Center for Environmental Leadership in Business FY08 Successes and FY09 Goals Conservation International Annual Planning May 5, 2008.

Center for Environmental Leadership in Business

FY08 Successes and FY09 Goals

Conservation International

Annual Planning

May 5, 2008

CELB Mission and Division Goals

Mission:To engage the private sector worldwide as a positive force for biodiversity conservation

Division Goals:Conservation Investments: $100M in corporate funding raised for Future for Life Campaign (FY05-10)

Business Practices: Biodiversity policies and practices adopted by leading companies in key industries -- agriculture, forestry, fisheries, energy, mining, tourism, financial services (goal and target to be updated with new CI strategic plan)

CELB Division Level Goals: Conservation Investments

$20.7M $9.1M

$17M

$10.4M

$0

$5

$10

$15

$20

$25

$30

$35

FY07 FY08 (Target) FY08 (Actual)

Committed

Target

Received

Corporate Campaign Contributions

* Revenue shown in millions

$31.1M

CELB Division Level Goals: Conservation Investments

Progress by Fiscal Year* Revenue shown in millions

FY08FY07FY06FY05 FY10FY09

$100M

$90M

$80M

$70M

$60M

$40M

$50M

$30M

$20M

$10M

Corporate Marketing &

Communications

Jason Anderson

Corporate Conservation Partnerships

Adam Schoenberg

Business Policies and

Practices

Assheton Carter

RegionalConservation

Actions

John Buchanan

Ecosystem Service

Investments

Toby Janson-Smith

CELB Strategy

Strategic advice to companies linked to major corporate investments and game-changing actions supporting CI priorities

Regional capacity, strategy, and threats assessment

Field applications of tools

Regional alliances(e.g., MARTI, Brazil agribusiness)

Business Engagement Learning Network

Corporate philanthropy for CI conservation programs

Cause-related marketing

Special events

Business & Biodiversity Council

Marketing promotions with corporate partners

Digital Strategies

Corporate media

Publications

Conferences

Carbon offsets marketing

CCBA/VCS

Industry engagement on climate policy

Conservation & Community Carbon Fund

Technical SolutionsBambi Semroc

Conservation tools innovation (e.g., IBAT, supply chain, offset standards, IBAP)

FY08 Successes

Starbucks and CI renew decade-long partnership with five-year, $7.5M commitment to combat climate change through forest conservation in coffee growing landscapes, and to engage consumers and employees in conservation actions

Fiji Water commits to going beyond carbon neutral, pledges $5 million for Sovi Basin conservation, and plans $1.4M forest carbon investment

Toyota and CI forge three-year, $3M partnership to restore and protect ~2,500 ha in the Philippines’ Peñablanca Protected Landscape and Seascape

CI launches Sustainable Biofuel Crops Initiative with $1.1M grant from U.S. Department of Energy

FY08 Successes Cont.

Monsanto ($6.5M) and Wal-Mart ($2.8M) commit to biodiversity conservation investments in Brazil

Marriott announces industry-leading environmental strategy, with a carbon neutral goal backed by a $2M investment in Amazon forest conservation, and a commitment to engage consumers

Mesoamerican Reef Tourism Initiative: Agreement announced by cruise industry leaders with action commitments for protection of the Belize Barrier Reef, a World Heritage Site located in one of the fastest growing Caribbean cruise destinations

Wal-Mart and CI lead “Mine to Market” innovation project creating global incentives for industry best practices in gold and diamond mining, with the long-term objectives of promoting conservation outcomes in key regions such as South Africa and West Africa, and educating jewelry customers on the origins of minerals and gemstones

FY08 Successes Cont.

Forest conservation provisions included in the Voluntary Carbon Standard – the definitive reference point for verifying carbon offsets for the voluntary carbon market ($100M today and projected to rise to $1B by 2010)

Bunge, CI and local partners in Brazil create BioCerrado Alliance to recruit additional companies (e.g., Kraft, DuPont) and increase the scale of business engagement for conservation and sustainable agriculture in the Cerrado hotspot, including ~250K ha of new protected private lands

Business & Biodiversity Council grows to 22 companies, with new members including Bank of America, Disney, DuPont, General Growth, General Mills, Royal Caribbean, Shell, United, and White Wave Foods

Wrigley Company Foundation awards $2.5 million to CI for promotion of a global conservation ethic

FY08 Successes Cont.

