TMP

RESOURCESExamples of our work

Case study Financial and management risks of unstable land tenure

Date

2011-2014

Overview

In collaboration with the Rights and Resources Initiative (RRI), we explored the importance for companies and investors in emerging markets to understand community rights and support. Our analysis demonstrated that merely having government approval or legal land titles does not ensure smooth project progression; lacking local community support introduces significant risks, leading to delays and decreased profitability.

Key results

Our findings resonated immediately, heightening awareness among corporations and investors about the critical nature of social risks. This recognition led to various initiatives including Landscope, tenure risk quantification, and tailored training programs. Our partnership with RRI also contributed to the formation of the Interlaken Group, emphasizing our impact on global approaches to community engagement and tenure rights.

Lessons learned

We learned that many senior managers, particularly in international corporations, lack tools to quantify Environmental, Social, and Governance (ESG) risks effectively. This gap hinders their understanding of the financial benefits of actively managing these risks and fostering supportive relationships with local communities. Addressing this gap is crucial for enhancing project success and sustainability.

Partner

  • Rights and Resources Initiative (RRI)

Case study Angel

Date

2015-2016

Overview

We explored how geospatial data can be used to assess water and social risks in the mining industry. Our goal was to provide ESG risk insights at both country and facility levels to help guide corporate and investor decisions. Using commercial mining databases, we tested the system on thousands of mining sites to design an advanced integrated solution.

Key results

For companies and investors with vast portfolios, the ability to evaluate ESG risks using geospatial data was transformative. It helped streamline investigations, focusing on high-risk areas and projects. This work laid a crucial foundation for Landscope's ongoing efforts with Transition Minerals.

Lessons learned

We demonstrated the immense value of freely available data in promoting responsible and profitable investments. Social and water risks can now be quantified at the asset level—providing a reliable framework for due diligence and financial evaluations, even if some estimates remain approximate.

Partners

  • Norges Bank Investment Management (NBIM)
  • MSCI (financial services company based in New York, USA)
  • Columbia University
  • World Resources Institute
  • UK Foreign, Commonwealth and Development Office (FCDO)
  • Omidyar Network (philanthropic investment company)

Funders

  • Norges Bank Investment Management (NBIM)

Case study Protected areas and the 30×30

Date

2016-2019

Overview

We worked with the Rights and Resources Initiative (RRI) and the Wyss Foundation to support global negotiations and conduct geospatial analysis for the Convention on Biological Diversity. Our research showed that land managed by Indigenous peoples and local communities (IPLCs) outperforms traditional protected areas in preventing deforestation. This highlights the essential role of IPLCs in conservation efforts. Additionally, we found that the cost of expanding traditional protected areas in countries like the Republic of Congo and Liberia is excessively high, making IPLC-led conservation a more viable option.

Key results

Our findings were pivotal in the Campaign for Nature and the RRI report, which influenced the global "30x30" target to protect 30% of land and ocean areas by 2030. This research contributed significantly to the Kunming-Montreal Global Biodiversity Framework, endorsed by 188 governments. The framework emphasizes the inclusion of IPLCs as key partners in conservation, a milestone welcomed by Indigenous groups globally.

Lessons learned

This work reinforced the importance of IPLCs in forest conservation and broader efforts to combat climate change and biodiversity loss. Engaging IPLCs as partners is both effective and cost-efficient compared to traditional "fortress conservation" models.

Partners

  • Indigenous Peoples and Local Communities (IPLCs)
  • Campaign for Nature

Funders

  • Rights and Resources Initiative (RRI)
  • Wyss Foundation

Case study Quantification of tenure risk

Date

2019-2021

Overview

We analyzed the financial impact of conflicts between companies and local communities in the African agriculture sector. Our study compared the costs of these conflicts with the cost of investing in risk mitigation measures. Through interviews with over 80 companies and investors, and a detailed financial model, we quantified the impact of delays due to conflict on the net present value of projects. Additionally, we conducted an analysis of commercial, social, and environmental (CSE) risks in the palm oil supply chain, finding that RSPO-certified mills generally face lower social risks than non-certified ones.

Key results

Major companies like Unilever, Schroders, and Swiss Re, along with development finance institutions, have supported our work on land use and social risks. This has led many companies to reconsider their social risk assessments and investment strategies. Our research helped elevate social risks and community engagement to a higher priority in corporate decision-making.

Lessons learned

Engaging with local communities can be a cost-effective way to prevent financial losses and delays. However, many companies still rely on inefficient methods for managing social risks. Group communication tools, such as WhatsApp, have proven highly effective for maintaining contact and managing these risks.

Evaluation

The project received an A+ rating from the UK Government (FCDO).

Partners

  • Rights and Resources Initiative (RRI)
  • ODI (UK Think Tank)

Funder

  • UK Foreign, Commonwealth and Development Office (FCDO)

Case study Biomass

Date

2019-2022

Overview

We explored the climate and financial impacts of biomass power plants. Our focus was on whether switching from coal to biomass could genuinely benefit the climate. The results showed that these benefits are minimal, especially compared to investing in alternative energy sources. The biomass supply chain is hard to scale and not cost-effective for reducing emissions or generating energy.

