2. 2
What is Funbio?
• Funbio is an Environmental Fund that mobilizes resources and offers services
towards biodiversity conservation, such as:
– design and management of financial mechanisms
– selection and management of projects
– procurement and hiring for environmental projects
– territorial analysis to define agendas and investments
– solutions to mitigate climate change
– coordination of actors and projects in international networks
3. 3
To provide strategic resources for biodiversity
conservation
Mission
Vision
To become the benchmark in enabling strategic resources and solutions
for the conservation of biodiversity
5. 5
• Founded in 1995, Funbio is a non-profit organization
• Funbio is a result of the international agreements of Rio 92, the Convention on
Biological Diversity (CBD). It was created as a financial mechanism to support the
implementation of CBD in Brazil, aiming to engage the private sector.
Origin
6. Territorial/agenda funding environment
6
Funbio and the Private Sector
Private sector funding
for biodiversity &
ecosystem services
Legal
obligations
CSR
Business
approach
Leveraging effect:
other sources
Public
funding
International
cooperation
Philantropy
7. 8
Examples
CSR
Business
approach
• 0.5M USD for carbon credits of REDD+
Project of the Surui Indigenous People
• 1M USD donation for the Amazon
Region Protected Areas program
• Amazon Program – sustainable use of
biodiversity for social economic
development of the region
• Tapajós-Arapiuns Territory – biodiversity
based value chains (Probio II – about 5M
USD)
Fund design
and mgt
Fund design
and mgt;
procurement
Strategy
design
Fund design
and mgt;
stakeholders
engagement
Funbio
8. 9
Examples
CSR
CSR
• Juruti Fund – a sustainable
development fund for the municipality
of Juruti, in the Amazon, where the
company has a bauxite mine (Probio II –
about 2M USD)
• Map and develop value chains in the
buffer zone of the company’s reserve to
deliver sustainable development to the
region (Probio II – about 200K USD)
Fund design
and mgt
Strategy
design
Funbio
Fund design
and mgt
Strategy
design
9. 10
Examples
Business
approach
• Social environmental strategy for the
new paper plant construction focusing
sustainable development
Strategy
design
Funbio
CSR
• 5M USD donation for the Amazon
Region Protected Areas program
• 1M USD donation for the Amazon
Region Protected Areas program
Fund design
and mgt;
procurement
10. 11
Examples
Legal
Obligations
Companies have to compensate their
impacts supporting PAs to obtain licenses
(SNUC law)
• About 154M USD allocated for 49 PAs in
the state of Rio de Janeiro in 4 years
Environmental
compensation
Mechanisms
design and
management;
procurement;
accountability
Funbio
Lincesing
conditions
Companies have to implement a project
to obtain licenses
• About 2M USD from Petrobras to the
marine manatee monitoring
53 different
operations/
infrastructure
Funbio works with the private sector in different ways:
Fulfillment of legal obligations: environmental compensation, terms of adjustment of conduct, licensing requirements, forest replacements and compensation of greenhouse gases emissions
CSR – Corporate Socio environmental Responsibility – investments in the social and environmental agenda of their areas of influence or topics selected
Business approach - analysis and solutions for businesses operations involving biodiversity, ecosystem services and sustainable development
CLICK – CARREGA Other sources & funding environment
As a financial mechanism our approach for the areas we work (territories) is the integration of different funding layers. If we work with the private sector through one of the three entries above, we can leverage other resources from other funding sources to the same region or agenda. These include public funding (annual budget, federal and states – Funbio does not manage public funding but these resources can compose the funding base for a territory or an agenda), international cooperation (bi and multilateral agreements) and philanthropy (donations).
The Brazilian cosmetic company Natura is a good example, as Funbio has worked with this company in different ways:
CSR – Natura has voluntarily bought carbon credits from a REDD+ project developed to finance an Indigenous Land in Rondonia, of the Surui People. The objective is to neutralize the company’s emissions.
Still in the CSR agenda of the company, a donation was made to the ARPA program, a protected areas program managed by Funbio for the amazon region.
Business approach – Natura has hired Funbio to help them design a strategy for the Amazon region, as the company uses several biodiversity components in the products’ formulas. Besides designing the strategy, Funbio has developed a capacity building program for the top level management of the company, focused on the Amazon region. What are the issues in the Amazon, how it was occupied historically, what are the different ecosystems within the Amazon, what are the political conflicts, what are the polemics, etc. Funbio organized a series of presentations with specialists in all these areas to the directors of the company and took them in the field to get to know the Amazon reality.
Within the Amazon Program, Natura is investing in the development of biodiversity value chains, that will provide the company with the biodiversity inputs needed for their production and also generate social, economic, and environmental benefits for the communities in the forest. This project has matching resources from the GEF/World Bank through a program named Probio II, an intiative aimed at mainstreaming biodiversity into productive landscapes.
CLICK – CARREGA Funbio services in each case
Other examples of Probio II projects that involve the private sector in financing biodiversity based value chains are:
The mining company Alcoa has hired Funbio to help them design a strategy for their presence in Juruti, a small municipality in the Amazon where the company was opening a new bauxite mine. Funbio designed a sustainable development fund for the city, to finance community based productive projects, creating a way for the company to support the community without replacing the state and leaving a legacy when the mine is closed. Funbio manages this fund that is composed by resources of the company and has a matching of the Probio II.
The holding Votorantim hired Funbio to contribute to their strategy for their private reserve in the state of Sao Paulo. Within Probio II project, Funbio will map the buffer zone potential value chains to be developed through a fund that foster community based productive projects, generating sustainable development for the region.
CLICK – CARREGA Funbio services in each case
In a Business approach – The Brazilian paper company Klabin hired Funbio to design a strategy for their presence in a region where the company willopen a new paper plant. It is a strategy crossing the communities demands with the company business strategy for the plant.
Both the mining company Anglo American and O Boticario, a Brazilian cosmetic company, also donated through their CSR agenda to the ARPA program.
CLICK – CARREGA Funbio services in each case
Fulfillment of legal obligations: explain each type and the examples.
CLICK – CARREGA Funbio services
Fulfillment of legal obligations:
Conduct adjustment agreements – efficient tool for conflict resolution, because they offer mitigatory or reparatory alternatives for the enforcement of the environmental legislation.
It has a conciliatory nature. They spare companies the public embarrassment of appearing as defendants in civil suits or criminal proceedings
CLICK – CARREGA Funbio services