in An Giang. Include personal stories and potential long-term benefits for the community.

• Environmental Impact: the eco-friendly aspects of your production process and how supporting Palmania contributes to sustainable practices.

• Target Audience: Identify and describe your target market (e.g., health-conscious consumers, eco-friendly advocates). Explain how you plan to reach them through targeted social media ads, influencer partnerships, and community groups.

• Engagement Tactics: Use engaging content such as videos, infographics, and customer testimonials to create an emotional connection with backers. Regular updates and interactive Q&A sessions can maintain engagement throughout the campaign.

Fieldwork Evidence 

• Evidence of Contribution Pledge is Credible

• Letters of Intent: Include letters from potential backers, local businesses, and community leaders expressing their intention to support the campaign.

• Partnership Agreements: Show formal agreements or MOUs with local partners, suppliers, and distributors.

• Evidence of Actual Contributions in Cash and/or In-Kind is Credible

• Pre-Campaign Backing: evidence of pre-campaign backing from friends, family, or angel investors.

• Financial Statements: transparent financial statements showing initial contributions or funds already raised.

• Contributions are Sufficient to Cover Operational and Business Development Needs

• Detailed Budget: how the funds will be allocated. Include categories like production costs, marketing, distribution, and community development.

• Scalability Plan: how the initial contributions will enable Palmania to scale its operations and ensure long-term sustainability.

• Milestones and Goals: Define clear milestones and goals for the campaign. Show a roadmap of how the funds will help achieve these milestones.

Offline crowdfunding campaign:

• Strategy to Connect with Potential Backers

• Community Engagement: participate in fairs (Thaifex), workshops, and product demonstrations to engage with the community directly.

• Partnerships with Local Businesses: Collaborate with local health food stores, cafes, and markets to reach potential backers

• Critical Contributions are Well-Presented

• Live Demonstrations: Conduct live product demonstrations to show the benefits of natural palm nectar, people can take a try the taste of product or prepare dishes made from palm nectar

• Testimonials: Share stories and testimonials from community members during events.

Fieldwork Evidence 

• Evidence of Contribution Pledge is Credible

• Community Support Letters: Gather letters of support from local community leaders, NGOs, and influential figures.

• Signed Pledges: Collect signed pledges from individuals and businesses who commit to supporting the campaign.

• Evidence of Actual Contributions in Cash and/or In-Kind is Credible

• Sponsorships: Secure sponsorships and document these contributions.

• Contributions are Sufficient to Cover Operational and Business Development Needs

• Fundraising Events: document the funds raised.

• Detailed Financial Projections: Provide detailed financial projections showing how local contributions will be utilized.

 B3: Team and Leadership

Business Structure of Palmania: Eighty percent of Palmania’s workforce, including members of the Board of Directors, are Khmer people who deeply understand their traditional craft and can accurately and vividly convey their ethnic stories.

Structure of the SBC Competition Team: The team participating in the Social Business Creation (SBC) competition includes Palmania’s COO, who will provide precise business data and insights into the company’s ESG practices and share traditional methods of producing palmyra sugar. The rest of the team consists of dynamic business students with extensive experience in social projects. With their soft skills, research abilities, and familiarity with SBC’s learning materials, they help Palmania improve its ESG practices through internationally recognized frameworks and better guide the transparency and disclosure of ESG data. Palmania is also supported by two mentors with extensive professional and practical experience, who provide guidance.

Global Outreach and Future Plans: By participating in various fair trade events and exhibitions worldwide, such as the Social Business Creation program, Palmania connects with big buyers and investors to enhance global recognition of palmyra sugar, generate additional profits, scale up, and collaborate with more farming households. Palmania is actively exploring and participating in future programs.

 B4: Partnership and collaboration

Palmania’s upcoming strategies focus on expanding the scale of the project and diversifying products to meet the needs of stakeholders. Therefore, the 3 core strategies are:

1. Community Support and Participation:
   • Ensure active participation from the community, especially those involved in sugar palm tapping and rice farming.
   • Establish effective communication channels between Palmania and the local community.
2. Training and Organic Certification:
   • Provide training programs for farmers to understand and implement organic standards.
   • Support the organic certification process for rice and sugar palm growing areas, thereby enhancing product value.
3. Income Assurance and Local Government Support:
   • Ensure stable income for farmers through commitments regarding pricing and product consumption.
   • Seek and maintain support from provincial authorities to facilitate cooperation and sustainable development.

