Investment Advisory

The urgency of climate change mitigation and adaptation has gained more recognition globally. With this awakening and willingness to act, society is on the threshold of change towards a more sustainable and ethical economy. Transitioning towards a net-zero future, investors must prepare for a substantial re-allocation of capital. In recognition that this transition will inevitably be complex, immediate investments in both, climate mitigation and adaptation are not just important but necessary to protect our planet and shift the world onto sustainable pathways.   

Studies estimate that alone in the U.S., more than $700 billion in investments are required over the next 30 years to support the transition of the world’s pivotal agriculture systems and realizing their potential of carbon sequestration and climate mitigation[1]. These investments are estimated to generate about $10 trillion in net financial returns.  

As part of this significant opportunity, 12Tree provides access for professional investors seeking sustainable, profitable investments into nature-based solution projects and opportunities. The invested capital is used for improvements in productivity, social impact, conservation and direct climate change mitigation along supply chain networks. By doing so, our teams  achieve market-level returns, risk optimization and highest sustainability standards through holistic in-house operational management. 

Our interdisciplinary team experts optimize resource allocation and potential returns in complex transactions. We are responsible for the origination and structuring of deals, always following rigorous and independent due diligence (legal, tax, financial, technical, social) and approval processes. After a project has been included in our portfolio, we strive to provide investors with clear and transparent operational and financial information, which is verified on a yearly basis by financial auditors and forestry/agriculture appraisers. To demonstrate our commitment to regenerative practices, we voluntary certify our projects under a standard that is selected on case by case basis (FSC, UTZ, organic, Gold standard etc.). Finally on the social front, we mandate social impact auditors that help us establish and track important impact objectives. 

Source

Sustainable sourcing becomes more and more essential for consumer goods companies and more concretely this means fully traceable deforestation-free production of agricultural goods in environments that continue to be suitable for production in fast changing climatic conditions. 

This asks for successful project development in Nature Based Solutions to be able to establish new sustainable supply that does not only rely on a great outreach model and global partner network to find the best land opportunities today, but also the best land search technology and prediction ability paired with deep experience in a wide range of land use models to foresee their suitability tomorrow. 

12Tree is uniquely positioned to identify and acquire strategic assets for nearly any agricultural portfolio. In collaboration with a strong network of our affiliate group that spans 20 years, 5 continents and more than 25 crops, we combine top-down big data analysis using unique proprietary land search tools that can predict changes in suitability for crop production based on a multitude of data sources over the next 30 years. Our strict Land Use Change Policy ensures that only sites are considered where no non-compliant deforestation has occurred. This cost- and time-efficient pre-selection is then verified by our technical expert teams on the ground to identify the site, farm or project most suitable to deliver the desired objectives.   

TO DELIVER ON THE TASK OF DESIGNING,DEVELOPING,AND OPERATING OUTSTANDING NATURE BASED SOLUTIONS INVESTMENT OPPORTUNITIES WE HAVE CREATED RRG NATURE BASED SOLUTIONS.

RRG NBS IS OUR GLOBAL OPERATIONS PLATFORM THAT CONSISTS OF A TEAM O world-class agronomical, hydrological, data analytics, sustainability, carbon emissions, supply chain, and deal structuring experts.  

Design

Whilst making the right site selection already lays the foundation of successful project development, the project’s design is vital for defining its potential to deliver outsized financial and impact performance.  

12Tree has a holistic approach to project design and works with the technical expert teams of our Global Operations Platform through a rigorous design process.Particular emphasis is put on considering the introduction of regenerative agriculture practices, sustainable water management, renewable energy sources and circular economy principles such as waste to energy and waste water recycling. 

The production model as well as every step of production are designed in a way that optimizes carbon emissions and sequestration, maintains and fosters biodiversity above and below the soil as well as working conditions, smallholder outreach and community impact. 

Develop

Our solutions provider RRG NBS develops regenerative agroforestry and agricultural projects at scale with profound operational experience and deep subject matter expertise from having for many years boots on the ground . The focus lies on a broad range of land use projects, ranging from carbon/forestry to smallholder programs, regenerative agriculture farms, renewable energy and sustainable water projects, to conservation and regeneration of vital ecosystem service functions of surrounding remaining natural habitats. 

This requires a broad skillset and deep experience in developing large scale operations as well as smaller programs alike. Each type of Nature Based Solution comes with unique challenges specific to the environment that we are acting in. Not only does this require to navigate local regulations and incentives but also customs and cultural heritage. The vertical integration of several steps in the value chain helps maximize impact and value creation in most cases but also adds complexity and development challenges that need to be understood and balanced with their benefits.  

The team of world-class agronomical, social, environmental and economic experts offer unparalleled technical knowledge and on-ground experience to develop cutting-edge projects. Our techniques seek to continuously unlock  value from sustainable nature-based assets by maximizing carbon sequestration, biodiversity, social impact, and profit.

Operate

Our Global Operations Platform has experience with a range of operator models. Accurate operational setup depends upon local regulations and the ability of the operator to successfully navigate challenges that arise from this. Our on-the-ground expertise in operating projects provides elementary local support and enables precise implementation.   

 12Tree collaborates closely with the RRG NBS global operations platform to deliver strong financial as well as environmental and social impact returns to our investors. RRG NBS´ expertise on the ground expertise on the ground is fundamental for meeting our ambitious key impact goals and deliver risk-adjusted returns to our investors.

Training and Consultancy

In 2023, we invite you to participate in our first series of external seminars created by the new Regenerative Agriculture Knowledge Center directed at building a deeper understanding about regenerative agriculture from an investor perspective and from the view of large multinational off-takers. Our goal is to de-risk these investments to such a degree that investing in Nature Based Solutions can become “mainstream”,  and food companies can sign long-term sustainable offtake agreements in the same way that energy companies have long-term energy offtake agreements today. 

[1] C. Electrics, J. Humphreys, K. Lang, D. LeZaks, J. Silverstein. 2019. Soil Wealth: Investing in Regenerative Agriculture across Asset Classes. Available at: https://croataninstitute.org/wp-content/uploads/2021/03/soil-wealth-2019.pdf