EMERGENCE OF THE NATURAL CAPITAL AND BIODIVERSITY …

EMERGENCE OF THE NATURAL CAPITAL AND BIODIVERSITY ASSET CLASS

Mapping of the French stakeholders

NOVEMBER 2018

SUMMARY

Edito p.3

Introduction p.4

The Ecosystem of Actors p.6

Investors p.8

Banks p.9

Specialized funds p.10

Project developers p.11

Corporations p.12

Innovation sector p.13

Enablers & networks p.14

Acknowledgments p.15

BIODIVERSITY STAKEHOLDERS MAPPING - NOVEMBER 20182

EDITO

The more we lose it, the more concrete the concept of Biodiversity becomes. In October2018, the WWF disclosed a report revealing that in the past 40 years, more than 60% ofwildlife populations have disappeared. It is the same trend for ecosystems all around theworld. In reaction to these terrifying prospects, the concerns are growing: how long shall webe able to enjoy a prosperous environment?

It is proven that this downfall can be traced to human activities that destroy natural habitatsand overconsume global resources.

However, our economies heavily rely on Natural Capital. Ecosystems provide around$100bn of free economic services per year. Generally, every good we produce andconsume is the transformation of a natural product – even through complex supply chains.We also critically need healthy ecosystems to absorb carbon emissions. Therefore, it isessential that economic players improve global resources management.

In the face of the challenges posed by the protection of our planet, academics and policymakers have realized that economic actors and capital suppliers have a concrete impact onBiodiversity and can become drivers of positive changes. We do have the technicalknowledge to protect Biodiversity, to produce responsibly and preserve soil fertility, and torestore damaged ecosystems. What we need are the economic rationale and the financialmethods to scale these techniques and to effectively build global sustainable supply chains.

Experienced professionals aknowledge the trend they recently witnessed in sectors likerenewable energy: it takes a collective process to build an asset class. It requires commonground and understanding, it calls for a risk-reward partnership. At Finance for Tomorrow,with our dedicated working group, we conducted this “Mapping of the French Stakeholders”to support the emergence of the Natural Capital asset class, a much-needed breakthroughin the financial sector. We hope to help fasten this process and to showcase to the worldthe pioneer expertise of the French financial stakeholders.

In the next years in France, we will be extremely well positioned to be a hub on Biodiversityissues, as France will take the Presidency of the G7 and will host major international eventson the topic. Based on the experience of the Paris Agreement, we must prepare well for theConference Of the Parties 15 (COP15) on Biodiversity in China in order to create the politicalmomentum needed to preserve our common environment.

As Chair of Finance for Tomorrow, as an investor in sustainable infrastructures and NaturalCapital, I hope this collective work will allow an improvement in the way we invest in Nature.

BIODIVERSITY STAKEHOLDERS MAPPING - NOVEMBER 2018 3

Philippe ZAOUATIChair of Finance for Tomorrow

& CEO, Mirova

INTRODUCTION

To limit global warming in accordance with the Paris Agreement and the United Nation'sSustainable Development Objectives (SDGs), the protection and sustainable management ofBiodiversity is absolutely essential. It implies that economic players build a local andinternational supply chain based on agro-ecological projects. Hopefully, French financialactors have developed a pioneering expertise in the financing of Natural Capital andBiodiversity. In France, more than 550 millions euros are already invested by Funds forwhich having a positive impact on Biodiversity is an objective.

As part of its mission to make green and sustainable finance a driving force in developingthe Paris Financial Center and positioning Paris as the leading financial centre on theseissues, Finance for Tomorrow has structured a working group in Natural Capital andBiodiversity. Its objective is to coordinate the actors, to amplify their ambitions, and toreinforce their leadership internationally.

