Connecting Markets to conservation LESTARI CAPITAL Connecting Markets to conservation

Team Lestari Capital Impact Enterprise with conservation roots Forest Carbon (joint venture): 10 years in SE Asia providing technical forest conservation and restoration project services Boots on the ground in South Sumatra with 22,000 ha peatland restoration project Daemeter (joint venture): 15 years providing sustainability solutions for corporates, institutions and policy makers Strong business development connections bring in demand from commodity supply chain actors in Southeast Asia Inclusion of Capital Partners (financial sector advisers): Veteran Credit Suisse executives Connects impact enterprises to capital markets, provides TA

Purpose & Vision Founded in Singapore, 2017 Conservation and restoration projects are undercapitalized Opportunity to generate new demand, deliver efficiency and secure private sector capital in the conservation space Vision Build a diverse, internationally certified project partnership portfolio Develop innovative, systemic demand sources beyond CSR Provide a concrete, transparent solution for companies to act upon sustainability commitments and certifications Support an adaptation of market systems, by advocating that companies more fully account for environmental impacts in their area of operations

Vision: Sustainable Commodities Conservation Mechanism (SCCM) Market Demand Environmental Commitment Financing Supply Environmental Asset Project Portfolio Commodity Growers (RSPO) Example: RaCP Compliance 10,000 ha RSPO Compensation Restoration Project 50,000 ha Forest Restoration SCCM Retailer Example: NDPE Commitment Safeguarding: 3,000 ha Forest Restoration in Supply Chain Peat Rewetting Project 500,000 tCO2/Year Peat Restoration and Reforestation Energy Sector Actors Example: Insetting Sustainability Commitment: 500,000 tCO2/Year Emission Reduction Village Forest Project 20,000 ha Village Forest Protection Impact Capital Examples: & Green Althelia Conservation Project 30,000 ha Ecosystem Protection Concession

Proof of Concept: Palm Oil Sector First mover client in 2018 Proof of concept: Roundtable on Sustainable Palm Oil (RSPO) Cargill as first client, providing 25 years of financing for a community forest project in the Indonesian Heart of Borneo Payments linked to RSPO certification compliance Funding and partnerships $2m in grants for proof of concept from Partnerships for Forests Incubator (DFID) and Packard foundation Partnership with Indonesia’s Peatland Restoration Agency (BRG) Offices now open in Singapore and Jakarta Team size expanded from 3 to 11 in 2018

Next Steps: Build on Proof of Concept Scale up market-linked conservation finance Business Development: Diversification Build out alternative sources of demand beyond initial proof of concept market (RSPO) Diversify beyond reliance on industry certification bodies by directly engaging supply chain actors Establish proof of concept for landscape-level approaches to conservation and restoration (2019 objective) Projects: Leverage the SPV for blended finance Impact investors can tap into a proven and certified project pipeline Grant funds can support certification and capacity building for next group of projects Link offline SPV infrastructure to Ethereum blockchain

Potential Markets: Scaling Access to Conservation RSPO (Sustainable Palm Oil) SCCM for RSPO members Today …future markets… New models for emerging sustainability markets Other Commodities Compensation mechanism for other sustainable commodities sectors SCCM Project Portfolio Peer-to-Peer Leveraging blockchain for consumer participation No Deforestation Commitments Backstopping no-deforestation supply chain linked commitments ----- Meeting Notes (10/9/15 09:17) ----- Carbon Fund does all three Energy Sector Mechanisms innovated for carbon and ecosystem service management in the energy sector Landscape Scale Commitments Scaling up supply chain linked commitments through shared and collective responsibility (ICAO) Transport Sector Mechanism for International Civil Aviation Industry Offsetting

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