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

The Ecological Company for Ethical Investors Business Attitude to Environmental Investment

The Ecological Company for Ethical 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 Company for Ethical Investors PBB Investment Niche PBBs

The Ecological Company for Ethical Investors ^Forestry Biodiversity in Business ^Agriculture ^Fisheries ^Pharmaceuticals / cosmetics ^Water / soil conservation ^Green Tourism ^Biomass

The Ecological Company for Ethical Investors ^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 Company for Ethical 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 Company for Ethical 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

The Ecological Company for Ethical Investors PBB Cluster Development

The Ecological Company for Ethical Investors The Lower Danube Region Lower Danube Region

The Ecological Company for Ethical Investors Main Investment Locations Eco-business Centre, Reni Lower Danube lakes, islands & steppe Ecotourism Centre, Vilkovo Cross-Border Biosphere Reserves

The Ecological Company for Ethical Investors 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

The Ecological Company for Ethical Investors 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 Company for Ethical Investors Monitoring Net Ecological Benefit

The Ecological Company for Ethical Investors Monitoring Net Ecological Benefit The selection of appropriate indicators has to 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.

The Ecological Company for Ethical Investors Monitoring Net Ecological Benefit: selected EEA SEBI

The Ecological Company for Ethical Investors Ecotourism Strategy

The Ecological Company for Ethical Investors ^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 Ecological Company for Ethical Investors The Delta... Europe’s Tropics

The Ecological Company for Ethical Investors The Coast... Secluded Shores

The Ecological Company for Ethical Investors Eco-Tourism Development

The Ecological Company for Ethical 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

The Ecological Company for Ethical Investors 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

The Ecological Company for Ethical Investors EU ProBioPrise Study

The Ecological Company for Ethical 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.

The Ecological Company for Ethical Investors ^ 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.

The Ecological Company for Ethical Investors ^ 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.

The Ecological Company for Ethical Investors ^ 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 Company for Ethical 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.

The Ecological Company for Ethical Investors ^ 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.

The Ecological Company for Ethical Investors ^ 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.

The Ecological Company for Ethical Investors ^ 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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