Palmania has strong support from various prestigious organizations and programs. Here are some key pieces of evidence that demonstrate this:

1. Asia Beautiful Fellow (2024):
   • Organization: Beautiful Store Foundation
   • Support: Grant, Training/Coaching, Market research/expansion
2. Delta Accelerate (2024):
   • Organization: Nexus Vietnam
   • Support: Market research/expansion
3. IPSC (2024):
   • Organization: USAID
   • Support: Market research/expansion
4. Marketing Material Support (2024):
   • Organization: The Living Deltas Hub Mekong Organics & Climate Change Institute An Giang University
   • Support: Grant
5. Organic Certificate (2024):
   • Organization: CRED
   • Support: Grant
6. ISEE-COVID (2023):
   • Organization: UNDP MPI & GAC
   • Support: Grant, Training/Coaching
7. Trade Promotion (2023):
   • Organization: CRED Helvetas & Profound
   • Support: Training/Coaching, Market research/expansion, Technology
8. WFTO Fair Trade Certificate (2023):
   • Organization: VIRI
   • Support: Grant
9. International Innovators Award (2023):
   • Organization: Leipzig University
   • Support: Market research/expansion
10. Hans Blanket Fund (2022):
    • Organization: PUM the Netherlands
    • Support: Grant, Technology
11. Ready to Export (2022):
    • Organization: DBAV
    • Support: Grant, Training/Coaching
12. She’s Next Grant Program Vietnam (2022):
    • Organization: VISA
    • Support: Grant, Training/Coaching
13. Marketing Material Support (2022):
    • Organization: CRED
    • Support: Grant

 Prizes

• Won second prize of ‘Women entrepreneurs planning for success’ competition co-organized by Vietrade, the Netherlands Embassy to Vietnam, and the Dutch Business Association in Vietnam (http://www.thiduakhenthuongvn.org.vn/dien-hinh-tien-tien/trao-giai-cuoc-thi-nu-doanh-nhan-voi-ke-hoach-kinh-doanh-thanh-cong)
• Palmania won second prize of the Ready to Export program organized by Dutch Business Association  in Vietnam (https://www.linkedin.com/posts/the-kingdom-of-the-netherlands-in-vietnam_r2e-readytoexport-eastmeetswest-activity-7056626624821149696-VP2L?utm_source=share&utm_medium=member_desktop)
• 1 of 30 SIBs selected for the ISEE-COVID program 2023 organized by UNDP Vietnam (https://www.linkedin.com/posts/palmania-jsc_sibs-undp-iseecovid-activity-7120870770100113409-9Xdn)
• Won outstanding rural industrial product award for soft palmyra nectar and palmyra nectar products (https://baoangiang.com.vn/an-giang-co-2-san-pham-cong-nghiep-nong-thon-tieu-bieu-cap-quoc-gia-nam-2023-a383089.html)

C1: ESG Measurement and reporting  

1.    General ESG orientation:

Palmania ESG practices

Key issues	Excellent governance	For green environment activities	For social development
GRI Standards	GRI 103: Management method GRI 200: Economic	GRI 300: Environment	GRI 400: Social GRI 200: Economic
Palmania’s Commitment	G1: Clear organizational structure G2: Experienced Team G3: Supportive work space	E1: Expand organic farming E2: Reduce carbon emission E3: Preventing deforestation	S1: Supporting local communities S2: Revive an almost traditional craft for future generation S3: Provided jobs for both male and female locals S4: Provide higher and stable income for the indigenous farmers S4: Provide a lot of health benefits to the human kinds by palmyra nectar S5: International cooperation