Dr. Seuss Enterprises and CI launch The Lorax Project to raise awareness of forest destruction and generate funds for CI programs

McDonald’s and CI partner on promotional campaign around the DreamWorks release, Bee Movie, resulting in widespread exposure for CI messages on pollinators and plans with McDonald’s for greatly expanded collaboration on conservation investments and consumer-facing initiatives

Updated Carbon Calculator launched as on-line tool for individuals to measure their climate footprint and to contribute to CI Conservation Carbon projects, and plans underway with MSN, NAVTEQ, United Airlines, Royal Caribbean and Fiji Water to feature the calculator on corporate web sites

FY09 Plan

Outcome: Corporate Engagement in the Regions

CI knowledge and tools mobilized, strategies developed, and capacity built to maximize corporate engagement opportunities for mitigating industry threats and achieving conservation outcomes in the regions

Corporate Engagement in the Regions: Outputs

Business Engagement Learning Network implemented with point people identified in all CI regions

CI business engagement toolkit version 1.0 created, with content based on CELB and regional program experiences to date with corporate partners on fundraising, environmental best practices, and supply chain guidelines

Corporate engagement strategies developed and implemented in CI regions—already underway in South America, Africa, China, Indo-Pacific; need to agree on timing and sequencing with other regions

Methodology for private sector threats assessment developed with Regional Divisions, CABS, and Conservation Strategies

Corporate fundraising strategies developed and implemented, including identification of major prospects, for CI regions

FY09 Plan

FY09 Plan

Outcome: Corporate Funding for Conservation

Through CELB strategy lines, $20M in corporate funding secured in FY09 to hit 90% of Future for Life target with one year left in campaign

Corporate Funding for Conservation: Outputs

To reach the $20M target: Environmental leadership strategies yield a total of at least $8M

in commitments to CI’s climate change business plan from Disney, Royal Caribbean, Fiji Water, Marriott, and United

At least $8M in pledges secured from 3M, Alcoa, ExxonMobil, McDonald’s, United Technologies, FedEx, PepsiCo, Anheuser-Busch, Google, and other leading companies for CI conservation programs

At least $3M raised from corporate partners engaged in projects under the CELB Business Policies & Practices and Regional Conservation Actions strategy lines (IBAT donors, Newmont, Rio Tinto, Cargill, Bunge, Kimberly-Clark, Virgin Atlantic, International Paper)

At least $1M in direct unrestricted income raised from corporate special event sponsorships and from cause-marketing promotions

Business & Biodiversity Council generates ~ $1M for CELB and builds pipeline for larger corporate funding support for CI

Two new industries (e.g., pharmaceuticals, aerospace) identified, and engagement strategies created, for contributions to CI

FY09 Plan

FY09 Plan

Outcome: Ecosystem Service Investments

Markets developed for forest carbon and other ecosystem services through assisting corporations with development of robust climate strategies and offset portfolios, creating vehicles for consumers to offset their carbon footprints, and supporting development of market-oriented voluntary carbon standards.

Ecosystem Service Investments: Outputs

Conservation & Community Carbon Fund launched with 1-3 major financial institutions (e.g., Carlyle Group, JP Morgan Chase, Goldman Sachs) to facilitate investment in CI and CCB forest carbon projects through $25M Project Development Facility and $250M Carbon Asset Fund

Partnerships established with at least 3 corporations (toward multi-year target of 10 in CI Climate Change business plan) committing to major forest carbon investments (e.g. Disney, Carlyle Group, UAL, Royal Caribbean, Fiji Water)

Revised version 2.0 of Climate, Community & Biodiversity standards released

Updated Voluntary Carbon Standard released, including "avoided conversion of non-forest land" provisions to ensure conservation of biologically rich grasslands, wetlands and desert ecosystems

High-volume transaction mechanism created resulting in millions of "carbon neutral" credit card holders supporting CI forest carbon projects