4 BIODIVERSITY STAKEHOLDERS MAPPING - NOVEMBER 2018

Natural Capital finance is nascent and composed by heterogeneous actors, which are notnecessarily aware that they are being part of a common sector. Economic players havedeveloped a great technical knowledge to preserve Biodiversity and to structure projectsable to flourish over the long-term. However, they must now change the paradigm forresources management and build an economic rationale for scaling up.

This “Mapping of the French stakeholders” objective is to improve the visibility of thesector and to help support the emergence of the Natural Capital and Biodiversity assetclass. It aims to define typologies and gather information, as a first step to foster synergiesbetween actors. Ultimately, Finance for Tomorrow aims to promote financial solutions andto start building a track-record of profitability and positive impact.

• Biodiversity is the variability among living organisms from all sources, and the ecologicalcomplexes of which they are part. It forms the foundation of the vast array of ecosystemservices that critically contribute to human well-being.

• Natural Capital is the environmental stock or resources of Earth that provide goods,flows and ecosystem services required to support life.

The underlying assets are categorized in three types :

• Sustainable production refers to sustainable agriculture, including agro-ecology,precision farming or regenerative agriculture techniques. It refers as well to agroforestryand sustainable fisheries projects.

• Nature regeneration is about ecological restoration and rehabilitation. Reforestation andrevegetation is the action of renewing forest cover or rebuilding soil whereas ecologicalcompensation objective is to offset unavoidable impacts.

• Conservation is the protection and preservation of ecosystems. It can be theconservation of terrestrial or marines areas, through planned management or with theimplementation of protective measures.

5

Milestones of Biodiversity & Natural Capital in France until 2020:

• 4 July 2018: “Biodiversity Plan” published by the French government ;

• 10 July 2018: “Act4Nature” corporation commitments published by EpE ;

• November 2018: “3 Days for Sustainable Finance” in Paris organized by UNEP FI &Finance for Tomorrow - COP14 on Biodiversity (CBD) in Egypt to assess the Program2010-2020 Energy & Biodiversity ;

• April 2019: 7th Internation science-Policy Platform on Biodiversity and EcosystemServices (IPBES) meeting in Paris ;

• May 2019: France Presidency of the G7 – International Agroforestry Congress ;

• June 2020: International Union for Conservation of Nature (IUCN) InternationalCongress in Marseille ;

• November 2020: COP15 on Biodiversity (CBD) in China, to assess the 20 goals of Aichi.

This mapping has been conducted based on a literature review and interviews with actorsof the sector. The entities mentioned in this document were selected according to a set ofcriteria per category of actors and based on publicly available information. As such, thismapping does not intend to be, and is not necessarily, exhaustive. Finance for Tomorrowencourages entities who could have been omitted to contact us in order to be mentioned inthe future editions.


Finance for Tomorrow and its members are convinced that the emergence of the NaturalCapital and Biodiversity asset class is a much-needed breakthrough in the financial sector.This analysis, conducted with the assistance of Deloitte, is a baseline to identify keyrecommendations and to serve as a guideline for the future work of Finance for Tomorrow’sworking group on Natural Capital and Biodiversity.

• BUILD AWARENESS AND TRACK-RECORDCapital providers and project leaders should pursue the development of asignificant track record to demonstrate the economic profitability of investmentin projects related to Biodiversity. Enablers and networks could focus theirstudies on underlying economic models to foster the emergence of this assetclass.

• SCALE-UPScale is necessary to attract mainstream capital providers and increase impact.To structure a sound deal flow with solid business plans, capital providersshould work on capacity building, supporting entrepreneurs and providingtechnical assistance. Financial innovation like Biodiversity bonds could bedeveloped in order to design scalable financial products from small-scaleprojects.

• MEASURE RISKS & IMPACTSDue to the fading borders surrounding the term of Natural Capital andBiodiversity, data collection is still insufficient and no common measurability norindicators have been unanimously defined yet. The development of simplecommon metrics (or proxies) would enable actors to set targets and monitorprojects’ risks and impacts without slowing down the development of theNatural Capital and Biodiversity asset class.