2.    Reporting, measuring ESG impact:

ESG goals Detailed operations			Current progress	Implementation department	Impact
Environment
E1	Expand organic farming	Partnering with local farmers to convert their land to organic rice and sugar palm farming.	50 households are cooperating 50ha of land converted		Preserving the natural ecosystem, soil erosion and desertification Increasing the water table
E2	Reduce carbon emission	Planting and protecting palmyra trees	Planted 300 palmyra trees in 2023		Prevented 30 tons CO2 in 2023
E3	Preventing deforestation	Providing an alternative source of income to the local communities to help prevent the cutting down of palmyra trees for timber	Created 5 new jobs for farmers in 2023		1000+ palmyra trees saved, keeping for palm nectar production instead of cutting them down and selling them for 18 euros just for timber
2.              Social
S1	Supporting local communities	Plant and buy back palm trees from farmers	Owns 5ha of organic palm trees, working with 35,000 mature palm trees. Working with 200 households, each season they supply Palmania with 1-1.25 tons of palm sugar		Stop dumping to Chinese traders Provide farmers with knowledge and certification of organic training according to international standards
		By using raw palmyra nectar to produce into different product lines, Plamania helps with contributing to the economic growth in the rural residence.	In 2023, salary for farmers and workers is 210 USD/month.		The indigenous farmers now getter a better wages (2 to 2.5 times higher than average) and a stable annual income. => fostering decent work and economic growth within their communities.
S2	Revive an almost traditional craft for future generation	The focus on sustainable harvesting with responsible consumption patterns. Highlighting the traditional methods can inspire a move away from mass-produced goods and a return to appreciating handcrafted items.	Has 100 hectares of palmyra forest		Increase price competitiveness for handicraft products Provide jobs and income for Khmer people Protect traditional handicrafts and indigenous culture of Khmer people that are being lost
S3	Provided jobs for both male and female locals	Promotes job opportunities for women, providing them with income and enhancing their voice and position within their families.	Created 5 new jobs for farmers in 2023		Increase income for farming households to give children the opportunity to go to school Reduce migration rates Enable 60% of women enjoy financial independence, reduce gender inequality
S4	Provide a lot of health benefits to the human kinds by palmyra nectar	The use of natural techniques eliminates reliance on chemicals, which benefits both the environment and the health of consumers.	2 product lines including 18 organic products		More than 100,000 consumers enjoy natureal palmyra nectar products
S5	International cooperation	Research cooperation to develop products for export to international markets	Cooperating with An Giang University to develop products. 2019 export to Finland, 2020 export to the Netherlands and the Netherlands market, 2022 export to the Netherlands, 2023 export to Japan and the UK, Korea		In 2023, revenue reached 5.191.814 VND in domestic and international markets.
3.              Governance
G1	Clear organizational structure:	Palmania’s streamlined organizational structure, ensures clear division of responsibilities and effective collaboration among teams.	The board of directors is divided into 3 main functions: COO, CEO and Sales Director.		This clear governance aids in making accountable and transparent decisions.
G2	Experienced team	Founders having extensive work experience and multilingual proficiency,			Leverages a comprehensive skill set to manage its operations efficiently and build investor trust.
G3	Supportive work space	Fosters a respectful and supportive working environment.			Enhances employee satisfaction and retention.

C2. Compliance with ESG Standards and Frameworks 

Palmania selected the GRI Standards because they are the most suitable for the industry, the nature of the project’s activities, and the expectations of the stakeholders, specifically:

• The GRI standards provide a robust framework covering a wide range of environmental, social and governance (ESG) aspects. This allows Palmania to track performance, impact and transparency.
• The GRI Standards Framework integrates seamlessly with the Sustainable Development Goals (SDGs). Palmania can leverage relevant SDG metrics to demonstrate progress in reducing negative impacts and contributing to global sustainability.
• The GRI Standards emphasize transparency and stakeholder engagement. This fosters trust and builds confidence in Palmania’s commitment to responsible business practices
• The GRI Standards provide a modular framework that can adapt and evolve with Palmania’s ESG strategy. It prioritizes Palmania’s current, forward-looking metrics. This ensures that the framework remains relevant and reflects our ongoing commitment to ESG best practices.

 

Palmania is at the Strategic stage of Orgnaisational learning

Palmania has successfully integrated societal issues, such as the preservation of traditional crafts and the economic empowerment of indigenous farmers, into its core business strategy. This strategic integration is evident in several aspects of Palmania’s operations:

1. Vision and Mission Alignment: From its inception, Palmania’s vision and mission have been to revive traditional Khmer crafts and enhance the standard of living for indigenous farmers. This alignment ensures that every business decision and action is made with these goals in mind, demonstrating a deep commitment to societal impact.
2. Business Model and Practices: Palmania’s business model revolves around the use of traditional crafts in production and highlights these practices in its branding and marketing. This approach not only preserves cultural heritage but also differentiates Palmania in the marketplace as a company that values authenticity and sustainability.
3. Farmer Partnerships and Commitments: Recognizing the critical role of farmers in supplying raw materials, Palmania has made a concrete commitment to ensuring that farmers receive adequate compensation. This financial support is designed to cover their living expenses and enable them to send their children to school, thus contributing to the long-term sustainability of the community.