Long-term Planning and Risk Management
Native values the careful allocation of funds to build lasting value for communities. To incentivize long-term ecosystem protection, Native commits 10% of project revenue to an investment fund for the community. This fund will invest in sustainable projects to support long-term economic and environmental health and will provide a sustainable financial resource for future generations to continue conservation efforts long after the project is initiated. Native will also invest a further 10% of project revenue into an insurance fund which will cover any unexpected risks or emergencies during stewardship activities.
Both funds ultimately belong to the community, unless there is a clear case of malpractice or negligence. Furthermore Squares within a given project will be sold according to a curve which matches the financial needs of the community. These two measures perform a few important functions:
- In the event of malpractice or negligence on behalf of the Project Owner the fund will be used to compensate holders with replacement Squares.
- In the event of degradation due to Force Majeure (hurricane, forest fires, etc.) the fund will be used to fund the regeneration of that Square e.g. replanting, regeneration etc.
- By selling gradually we do not overload communities with huge one-off payments, yet nor do we hold money back which is not ours.
- Gradual selling offers a hedge against price fluctuations so that communities do not sell off all their NbS for one price at one time.
In the eventuality that Native ceases to operate, any sold Squares and their associated environmental rights will remain the exclusive property of existing buyers, and communities' obligation to protect these Squares for a minimum period of 40 years will remain unaffected.