The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
The Ecological Company for Ethical InvestorsThe Ecological Company for Ethical Investors
Pro-Biodiversity Business ~
An illustration from the Lower Danube
Paul Goriup
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Business Attitude to Environmental Investment
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Net Ecological Benefit
Net Ecological Benefit is the difference in ecological state of a geographically determined area from the present time projected forward to a specified future date, which can be considered as an improvement in ecological conditions and functions for habitats and/or species.
Net Ecological Benefit infers the sustainable use of natural resources as an inherent feature of an investment proposal.
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
PBB Investment Niche
PBBs
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Forestry
Biodiversity in Business
Agriculture
Fisheries
Pharmaceuticals / cosmetics
Water / soil conservation
Green Tourism
Biomass
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1996: Private limited company incorporated in England, endorsed by UK Ethical Investors Group
Company Development
Fieldfare has a subsidiary (Salix) in Odessa, Ukraine; a JV (Salvinia) in Bulgaria; subsidiary in Romania closed
1999: FIED converted to a Public Limited Company to facilitate share offers and first step for potential listing
Since 1996, >£160,000 of share capital contributed from individuals, as well as preference capital from WWF (1998) and Doen Foundation (2002)
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
To promote ecologically sustainable development and the maintenance of ecological processes through wise use of natural resources, restoration of damaged ecosystems, conservation of genetic diversity, and increasing human understanding of and capabilities to protect global biodiversity
Main Statutory Objects
To adhere to an ethic of environmental care which strives to ensure that the operations of the company shall not result in unsustainable use of natural resources, emission of environmental pollutants, wastage of materials, or lead to the destruction of the social fabric of local communities
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
to promote ecologically sustainable development and wise use of land and natural resources, especially in the Lower Danube region
FIED Approach
to foster local employment and develop business activities that monetise nature and have a “net ecological benefit”
to provide a POSITIVE platform for utilising the resources of the ethical investment movement, with the eventual aim of a public listing
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PBB Cluster Development
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The Lower Danube Region
Lower Danube Region
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Main Investment Locations
Eco-business Centre, Reni
Lower Danube lakes, islands &
steppe
Ecotourism Centre, Vilkovo
Cross-Border Biosphere Reserves
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Investment Studies
Biomass energy from reedbed restoration and management
Ecologically-sensitive tourism
Organic farming: cereals, fibres and sunflower oil
Angling based on native fish & organic fish production
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Monitoring Net Ecological Benefit
A proposal for a pro-biodiversity business investment should be able to demonstrate with independent expert verification that Net Ecological Benefit will take place, and that this improvement is directly attributable to the investment itself, and its operation over time.
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Monitoring Net Ecological Benefit
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Monitoring Net Ecological Benefit
The selection of appropriate indicators hasto take account of: the business activities of the company; locality of the business and adjacent
environmental conditions; whether benefits will be arise from use,
restoration or set aside; presence of habitats or species of
conservation concern; feasibility of monitoring; potential for autonomous data
collection by the company itself.
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Monitoring Net Ecological Benefit: selected EEA SEBI
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Ecotourism Strategy
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FIED works to attract visitors as a market for local business partners in sectors such as crafts, angling, private accommodation, traditional cuisine, biofuel and organic farming
Ecotourism Purpose
In return, our business partners help to raise environmental awareness, protect valuable habitats and maintain local culture
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The Delta ... Europe’s Tropics
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The Coast ... Secluded Shores
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Eco-Tourism Development
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
A private hotel owner has leased a nearby Nature Reserve to manage it for biodiversity conservation & ecotourism
Eco-Tourism PBB Benefits
Donations made to improve management / communications at three Biosphere Reserves
Assistance for formulating local Green Tourism policies
Counterweight to mass tourism development
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Relevant Project Work
Black Sea Scene – QC for Biodiversity Data
Environmental Collaboration for the Black Sea – MPA planning
Natura 2000 in Bulgaria and Romania – Data base design and site management
Black Sea Environment Programme – Biodiversity Monitoring and Conservation
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EU ProBioPrise Study
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Communication
Some Lessons
The FIELDFARE approach is unconventional and much communication is required with local stakeholders to allay suspicions that the company has some hidden agenda that
will, in due course, put partners at a disadvantage.
Keeping investments relatively small, and engaging NGOs, are helpful in this regard.
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Multi-sectoral Approach
Some Lessons
Linking investments to ecological benefits (e.g. wetland restoration) usually require a
multi-sectoral approach: for example, tourists need decent accommodation, clean
food, transport, information, guiding, etc.
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Multilateral Investments
Some Lessons
It is helpful to work with several partners on a project to prevent investments being captured, to forestall corrupt practices,
encourage competition, increase bargaining power, and facilitate redundancy if any one
partner proves unsatisfactory.
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Training and Supervision
Some Lessons
In the rural areas where FIELDFARE operates, there is a virtual absence of
qualified personnel even if entrepreneurial talent is available.
Engaging management staff, training them, and continuously supervising their work is
essential, and expensive.
The Ecological The Ecological Company for Company for Ethical InvestorsEthical Investors
Delivering Rapid Results
Some Lessons
It is expected that once a decision is made, results will flow rapidly. This may not always be possible, but at least some quick, visible
achievements should be planned.
FIELDFARE’s purchase of property demonstrated commitment more effectively
than any speeches or documents.
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Due Diligence Audits
Some Lessons
This is vital when selecting partners in an economy in transition where accounting
practices, valuation of assets and liabilities, profitability, depreciation and similar concepts
are poorly developed, if at all.
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Legal Backup
Some Lessons
The legal situation regarding land ownership, authorisations, investment and
other matters is often unclear or contradictory. A similar situation exists with
regard to accounting, tax planning and repatriating profits.
Good professional advice is needed, preferably from several experts.
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Expectation of Change
Some Lessons
During the transition period, few officials remain in post for long.
And there can be Orange revolutions . . .
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Further Information …
www.smeforbiodiversity-steppes.com
www.ecnc.org/BiodiversityFinanceC/Index_711.html