ECOSYSTEM OF ACTORS OF NATURAL CAPITAL AND BIODIVERSITY

Investors are the owners of the assets. They own large amounts of capital and have long-term investment horizons. They invest in specialized funds as part of a diversified investmentstrategy.

Public or investment banks provide loans to developers and corporations. Thus, they canoffer leverage on available capital to scale up projects. They perform intensive risk analysisto assess the capacity of projects to pay back their debt over the long-term.

Specialized funds manage a portion of assets owners' capital. They are the keystonebetween investors and developers as they directly finance projects or companies throughequity or debt. They contribute as well to project developers capacity building.

Project developers design, implement, and monitor projects that have positive impacts onBiodiversity. They structure the economic rationale of projects over time to ensure theirsustainability. They need equity and debt financing to leverage their own investment.

Corporations commit and invest in Natural Capital through diverse mechanisms: a raisingdemand, partnerships, project funding or development. They can help attract large amountsof financing as they are solid partners for banks and fund managers.

The innovation sector, composed of incubators and start-ups, is taking risks to develop newtechnologies, products, and services able to improve natural resources management. Itsneeds financial support to face long periods of Research & Development (R&D), operationalsupport from large corporations and a supply of knowledge from the ecosystem.

Enablers & Networks are an essential part of the ecosystem as they provide knowledge,technical support and facilitation. They were the first actors to raise awareness on theimportance of Natural Capital and Biodiversity, for climate change mitigation and forsustainable development.

Projects are the underlying investment assets, designed to have a positive impact onBiodiversity while being economically viable.

7BIODIVERSITY STAKEHOLDERS MAPPING - NOVEMBER 2018

ROLEInvestors own large amounts of capital.Depending on their investment approach, theyallocate this capital to asset classes, like privateequity or real estate, and even more specificallyto thematic asset classes, like renewable energyor clean technologies. Their willingness to investin projects with positive Biodiversity impacts isusually part of a broader impact investingstrategy, focusing on environmental protectionor social initiatives. Those approaches arecomplementary to traditional EnvironmentalSocial and Governance (ESG) screening.

STAKEHOLDERS INTERACTIONSInvestors mainly interact with fund managersand invest into their funds. However, as part oftheir effort to match their demand for theNatural Capital asset class, they can buildpartnerships with project owners, communicatetheir interest in the asset class, and take part insector initiatives to increase the available dealflow. Investors can also invest directly inprojects in equity alongside fund managers.Another possibility is to invest in green bondsemitted by corporations or investment banks. Athird option is to invest in ecological transitionlabelled funds, although those funds arecurrently largely focused on climate relatedprojects, more than on Biodiversity.

Investors also invest in the start-ups of theinnovation sector. Comparably, they are in aposition to have direct or indirect financialinteractions through asset managers.

ACTORSThe following investors have led direct orindirect investments in Biodiversity protectionactivities and/or have a risk and opportunityapproach to Biodiversity:• Amundi• Asset Management• AXA• BNP Paribas Cardif• Garance• Groupama• Humanis• Unigrains

ACTOR TYPE :

INVESTORS

DEVELOPMENT OF THE ASSET CLASSInvestors have diversified investment strategies.They have moderate risk appetite and returnexpectations over a long term investmenthorizon..

Investors include insurance companies, pension funds or family offices. Asset owners are long-term investors and as such are responsible for the positive and negative impacts of theirinvestment strategies on the long term.

AXA Investment Managers has committedto invest in the Althelia Sustainable OceanFund (MIROVA Natural Capital/AltheliaFunds), as the fund raised about $38million at first close. It was joined byCaprock Group, as well as Netherlands-based development bank FMO, theEuropean Investment Bank and the Inter-American Development Bank.

CASE STUDY

8

DEMANDCreate a scalable and steadilyincreasing demand for Biodiversityimpact investing products.

