From the Fund Manager - continued...

Our portfolio now includes 19 diverse and pioneering projects in 10 countries throughout Latin America and the Caribbean.  In collaboration with communities, local and international NGOs, and the private and public sectors, the Fund’s environmental entrepreneurs have impacted the lives of 145,000 people in the region. 

Many of our companies have seen steady growth, enabling them to expand their reach in the surrounding communities and to take the next steps in their commitment to environmental sustainability.  EcoEnterprises Fund offers targeted technical assistance to help them achieve these goals.  One of the primary objectives for many of our companies is to obtain certification within their respective industries.  Certification not only provides an external validation and recognition of a company’s environmental efforts but also distinguishes the company in the marketplace. 

In some sectors, like organic agriculture, consumers currently pay a price premium for certified products, which allows companies to pass on economic benefits to local suppliers.  In other industries, such as sustainable aquaculture or organic flowers, certification schemes are relatively new, and the market for environmentally-friendly products is still developing.   EcoEnterprises Fund has invested in ground-breaking “first-movers” and is working to help them establish critical footholds in the nascent markets.  In the sustainable forestry industry, demand for certified wood products has been driven in large part by retailers and buyers’ groups rather than individual consumers.  Companies like Home Depot and Ikea, in order to demonstrate a commitment to the environment, have implemented purchasing policies to source their wood products from certified forests.  The ecotourism industry has made great strides in establishing best practices and standards.  However, no widely-utilized ecotourism seal of approval exists.  Regional schemes that track issues critical to particular areas, have emerged.  Rolf Wittmer Turismo Galapagos – a recent addition to the Fund’s portfolio and the featured project in our Closer Look segment – was one of the first ecotourism companies to receive Rainforest Alliance’s SmartVoyager certification awarded to tour operators in the Galapagos Islands.

While EcoEnterprises Fund holds its portfolio companies to environmental and social standards that go beyond most certification schemes, we commend those who have taken on the additional level of effort required to pursue certification.  It is not always easy for small companies, given the time and costs required.  Thirteen of the Fund’s nineteen projects have opted for some form of certification – check out the Fund Highlights for background on some of these progressive companies and to learn more about the various certifications schemes.  And the next time you’re shopping – whether it be for produce, flowers, or a trip to paradise – be sure to consult our product portfolio! 

Best wishes for a happy 2006,

Tammy E. Newmark

Fund Manager, EcoEnterprises Fund

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A Closer Look - continued...

Rolf’s parents Margaret and Heinz Wittmer had left their home in Germany only a few months before.  At the time, there were very few settlers in the Galapagos, and the Wittmers, whose life is chronicled in Margaret’s book “Postlagernd Floreana: A Robinson family in the Galapagos Islands,” were true pioneers. 

After spending his childhood on the islands, Rolf began his working life as a fisherman. But an entrepreneurial spirit – and a unique turn of events – led him in other directions.  Wittmer had been taking advantage of the lull in the fishing season to bring scientists and the first tourists to the islands in his fishing boat.  In 1967, his boat was destroyed.  One of Wittmer’s key customers who had known Wittmer for years, lent him the money to replace it, but Wittmer opted to build a tourist boat large enough for 6 passengers and 3 crew members instead.  He named the boat Tip-Top I, in honor of his benefactor who owned a shoe store named Tip Top, German for “first class.”  Wittmer liked the name for its simplicity and universal significance. 

The business was formally incorporated in 1982 as Rolf Wittmer Turismo Galápagos Compañía Limitada, and EcoEnterprises Fund's recent investment is helping to finance the construction of the company’s tour boat Tip-Top IV.  Wittmer is now retired and daughters Margarita, Elizabeth, and Ingeborg and sons Enrique and Charles own and run the company.  Inspired by Wittmer’s love of the islands and his desire to share their wonder with others, the company’s mission is to make the “dream of visiting the Galápagos Islands and Ecuador a unique and unforgettable lifetime experience.”     

With a striking landscape and an unusual array of endemic plants and animals, the Galapagos Archipelago, a United Nations World Heritage site, is one of the most captivating places on earth, attracting several thousand visitors each year.  Tourism is a mainstay of the area’s economy, and to help manage visitor impact, the Galapagos National Park Service promotes sustainable tourism practices and involves the tourism industry in conservation initiatives. 

