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Why People Are the Deciding Factor in Nature-Based Investment Success

Behind every nature-based solution (NbS) lies a human system: founders, field operators, local liaisons, financial managers, and governance boards. These individuals shape how the project performs—ecologically, financially, and socially.

At Xilva, we know from experience that even the most promising projects can falter without the right people in place. That’s why our proprietary due diligence framework, Xilva GRADE, places Leadership & Team at its core. With over 300 NbS project evaluations under our belt, we’ve seen one truth repeated:

It’s not just the forest that matters – it’s the forester.

Xilva’s Three-Step Leadership & Team Due Diligence Framework

NbS projects are complex and require specialized knowledge in fields like ecology, forestry, community engagement, operations and finance. Our structured assessment identifies whether a team can reliably deliver the outcomes they promise. We evaluate:

1. Map the Human Architecture

• Identify all key entities: founders, management, execution team (local implementation team), extension or partner organizations, governance bodies.

• Collect project organogram and org charts, role definitions, CVs, and digital profiles of key staff (e.g. LinkedIn pages or websites).

• Evaluate clarity of responsibility and interconnection across teams.

2. Evaluate Capability Fit

• Assess domain expertise within the teams across forestry, ecology, finance, operations, community engagement, and compliance. Partners and key staff should have the appropriate skills, experience, structure and size to be able to deliver the project in line with its promises, spanning from the management level to those working on the ground.

• Review education, professional experience, local/regional knowledge, especially in the target country or region. 

• Identify complementarities and critical skill gaps within the team.

3. Assess Reputational & Execution Risk

• Screen key individuals and partners using legal databases, industry sources and local and international news media to identify current or potential reputational risks associated with the project itself, and the people and organizations involved or affiliated.

• Look for red flags: bribery or corruption, money laundering, bankruptcy, litigation, illegal trades, failed ventures

• Extend checks to board members, government liaisons, and financial oversight staff

This assessment is interlinked with every block of Xilva GRADE, influencing how we rate project risk and viability.

Interconnection with Other Due Diligence Areas

Impacts: The impact of a nature-based project on the environment, society and climate largely depends on the team planning, executing and managing it. Teams with strong environmental science and development expertise better anticipate and manage environmental and social risks. Their ability to interpret and act on monitoring indicators throughout the project lifecycle  improves outcome reliability.

Financial Viability: Financial expertise is crucial to managing project budgets, securing funding, and optimizing financial returns. Experienced financial and operational leaders ensure efficient resource allocation, budget adherence, and reduced financial risk.

Project Design: Well-rounded teams have the skills to design and execute more resilient projects: selecting appropriate species for reforestation, implementing sustainable agriculture practices, generating meaningful community outreach, and ensuring that conservation efforts are ecologically sound. 

ESG Safeguards: NbS projects often require adherence to strict environmental regulations and social safeguards. A capable team understands these regulations and ensures that the project operates within legal boundaries, reducing the risk of land conflicts, regulatory fines and legal challenges. Effective stakeholder engagement is crucial, particularly when dealing with local communities and indigenous groups. Locally based teams know how to engage with stakeholders respectfully and collaboratively, building support and reducing conflicts.

Growth Potential: Leadership with the experience and skills, necessary partnerships and network, and a track record of scaling ensures the team can manage growth without compromising integrity. An adept team understands the development needs of the project team, ensuring the project timeline is clear and consistent with the established growth path at this and at the next stage of project fundraising. This supports permanence, scalability, and fundraising alignment.

Case Studies: Team Due Diligence in Action

The capabilities and track record of the project team are vital considerations in NbS project investments. They influence project design, execution, risk management, and long-term success. The following case studies exemplify the importance of integrating an assessment of the leadership and team into due diligence. These examples come from real life due diligence assessments Xilva has conducted.

Case 1: Stunted growth potential

Context: Project aimed to scale to 20,000 ha in 10 years
Xilva Findings: No identified field team, weak governance structure, no local policy knowledge and timelines leading to a low likelihood of land title procurement, and unproven track record
Outcome: Investor redirected capital to a better-prepared initiative, avoiding probable execution failure.

Case 2: Unmet ESG safeguards

Context: Project relied on community-led reforestation in a country with complex land tenure laws This project relied on community engagement to implement reforestation initiatives.
Xilva Findings: No team members had relevant knowledge nor experience in sustainable forestry or community-based projects in the target country, where understanding of customary land procedures was crucial to attaining land access, thus raising concerns over alignment with best practices.
Outcome: Xilva flagged the project as non-compliant with ESG safeguards, helping the investor avoid reputational and legal risk.

Conclusion: Why It Matters

A project’s success is determined not only by the land it stewards but by the people who run it. A thorough due diligence process that evaluates the experience, structure, and track record of a project team provides essential insights into a project's viability and long-term impact. Experienced teams bring more than technical knowledge—they contribute established stakeholder relationships, local expertise and practical understanding of both ecological and market dynamics. These factors increase the likelihood of effective project design, smooth implementation and the ability to scale operations sustainably. 

Xilva’s rigorous, human-focused due diligence ensures investors support teams that are capable, credible, and equipped to deliver sustainable outcomes.

By identifying leadership or technical expertise gaps early,we enable smarter investment decisions that protect financial capital and accelerate impact, allowing investors and project partners to proactively manage risks and reinforce project foundations. In short:

When you back the right people, you grow the right forests.