READABILITYContribute to the clarity of the assetclass in the market.

MEASUREMENTSContribute to the ecosystem effortto measure and monitor projectsrisks and impacts.


Source: Credit Suisse, McKinsey & Company (2016) Conservation FinanceGIIN (2017) Annual Impact Investor Survey

DEVELOPMENT OF THE ASSET CLASSDevelopment banks such as the AFD haveplayed a key role to initiate Biodiversity finance.The development of the asset class will alsorequire leverage from mainstream finance andspecifically corporation and investment banking.

ROLEPublic related or development banks are willingto finance Natural Capital projects as part oftheir mission. They require the implementationof traceability mechanism in order to control theadditionality and positive impact of the projectwhich is financed.

Investment banks find opportunities in usingmainstream financial products and services.Regarding Natural Capital, their approaches canbe focused on either risk mitigation or positiveimpacts. In recent years, green loans and greenbonds were structured. They are useful tools todevelop the asset class.

STAKEHOLDERS INTERACTIONSCorporate and investment banks are keyadvisors of corporations regarding financingmatters. They can act through direct funding bylending or assisting corporations in their projectfinancing. In both situations, if the corporationhas a Biodiversity project which is capitalintensive, banks will play a key role in order toassess the risks of the project. Banks can as wellfinance projects holders or Special PurposeVehicle related to Natural Capital projects.

ACTORSThe following banks have funded projects withpositive impacts on Biodiversity or ecosystemsand have developed a Biodiversity strategy anda risk management approach.

• Public entities: French Development AgencyGroup (AFD-Proparco), Banque Publiqued’Investissement (BPI)

• Corporate and investment banks: CréditAgricole, Société Générale, BNP Paribas,Natixis, Fonds français pour l'environnementmondial (FFEM), Crédit Coopératif, Edmond deRothschild

ACTOR TYPE :

BANKSDevelopment banks have been financing projects with positive Biodiversity impacts. By their scaleand role in the economy, investment banks can contribute to the development of the asset classeither through their advisory activities or through direct financing.

BNP Paribas was the arranger and leadmanager of the USD 95 millionSustainability Bond issued in February2018 by the Tropical Landscapes FinanceFacility (TLFF). The Bond funds anIndonesian joint venture betweenFrance's Michelin and Indonesia's BaritoPacific Group, for climate-smart, wildlifefriendly and socially inclusive productionof natural rubber on heavily degradedland in Indonesia's Jambi, Sumatra andEast Kalimantan provinces. Occupyingsome 88,000 hectares of land, the projecthas the potential to meet up to 10% ofMichelin's global natural rubber demandwhen it is operational.

CASE STUDY

INNOVATIONDevelop innovative financialmechanism with Biodiversity relatedrequirements.

MEASUREMENTScontribute to the assessment ofBiodiversity performance (e.g. theCDC's Global Biodiversity Scoring).

€

Source: AFD (2018) AFD webpage Climate Bond Initiative (2018) Green Bond Highlights 2017


ROLESpecialized funds are either asset managersboutiques that create and manage fundsdedicated to Natural Capital or asset managersfocused more broadly on green solutions. Athird category is the investment arm ofcorporations created in order to stimulateinnovation in their sectors of operations. In allthree cases, those actors have investmentstrategies related to agroforestry, reforestation,ocean conservation, sustainable fisheries, etc.

STAKEHOLDERS INTERACTIONSSpecialized funds are the keystone betweeninvestors and projects through capacity building.They manage a portion of asset owners fundsand invest them in Biodiversity related projects.They can either directly finance projectsthrough equity and debt (incl. mezzanine) ortake a stake in project developers’ entities.Regarding technologies, venture capital plays afundamental role in the necessary risks taking ofany innovation by financing start-ups at differentstages.

ACTORSThe following investors have either a strategyfocused on Natural Capital or are investing instart-ups providing technologies and servicesto sustainable production.

