We tested a Nature Based Solution; after 20 years we have outputs and a vision

What is the needed system to allow business and local communities to be involved together into sustainable economic activities with Net Positive Impact for people and the planet?

The Aroma Forest – Man And The Environment project outputs are:

-?????? Fairtrade incomes for more than 1.000 families.

-?????? 1.975 hectares of primary forest sustainably protected.

-?????? Sanctuaries for 70 threatened animal species, including 23 of lemur.

-?????? 84,700 MT of CO2 eq emission avoided now, 60,000 in year 4.

-?????? A business part with gross margins of 70% and a G.O.S. of 23%.

-?????? An innovative duplicable model allowing consumers involvement.

It fits the change of business paradygme seen needed.

With an increase of +10.8% in 2023, French exports of perfume and cosmetic products hit a new record at 21.3 billion euros, compared to 19.3 billion euros in 2022. This is the third consecutive year of double-digit increase (+18.8% in 2022 and +22.5% in 2021), after the accident linked to the pandemic in 2020 (-11.8%).

Even the cosmetic and fragrans industry that uses chemical ingredients relies a lot on natural ingredients, especially for innovation and marketing (the demand).

In 2023 all brands announce more and more commitment for the environment (first of all aware of the concern for the planet of their customers). Dolce et Gabbana for carbon footprint improvement, but L’Ore?al, Dior, Prada, etc. for biodiversity conservation. Leaders even point out the need to acting further than their direct value chains for climate and for biodiversity conservation, with a special focus on Nature Based solution.

In January 2024, the World Economic Forum clearly highlighted the most urgent need of the private sector involvement in biodiversity conservation for economic stability itself

Even large companies owners not directly linked to natural resources start to see the need to balance business environment impact in major ways and to act, like does Jeff Bezos.

Recent analyzes show indeed the extent of biodiversity loss on the planet with a decline of nearly 70% in populations of wild species, but also global dependence on biodiversity. Overall, 60% of global GDP depends, at least moderately, on the services provided by Nature, from water quality to pollination services.

Aware of these risks, in December 2022 nearly 200 states reached a consensus on a “Global Biodiversity Framework” whose two main objectives are to reverse the trends of biodiversity loss by 2030 and to achieve biodiversity recovery by 2050.

LVMH’s CEO in the presentation of his group 2023 profits pointed out his stable operating margin with an operating profit for the year standing at 22,8 billion euros, up 8%, with a special growth of the perfume department worldwide.

If Mr Bernard Arnault (LVMH’s CEO) in the same speech pointed out that year 2023 results allowed the group to progress in environment protection that is seen key for its long-term vision.

The reality is however that LVMH, Kering, L’Oréal have developed social and environmental impact improvement strategies for many years but that the efficiency of the established current economic system and the pressure of shareholders for short term profit does not allow at all the easy implementation of changes needed for the required long-term vision and the planet health.

The field reality is that the ylang ylang essential oil, put forward as a key ingredient of super profitable Dior fragrans (also used in Chanel n°5) has seen its export price from Madagascar (main producing country) dropping in 2023 to 55% of what it was in 2020.

This is not good business practices improvement, and it is one factor increasing the extreme poverty on the Island of Madagascar. The farmer level of extreme poverty reached about 80% in 2023 according to the World Bank, including the ylang ylang producers (extreme poverty in Madagascar means annual incomes of less than $US 335,81…).

?These farmers do not have the means to provide education and health care to their children and are pushed to destroy natural resources for short term survival needs. This the opposite of what the end user of the essential oil see needed.

Changing the paradigm can be done to profit people and Nature, and business

The Man And The Environment Aroma Forest business has proven results.

It can now be expended to demonstrate a leading new model.

The natural resources-based trade is predicted a steady growth over the next 10 years.

?Over exploitation, pressure on biodiversity and CO2 emission will be linked to it BUT Nature Based economic solutions could support natural habitat conservation and biodiversity regeneration.

Madagascar is very specific as its very high level of rural poverty contrast with the natural resources’ richness. The island is indeed one of the 10 most important hotspot of biodiversity worldwide, including 5% of the plant species used by humans on only 0,4% of the planet land surface.

An innovative research supported by the United Nations (FAO, UNDP), the American International Aid Agency (USAID) and the French Development Agency (AFD), at the end of the 1990s allowed to get a unique understanding of how to enhance the value of natural resources to support sustainable development and biodiversity conservation.

The issue is complex and requires to having a very concrete understanding on how to:

-????????????? develop community-based quality production,

-????????????? National value chains and international markets and trade,

-????????????? link development activities to environment conservation.

The head of the research team created the “Man And The Environment - Aroma Forest” program to demonstrate concretely the feasibility of developing economic activities supporting biodiversity conservation.

Current output are :

-????????????? A 1.800 hectares community based experimental biodiversity conservation area which shows that it has been possible to :

o?? Slow down deforestation of a forest which was expected to disappear by 2015 and then to stop it and start forest and carbon content regeneration.

o?? At the same time support the improvement the livelihood of more than 600 local families.

o?? Create a sanctuary for 99 threatened species, including 12 lemur species.

o?? Develop community based essential oil production on site.

o?? Preserve traditional knowledge on 80 local medicinal plants.

This area (Vohimana) is now recognized as an Intangible Cultural Heritage for Humanity.

-????????????? A new essential oil (Saro Tsara) from an endemic wild plant of the west put on the international market and involve local communities in its sustainable use in natural habitat hosting critically endangered species (Coquerel’s Sifaka) and new natural active ingredients of the east developed for international brands (Chanel, Yves Rocher, Teane Laboratory, etc.) to support forest conservation program.

-????????????? An analytical tool (Collaterra) developed pointing out natural ingredients management needs to reach Net Positive Impact that was validated by large companies (Chanel perfume and cosmetic and 30 of its suppliers).

-????????????? A 20 years old social business ensuring the export of community based produced essential oils (more than 10 MT a year) generating incomes for thousands of people at the rural level.

-????????????? A good vision of the whole industry of Madagascar as the founder of the Man And The Environment – Aroma Forest program was selected adviser in chief by the Ministry of Industry of Madagascar for the creation of a consortium government – private sector and its 2040 strategic development vision for the essential oil and plant extract sector.

The Vision:

Use the developed expertise to respond to the growing international concern and consumer demand trend for value chains supporting the fight for climate change and biodiversity conservation.

The development of Net Positive Impact Wildlife Friendly value chains and plant extract can offer an opportunity to the international fragrance and cosmetic industry to achieve its strategic goals and develop its business (it has been tested with Chanel between 2012 and 2016 in Madagascar, Cambodia, Burkina Faso, and Cameroun and can be done now with extraction production expertise) and programs of contribution to climate and biodiversity can support associated field projects.

The aromatherapy market can be targeted for direct sales of Wildlife Friendly certified finished products starting with France and expanding to Europe, the United States, Arabic countries and then Japan and Korea and China, etc.

Tools can be develop to help position small and medium essential oil producer to better put on the market high quality production demonstrated with Net Positive Impact and show an innovative support for biodiversity conservation and restoration of interest to environment and sustainable development institutions and individuals.

The entities we saw needed to expand the Net Positive Impact of enhancing the value of natural resources is a mix of non profit and for profit partners sharing the same vision.

If Aroma Forest SAS is planned to welcome shareholders that can be interested by profit for a need of 250,000.00 € for year 1, an investment of 800,000.00 € in year 2 and then more international development, the training of local communities and the forest guards and managers will need to be supported for the first years by philanthropic means.

And the more shares the Man And The Environment non profit organisation keeps the more positive impact on climate an biodiversity it will be able to have.

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