The Nature Conservancy

“The Form 990 is prepared, based on financial statements audited by PricewaterhouseCoopers, and other internally generated information by the Conservancy's Director of Tax Services. The Form is further reviewed by the Conservancy's Internal Audit Department (which provides independent verification of certain information) and members of Senior Management. As outlined in its charter, the Audit Committee then reviews any significant issues or judgments relating to disclosures in the Conservancy's Form 990. Finally, copies are provided to the full Board of Directors for their comment prior to filing with the IRS.”

“The Nature Conservancy's monitoring and enforcement of its conflicts policy is governed by its Conflict of Interest Standard Operating Procedure ("SOP") which is excerpted as follows: a conflict of interest exists when an individual who is responsible for acting in the best interests of The Nature Conservancy has another interest or loyalty that could influence or impair, or may appear to influence or impair, the individual's ability to act in the best interests of The Nature Conservancy. The term "conflict of interest" includes actual conflicts of interest, potential conflicts of interest (situations that could become an actual conflict in the future based upon foreseeable events or the passage of time); and perceived conflicts of interest (situations that others could reasonably perceive to be, or have the appearance of a conflict of interest). Guiding principles: All Conservancy staff, Board Members and Trustees are responsible for identifying conflicts of interest, and disclosing them to the appropriate Conservancy manager or attorney. Conservancy employees must determine whether the conflict can or should be avoided to protect the best interests of the Conservancy. If it is not reasonably possible to avoid a particular conflict of interest or it is not in the Conservancy's best interest to avoid it, all staff, Board members and Trustees are responsible for fashioning appropriate strategies to mitigate and manage the potential adverse consequences of the conflict of interest, and obtaining approval as described in this Standard Operating Procedure before proceeding with the affected activity. Identifying Conflicts of Interest Before engaging in any activity on behalf of the Conservancy, Conservancy staff, Board Members and Trustees must identify and disclose any situations that could give rise to a conflict of interest or the appearance of a conflict. The Disclosure Form should be completed as early as possible by parties with whom the Conservancy plans to enter into a transaction. The Disclosure Form is not the only way that the Conservancy may become aware of a conflict. Thus, even if the Disclosure Form does not reveal a conflict, but you are aware of one, you must proceed in accordance with this SOP. Conflicts of interest are not always clear-cut and easy to define. They require case by case analysis. The Conservancy is concerned with the disclosure and management of conflicts of interests involving "covered persons." However, not all activities or transactions with a covered person generate conflicts of interest. Conversely, a particular factual situation may generate a conflict of interest even when no covered person is involved. Early consultation with a senior manager or Conservancy attorney can assist in analyzing the conflict of interest and strategies for avoidance or mitigation. This SOP sets forth specific guidance for some areas of potential conflicts (see Types of Conflicts below). These are only examples, and it is the responsibility of each individual to be sensitive to any situation that creates or appears to create a conflict of interest. Reporting, Review and Approval Process: If a conflict is identified, the Conservancy staff member who is responsible for initiating and/or overseeing the proposed activity must report the conflict to his or her supervisor and the appropriate Conservancy attorney. Before proceeding with the proposed activity, review and approval to proceed must be obtained as described in this section. While a request for approval of a proposed course of action is pending or being considered, the individual involved in the conflict must refrain from participating in the activity and/or withdraw from any discussion of or decision on the matter. 1. Conflicts Committee Review: The Conflicts Committee reviews and makes determinations about all conflicts of interest involving the Conservancy. All conflicts of interests reviewed by the Conflicts Committee involving a Substantial Contributor sh”

“Review Process for Officer and Key Employee Compensation: The President and Chief Executive Officer's, as well as, members of the Executive Team's performances and compensation are reviewed annually by the Board of Directors. The performance and compensation of all other Key Employees is reviewed annually by their direct supervisor. All compensation amounts are based on information provided by an independent compensation consultant who utilizes comparable date from Form 990's from other organizations and compensation survey's and studies to ensure reasonableness.”

“The Nature Conservancy's governing documents, conflict of interest policy, and financial statements are available to the public via our website: nature.org.”