Impact funds:• Livelihoods• Mirova Natural Capital/Althelia Funds• Moringa partnership

Investment funds:• Capagro• DEMETER/Emertec• IDIA Crédit Agricole• Planetic AM• Sofinnova• Sofiproteol• Unigrains

ACTOR TYPE :

SPECIALIZED FUNDS

DEVELOPMENT OF THE ASSET CLASSSpecialized funds have diverse risk appetite,returns expectations and investment horizonsthus potentially matching the diversity ofprojects and assets.

Considering the specifics of Biodiversity conservation and Natural Capital development projects(diversity of actors, technical skills requirements, geographical specificities…), several investorshave developed expertise and know-how. Those asset managers are positioned in the privateequity space and specifically in the venture capital and infrastructure asset classes.

Livelihoods Funds have been created bycorporations willing to improve theirenvironmental and social impacts. TheFund “Livelihoods #1” (AuM: EUR 220million) was created in 2011 in order toimplement actions such as ecosystemrestoration or agroforestry.

Moringa Partnership (AuM: EUR 86 million)intents to provide financial returns for itsinvestors and for local communitiesthrough investments in agroforestry.Moringa invests equity in small or mediumagro-companies.

In 2017, Mirova has established aninvestment platform dedicated to NaturalCapital: Althelia Funds (AuM: USD 250million). The Land Degradation Neutrality(LDN) Fund, co-promoted with the UN, isone of the Althelia Funds. It is an impactinvestment fund blending resources fromthe public, private and philanthropicsectors in support of achieving LDN.

CASE STUDY


SOURCINGIncrease projects deal flow byhelping their structuration and theirreliability.

AWARENESSAdvocate the value and positiveimpacts of the asset class to retailinvestors.

€Source: Finance for Tomorrow analysis

DEVELOPMENT OF THE ASSET CLASSProject developers structure projects, build theireconomic rationale and give them exposure.

ROLEProject developers design, implement, andmonitor projects that have positive impacts onBiodiversity while being economically viable.Underlying project types are very diverse:agroforestry, reforestation, revegetation,sustainable or regenerative agriculture,management of natural areas, restoration,rehabilitation, compensation, oceanconservation or sustainable fisheries.

Project development requires a multidisciplinaryapproach and developers act as coordinators asthey interact with numerous stakeholders. Theystructure the economic rationale of projectsover time.

STAKEHOLDERS INTERACTIONSBecause they have the expertise andunderstand local contexts, projects developersare considered as the “on-the-ground”transmission belt for corporations andinvestment firms. They secure revenues andgreater exposure through off-take contractsconcluded with corporations or throughcompensation mechanism. In order to scale uptheir projects, they receive blended public andprivate funding. Private funding being equity orconvertible notes from corporations orinvestment firms and donations fromfoundations. Public funding being DevelopmentFinance Institutions or public banks. Public andprivate funding can be blended into specifictools that offer a greater impact for investment.

ACTORSAgribusiness SMEs are essential to projectdevelopment. Beyond those actors, thefollowing have a significant record ofaccomplishment.

• Biodiversity offsetting financial operators:CDC Biodiversité, Dervenn

• Agricultural ecosystems: Fermes d'Avenir• Forest ecosystems: ONF/ONF International,

Pur Project, Nitidae, Reforest'Action, Forestfinance

• Marine ecosystems: Ecocean, Blue finance• Engineering offices: Oxao, EcoAct, Biotope

ACTOR TYPE :

PROJECT DEVELOPERSProject developers is the category of actors that is the keystone of Biodiversity conservation andNatural Capital investment projects. A project developer can be a Small and Medium Enterprise(SME), a social enterprise or an Non-Governmental Organization (NGO). Their specific objectives,expertise and forms are very diverse.