Key findings

Our research has been widely cited by advocates working to halt the expansion of biomass energy. Our economic predictions were proven correct when Enviva, a leading wood pellet producer, declared bankruptcy. The biomass industry has since struggled to secure investments, particularly in the U.S. and Europe.

Lessons learned

New energy technologies often gain political support, even when they lack economic, social, or environmental justification. It's crucial for experts to have a stronger voice in determining which energy projects deserve backing.

Partners

  • Pivot Point

Funder

  • Packard Foundation

Project Bonsucro

Date

2018-2019

Overview

We collaborated with Bonsucro, Illovo, Coca-Cola, Czarnikow, and Unilever to strengthen the resilience of smallholder sugarcane supply chains across Africa. Our team conducted over 100 assessments of environmental, social, and political risks in sugar-growing and processing operations. We worked with stakeholders to develop low-cost digital monitoring tools for tracking social and environmental factors.

Key results

Our efforts supported thousands of farmers in six African countries. Digital self-reporting became standard practice, empowering even smallholder farmers to monitor and report on their environmental and social impacts. Our Pest and Disease Management tool improved pesticide use, cutting costs and reducing environmental damage by making pest monitoring more efficient.

Lessons learned

Digital self-reporting provides transparency and allows even smallholder farmers with limited education to track and manage their impacts effectively. Visiting farms across sub-Saharan Africa highlighted critical challenges, particularly water management, and demonstrated the value of data-driven systems for sustainable resource management.

Partners

  • Bonsucro
  • Illovo
  • Coca-Cola
  • Czarnikow
  • Unilever

Funder

  • UK Foreign, Commonwealth and Development Office (FCDO)

Project Dryad

Date

2012-2021

Overview

We developed a funding mechanism to support forest-dependent communities, aiming to reduce climate change risks and improve social and environmental well-being. In collaboration with the World Agroforestry Centre (ICRAF) and local civil society, we piloted the project in Cameroon. From 2016 to 2021, we provided grants to community businesses in exchange for progress updates on their environmental and social goals.

Key results

Our efforts led to significant achievements in forest protection and community empowerment:

  • Forest protection

    Illegal logging and encroachment were drastically reduced across 85,260 hectares, while deforestation increased elsewhere in the country.

  • Empowered communities

    86% of participating communities saw income boosts of 25% or more, with some exceeding 50%. Women founded 32% of Dryad businesses, and 46% of the jobs created went to women.

  • Efficiency

    Our monitoring system was 5.5 times cheaper than local alternatives and 60% more efficient than standard consultancy fees. Participation rates in new businesses rose by 200% within 18 months.

Lessons learned

Two key elements proved effective:

  • 1. Pay-for-performance system

    A pay-for-performance system both protected forests and increased incomes.

  • 2. Remote monitoring systems

    Remote monitoring systems offered practical solutions, even in areas with weak communication infrastructure and limited user education.

Evaluation

The project received an A+ rating from the UK Government in 2021, recognizing its success in sustainable forest management and community empowerment.

Partner

  • World Agroforestry Centre (ICRAF)

Funders

  • The Ford Foundation
  • UK Foreign, Commonwealth and Development Office (FCDO)

Project Social license platform

Date

2019-2021

Overview

We created a platform that connects businesses investing in land with local providers of social and environmental services, like community engagement. The platform allows companies and investors to post their projects, while connecting them with local organizations, supported by Landesa's land title expertise and TMP's technical know-how. This setup ensures projects are completed efficiently and cost-effectively. TMP also developed a website, due diligence processes, and a support system for users. We led collaborations with international and local companies across Tanzania, Uganda, and Côte d'Ivoire.

Key results

The platform successfully linked international agrifood companies and investors to service providers in the supply chain. It also integrated reforestation in Côte d'Ivoire and smallholder farmers in Tanzania into global supply chains. Despite the challenges brought on by the pandemic, the project received an "A" rating from the FCDO in 2022.

Lessons learned

Even responsible companies and investors tend to be cautious about new ventures in Africa. Overcoming these concerns requires a trusted intermediary domiciled in the target market. We gained valuable insights into conducting due diligence on local organizations and creating strong partnerships—skills that continue to be essential to our approach.

Evaluation

The project received top ratings from the FCDO, including A++ and A+ during the active phase of the social license platform.

Partner

  • Landesa is a non-profit working with governments and communities to secure legal land titles for impoverished families.

Funder

  • UK Foreign, Commonwealth and Development Office (FCDO)

Project Developing a direct funding mechanism for community engagement and empowerment

Date

2022

Overview

We developed a mechanism to provide legal and technical assistance, supported by global corporations and philanthropic organizations, to strengthen community capacity through private investment. Acting as a neutral intermediary, this system responds quickly to community needs and fosters trust between corporations and local communities. Given that many communities are skeptical of business-led assistance, we ensured transparency by securing financial support from diverse corporations and maintaining independent governance.

