Post on 18-Aug-2020
NEW FORESTS COMPANY: Forestry-based climate change solutions
A presentation by Phoebe Sullivan, Carbon Manager
UGANDA
TANZANIARWANDA
MOZAMBIQUE
PROJECTSOURIN AFRICA
COMPANY OVERVIEW
NFC is building one of Africa’s premier, sustainable forest and wood product companies, diversified
across geographies, markets and products, and underpinned by a strong corporate responsibility
strategy.
LOCATION
Operating in 3 African countries: Tanzania,
Uganda and Mozambique. Projected to expand
into Rwanda and Kenya by 2011. Operational
since 2005.
THE BUSINESS
Growing sustainable timber resources and
delivering high quality, value-added wood
products into the East African market.
ASSETS
By the end of 2010 the company expects to have
a total forest estate of approximately 24,500
hectares and a workforce of more than 3,000.
Over 6,000 Ha under FSC certification and
expanding.
TEAM Distinguished management team with proven
African experience.
CARBON
Carbon key to company’s financial strategy, with
a project in its advanced stages in Uganda, and
looking to expand across the entire plantation
portfolio as new assets are acquired.
TANZANIA: PROFILE
NFC is developing a world-class, forestry carbon program in rural Tanzania, with minimum
land-holdings of 10,000 hectares and projected holdings of 24,000
PLANTATION Lukosi – Kilolo District, Iringa.
TOTAL HECTARES 7,000 hectares secured, negotiating a minimum of
7,000 more – granted right of occupancy.
LAND TYPE Greenfield
TIMELINE Planting 1500 hectares per annum, with initial
planting initiated in December 2009
SPECIES PLANTED 66% Pine, 33% Eucalyptus
CERTIFICATION Either Forest Stewardship Council or Climate,
Community and Biodiversity Alliance Standard
LAND ATTRIBUTES Degraded grasslands. Wetland and forest patches to
be maintained for conservation purposes
CARBON CREDIT
OUTPUT
Preliminary and conservative calculations
demonstrate a minimum of 1.8 million tons of
CO2 emissions reductions (10,000 hectares of
land)
MARKET
ORIENTATION
Adoption of a CDM approved-methodology,
but entrance into the voluntary market under
VCS
EXPERTISE NFC uses advanced techniques for measuring
tree growth – ensuring accuracy of carbon
calculations. Data is managed in the state of
the art MicroForests system, with attention to
cross-checking data and running regular
plantation audits to monitor accuracy.
TANZANIA: CARBON OVERVIEW
NFC’s forestry expertise ensures delivery of quality carbon credits, in a geographic region where
large-scale, land-based projects are a rarity
TANZANIA: CARBON OVERVIEW
NFC’s project management expertise will allow for timely delivery of forestry credits to the
voluntary market.
PROGRESS TO-DATE •EIA performed
•Baseline community assessment finalized and Participatory Rural Appraisals
underway
•Preliminary land eligibility analysis (SPOT image analysis) completed
•Important learning from previous carbon development in Uganda
MARCH APRIL JULY SEPTEMBER
2011 Project Cycle Timeline
UNDERSTANDING LOCAL CONDITIONS NFC employs a local Community Development Officer for each plantation, and runs participatory
rural appraisals to gather local input and knowledge for responsible project design
CSR PERSPECTIVE Direct development interventions supports the company’s superior form of long-term risk
management - NFC builds relationships, not fences.
UGANDA In Uganda, NFC has built schools in communities surrounding plantation, is engaged in an
outgrowers scheme to encourage responsible natural resource management, actively employs
locals, recently launched health clinics for local employees and neighbours and supports the
generation of new livelihood opportunities.
TANZANIA Completed the baseline community assessment and running PRAs – tailored programs will be
rolled out in 2011 , adapted to local needs.
CORPORATE GOVERNANCE APPROACH
NFC is committed to generating VERs with verifiable social and environmental co-benefits –
ensuring delivery of charismatic credits.
WHO WE ARE
87% ownership
100% ownership
Similar hierarchy for
Mozambique and
Ugandan operations
CEO
J Ozanne
Head of HR
E Viviers
Head of CSR
K Sharum
Head of Planning
L Cunningham
Head of Forests
A Greeff
CFO
Q Scorgie
CO Secretary
O Burton
Group
Financial
Controller
D Sharma
Country
Finance
Teams
GM Ug
T Kachale
GM Tz
J Lawrie
GM Moz
J Potgieter
Ug CSR
A Kyabawampi
Tz CDO
Moz CDO
Planning
Forester
W Jacobs
Commercial
Manager
G Garz
Group
Financial
Accountant
S Touffie
Carbon
Manager
P Sullivan
Highly experienced leadership team with complementary skills and expertise
WHO WE ARE
9
WHO WE ARE
JON AISBITT
former Partner and Managing Director
of Goldman Sachs Investment Banking
Division
ROBERT DEVEREUX
founding shareholder of The Virgin
Group and former Chairman of Virgin
Entertainment
INSTITUTIONS PROFESSIONAL INVESTORS
PETER WHEELER
Head of Wholesale Banking for the West
for Standard Chartered PLC
STANLEY FINK
former Chief Executive of Man Group
PLC
A strong Board of Directors with a proven track record in major organisations
Shareholder in NFC-Uganda
Debt investment in Uganda
Equity and long-term debt
investment in Uganda
Shareholder in NFCH
10
MONITORING AND REPORTING
DELIVERY
QUALITY
COST
INTEGRATED
MANAGEMENT SYSTEM
(IMS)
Operational risk mitigated through institutionalised management systems
NFC QUALITY-
BEST PRACTICE
MICROFOREST
An integrated management system - managing risk on a daily basis
FINANCIALS
Timber assets represent a long-term investment – carbon revenues can rationalize the sizeable upfront
capital required to establish a large-scale plantation.
CARBON ASSET OPPORTUNITIES
Abundant opportunity to access NFC’s carbon assets, throughout various stages of the project cycle.
NFC seeking early support to facilitate the research and project design phases.
PROJECT DESIGN PHASE
Looking to reward risk-takers
POST-VERIFICATION