The restoration of the Cossure orchard:the first ecological compensation projectin France. The ecological rehabilitationworks of 327 hectares of Mediterraneansemi-arid steppe in the Crau plain was thefirst reserve of natural assets in France.CDC Biodiversité monitors and managesthis reserve over 30 years. In line with theMitigation Hierarchy (Avoid-Reduce-Compensate), this reserve of naturalassets enables project owners to offsetthe residual ecological impacts of theirdevelopment projects.

CASE STUDY

SOURCINGIncrease the number, the diversityand the quality of eligible(profitable) projects.

SCALEStructure projects with the scaleneeded to attract mainstreamcapital providers.

AWARENESSWork in collaboration with NGOs,scientists and investors to raiseawareness of projects and impacts.

Source: French Association of Agroforestry (2013) Key figures of Agroforestry – IISD (2016) The State of Sustainability Initiatives


ROLECorporations show commitments and invest inNatural Capital through diverse mechanisms: araising demand, partnerships, funding or projectdevelopment. Corporations can have a strongimpact on demand by committing to purchasingraw materials production from sustainableagriculture with their suppliers. Corporationscan also choose to offset their impacts, whichhas become common in the mining,infrastructure or energy sectors.

Finally, corporations can provide capital eitherthrough corporate venture or project fundingand such capital could directly finance a projector indirectly through project developers. Thoseactions are usually part of a wider Biodiversitystrategy, in line with the general businessstrategy, that is implemented throughpartnerships and funding of research and/orknowledge development activities.

STAKEHOLDERS INTERACTIONSBy acting on their own supply chain,corporations can drive demand to projectdevelopers and start-ups. Corporations bringexposure and stability of demand thus allowinga scaling up between massive demand, localprojects and investment. As they receivefunding from all types of financial institutionsincluding investment banks and investors, theyare necessary to make the link between globalfinancial systems and local projects.

ACTORSThe following companies act via demandmechanisms or funding and have developed astrategic approach to Biodiversity:

• Agri-food: Danone, AgroMousquetaires,Carrefour

• Infrastructure, transport, waste and energy:Michelin, Lafarge/Holcim, VICAT, Total, Vinci,Eiffage, Veolia, Suez, EDF, Engie

• Luxury goods industry: LVMH, Chanel, Kering• Pharmaceutical: Pierre Fabre, Yves Rocher• Agribusiness SMEs: Etiquable, AlterEco, BioC’Bon, Léa Nature, Biocoop

ACTOR TYPE :

CORPORATIONSCorporations contributing to developing Natural Capital are large companies of the followingsectors (not exhaustive): agri-food, infrastructure, transport, waste, energy, luxury goods orpharmaceutical. These industries have an impact on Biodiversity and for corporations, NaturalCapital is a resource needed for the businesses they conduct.

Act4Nature is a consortium ofcorporations, scientific institutions andNGOs created in 2018. Act4Natureincludes 10 global commitments,common to all signatories, aiming tointegrate Biodiversity in operationalactivities. Each signatory also commits tospecific objectives.

Avène and Pur Project have partnered tolaunch a project of preservation of themarine ecosystem in the North-West ofBali, in collaboration with the localassociation, Pokmasta. The projectcombines coral reef restoration,agroforestry and mangrove replantation:by now, 800 corals and 27,500 trees havebeen planted.

CASE STUDY

12

Source: R. Costanza et al, (2014) Changes in the global value of ecosystem services – Act4Nature Initiative (2018)

DEVELOPMENT OF THE ASSET CLASSIt should be noted that corporations can financeconservation projects by issuing green bonds.


DEMAND: Act on their supply chainby increasing the demand forproducts that have positive impactson Biodiversity.

SCALE: gather smaller players aspart of an industry initiative in orderto structure large and impactfulprojects.

MEASUREMENTS: metrics wouldenable corporations to set targetsto minimize their impact onBiodiversity.


