SYMBAIOSYS
Mobilizing Intelligent Conservation Capital

Our AI-powered analytics solution, Symbaiosys, matches institutional investors with location-specific forest investments that act as green infrastructure, to protect their other assets from climate risks. This symbiotic, inter-dependent relationship benefits investors, while mobilizing conservation finance for nature. 

 

Forest landscape restoration (FLR) can mitigate climate risks like flooding and wildfires, and generates an estimated $7–$30 in economic benefits for every dollar invested. Yet beyond carbon trading, timber, and non-timber forest products, the"co-benefits" of FLR are undervalued by markets.

Co-benefits include reducing financial losses, liabilities and credit risks from natural disasters,

decreasing public health expenditure, increasing supply chain efficiencies, and much more.

WHY INVEST IN FOREST LANDSCAPE RESTORATION

  • ​Sustainable and responsible forestry meets ESG investment criteria and has a strong track record of performance. ESG funds outperformed the S&P 500 amid COVID-19.

  • Renewable asset, with a low risk to return ratio.

  • Traditional risks can be avoided through professional forest management.

  • Asset maturation (i.e. tree growth) follows biological, cycles, regardless of the economy.

  • Potential to generate multiple income streams such as timber, non-timber forest products, carbon credits, and recreational activities. 

  • Uncorrelated to stock markets and to more commonly held assets; helps with portfolio diversification.

  • Growing demand for wood in construction suggests that timber prices will continue to rise.

  • Forests sequester carbon during their lifecycle, and post-harvest in the soil, stumps, and wood products. 

 
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USE CASES
& Examples

  • Natural disasters led to $103B in economic losses globally in 2019. An insurance company with flood risk exposure can co-benefit by averting damages at a 1:15 cost benefit ratio through strategically investing in green infrastructure, such as mangroves.

  • According to FEMA, every inch of floodwater causes $25,000 in damages. A bank offering mortgages to borrowers living in flood zones can invest in FLR in physical proximity of their borrowers to protect them from flood risks. If borrower homes are damaged during flooding, this increases the probability that they will default on mortgage payments.

  • For public investors, every hectare of mangrove creates around $1,000 in recreation and tourism annually, $5,800 of value in water and air purification, $3,600 in coastal protection, and hundreds of dollars each year from carbon sequestration, fishing, and forestry.

  • The UK National Health Service estimates that green spaces could save them £2.1 billion in health care costs. Such an investment could benefit investors that own private healthcare assets, in addition to government investors.

  • California’s 9 million trees boosted property values by $839M. Investors that own real estate assets would benefit from such an investment.

 

Image: Courtesy NASA/JPL-Caltech