The 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

The Ecological Company for Ethical InvestorsThe Ecological Company for Ethical Investors

Pro-Biodiversity Business ~

An illustration from the Lower Danube

Paul Goriup


Business Attitude to Environmental Investment


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.


PBB Investment Niche

PBBs


Forestry

Biodiversity in Business

Agriculture

Fisheries

Pharmaceuticals / cosmetics

Water / soil conservation

Green Tourism

Biomass


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)


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


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


PBB Cluster Development


The Lower Danube Region

Lower Danube Region


Main Investment Locations

Eco-business Centre, Reni

Lower Danube lakes, islands &

steppe

Ecotourism Centre, Vilkovo

Cross-Border Biosphere Reserves


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


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 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.


Monitoring Net Ecological Benefit: selected EEA SEBI


Ecotourism Strategy


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


The Delta ... Europe’s Tropics


The Coast ... Secluded Shores


Eco-Tourism Development


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


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


EU ProBioPrise Study


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.


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.


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.


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.


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.


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.


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.


Expectation of Change

Some Lessons

During the transition period, few officials remain in post for long.

And there can be Orange revolutions . . .


Further Information …

www.smeforbiodiversity-steppes.com

www.ecnc.org/BiodiversityFinanceC/Index_711.html

Documents

The Ecological Company for Ethical Investors Pro-Biodiversity Business ~ An illustration from the Lower Danube Paul Goriup