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FAST Oct, 2017
Noemi Perez President & CEO
© Photo credit: CIAT International Center for Tropical Agriculture
Mobilizing finance for sustainable business growth
BA
CK
GR
OU
ND
• 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
PO
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
PR
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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
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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
te I
nve
stm
en
t
Fir
m
De
ve
lop
me
nt
fin
an
ce
Ba
nk
(i.
e.
Co
mm
erc
ial,
Inv
est
me
nt)
No
n-f
or
Pro
fit
Org
an
iza
tio
n
Mic
rofi
na
nce
Inst
itu
tio
n
Pri
va
te F
ou
nd
ati
on
Insu
ran
ce C
om
pa
ny
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