What data & information are needed to start a due diligence on forest & natural capital investment?
"Do they have LTTP?"
Often, Xilva is asked by forest & nature-based solutions project investors what the team will need to start the due diligence of a forest project. It all begins with "LTTP".
🟩 Land :- Does the project have proper land rights and tenure for the project lifetime?
Project Developers: Show evidence of land use or land access permits
👥 Team :- Does the team have the necessary expertise and skills to navigate complexities in this current stage of the project, and in the future stage for which funding is requested?
Project Developers: Provide an overview of the organisational and functional structure of the teams.
Identify key team members and board of trustees, and provide their CVs.
📈 Track Record :- Has the project team successfully delivered sustainable forest projects before? What is their experience in this region?
Project Developers: Show evidence that the team knows what they are doing by providing past experience on similar projects or in similar regions, and list team members’ domain expertise in the areas.
🗺️ Plan :- Depending on the maturity stage of the project, do they have a sound concept plan / business plan / scale-up plan / action plan?
Project Developers: Provide a clear project vision and mission, a detailed project design plan supported by any feasibility / social studies, and a clear business case.
Starting with these four pillars ensures that project developers are building on solid ground.
Project Developers: make sure you have LTTP before you start your fundraising!
Investors who wish to obtain a copy of a checklist of documents to start your due diligence, contact Xilva.
