What began as a movement driven by conscientious consumers, the planet’s future is increasingly becoming a boardroom priority, and businesses are leading initiatives in ESG by adopting sustainability not just as a strategy but as part of their core operations.
Talawakelle Tea Estates, a key player in Sri Lanka’s plantation industry, is one example of a corporate entity that has infused sustainability into its core business practices for wide-ranging impacts from community upliftment to challenging traditional agriculture practices for a sustainable future.
The company received the ACCA Sustainability Award 2024 in the Agriculture category, recognizing its efforts in integrating environmental, social, and governance (ESG) principles. This acknowledgement reflects its approach to business transparency, social responsibility, and adaptive agricultural methods. By embedding sustainability into its operations, Talawakelle aligns with industry trends and regulatory frameworks while addressing environmental challenges and economic considerations. The company continues to refine its strategies, ensuring that sustainability remains at the core of its long-term vision and operational goals.
A Culture of Innovation and Sustainability
Sustainability at Talawakelle is a fundamental principle rather than an additional strategy. The company has systematically adopted international sustainability reporting frameworks to align with global standards. By following the International Integrated Reporting Framework, Global Reporting Initiative (GRI) standards, and other regulatory benchmarks such as IFRS, SASB, TCFD, and TNFD, Talawakelle ensures structured and consistent disclosures. This approach allows the company to communicate its value creation across financial, social, and environmental dimensions while holding itself accountable to stakeholders.
Transparency plays a role in its sustainability initiatives. Talawakelle has implemented structured sustainability disclosures, giving stakeholders verifiable insights into its environmental and social impact. By doing so, the company establishes trust and sets benchmarks in Sri Lanka’s plantation industry, influencing peers to adopt similar practices. Regular sustainability reporting ensures continued monitoring and evaluation of key impact areas, enabling a structured approach to risk management and long-term planning. These frameworks also support investors and business partners in making informed decisions based on verified sustainability data.
Transforming Sustainability: From Compliance to Regeneration
Talawakelle is leading a shift in sustainability in the plantation industry from compliance-driven practices to environmental management. The company has adopted a regenerative agriculture model incorporating biodiversity conservation, ecosystem restoration, and climate resilience. This shift is evident in its adoption of Science-Based Targets (SBTi) for Net-Zero emissions, making it the first plantation to do so.
This commitment is reinforced by obtaining ISO Certifications for Energy and Environmental Management, ensuring its operations meet recognized environmental efficiency standards. Talawakelle’s approach integrates organic fertilizers, precision irrigation, and soil conservation techniques, reducing its ecological footprint while maintaining productivity. These efforts position the company within climate-smart agriculture, demonstrating how plantations can mitigate climate risks through structured interventions. The company’s reforestation initiatives and soil restoration programmes further support its broader sustainability goals. In addition, collaborations with research institutions help refine practices that align with evolving environmental regulations.
Measuring Success: Impact Through Innovation
Sustainability efforts require measurable outcomes. Talawakelle employs structured assessments to track the impact of its initiatives, ensuring alignment with global sustainability frameworks. One notable outcome is its early adoption of IFRS S1 & S2 reporting guidelines, incorporating climate-related financial disclosures into its annual reporting. This step has positioned the company within climate risk transparency in Sri Lanka.
Renewable energy adoption is a component of its sustainability efforts. Talawakelle has committed to achieving 100% renewable energy usage by deploying solar panels and mini hydro plants, reducing its reliance on conventional energy sources. These initiatives have lowered emissions and provided an example of renewable energy use in the plantation sector. In recognition of its sustainability progress, the company received five awards at the Best Corporate Citizen Sustainability Awards 2024. These developments align with sustainability targets and contribute to long-term cost efficiencies and energy security.
