The accelerated transformation of our societies has made social responsibility a global issue, yet the conditions for a dynamic eco-responsible economy are not in place.
The Covid-19 pandemic has become a global economic and social crisis in record time. It dramatically demonstrates the interdependence of the three pillars of sustainable development:
- the environment;
- the social and;
- the economic.
The urgency of basing post-crisis development, particularly for economic actors, on sustainable and responsible development inspired by the Sustainable Development Goals (SDGs).
Current ESR investment practice mobilizes a lot of intermediaries (too many). It requires x labels which are referencing to different requirements between international jurisdictions and is not providing enough guaranty in terms of transparency when it comes to check on site how positives are the impacts… if any.
Consequently, the return on investment is low and the risk of being suspected of greenwashing is high.
New alternatives are flourishing nowadays based on banking model promising to use deposits investing in sustainable projects. It is already good but not enough.
Having said that carbonized assets remain much more profitable in the short term run.
So there is a risk that “green finance” could be instrumentalized, become a bubble and lead to a subprime turmoil. Nobody is too big to fail nowadays.
Based on this observation and our experience of 2008, the Partners of Venturexpert decided to design a cutting edge infrastructure enabling the disintermediation of most intermediaries to deliver an epurate process involving directly investors, auditors and companies having an activity producing positive impacts such as sustainable foresters.
This is how was born the Vertdeep platform based on a strong conviction that making smaller projects more attractive to meet net 0 objective for 2050’s deadline is key.
It is now possible. Thanks to NFT Vertdeep valuing the image of the environmental services the certificates are tradable Non Fungible Token reducing considerably the efforts of green, social and sustainble asset custody and offring regulatory reporting value added services for droping the cost of SFDR compliance, GRI, etc).
Issuing a Vertdeep NFT makes them now much more attractive to attract private investment and become a best practice supporting voluntary offsetting.
Now ESR investors can support projects generating long term positive impacts.
What is Vertdeep NFT?
Vertdeep NFT: a solution to the global problem of financing the SDG's Positive Impact
VENTUREXPERT subscribes and adheres to the GLOBAL COMPACT initiative sponsored by the United Nations which defines 17 Sustainable Development Goals (SDG) and a support program for 2030.
VENTUREXPERT recognizes the recommendations of the ICMA and the GRI reporting framework. The SDGs express Positive Impacts (PIs) which represent virtuous values offered to humanity.
To date, remuneration for the productions of positive impacts has not been effective. This difficulty is addressed by the problem of PES (Payment for Ecosystem Services).
The VERTDEEP platform is the link between service providers with positive impacts and buyers (CAC40, investment funds). It provides a common thread between positive impacts and the financial instruments that will be their mean of payment. By lowering costs and simplifying, it offers an inclusive solution for those with small projects.
VERTDEEP solves this problem through its approach:
- definition of ecosystem service
- identification of positive impact
- quantification of positive impact
- definition of relevant certifications
- establishment of the link / consistency between the repositories of existing labels (from GRI to PES / FSC-PEFC)
- use of an ES valuation method
- transforming the PES into a financial instrument
- catalog of PES / financial products
- marketing the catalog to buyers
“Our house is burning and we look the other way”
(Jacques Chirac, 2002)
- The GLOBAL COMPACT (United Nations) defines 17 Sustainable Development Goals and a program for 2030
- Outstanding green bonds have increased tenfold in less than 10 years and now exceed $500 billion
- The global market for impact investments is estimated at around $900 billion. The needs are estimated at $12,000 billion by 2030
- Beyond their philanthropic and ethical values, the main obstacle to the achievement of the SDGs is the lack of financial valuation of Positive Impacts (GLOBAL COMPACT)
- The solution lies in switching from a model based on subsidies and penalties to an objectively balanced economic model in order to create an efficient market for green finance
- The advent of this market is only possible through disruptive innovations in the fields of finance and technology
- VERTDEEP invents the Impact Certificate and creates the market for Positive Impacts financing.
- VERTDEEP is an inclusive and responsible platform for financing green and sustainable projects.
“Innovation is the economic application of an invention”
VENTUREXPERT created VERTDEEP: an inclusive and responsible approach to financing green and sustainable projects.
It brings together responsible project owners, to whom it offers new sources of financing and remuneration, and ethical investors, to whom it provides standardization and profitability of their investments and certification of the qualification of the underlying assets.
Beyond the responsible issues, ensuring their virtuous and inclusive financing is a necessity
- 1 € of VERTDEEP funding allows to finance 2.5 € of virtuous projects
- The financial multiplier effect is translated into sustainable results produced by each project
- The effect on the Positive Impacts is even more virtuous because of the support and control of the projects
- Many of these projects would simply not have started due to lack of profitability
- The financing is complementary to existing sources. It mobilizes private and individual investors who were previously absent from this market