FY09 Plan

FY09 Plan

Outcome: Industry Threats

Through leading companies’ use of CI strategy advice and tools, global threats to biodiversity significantly abated and converted to positive results for conservation

Industry Threats Outputs

Integrated Biodiversity Assessment Tool (IBAT) unveiled at World Conservation Congress, Oct. ’08, and used by companies, governments and MDBs to identify and protect KBAs

At least 2 key corporations (e.g., Virgin, Shell) enlisted as partners in the CI Sustainable Biofuel Crops Initiative, matching the DOE funding

Business & Biodiversity Offsets (BBOP) methodologies, including valuation of ecosystem services, piloted in Ghana and Madagascar

Conservation supply chain innovations launched and implemented with Starbucks (coffee sourcing and climate solutions), Wal-Mart (mining and jewelry) and cruise industry (best practices for shore excursion providers)

FY09 Plan

FY09 Plan

Outcome: Conservation Ethic and CI Branding

Through strategic joint marketing promotions, employee engagement initiatives and on-line campaigns, CI corporate partner communications channels help spark a conservation ethic within society and generate increased awareness for CI and our mission

Conservation Ethic and CI Branding Outputs

At least two major in-store and on-line campaigns launched with McDonald’s, beginning with the Kung Fu Panda and Endangered Species Happy Meal promotions focusing on the U.S. and European markets, reaching more than 40 million consumers, and linking to McDonald’s conservation investments in China, Sumatra, Cambodia and the Congo

Co-branded promotion featured in thousands of Starbucks stores worldwide to educate customers about sustainable coffee sourcing, as well as about CI, forests and climate change

Conservation-themed lobby space created on board a Royal Caribbean cruise ship informing hundreds of thousands of passengers on CI’s mission and programs

Integrated marketing and communications campaigns developed with Disney, Marriott, United and Fiji Water, building upon existing collaborations with CELB on environmental leadership strategies

Web-based clearinghouse of environmental information for consumers launched with selected global brands within the Business & Biodiversity Council

FY09 Plan

Human Well-BeingConservation Initiative Conservation Impact Human Well-Being ImpactCLIMATE CHANGE

Conservation & Community Carbon Fund

Corporate climate investments

CCB and VCS Standards

____________________________________

FRESHWATER

Corporate funding for watershed protection projects (e.g., 3M & Alcoa renewals for China watershed projects, PepsiCo, Carlyle Group, strategy for engagement with pharmaceutical industry)

Integration of information on freshwater hotspots into industry best practices and supply chain guidelines

____________________________________

ECOSYSTEM SERVICES

Business & Biodiversity Offset Program: Valuation of ecosystem services in biodiversity offset methodologies

CLIMATE CHANGE

Corporate contributions enable development and implementation of forest carbon and climate adaptation projects

CCB and VCS standards maximize biodiversity benefits of forest carbon projects and build market confidence in forest-based offsets

____________________________________

FRESHWATER

Corporate funding and environmental best practices help achieve positive results for freshwater species and watershed services

____________________________________

ECOSYSTEM SERVICES

Biodiversity offset initiatives result in verifiable net gains for conservation and avoid harmful tradeoffs for ecosystem services

CLIMATE CHANGE

Forest carbon and climate adaptation projects provide economic benefits for local communities

CCB and VCS standards assure community benefits in forest carbon project design for voluntary carbon market

____________________________________

FRESHWATER

Payments for ecosystem services boost local incomes

Clean water reduces human health risks and enhances quality of life

____________________________________

ECOSYSTEM SERVICES

Legitimate biodiversity offset initiatives enable local economic development while assuring net benefits for biodiversity

PartnershipsPartners (current and likely) Reason for Partnership Support Needed

Key corporations and trade associations (e.g., Alcoa, Bank of America, Bunge, Carlyle Group, Cargill, Cruise Lines Industry Association, Disney, DreamWorks, ExxonMobil, Fiji Water, Goldman Sachs, JP Morgan Chase, Marriott, McDonald’s, Newmont Mining, PepsiCo, Royal Caribbean, Starbucks, Toyota, United Airlines, Wal-Mart)