Employee engagement is another indicator of Talawakelle’s sustainability impact. The company holds a Great Place to Work certification, with a reported 99% employee satisfaction rate. This metric indicates a work environment that supports employee well-being while aligning with sustainability objectives. Workforce training programmes and employee development initiatives ensure alignment with corporate sustainability goals, further reinforcing long-term employee retention and professional growth. Talawakelle also promotes diversity and inclusion, fostering a workplace culture that encourages knowledge-sharing and collaboration on sustainability-driven projects.
Leveraging Technology for Sustainable Agriculture
Technology adoption is shaping the plantation sector. Talawakelle has integrated technologies such as IoT, drones, biochar, and micro-hydro solutions to enhance resource management and reduce environmental impact. These technologies influence operations, sustainability metrics, and productivity.
A component in this area is the IoT-enabled Climate-Smart Plantation and Forestry Management System. This system utilizes IoT devices, drones, and precision agriculture techniques to collect data on soil health, crop conditions, and water levels. Using this data, the company can make adjustments that improve efficiency while limiting resource waste. Predictive analytics further optimize resource allocation, reducing unnecessary inputs and mitigating risks associated with climate variability.
Precision agriculture has also contributed to sustainability performance. Multispectral imaging, LiDAR, and GPS have enabled Talawakelle to reduce agrochemical usage by 30%, lower production costs by 20%, and enhance crop resilience to climate change. Drone-based LiDAR and species identification support biodiversity conservation, ensuring compliance with environmental regulations and sustainability practices. The integration of AI-driven analytics further enhances decision-making capabilities in resource management. These technological interventions help ensure that productivity remains stable while minimizing the ecological footprint of plantation operations.
Sustainability as Company Culture
Sustainability at Talawakelle extends beyond regulatory compliance and business strategy—it is embedded in its organizational structure. Employees at all levels are trained in sustainability principles, ensuring alignment between company objectives and workforce engagement. The company fosters a structure of accountability, where employees contribute to sustainability initiatives and process improvements.
One such initiative is the “Farmer School” programme, which equips smallholders with sustainable farming techniques. This programme strengthens collaboration between estates, employees, and local communities, ensuring that sustainability knowledge is shared beyond company operations. Talawakelle contributes to an environmentally conscious agribusiness system by extending sustainability education to smallholders. Partnerships with agricultural research institutions provide additional support for scaling sustainable practices within the industry. These collaborations ensure that new sustainability practices remain adaptable to changing economic and environmental conditions.
Beyond the Plantation: Community Impact
Talawakelle’s sustainability efforts impact the communities surrounding its plantations. The company has influenced social and economic outcomes in local communities through fair trade practices, workforce development programmes, and environmental conservation projects. Improved agricultural techniques, workplace standards, and environmental awareness are among the indirect effects of its sustainability programmes.
The company has also focused on employee development. Career opportunities aligned with sustainability practices ensure that employees gain relevant skills. These efforts have influenced work environment conditions while supporting workforce retention. In parallel, Talawakelle has undertaken biodiversity conservation initiatives to reduce water consumption, protect species, and mitigate deforestation risks. Additional outreach programmes address community needs, including access to education, healthcare, and infrastructure improvements. By continuously engaging with local stakeholders, the company ensures that its sustainability efforts contribute meaningfully to long-term community development.
Looking Ahead: Steps for the Future
The plantation industry is shifting through digital transformation, precision agriculture, and sustainable trade practices. Talawakelle is participating in this transition with plans to expand its regenerative agriculture efforts and renewable energy projects. The company aims to reach carbon neutrality by integrating nature-based solutions, adjusting soil health practices, and enhancing carbon sequestration.
Looking forward, Talawakelle is evaluating technologies such as blockchain for supply chain transparency and AI-driven analytics to manage resource use. These technologies are expected to influence ethical sourcing, improve traceability, and support sustainability targets on a global scale. By maintaining structured innovation and sustainability, Talawakelle positions itself within agriculture practices, setting practices for the industry while ensuring long-term environmental and economic outcomes. Continued investment in research and development will further refine sustainability initiatives, providing resilience in an evolving agricultural landscape.