Our Risk Management Framework and our actions for a green world and caring for the environment

The risk management framework is fundamental to the successful implementation and long-term stability of our sustainable reforestation projects. Our approach for a green world allows us to identify potential risks and develop effective countermeasures to address them.

RISK ASSESSMENT

Environmental Risks

Climate Change

Climate change poses significant risks to reforestation efforts. To mitigate them, we select species adapted to climate change and develop contingency plans for extreme weather events, ensuring project resilience.

Spread of Diseases in Species

Disease outbreaks can decimate plant populations, delaying projects and requiring investments in resistant or alternative species.

Pest Infestation

Diversity in plant species reduces vulnerability to pests and strengthens the ecological robustness of reforested areas. Crop rotation helps to reduce the propagation niche of potential pests and prevents them from reproducing and affecting the permanent crop.

Unexpected Soil Degradation

Undetected soil conditions can hinder plant growth, requiring complex remediation or changes in species used.

Financial Risks

Market Volatility

Market fluctuations affect financing and revenues. Flexible financial planning and diversification of species and income sources mitigate these uncertainties.

Delays in Fundraising

Delays in funding could cripple operations. We strategically adjust operations to available funding.

Cost Surge

Increases in the cost of essential materials, such as seeds or tools, can inflate budgets. In-house seedling production helps reduce this risk.

Exchange Rate Fluctuations

For projects funded with foreign currencies, exchange rate fluctuations can impact the available budget. Holding capital in different currencies mitigates this impact.

Social Risks

Local Community Acceptance

Relating to local communities and contributing to local infrastructure is vital to care for the environment, acceptance and success of the project.

Working Conditions

We guarantee high labor standards, complying with local and international standards.

Local Political Changes

To minimize the impact of changes in governance or land use laws on project approvals and restrictions, we stay in close contact with authorities and respond at an early stage.

Community Disputes

Insufficient consultation or inadequate distribution of benefits, could lead to conflicts that disrupt or delay projects, which is avoided with fair distribution and transparent communication. This is directly related to the reduction of environmental pollution.

Operational Risks

Permitting Delays

Efficient administrative processes and proactive communication with authorities are key to avoid delays.

Human Resource Management

A positive work environment and fair compensation keep morale high and ensure efficient executions.

Equipment Failures

Regular maintenance and backup equipment minimize significant delays.

Data Management

Loss of critical data would affect monitoring and strategic decision making. We implement data backup and mirroring systems.

Climate Risks

Alterations of the Amazon Hydrological Cycle

We implement specific measures, such as crop forms, water storage and drought-resistant species, to mitigate risks.

Severe Droughts or Floods

Extreme weather events impact plant survival rates. We install irrigation and drainage systems to counteract these effects.

Increased Fire Risk

In fire-prone areas, we strengthen prevention measures and prepare recovery plans.

GENERAL RISK MANAGEMENT STRATEGIES FOR A GREEN WORLD

Selection of Climate-Adapted Species

Implementation: We collaborate with agricultural universities, research institutions, and environmental experts to identify suitable species.
Monitoring: We measure growth rates, survival, and environmental impact, adjusting selection accordingly.

Engagement with Local Communities

Implementation: We conduct regular community consultations and involve residents in the planning and execution of the project, as well as the actions to care for the environment that they consider most relevant. We offer employment and training, as well as investing in local infrastructure.
Monitoring: We evaluate social impact and adapt strategies according to local needs.

Revenue Diversification

Implementation: We diversify funding sources (environmental investors, ecotourism, funds) and explore by-products such as CO₂ certificates.
Monitoring: We track market conditions and revenues with financial management tools, adapting strategies to ensure sustainability.

Strengthening Operational Efficiency

Implementation: We use advanced management tools, train personnel and maintain strong relationships with suppliers.
Monitoring: We track key performance indicators (KPIs) and conduct regular operational risk audits.

Environmental Safeguards Improvements

Implementation: We use integrated pest management (IPM) and soil conservation techniques, designing biodiversity corridors.
Monitoring: We evaluate soil quality and biodiversity levels, cultivation methods, adapting practices according to data obtained.

RESPONSIBILITIES AND FUTURE PLANS

Risk management is currently part of the team’s duties. In the future for a green world, an independent team will be formed and the use of insurance to mitigate potential impacts will be evaluated.