Welcome to the Conservation Finance Guide. The overall goal is to provide practical tools to support the rapid expansion of sustainable finance mechanisms that generate long-term funding for biodiversity conservation.
Welcome to the Conservation Finance Guide. The overall goal is to provide practical tools to support the rapid expansion of sustainable finance mechanisms that generate long-term funding for biodiversity conservation.
To navigate directly to a Category of Finance Mechanisms:
Supply Chain Resilience
Conservation Businesses
Corporate Social Responsibility and Sustainability
Voluntary Offsets
Business and market mechanisms and strategies focus on actions that can be taken by and for the private sector that are generally aimed at decreasing the cost of conservation, aligning private and public incentives, and improving business models and operations in ways that support the sustainable management of nature. They differ from “Return-Based Investments” in that they are investments and actions taken by operating companies or governments that target raw material sourcing, operations, and pricing and not only investments in companies (i.e. financial sector). Business mechanisms can overlap with “economic instruments” in that when economic instruments correct for positive externalities, they could create business opportunities for companies who contribute to nature conservation. However, this category focuses on the actions and perspectives of operating businesses and not necessarily investors (Return-Based Investments) or government (Economic Instruments and Public Financial Management).
To navigate directly to a Class of Finance Mechanisms:
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Supply Chain Resilience
Financial and technical investments in supply chain resilience seeks to decrease supply and price volatility in supply chains due to environmental factors and improve long term sustainability of raw material production for business. Complex supply chains for raw materials including commodities challenge consumer goods companies’ ability to assure price and supply resilience. A wide range of investments and actions can be undertaken by companies and governments to improve sustainability and decrease the impact of food, fiber, and other renewable raw material production on nature. These include anti-deforestation commitments, adherence to sustainable sourcing certifications, technical support and financial incentives down the supply chain, and investments in appropriate technology or research to improve the sustainability and productivity of raw material production.
One example of an inhouse effort to improve supply chain resilience is Whole Foods Market’s use of seafood sustainability certification and rating programs. The supermarket chain only sells wild caught fish that have either been certified by the Marine Stewardship Council or either earning Green (Best Choices) or Yellow (Good Alternatives) status by the Seafood Watch rating program. These tools help reduce the supermarket’s purchases of unsustainable seafood while also providing transparency on seafood supply chains to consumers.
Corporate Supply Chain Management
Sustainable corporate supply chain management refers to targeted initiatives meant to improve the sustainability, cost effectiveness, and risk profile of a company's supply chain. It includes a wide range of actions that combine reducing environmental impacts with efforts that can also save money, reduce value chain volatility (price and supply), improve supplier relations, better manage brand reputation, and reduce other political, social and environmental risks. Examples include avoiding deforestation in raw materials sourcing, tracking or greening commodity sources, replacing toxic or otherwise harmful materials, etc.
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Conservation Businesses
Financial and technical investments in supply chain resilience seeks to decrease supply and price volatility in supply chains due to environmental factors and improve long term sustainability of raw material production for business. Complex supply chains for raw materials including commodities challenge consumer goods companies’ ability to assure price and supply resilience. A wide range of investments and actions can be undertaken by companies and governments to improve sustainability and decrease the impact of food, fiber, and other renewable raw material production on nature. These include anti-deforestation commitments, adherence to sustainable sourcing certifications, technical support and financial incentives down the supply chain, and investments in appropriate technology or research to improve the sustainability and productivity of raw material production.
One example of an inhouse effort to improve supply chain resilience is Whole Foods Market’s use of seafood sustainability certification and rating programs. The supermarket chain only sells wild caught fish that have either been certified by the Marine Stewardship Council or either earning Green (Best Choices) or Yellow (Good Alternatives) status by the Seafood Watch rating program. These tools help reduce the supermarket’s purchases of unsustainable seafood while also providing transparency on seafood supply chains to consumers.
Products sold on Conservation or Wildlife
A range of products from chocolate, water bottles, toys, cloths, etc. are developed and sold to help generate profit for conservation and endangered species. A significant percentage of profit should go to target NGOs or conservation efforts or the product may be seen as benefitting from marketing nature while not actually contributing (green washing).
Promotion of Sustainable Tourism
The promotion of sustainable tourism through an enabling legal framework and direct or indirect incentives. Responsible travel to natural areas can provide an alternative sources of income for the conservation of protected areas and the welfare of local communities. Receipts from tourists include accommodation and catering as well as any expenditure in the country where they travel to. The Government benefits from the direct and/or indirect taxation. To promote sustainable tourism is particularly critical in the early development stages and can direct tourism investment towards sustainable infrastructure and tourism activities.