ROLETechnology can help meet numerouschallenges related to Biodiversity. Start-ups andinnovative SMEs are certainly among the mostrelevant actors to develop technologies andservices for project developers, corporations oragriculture professionals (farmers). Start-ups’contribution is twofold: they either provideinnovative technologies or facilitate projects’financing. Indeed, some start-ups arecrowdfunding platforms for developingfinancing for local projects (eg. MiiMOSA, BlueBees). They aim at promoting and easing theachievement of projects related to sustainableagriculture by connecting inventive projectleaders and web users.

STAKEHOLDERS INTERACTIONSBeing part of the French entrepreneurialecosystem, the funding of these start-ups canbe public or private and differs according totheir stage of development: friends and familymoney, business start-up loans, crowdfunding,business angels, seed funding, bank loan orVenture Capital funds. Start-ups are as well veryclose to corporations as they can be part of theiropen R&D strategy. Several start-ups are closeto NGOs that can bring their innovation to themarket and final users.

ACTORS

ACTOR TYPE :

INNOVATION SECTOR

DEVELOPMENT OF THE ASSET CLASSStart-ups are primary risk takers. Including start-ups in the asset class is essential to attractinvestors with higher risk appetite.

The entrepreneurial ecosystem creates opportunities to connect and link technologies andNatural Capital. Start-ups and incubators aim at developing either new products, new services oreven new uses to existing products by leveraging data and technologies.

INNOVATIONCreate an entrepreneurial eco-system dedicated to Biodiversityand focus on profitable businessmodels.

Source: InVivo,, Focus on Precision Farming, 5th January 2016 - Forbes, How the AgTech Invetment Boom will create a wave of agriculture unicorns, 16th January 2018

Biodiversity knowledge contribution and/orevaluation: Biodiv Go, Bio Sentinelle, Terroïko,Urbalia

Agtech: • Alternatives to agrochemicals: Green Shield

Technology, SoléO écosolutions• Farming precision: Carbon Bee, MyEasy Farm• Sustainable protein alternative: Ynsect• Crowdfunding platforms: MiiMOSA, Blue Bees

Biotechnologies: Woodoo, BioAmber

Incubators: The GreenTech Verte, Nov'Impact, IGNfab, Agoranov, Le Bivouac

13

Launched in 2014, MiiMOSA is a newplayer in financing agriculture and food:the crowdfunding platform’s model relieson donation with counterpart. In 2018,MiiMOSA closes a second financing roundof 3M€. MiiMOSA has supported 1,300projects in France and Belgium, collected5,5M€ and counts 75,000 members.

Strong innovation is developing onmonitoring impacts. Using the "Starling"satellite image and data analysis system,developed by Airbus and the Forest TrustNGO, Nestlé intends to monitordeforestation trends throughout itssupply chain.

TREE Token is an investment platform forimpact finance projects: it enablesqualified investors to invest under atokenized format in diversified fund or inspecific projects, efficiently monitoredand managed thanks to blockchaintechnology.

CASE STUDY


ACTORS & DEVELOPMENT OF THEASSET CLASSNGOs and think-tanks contribute to thedemocratization of the concept of NaturalCapital and raise awareness on the urgency tochange behaviors and market practices; theyare also a key partner for industrial stakeholdersin the implementation of operational initiatives.

ACTOR TYPE :

ENABLERS & NETWORKS

• CIRAD• CNRS• INRA• AgroParisTech

• ONB• Ifremer• Irstea• IRD

Natural Capital and Biodiversity stakeholders need support on specific dimensions to ensure theemergence of the asset class. Various actors evolve around capital providers and projectdevelopers to bring expertise, technical support and facilitation among actors. They were the firstactors to bring awareness on the danger of Biodiversity loss and its impact on human well-being,on the planet and the climate.

Diverse actors are working on developingtools that would help organizations totake into account Natural Capital in theiractivities:• Impact tools aim to create a

composite indicator such as the GlobalBiodiversity Score led by CDCBiodiversité along with the Club B4B+.This metric aims to establish aquantitative link between an economicactivity and its impacts on Biodiversity.