Key results

The system attracted backing from major corporate and charitable donors, including ABN AMRO, Unilever, Barry Callebaut, Heineken, KPMG, and FMO. We created an implementation roadmap, which Namati later managed independently, though it faced challenges in maintaining momentum. The trust from donors reflects the strength of our approach.

Lessons learned

Global companies are eager to support the communities they operate in. Collaborating across stakeholders is a cost-effective way to build trust and fill knowledge gaps. With the right expertise, the potential for positive impact is immense.

Partners

  • Namati
  • ABN AMRO

Funder

  • The Mott Foundation

Project Landscope and Riverscope

Date

2012-present

Overview

Commissioned by the UK Government's FCDO, we developed Landscope, a geospatial analytics software to evaluate conflict risks across emerging markets using 14 significant indicators. Similarly, we were tasked by International Rivers to create Riverscope, a tool for assessing risk in the hydropower sector, analyzing 281 dams for ESG risks.

Key results

  • Landscope

    Now utilized by hundreds of companies and investors for improved risk assessment, due diligence, and supply chain management. It's integrated with Bloomberg Terminal and endorsed by leading firms like Unilever and Schroders. According to Unilever’s 2021 Human Rights Report, Landscope has revolutionized risk understanding and management in operational planning.

  • Riverscope

    Tailored for the hydropower industry, it combines geospatial analysis with financial risk indicators to enhance project execution.

Lessons learned

Quantifying social risks is critical for companies to manage operations effectively. Many companies struggle with prioritizing and addressing these risks due to reliance on costly and often inefficient international consultants. This challenge has highlighted the importance of empowering local organizations to offer relevant social and environmental services.

Funders

  • UK Foreign, Commonwealth and Development Office (FCDO)
  • International Rivers
  • DFAT (Australian Government)
  • Arcus Foundations
  • Full Circle Foundations

Case study Forest carbon surveys, analyses, and countermeasures

Date

2009-2011

Overview

With support from the Ford Foundation, we conducted a comprehensive analysis of the carbon trading markets, focusing on the technical aspects of market design. Our research, which critiqued forest carbon markets from a financial perspective, included visits to forest communities in Latin America, West Africa, and Southeast Asia. We identified key issues such as measurement inaccuracies—partially mitigated by new technologies—and persistent rent-seeking by intermediaries.

Key results

Our insights led to the development of the Dryad system, designed to directly channel funds to forest-dependent communities and reduce reliance on international intermediaries. This system enhances transparency and independence in monitoring and reporting. Our findings and recommendations were embraced by advocacy groups like Rainforest Foundation UK, Forest Peoples Programme, and REDD Monitor, underscoring the relevance and impact of our work amidst ongoing challenges in forest carbon markets.

Important lessons learned

The analysis revealed that large-scale, hidden costs in environmental solutions often go unexplored, yet they hold significant implications for investors and policymakers. Highlighting these costs can shift the debate and inform more effective strategies for managing climate, social, and environmental challenges.

Funder

  • The Ford Foundation

Case study Advising a european asset manager

Date

2014-2015

Overview

We advised a European asset manager on investments in agriculture and biofuels. Our analysis of a biofuel plantation in Paraguay’s Chaco region revealed significant risks, including delays due to community opposition and ties to deforestation in indigenous and protected areas. The management team lacked local connections, making it hard to build trust with communities, further compounding the risk. The uncertainty of crop maturity and market demand made potential delays even more critical.

Key results

After reviewing the risks, we advised the client to hold off on the investment. This decision paid off, as both the plantation and biofuel markets later faced significant challenges.

Lessons learned

Data-driven insights into social and environmental risks can strongly influence investor decisions, helping them avoid costly mistakes and steer clear of underdeveloped projects.

Training ESG risks and responsible investment

Date

2019-2023

Overview

We were commissioned by the UK Government to develop training for businesses and investors on managing business-community conflicts in emerging markets. From 2019 to 2021, in partnership with Earthworm Foundation, we created investor-focused training sessions on ESG risks. We also collaborated with Grow Asia in 2023 to produce training content on responsible agricultural investment in ASEAN countries, covering topics like climate risk, smallholder farming, and food security.

Key results

Our training with Earthworm Foundation was recognized for its practical value in addressing social risks and community engagement, with many investors adopting the program. Grow Asia's ASEAN Academy on Responsible Investing has been highly praised for making complex topics accessible to a wide audience. The Academy plans to expand due to strong demand and positive feedback from the private, civil, and public sectors.

Lessons learned

There is significant private sector demand for affordable, detailed training on responsible investment. Our courses have shown that expert-driven, relevant content can fill this gap and generate strong interest.

Evaluation

The training received the highest rating of A++ from the UK Government (FCDO).

Partners

  • Earthworm Foundation
  • Landesa
  • Grow Asia
  • UK Foreign, Commonwealth and Development Office (FCDO)
  • Japan-ASEAN Integration Fund
  • Swiss Agency for Development Cooperation

Funders

  • UK Foreign, Commonwealth and Development Office (FCDO)
  • Japan-ASEAN Integration Fund (Government of Japan)
  • Swiss Agency for Development Cooperation