Mobilizing private sector funding for CI programs, and implementing industry best practices contributing to conservation outcomes

Additional senior-level capacity for leadership of key corporate accounts

Partner NGOs at local, national, regional and international levels (e.g., CARE, WCS, TNC and other CCBA partners; Birdlife, WCMC, IUCN, and other IBAT partners; Rainforest Alliance, African Wildlife Foundation, TransFair and other NGOs involved in Starbucks C.A.F.E. Practices)

Achieving efficiency, synergy, and scale in delivery of conservation results, and responding to corporate partner expectations

Additional capacity for managing relationships with NGO partners

Government agencies (e.g., DOE biofuels grant, European bilaterals, USAID – GDA alliances)

Securing financial support for private sector engagement and policy actions reinforcing environmental leadership in business

Support from CCG Public Funding team for identification of opportunities, plus internal capacity for development, administration, and reporting on government grants

Multi-stakeholder alliances (e.g., CCBA, IBAT, BBOP, Roundtable on Sustainable Biofuels, Keystone Dialogue on Sustainable Agriculture)

Increasing industry-wide scale of positive impacts, building relationships with key businesses, and leveraging corporate contributions for CI programs

Capacity for participation in multi-stakeholder alliances critical to CI objectives

Organizational Sustainability

Divisional Role: CELB engages business in support of CI outcomes and plays a pivotal role for the organization on financial sustainability and risk management

FY09 Activities:

Corporate account stewardship: CELB manages long-term, multi-faceted relationships with corporate partners to maximize revenue and other benefits for the institution

CI branding and communications: CELB harnesses corporate support to build CI’s brand, while managing risk by ensuring credible environmental commitments from partner companies

Regional conservation actions: CELB coordinates institution-wide efforts to build capacity and maximize efficiency through a Business Engagement Learning Network

FY09 Details

Management Team Chaired by

Glenn Prickett

Strategy TeamChaired by

Justin Ward

Account TeamChaired by

VP, Conservation Investments

Governance Group Role

Management Team To determine long term direction of CELB. Manages high-level performance of strategies and accounts. Approves hiring proposals and oversees CELB budget.

Strategy Team To review strategy performance, build collaborative cross-strategy plans, and ensure proper staffing and delivery on project commitments to corporate partners.

Account Team To create, manage, and evaluate account strategies, review account performance, and build campaigns to reach across multiple accounts.

Executive Committee for CI Corporate Engagements

Reviews and approves major corporate negotiations and agreements involving large-scale opportunities or risks for the institution. Members: Niels Crone, Claude Gascon, Laura Bowling, Jorgen Thomsen, Glenn Prickett.

Advisory Board (consolidated from original Executive Board & Advisory Committee)

“Blue ribbon” group advising CELB on program direction. Members: Rob Walton (Chair), Frances Beinecke, Tom Burke, Liz Cook, Mike Duke, James Griffiths, Bill Harrison, Stuart Hart, Amory Lovins, Mack McLarty, Sue Mecklenburg, Jacob Scherr, Peter Seligmann

CELB Management Structure Advisory Board (consolidated

from original Executive Board & Advisory Committee)

Executive Committee for CI Corporate Engagements

Organizational Chart: CELB Division Management

Glenn Prickett

Senior Vice President andExecutive Director

Justin Ward

VP, Business Practices

VacantVP, Conservation Investments

Edith Mahi

Lead, Ops + Finance

Inmaculada Aldamiz

Executive Assistant

CELB: Corporate Engagement Strategies

Organizational Chart

Justin WardVP, Business Practices

Assheton CarterSenior Director,

Business Policies & Practices

John BuchananSenior Director,

Regional Conservation Actions

Jason AndersonDirector, Corporate

Marketing & Communications

Michael TottenChief Advisor, Climate & H20

Toby Janson-SmithSenior Director,

Ecosystem Service Investments

Marielle CanterSenior Manager

Mahlette BetreManager

Seleni MatusDirector, MARTI

Christine DragisicManager

Rebecca RogersManager

Brian GurrManager

VacantManager

Katrin OlsonManager (Media)

Jessica WechterManager (Graphic Design)

VacantManager (Editorial)