One of the most serious threats to biodiversity in the islands is the illegal fishing activities of local fishermen.  To reduce this threat, the Park Service is working with conservation groups like The Nature Conservancy and progressive companies like Rolf Wittmer to help the fishermen find alternate sources of income.  The tourist industry offers steady and more lucrative work, and the Conservancy has assisted fishermen in preparing business plans for the creation of small-scale day-touring, sports-fishing, and scuba-diving operations.  Rolf Wittmer will offer education and training through its recently-established non-profit Fundación de Desarrollo Integral para Galapagos Rolf Wittmer. 

The company’s commitment to community development and environmental protection has made it a leader among Galapagos tour operators and a model of sustainability for the industry.    In addition to pursuing ISO 9000 and 14000 certification (which reflect compliance with internationally accepted standards for quality and environmental management respectively), the company is certified through Rainforest Alliance’s Smart Voyager program www.rainforest-alliance.org/programs/tourism/smartvoyager/.  This program – developed with Ecuadorian NGO Conservacion y Desarrollo in collaboration with scientists, conservation experts, and tourism representatives – awards its green seal of approval to Galapagos tour boat operators who meet strict conservation standards for protecting the environment, wildlife, and the well-being of workers and local communities.  For Rolf Wittmer, one of the first companies to pursue this certification, the decision to do so was easy … to honor the man who grew up as part of the Galapagos landscape and built a company committed to “excellent service and respect for nature” that is truly first class.  For more information on tours available through Rolf Wittmer and the fascinating history of its founder, please visit www.rwittmer.com.

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Fund Highlights - continued...

 ØIntroducing another new addition to our portfolio: One of the world’s first organic and hormone-free tilapia growers, 8th Sea – The Organic Seafood Company seeks to supply high-quality product to the export market, setting an example for sustainable aquaculture enterprises.The company has helped economically revitalize the buffer zone of Iguaçu National Park by purchasing organic grain from nearby farmers and contracting local landowners with available ponds to help grow the tilapia.   8th Sea works with a local NGO, Sociedade de Pesquisa em Vida Selvagem e Educação Ambiental (SPVS), one of The Nature Conservancy’s strongest partners in the region, on conservation activities.  Committed to environmental responsibility, 8th Sea is certified by Naturland e.V., a German-based organic agriculture organization.  www.8thsea.net; www.naturland.de  

ØPlease join us in congratulating Agroalegre, S.A. for earning ISO 9001:2000 certification, an international standard for manufacturing or service providers, in June 2005 from Det Norske Veritas (DNV) Argentina.  Exemplifying a strong triple-bottom line project, Agroalegre, S.A. is an Ecuadorian company that grows, processes, and sells high-quality dehydrated herbs and vegetables.  www.agroalegre.com

Established in 1864, DNV is an independent foundation headquartered in Oslo, Norway and operating in 100 countries throughout the world.  DNV seeks to “safeguard life, property, and the environment” through its certification and accreditation programs, including management systems and product certification.  www.dnv.com; www.dnv.com.ar  

ØKudos to Sambazon!  In November 2005, Sambazon was chosen as one of the winners in the business sector for the Ashoka/Changemakers Innovation Award: Market-Based Strategies for Low-Income Communities.  Sambazon do Brasil wild harvests açaí, an all-natural, energy-boosting fruit from Amazon palmberries, and combines it with guaraná, an Amazon seed containing natural stimulants, to produce Sambazon Açaí.  The company’s USDA organic certified frozen smoothie mixes, pulps, and supplements are available in over 700 locations in 22 states in the U.S., including retail chains such as Whole Foods. www.sambazon.com; www.ams.usda.gov/nop  

Changemakers is an initiative of Ashoka, an organization whose mission is to shape a citizen sector that is entrepreneurial, productive and globally integrated, and to develop the profession of social entrepreneurship around the world.  www.ashoka.org; www.changemakers.net  

Also, be sure to check out the January 30, 2006 edition of People magazine which includes a highlight on Sambazon's founders Ryan and Jeremy Black and the health benefits of açaí. 

ØFund President Tammy Newmark was featured in EcoSystem Marketplace’s July 2005 article "Environmental Venture Capital:  Putting the Green in ROI".  Check out the link to get thoughts from Tammy and others in the industry.

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