• Mapping tools aim to identifyBiodiversity risks and opportunities at alocal site level such as InVEST led byStanford University

• Evaluation tools aim to establishinterdependencies with Biodiversitysuch as the Natural Capital ProtocolToolkit

International standards and certificationsaim to include Biodiversity criteria such asPEFC’s approach to maintain andenhance global forest Biodiversity.

CASE STUDY

14

Consultants and engineers support allstakeholders with project due diligences, impactstudies, project evaluations and risk evaluationof investment.• Specialized engineering offices: Kinomé,

Origem, EcoAct, Vertigolab, Biotope, SolPaysage, ECO

• Consulting firms: Deloitte, PwC, EY, GondwanaAgency, Icare & Consult

Professional Networks develop partnershipsand knowledge sharing between the differentstakeholders :

• WWF France• IUCN France• Cari• France Nature

Environnement• Société nationale

de protection de la nature

• Fondation pour la Nature et pour l’Homme

• IDDRI• Orée• Terra Nova• Les Amis de la

Terre• Agrisud• Mouvement

Colibris• Oxfam

• SOL

Research centers provide knowledge and dataon Biodiversity and associated economicmodels through scientific studies.

• Finance for Tomorrow• Union Professionnelle

du Génie Ecologique (UPGN)

• EpE• Orée• 4 pour 1.000 Initiative

Source: WWF (2018), Living Planet Report

“The Living Planet Report, WWF’s flagship publicationreleased every two years, is a comprehensive study oftrends in global biodiversity and the health of theplanet. The Living Planet Report 2018 is the twelfthedition of the report and provides the scientificevidence to what nature has been telling usrepeatedly: unsustainable human activity is pushingthe planet’s natural systems that support life on Earthto the edge.

Through multiple indicators including the Living PlanetIndex (LPI), provided by the Zoological Society ofLondon (ZSL), the report shows us the urgent need fora new global deal for nature and people with clear,ambitious goals, targets and metrics, to reverse thedevastating trend of biodiversity loss currentlyimpacting the one planet we all call home.”

ACKNOWLEDGEMENTS

The document was produced by Finance for Tomorrow, with the pilots of its working groupon Natural Capital and Biodiversity, Clément Chenost (The Moringa Partnership) and GautierQuéru (Mirova), and with the support of Deloitte (Nicolas de Jenlis, Anthonin David, PaulineCristofini, Thierry Puisieux, Loïc Le Guillou and Guylaine Defail).

We would like to thank the members of our working group on Natural Capital andBiodiversity, for their commitment and their mobilization throughout the construction of thisMapping of the French stakeholders for the financing of Natural Capital and Biodiversity:Alexandre Trikki (A2 Consulting), Laurent Bergadaa (AFD), Sylvain Goupille (Mirova NaturalCapital / Althelia Funds), Julie Miller (BNP Paribas), Fanny Guezennec (EcoAct), MatthewReed (EDF), Etienne Mercadier (Eiffel IG), Damien Ricordeau (Finergreen), Marine deBazelaire (HSBC), Patricia Lavaud (ORSE), Nicolas Brement (PwC), Marie Laure Bourat(Société Générale), Mathilde Lardilleux (Triodos Finance).

We also want to thank Laurent Valiergue (World Bank), Ciprian Ionescu, Renaud Lapeyreand Antoine Maudinet (WWF France), Jean-Christophe Benoit and Joshua Berger (CDCBiodiversité) and Sylvain Vanston (AXA) for their contribution and for sharing their vision.

BIODIVERSITY STAKEHOLDERS MAPPING - NOVEMBER 2018 15

CONTACTS

Anne-Claire RouxManaging Director of Financefor [email protected]

Natacha BoricProject Manager – Contents & Working [email protected]

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