FAST Oct, 2017

Noemi Perez President & CEO

© Photo credit: CIAT International Center for Tropical Agriculture

Mobilizing finance for sustainable business growth

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• FAST was founded in

2008.

• Established in Montréal,

Canada.

• Serves 150 members in

more than 30 countries.

About Us

A leading and innovative international

organization that provides training, analytics,

and matchmaking services to increase

access to finance for SMEs working mainly in

sustainable agriculture and forestry.

What’s FAST?

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Commodities served in Agriculture & Forestry

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Examples of our

Members

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Some of our Strategic Partners

FAST Products & Services

Training

Analytics

Matchmaking

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RTF

OLIO

Training

We build the financial literacy of sustainable SMEs to

improve their credit readiness & advise FSPs to invest

in specific sectors

Financial Learning

Solutions for SMEs

Training & Advisory

Services

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1. Financial Literacy Toolbox

Our FLTBX

is available

in:

• English

• Spanish

• Arabic

• Swahili

More than

100

Local

Financial

Advisors Identified,

selected and

trained and

ready to

provide

tailored

coaching to

SMEs to

improve their

credit

readiness

Uncover the financial market trends and investment

opportunities, to guide and support key decision-

making. Track environmental, social and economic

impacts of SME finance.

Impact Investment

Measurement

Investment

Information Services

Analytics

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Investment Information Services

• Commodities &

Investments

• A Sustainable

Financial Markets

Benchmark

• Sector Investment

Guides

Investment Guides

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Matchmaking

Small

Medium

• The most suitable and efficient service to

international and local FSPs to meet SMEs

financial needs.

• We bring FSPs and SMEs together, facilitating

the flow of millions in capital and loans.

Finance Connect

FAST Financial Fairs

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Matchmaking

AXiiS Online Platform

¡THANK YOU!

www.fastinternational.org

info@fastinternational.org

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Key Results Survey of Global Investments

in Sustainable Tropical Forestry

Objective

To identify

opportunities and

barriers perceived by

FIs investing in

tropical forestry.

Methodology of Survey

Survey

Quantitative +

qualitative

primary data

Promotion: 130 Investors invited, 80 stakeholder organizations

were asked to circulate the Survey, link in UNPRI infoletter

(only investors).

We invited investors from the following groups on LinkedIn:

- Global Investment Network

- SME Finance Forum, managed by IFC

- Impact Investing Forum – The Voice of Impact Investment

- Social Enterprise and Development

- ESG Investing

Results: 32 complete answers, 14 partial answers and 4 blanks.

Investors Typology

- (n=46)* - 85% invest in emerging markets (n=46)

* Absolute number of respondents

37,0%

19,6%15,2%

13,0%

6,5%2,2% 2,2%

0,0%

10,0%

20,0%

30,0%

40,0%P

riva

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stm

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Fir

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fin

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(i.

e.

Co

mm

erc

ial,

Inv

est

me

nt)

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or

Pro

fit

Org

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Type of Financial Service Provider

Forestry Operations – Investments

1st most important subsector of investments out of the respondents’ 3 top

subsectors (n=24). The 2nd most important subsector is NTFPs (33%)

66,7%

16,7%

8,3%4,2% 4,2%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

Timber Agroforestry

products

(coffee, cocoa,

rubber, …)

Carbon credits Non-timber

forest products

Ecosystem

services

First Most Important Subsector of Investment

0,0%

59,1%27,3%

9,1%

4,6%

Level of Satisfaction

SatisfiedNeutral

Dissatisfied

Very dissatisfied Very satisfied

Forestry Operations – (n=22)

Investment Preferences and Conditions – (n=26)

Yes

69,2%

No

19,2%

I don't know

11,5%

Consider investing in tropical forestry within the next 3 years

Investment – Preferences between investing in Natural Forests and Plantations (n=37)

8,1%

56,8%

35,1%

Preferences in Forestry Investments

Natural forests Plantations Don't have preferences

Investment Preferences and Conditions – Key Factors

The key factors that could favour forestry investments are: (n=37)

Key Factors A clear and enforceable legal framework is in place in the

country defining investors’ rights and obligations (35.1%)

Expectation to contribute to generate positive environmental

impact (13.5%)

Expectation to obtain high Return on Investments (10.8%)

Expectation to contribute to generate positive social and

economic impact at the client level and its community (10.8%)

Investment Preferences and Conditions – Key Barriers

The most important barriers to invest in tropical forestry are: (n=36)

Key

Barriers

Sector risks: weak governance, unsafe land tenure, limited used

of advanced technology, illegality etc. (33.3%)

Common cash flow profiles in forestry require long-term

investments (16.7%)

Lack of compelling and commercially viable investment

proposals (13.9%)

General country and currency risks of most tropical countries

(11.1%)

Forestry Operations - investors in tropical forestry (n=37)

10,8%

21,6% 21,6%

27,0%

10,8%

2,7%

5,4%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

Negative 1%-3% 4%-7% 8%-12% 13%-15% 15%-18% Over 18%

Actual Return on Investment (ROI)

The most common minimum ROI to consider investing in tropical forestry is between

8% and 12% (40.5% of respondents).

When it comes to investment decisions how does your company

consider Environmental, Social and Governance criteria? (n=34)

Impact Investments and Measurement

Positive

screening

73,5%

Other

14,7%

No specific consideration

5,9%

Negative screening

5,9%

Environment, Social and Governance (ESG) criteria

Impact Investments and Measurement Do you have a policy to define the Impact Objectives of your investment strategy? If yes , what type of Impact Objective? (n=34)

61,8%

58,8%

58,8%

26,5%

5,9%

0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0%

Yes, Social

Yes, Environmental

Yes, Economic

No, we have no such policy

Other

Policy to Define the Impact Objective

Impact Investments and Measurement (n=34)

70,6%

61,8%

52,9%

52,9%

5,9%

2,9%

0,0% 20,0% 40,0% 60,0% 80,0%

Monitor the performance of your asset

allocation

Report to your investors

Complement their pre-feasibility analysis

before deciding whether investing or not in

sustainable forestry

Identify best sustainable forestry business

cases based on potential impact

Other

No, it won't be useful at all

3BL impact measurement could be useful to:

¡THANK YOU!

www.fastinternational.org

info@fastinternational.org