Mike korchinsky wwc tbli presentation 5.12.2014

© 2014 - Wildlife Works Carbon, LLC. Slide 1

The World’s Leading REDD+ Project Development

Company

Mitigating Climate Change by Protecting Threatened Forests

February 2014

“This is an opportunity to use the power of the global carbon marketplace to preserve some of the most

spectacular primary forests on the planet, preserving entire ecosystems full of magnificent biodiversity, while working closely to enhance the way of life of

forest communities —and to make money doing it.”

Mike Korchinsky, Co-Founder and President of WWC

© 2014 - Wildlife Works Carbon, LLC. Slide 2

Our business stops deforestation like this from

happening.

Vast deforestation happened in this area of Kenya as a result of slash and burn agriculture.

© 2014 - Wildlife Works Carbon, LLC. Slide 3

Climate change is one of the most pressing problems facing humanity.

•Mitigating climate change involves the aggressive reduction of Greenhouse Gas Emissions (GHG)

•The United Nations has determined we need to reduce emissions 17B tons per year by 2020 to avoid catastrophic climate change.

•The deforestation of 30M acres every year causes 7B tons of GHG emissions, 15% of current annual global GHG emissions – more than the global transportation sector.

•Deforestation has other devastating impacts such as endangering biodiversity and reducing fresh water supply.

•Stopping deforestation can be done without massive investment in unproven technologies.

•Reducing Emissions from Deforestation and Forest Degradation (REDD+) has emerged as one of the most effective strategies in climate change mitigation.

Wildlife Works Voted 2013Best REDD+ (Forest)

Project Developer

##1 1

• Wildlife Works is the leading REDD+ project development and management company.

© 2014 - Wildlife Works Carbon, LLC. Slide 4

• Area: 173,616 ha• Ecosystem: Dryland forest, Acacia-commiphora

dominated• Threat - slash and burn agricultural conversion• Solution - provide more attractive sustainable

development to community• WWC Initial Investment: $2 MM• Project Validation Date: 2011• Yield: 1,200,000 VERs per year • Contracted Revenue: agreements signed with

Allianz, BNP Paribas, and Kering• Revenue Generated:

2011: $ 1.1M 2012: $ 3.3M

• Residual Revenue Potential: 28 years of VERs @ $6 = $201,600,000

• Endangered Wildlife Protected: African elephants, cheetah, lion, African wild dog, Grevy’s zebra

• Community Impact: 100,000 community members benefit from carbon revenues

EXAMPLE PROJECT: KASIGAU CORRIDOR, KENYA

© 2014 - Wildlife Works Carbon, LLC. Slide 5

• Area: 277,000 ha• Ecosystem: High conservation value tropical wet forest• Threat – commercial logging, charcoal production and

farm conversion (cascade deforestation)• Solution – convert logging concession to conservation,

provide economic alternatives to community• WWC Total Investment since 2010: $7 MM• Validation Date: December 2012• Yield: 5,800,000 VERs per year average over 30 years

• High Revenue Potential: 30 years @ $6 per VER > $1B

• Community Impact: Population of 50,000 economically benefit

• Wildlife Protected: Bonobos (slender chimpanzee), forest elephant

EXAMPLE PROJECT: LAC MAI NDOMBE, DR CONGO

© 2014 - Wildlife Works Carbon, LLC. Slide 6

• IDENTIFY Forests with high carbon value at risk of deforestation

• COLLABORATE with landowners, local forest communities and governments to design a mutually acceptable project that will stop deforestation

• QUANTIFY the potential emission reductions(VERs)- WWC makes extensive field measurements to establish carbon stored in hectare of forest

- WWC remote sensing scientists determine deforestation rate in hectares per year

• DESIGN project activity investments needed to stop deforestation

• VALIDATE the carbon quantification and project activity design with independent 3rd party auditors

• OPERATE the project for a minimum of one year of forest protection and community investment

• VERIFY with 3rd party auditors that project worked to stop deforestation

• RECEIVE annual VERs into WWC’s international registry account

• SELL VERs on the international carbon markets

Repeat annuallyFor 30 years

HOW WWC REDD+ PROJECTS MAKE MONEY

© 2014 - Wildlife Works Carbon, LLC. Slide 7

Wildlife Works established the market for REDD+ VERs with the successful validation of the world’s first REDD+ project in 2011. Our early customers are some of the world's leading corporations

*Allianz and Kering are customers as well as equity investors.

WHO BUYS REDD+ Emissions Reductions(VERs)

© 2014 - Wildlife Works Carbon, LLC. Slide 8

WHY CUSTOMERS BUY

1. They believe it is the right thing to do• Emissions are not a right• Corporations should take leadership in reducing their impacts• Corporations can achieve both sustainability and CSR goals

2. Managing Risk • Market/Consumer Risk- REDD+ VERs deliver tremendous social and environmental co-benefits to forest

communities who share in the natural capital value of their forest- Generate positive PR, build customer loyalty, attract new customers, engage employees,

increase shareholder satisfaction and enhances brand equity• Operational Risk- Ensure access to water supply – forests are water catchments

- Cement producers, Drinks companies need water- Reduce the impact of local climate effects

- Cocoa, tea, commodities• Regulatory Risk - License to operate- Business interruption- Future emissions reduction regulation

3. Potential Business Opportunities• Access to preferential financing

© 2014 - Wildlife Works Carbon, LLC. Slide 9

HOW BIG IS THE RISK - ACCOUNTING FOR CARBON

• Businesses are increasingly internalizing the price of carbon emissions in their financial models in a range of $6-60 per ton

“Industry Awakens to Threat of Climate Change”New York Times - January 23, 2014

“U.N. Says Lag in Confronting Climate Woes Will Be Costly”New York Times - January 16, 2014

“Some firms are preparing for a carbon price that would make a big difference”

The Economist - December 14, 2013

“The Social & Environmental Case for Carbon Offsetting: In Conversation with Barclays”CSRwire - August 28, 2013

“Where we choose to lend and what impact that has on the environment is critical. We need to hit this on a macro level. When you go to lend to an oil and gas company, we need to stand up to

our commitment.” - Jillian Fransen, Director of Citizenship at Barclays Bank

© 2014 - Wildlife Works Carbon, LLC. Slide 10

We believe converging trends will intensify market pressures and increase risk

CONVERGING TRENDS

© 2014 - Wildlife Works Carbon, LLC. Slide 11

Mike KorchinskyCo-Founder & President

Wildlife Works Carbon, LLCT: +1 (415) 332-8081E: [email protected]

“The battle against climate change cannot be won without the world’s forests - this is

now clear.”Ban Ki-Moon

Secretary General of the United Nations

Slide 11