Sonal PandyaSenior Manager

Joanna DurbinDirector, CCBA

VacantManager

Bambi SemrocDir., Technical Solutions

Adam SchoenbergDirector, Corporate

Conservation Partnerships

VacantManager, CCBA

Elizabeth BaerManager

VacantManager

(Starbucks supply chain)

Conrad SavyBiodiversity Analyst (CABS)

CELB: Corporate Account Stewardship

VacantVP, Conservation Investments

Adam SchoenbergDirector, Corp. Conservation Partnerships

VacantSenior Account Lead

Angie ProsekSenior Manager

VacantManager

Melissa ThomasCoordinator

Maggie McIntoshManager

Organizational Chart

CELB: Operations and Finance

Edith MahiLead, Operations & Finance

Vlasova UrreaCoordinator

Lubianca SchumacherAdministrative Assistant

Laura JohnstonAdministrative Assistant

Organizational Chart

Headcount

Regular Fixed-Term

FY08 Board-

approved budget

# FT positions 29 2

# PT positions 0 1

Positions added in FY08

# FT positions 0 1

# PT positions 0 1

FY09 Requested

# FT positions 3 3

# PT positions 0 2

FY09 Budget Growth

Division Total FY08 BudgetProposed FY09

Budget% Growth

CELB $ 4,709,760 $ 5,065,076 8 %

Activity Area

Business Practices $ 2,069,167 $ 1,694,044 -18%

Conservation Investments $ 2,053,643 $ 2,089,076 2%

Executive NA $ 797,567New Cost Center

Operations $ 586,950 $ 484,389 -17%

FY09 Budget Detail by Expense Category

Expense Category FY08 Budget% of Total

FY09 Proposed Budget

% of Total

% Change FY08 to FY09

Salaries & Benefits $ 3,022,201 64% $ 3,691,121 73% 22%

Travel & Conferences

$ 573,002 12% $ 622,710 13% 16%

External Grants $ 145,347 3% $ 24,000 0% -83%

Occupancy $ 239,716 5% $260,992 5% 9%

Other Direct Costs $ 729,494 15% $ 426,253 8% -42%

Total $ 4,709,760 100% $ 5,065,076 100% 8%

IDC $ 424,152 $ 479,846 13%

FY09 Budget Detail by Funding Source

Funding SourceFY08 Budget

% of Total

FY09 Proposed Budget

% of Total

% Change FY08 to FY09

GBMF $ 0 0% $ 0 0% 0%

Individual $ 520,573 11% $ 1,108,703 22% 113%

CEPF $ 0 0% $ 0 0% 0%

Government $ 177,323 4% $ 53,229 1% -70%

Foundation $ 1,668,523 35% $ 582,467 11% -65%

Corporate $ 1,107,979 24% $ 1,510,669 30% 36%

Non Reporting $ 882,862 19% $ 913,486 18% 3%

Shortfall $ 0 0% $ 896,522 18% 0%

Unrestricted $ 325,500 7% $ 0 0% -100%

Total $ 4,709,760 100% $ 5,065,076 100% 8%

IDC $ 424,152 $ 479,846 13%

US Government1%

Corporate30%

Individual22%

Foundation11%

Non Reporting18%

Shortfall18%

Funding Sources

FY09 Details

FY09 Budget Shortfall

Activities

Climate Change $ 301,479

Business Practices $ 162,616

Communications $ 6,840

Subtotal $ 470,935

CI Programmatic Fundraising $ 298,820

Regional Conservation Action $ 126,767

Subtotal $ 425,587

Total Shortfall $ 896,522

FY09 Details

Key Strategic Issues

Corporate Account Leadership: We need additional human and financial resources to steward our major corporate accounts. This should include new senior account leads in CELB and more effective collaboration across the institution.

Regional Capacity for Business Engagement: What is our most effective and most fiscally responsible approach to building business engagement capacity in the regions and maximizing the scale of conservation results?

Focus and Goals for Business Practices: Looking ahead, how should CELB frame our industry engagement goals, indicators and targets to reflect major systemic threats (climate change, freshwater scarcity and degradation, unsustainable agriculture, infrastructure development)?

FY09 Details