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Sustainable Ocean Fund
Creating impact and value in the
marine environment.
Brief Presentation to GLF
June 2016
CONFIDENTIAL - FOR DISCUSSION ONLY

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Why talk about the ocean at a landscape event?

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US$ 25 billion fish
traded annually
$9 billion is made from
ocean related
ecotourism.
3 billion people obtain
20% of their protein
from fish.
1 billion people depend
on it as their primary
source of protein...

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Over fishing
3x sustainable harvest levels
globally = cumulative losses of
~US$ 2.9 trillion for the past
three decades
Pollution
46,000 pieces of plastic are
estimated to be afloat on every
square mile of the ocean
Lack of protection
< 4% of the Ocean is protected
in any way.

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è Investment in the form of:
w Project and enterprise finance
w Technical capabilities and expertise
w Access to new markets and revenue streams
è Preservation and enhancement of portfolio value through vertically integrated risk management
è Support of global and regional partners
Diversified Investor Base
Investment
Emphasis on replicability and scale
- Uncompromised market returns
- Diversification and fiduciary risk
management
- Non-cash benefits (CSR, supply chain
management, regulatory hedge)
- Local livelihood improvements
- Adaptation to Climate change
- Biodiversity and ecosystem function
Risk
Management
Environmental,
Social and
Governance (ESG)
excellence
Finance
Sources
Sustainable
Ocean Fund
Investment
Profile
Returns
InvestorsLocal Stakeholders
Sustainable Fisheries
Tenure & rights based
management
Aquaculture
Technology and operational
improvements
Supply chain , infrastructure and
downstream
Co-operatives, Processing,
Transportation
Improved Market Access,
Traceability and Certification
Mission-driven Seafood
Companies
Broader seascapes
Marine Protection
Blue carbon and PES
Energy, Waste, Tourism,
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Source: EDF

Illustrative investment: Mexican Pen shell Recovery
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NOS have engaged the El Mangle
community to establish a FIP
Sustainable harvesting of callo de acha Unparalled biodiversity in the Sea of Cortez
Monitoring the shellfish population

A tested investment mechanism
$m
Capital deployed in FY1-4 in
the form of a loan to finance
capex, opex and project
management
Revenues from sales of
real assets seafood
product to repay loan
and interest in FY2-8
Revenues from benefit share
in FY2-8 and post FY8
(capital gain)
Project supports the
transition to
sustainability
Equity warrants exercised at
maturity of Loan ( where
available) provide return
upside.
Loan secured by
available collateral and
by first lost facility.

Forging partnerships that work
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Fund level
Project level
Involvement of reputable partners
with proven track records both
locally and globally
• Ensure ESG performance
• Proper implementation and long-
term operation
• Capacity building
• Aligned interest
Involvement of local stakeholders
(local governments, communities,
NGOs)
• Identify suitable projects and /
or develop side-activities
• Ensure livelihood / sustainable
resources for local communities

Selecting mature and semi mature project and accelerating them to
scale
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Clear risk management throughout the Investment
Annual monitoring
Incident &
quarterly reporting
ESAP, CPs &
contract terms
Issue policies
& rapid SIA
tool
ESG Imp.
Guide
Screening
& DD
process
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Where we are going?
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Aim to reach first close by Q4
2016
Provide portfolio guarantee for
private –side investors into the
SOF
Structure new mechanisms to
open up the opportunity to a
broader range of impact investors