“Over the past 43 years, the Conservancy has helped add 152,732 acres to the state forest preserve within the 6 million acre Adirondack Park, a unique mixture of public and private lands, and has protected more than twice that acreage as sustainable working forests. Water Fund Success. Native birds returned to the restored Atlantic Forest west of Rio de Janeiro for the first time since the establishment of the Guandu Water Producer Project just six years ago. Water funds are an innovative strategy championed by The Nature Conservancy and partners to enable urban water users to support conservation activities, like reforestation, in watersheds that hold and purify their fresh water. Here, the Conservancy partnered with Instituto Terra to protect Rio's water supply by investing in the forests that help generate the water itself. The Conservancy is now involved in the establishment of water funds at more than a dozen locations globally, recently completing a feasibility assessment with brewer SABMiller looking at the potential of water funds for 25 cities in Sub Saharan Africa. Mapping Water. The Conservancy completed mapping of water sources for 500 global cities to develop a more accurate assessment of urban water risks and the role of nature in providing clean water and mitigating risks. This first of its kind assessment, in terms of scale and detail, will serve as a roadmap for the Conservancy and other organizations, including 100 Resilient Cities, Starwood and Ecolab. China Carp Collaboration. In collaboration with The Nature Conservancy and others, operators of China's Three Gorges Dam the world's largest and one of its most controversial dams began to alter the amount of water flowing through the giant structure. The release of large amounts of water is intended to mimic the Yangtze's flood pulse, which promotes carp spawning, and marks the fourth straight year that dam operators modified water releases to better mimic natural cycles. Carp occupy an exalted position in the culture and cuisine of China, and carp numbers had declined rapidly following operation of the dam affecting protein sources and livelihoods for people living downstream. With the construction of hydropower dams on the rise in China, the Conservancy is working with the Chinese government, major hydropower companies and nonprofit organizations to develop sustainable alternatives to the design and operation of dams planned for the Yangtze. The Colorado Flows. Using an innovative water banking model and a trust to acquire water rights, The Nature Conservancy joined with bi national partners to ensure that the Colorado River delta received dedicated water flows for the first time in nearly half a century. Due to over allocation of the Colorado River for cities, agriculture and other uses in the United States and Mexico, the river no longer reaches the Gulf of California harming fish and shrimp habitat and has stopped regularly flowing through its delta, a critical habitat for resident and migratory bird species. The initial pulse release of water was a demonstration to show the potential for restoring the habitat supporting this rich natural diversity with potential benefits to surrounding communities. Saving Elephants. To address the worst ivory poaching crisis in history and the collateral damage to entire ecosystems and local people The Nature Conservancy has ramped up existing elephant conservation efforts into an African Elephant Initiative. The initiative aims to increase security forces on the ground and to reduce demand by leveraging the Conservancy's board of trustees in China. A new report proves that poaching rates are lower in community led conservancies, which the Conservancy is helping to create. In addition, the Conservancy is providing market based incentives for wildlife conservation and, in China, board members signed an anti ivory pledge to erode the prestige of ivory collecting and to mobilize other top private sector leaders and cultural”

“. Avoiding Gas Impact. The Nature Conservancy's Central Appalachians Program is partnering with research organizations and gas companies to create a unique GIS based tool that helps shale gas operators avoid and minimize habitat impacts of well pads, roads, pipelines and other infrastructure. The tool will help gas operators generate various infrastructure configurations and evaluate their predicted habitat impacts and financial costs, while still recovering the full gas resource and accounting for other constraints. Given that the habitat impacts are not fully addressed by any state or federal regulatory frameworks in the Central Appalachians region, this tool should help reduce overall environmental impact from shale gas development through voluntary industry actions. Investing in Nature. With founding sponsorship from JPMorgan Chase and Co., The Nature Conservancy launched NatureVest to enhance the way we protect natural capital the soil, clean air and water, and other valuable resources that nature provides. NatureVest, a Global Conservation Initiatives business unit, will do this by capitalizing on the growing impact investment sector and by fostering ways to advance investment in conservation. As part of that effort, NatureVest will convene investors, develop and execute innovative financial transactions and continue to build an investment pipeline across multiple sectors, including agriculture, fisheries and environmental markets. This endeavor builds on the Conservancy's impact capital strategy, launched in 2010 with inaugural support from the Robertson Foundation that continues, and a global deal pipeline built with subsequent support from the Grantham Foundation for the Protection of the Environment. State Funding Wins. The Conservancy remains active in guiding ballot measures and state lobbying campaigns to dedicate public funding to conservation. The Conservancy in Texas helped pass Proposition 6, a ballot measure that will dedicate $2 billion to statewide water conservation. The Massachusetts chapter was instrumental in securing a $2.2 billion environmental bond from the state legislature that will be dedicated to land, water and climate resiliency. Six other state chapters conducted signature gathering and lobbying in order to get statewide conservation funding measures on the ballot. If approved, they will generate a record $20 billion for land and water conservation funding over the next 25 years. Wool on the Runway. International fashion designer Stella McCartney is among the first to raise the global profile of sustainable wool from Patagonia by incorporating it into her fall designs and runway show. After last year's successful partnership with Patagonia Inc. and Ovis XXI ranchers in Argentina to raise sheep in a manner that helps restore grasslands in Patagonia, Conservancy efforts have expanded to build global markets for the high quality, sustainable wool. Thus far, 57 ranches are participating in the partnership, covering 3.2 million acres of grasslands. A European Base. The Nature Conservancy formally established a Europe Regional Program with offices in London and Berlin focused on strengthening policy, engaging leading companies to advance sustainable development, encouraging private philanthropy, and developing impact investing strategies. Initial efforts in Europe previously directed more than $50 million from European agencies to Conservancy initiatives in the Coral Triangle, the Caribbean and Africa to reduce tropical deforestation and unsustainable trade in forest products. Hong Kong Cares. The Nature Conservancy's Hong Kong office has launched a Conservation Champions membership program to build support among the more than 7 million people who call Hong Kong home. The program seeks to raise awareness about the global challenges that face the natural world and how they affect life in Hong Kong. The program elicits ongoing support through canvassing and special events. Conservancy public service a”

