MarieHagaCharlotteLusty

CropTrustUpdateCGIARSystemManagementBoard

12December2017

1. Genebank Platformupdates2. Endowmentandfundraising3. CGIAR/CropTrustcooperation

Agenda

Genebank Platform

Genebank status

0

10

20

30

40

50

60

70

80

90

100

Availability Safetyduplication- seed Safetyduplication- clonal

%Accessio

ns

2012

2013

2014

2015

2016

90%target

Pursuingcostefficiencyandeffectiveuse

• Costingreview2018-2020• Efficiencies(e.g.automatedseedsorting,germinationtesting)

• Strategiccuration• Rationalization(e.g.foragescollectionsILRI-CIAT)• QualityManagementSystems• DigitalObjectIdentifiers(DOIs)

IntegrationwithotherPlatformsandCRPs

• Genebank staffonEIBModuleAdvisoryCommittees• ParticipationinBigDataconvention• PolicyModule&CGIARGeneticresourcesworkinggroup

• CollaborationwithCCAFSatCOP23• JointnewsletterwithFutureHarvest• HostingWheatCRPleaderinCropTrustoffices

Someissues

• Changeingenebanks’leadership• Majorpushonimpactandcommunications(inresponsetoIEAreport)

• AdoptionofDOIsbygermplasm usersandpartners• Genotypingofgenebank accessions• Datadatadata

Governanceandmanagement

Article 15 group

Genebank Managers

ConservationModule

UseModule

PolicyModule

GHUs

GE

NE

BA

NK

P

LATF

OR

MCrop Trust

Executive Board

Crop Trust Executive Director

CGIAR System Management Board

and Center DGs

PlatformManagement Team

Independent Advisory Committee

PlatformCoordinator

advisory

CropTrustworkingwiththeCGIAR

• CWRprojectssupportingCGIARCentres• Collecting• Pre-breeding• Multiplication

• JapanesefundedprojectwithAfricaRice• FoodForever• Supportforfund-raising(e.g.CIATgenebank)• SvalbardGlobalSeedVault

10

ThreePillarstoaGlobalSystem

InternationalGenebanks

Keynational&regionalcollections

SvalbardGlobalSeedVault

11

Worldwideresponsetothecrisisafflictingthebiologicalbasisofourfoodsupplyandnutrition.

TheRationalefortheEndowmentFund

12

• Designedtokeepitscapitalintactwithinvestmentincomegoingtosupportcropcollectionsacrosstheworld

• Long-termfinancingwhileonlyrequiringaonetimecontributionfromdonors

• ResponsiblyInvested

StructureoftheEndowmentFund

12

13

USD34million peryearrequireanEndowmentFundofUSD850million–ofwhich18.5millionperyearisforthe“Article15”collectionsoraboutUSD500millionoftheFund

CostoftheGlobalSystem

13

Endowmentfund

-

50

100

150

200

250

300

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Millions

Estimatedvalueasat11Dec.2017includes$58.1m(€50m)loan

PortfolioBookValuevsCumulativeContributions

Bookvalue cummulativecontribution

$25.2mwithdrawn&usedtosupportGenebank platform&Operations

Endowmentfund

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EndowmentReturnvs Incomewithdrawal

Historicalendowmentreturns IncomeWithdrawal

Donorenvironment

Ourpointofdeparture:

• ODAstagnatinginmanycountries

• Increasedsharetoemergencies

• Increasedfocusonshortterm(political)prioritiesatthecostoflongtermgoals

• Donorsarepoolingfundsinbroadinitiatives

• Onlysomuchgovernmentscan,orshould,do

• Privatesectorneedstobeinvolvedbeyondtalk

– s

Diversifiedfundingstrategy

Governmentgrantstotheendowmentarestillourpreferredwayoffunding• Furtherdialoguewithcurrentandnewdonorsissupportedbyannualconsultations

• Concessionalloans- atemporaryincreaseintheendowment• Asecond-bestsolutiontogenerateincomeupfrontuntilfurthergrantscanbesourced• KfW Euro50millionloanhasbeenaccepted

• Concessional- butnotenough• Germany/BMZhascommittedEuro4,15millionandtheNetherlandsUSD0,325toreduceinterestrate

• Noplansforfurtherloans

Fundingstrategycont.

• GreenClimateFundprojectunderdevelopmentwithKfW fornational

collectionstrategy

• ProjectforCGIARcollectionsmightbeapossibility

Fundingstrategycont.

Crop-basedfundraisingisbeingpilotedtomobilizeprivateresources

• Aimistotieconservers,researchers,producersandotherusersinthecommoditychainintothedevelopmentofaglobalcrop-basedconservationstrategyandthenseekfunding

• ExampleCoffee• StrategydevelopedwithWorldCoffeeResearch• Fundraisingisstartedwithsupportofconsultants

• Next:TeaandApples• InvitationtoanyoftheCGIARcenterstotargetacrop

Fundingstrategycont.

• FundingforannualoperationalexpendituresoftheCropTrustSecretariat• Donorfundinghelpsprotecttheendowmentduringitsgrowthphase

• InvestmentSharingFacilitytobere-launched• NewESG-compliantequitymutualfundtobemarketedfromJan2018• “Donatingshareclassvehicle”approvedfromJan2018• AnnualdividendincomechanneledtotheCropTrustFoundationgGmbH,ournewGermancharitablecorporation• Germandonorsmaybenefitfromincometaxdeduction• Taxdeductioncouldbereplicatedinothercountries(takesworkandabitofmoney

Fundingstrategycont.

FoodSecurityBondcouldraiseprivatecapitalfornationalgenebanks• Wouldsupportprojectsforupgradingofgenebanks withhighpriorityforagri-foodindustry

• Stillattheexploratoryphase• Willstartdiscussionwithselectgovernments

• USFarmBill2018-2022• CurrentlyCropTrustisincludedinUSFarmBillatUSD60m2014-2018withacaponthetotalUScontributionstotheFundat25%oftotalpaidincontributions

• CropTrustismeetingwithCongressionalrepresentativesonAgriculturalCommitteetoraiseawarenessabouttheCropTrustandtoseektohavethecapraisedto33.3%inlinewithotherinternationalorganizations

CommitmenttoGenebank Platform

6.8

9.1

11.513.4

15.018.5

24.921.1 18.8

15.3 13.2

6.5

0

5

10

15

20

25

30

35

2017 2018 2019 2020 2021 2022

USD

Million

CGIARContribu9on

CropTrustContribu9on

CommitmenttoGenebank Platform

FundingforannualoperatingcostsofCGIARGenebanks• Wearecommittedtoprovideanannuallyrisingshareoftheiroperatingcostsfromtheendowment+bilateralfunding• Endowmentdoesnotyetcoverallcommitmentsandannualdonorfundingisrequired• CoordinationwithbilateraldonorstoCGgenebanks isrequired• 2017:anextremelyunfortunateprocesswiththeNetherlands

24

Finalremarks

ExcellentprogressandcollaborationintheGenebank Platform

CGIAR-CropTrustinteractionatahigherlevel:AformalizedagreementbetweentheCGIARandtheCropTrusttobedeveloped,focusingon:

– Informationflowbetweentwoverydifferentgovernancemodels– ReportinglinesfromCropTrusttoSMO,SMB,GeneralAssemblyandSystem

Council– Responsibilitiesandrisks– Collaborationonfinanceissues,fundraisingandcommunication

Thankyou