Growing Natural Solutions

The interconnectivity between climate change, ecology, and social equity means natural solutions are an essential component to creating an ethical, sustainable future. Led by Stacey Faella, Executive Director, Woodcock Foundation, and Confluence Board member, the session Growing Natural Solutions was a compelling look at the importance of place-based catalytic capital to restore and preserve natural ecosystems while generating economic opportunities for the communities that rely on them.

Sarah Marchant, Chief of Staff, New Hampshire Community Loan Fund, highlighted the Fund’s provision of credit to traditionally underserved people to create strong livelihoods and stable housing. Tammy Newmark, Managing Partner & CEO, EcoEnterprises Fund, discussed the Fund’s origins and focus on community-based businesses, explaining the close partnerships between portfolio companies and the local communities that lead to shared positive outcomes, particularly for Indigenous peoples. While being different types of investors – a community development financial institution and a mezzanine finance fund – embedded in both groups’ strategy is a holistic approach to engagement, combining technical assistance and partnership-building with investment capital.

In New Hampshire, innovative projects to finance value-added food systems incorporate biodiversity and climate considerations. Capital and wrap-around business support enable hardworking entrepreneurs like Luke and Catrina Mahoney of Brookford Farm to convert a 613 acre monoculture sod farm into a certified organic vegetable and fluid milk dairy, re-introducing biodiversity while growing local food supplies. Working within the planet’s most biodiverse region, Latin America, EcoEnterprises Fund creates portfolios of sustainable companies focused on unique smallholder agri-supply chains and biodiversity conservation, integrating regenerative solutions and circular economy practices. Sambazon is a prime example of such a company which has worked in the Brazilian Amazon for nearly 20 years ethically sourcing certified organic and fair trade acaí.

With smallholder farmers deeply connected to the productivity and health of the land, examples from both funds demonstrated the need for climate and biodiversity considerations to create lasting social benefits—and vice versa. For investments that prioritize social benefits, there is an imperative to consider climate and biodiversity impacts on the resources and landscapes in which stakeholder communities reside. Conversely, only focusing on one impact – climate, biodiversity, or social or economic benefits – can have unintended consequences, which values aligned investors should be working to avoid.

For the speakers, small investments can lead to globally significant impact by leading by example, underwriting entrepreneur change agents that can transform the way business and conservation is undertaken. To combat climate change and its consequences for the most vulnerable communities, business models must be dedicated to natural resources stewardship. Supporting and scaling these businesses is key to successful and effective climate solutions and thus building a more prosperous future for all.

- Tammy Newmark, Managing Partner & CEO, EcoEnterprises Fund