“Wool on the Runway. International fashion designer Stella McCartney is among the first to raise the global profile of sustainable wool from Patagonia by incorporating it into her fall designs and runway show. After last year's successful partnership with Patagonia Inc. and Ovis XXI ranchers in Argentina to raise sheep in a manner that helps restore grasslands in Patagonia, Conservancy efforts have expanded to build global markets for the high quality, sustainable wool. Thus far, 57 ranches are participating in the partnership, covering 3.2 million acres of grasslands. A European Base. The Nature Conservancy formally established a Europe Regional Program with offices in London and Berlin focused on strengthening policy, engaging leading companies to advance sustainable development, encouraging private philanthropy, and developing impact investing strategies. Initial efforts in Europe previously directed more than $50 million from European agencies to Conservancy initiatives in the Coral Triangle, the Caribbean and Africa to reduce tropical deforestation and unsustainable trade in forest products. Hong Kong Cares.The Nature Conservancy's Hong Kong office has launched a Conservation Champions membership program to build support among the more than 7 million people who call Hong Kong home. The program seeks to raise awareness about the global challenges that face the natural world and how they affect life in Hong Kong. The program elicits ongoing support through canvassing and special events. Conservancy public service advertisements are running in Hong Kong's Times Square, Hong Kong International Airport and 15 shopping malls throughout the city. Water on the Web. The Conservancy launched Liquid Courage, an interactive digital platform to activate the next generation of conservationists and to raise awareness about the water challenges we face and the practical solutions we can enact for a more sustainable future. The site seeks to engage U.S. based urban millennials, roughly people aged 18 to 30, in global and local water issues. In its first month, the site and accompanying social media campaign reached a potential audience of 4.2 million people and received more than 2,800 social media mentions. Millennials represent 130 million people in the United States. Natural Wonder. Connect With Nature launched as an annual campaign designed to get people involved in helping nature and help them rediscover its magic. More than 133 volunteer and community outreach events were held in 39 states during the initial April campaign. Among them was "Roots and Routes to Grow. A Community Tree Planting Day" in Chicago Park District's Burnham Wildlife Corridor. The event engaged more than 700 volunteers from the historic Bronzeville and Pilsen neighborhoods in an urban conservation and reforestation project right in their own backyard. Parents around the world are concerned about their children's diminishing involvement with nature; that's the key take-away from a landmark survey released by the Conservancy's Nature Rocks program, supported by the Disney Worldwide Conservation Fund. This is the first global survey of parents in the United States, Brazil, China, France and Hong Kong to capture how much time kids spend outside and parents' perspectives on the importance of nature in their children's lives. Nature Rocks seeks to inspire and empower families to connect with nature and build the next generation of conservation supporters. More than half of "Nature Rocks" participants say that their family time in nature has increased as a result. Youth Engagement. LEAF, Leaders in Environmental Action for the Future, celebrated its 20th year of providing paid summer internships for some 700 high school students in nature preserves in 27 U.S. states. The Conservancy program has had a tremendous impact on urban youth, opening their eyes to career possibilities and building self-confidence, work skills and conservation literacy. Meanwhile, Nature Works E”

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