At the beginning of 2020, the World Economic Forum launched the "One Trillion Trees Initiative" (1t.org) at the Winter Davos Annual Meeting, setting a goal to "protect, restore, and plant one trillion trees" by 2030. This initiative aims to drive large-scale investments in reforestation, enhancing global capabilities to address and adapt to climate change and mitigate biodiversity loss. At the Winter Davos in 2022, the Chinese government actively responded to this initiative by proposing a national action target to "strive to plant, protect, and restore 70 billion trees within 10 years."

During the 2024 Summer Davos Forum, Florian Vernaz, Head of 1t.org, attended a session titled "Eco-Entrepreneurship Becomes the Mainstream" and granted an exclusive interview to our publication afterwards, sharing insights on the progress of the initiative and future plans.

Interview Guest: Florian Vernaz, Head of the World Economic Forum's "One Trillion Trees Initiative" (1t.org)

Q: China Sustainability Tribune (CST)
A: Florian Vernaz

Balancing Tree Planting with Efficient Land Use

CST: The goal of planting one trillion trees is ambitious, but given the scarcity of land resources, how can we achieve this target while balancing the value of land use with large-scale tree planting?

Florian: Thank you for your insightful question. The number of one trillion trees originates from a study conducted by ETH Zurich several years ago, which focused not only on planting trees but also on restoring vegetation in degraded forests. 1t.org's target of adding trees refers to those that would not exist without human intervention, encompassing protection of existing trees, restoration of degraded forests, and planting new trees. The full expression should be "protect, restore, and plant one trillion trees."

When it comes to land use, there are indeed competing demands, such as forest restoration, food production, timber production, palm oil cultivation, and so on. The key lies in ensuring that various landscapes can coexist harmoniously, including production areas, urban residential areas, protected forests, and mixed forests, to provide the ecosystem services necessary for human survival. On the other hand, we must recognize that with population growth and the booming bioeconomy, the demand for resources like timber will grow exponentially, not just for pulp and paper but also for bio-based materials. For instance, natural fibers are being used as alternatives to plastics, and large amounts of timber are being adopted as building materials to replace traditional concrete and steel. Therefore, in advancing 1t.org, we need to find a balance that meets humanity's legitimate needs for natural resources while ensuring the health and sustainability of ecosystems. This requires concerted efforts and collaboration among governments, the private sector, NGOs, and all sectors of society.

So, how can we ensure sustainable forest products for the bioeconomy? Part of the answer lies in the over 2 billion hectares of degraded land globally. This presents an opportunity to  leverage the investment capabilities of the private sector to establish new production forests, achieving comprehensive land use rather than harvesting timber from natural forests.

Furthermore, when it comes to food security, there is a strong correlation between healthy forests and food production. Scientific research has found that the productivity of farmland is positively correlated with forest cover. This means that countries with abundant forests tend to have more fertile soil, enabling them to produce more food on the same area of land. In contrast, countries that have experienced significant deforestation and forest degradation suffer from declining soil quality and disrupted water distribution, affecting food production. Therefore, when considering how to increase land productivity for food, we must consider not just the land itself but also the surrounding forests, ensuring a " vast forest" to prevent soil erosion, regulate hydrology, and improve soil quality.

Investing in Forests Creates Multiple Values for Businesses

CST: 1t.org is actively advocating and attracting more social forces, particularly the private sector. We understand that many companies are already involved. What are the specific demands of these companies that 1t.org satisfies?

Florian: 1t.org recognizes the responsibilities and needs of businesses in addressing climate change and environmental protection. For companies producing commodities like cocoa and palm oil, carbon emission management is essential. By providing specific solutions, such as promoting shade-grown agriculture, 1t.org helps these companies reduce both direct and indirect carbon emissions while promoting biodiversity conservation, aligning with their pursuit of green production and sustainable development.

1t.org is collaborating with companies across industries, particularly those committed to net-zero carbon emissions or carbon neutrality targets, who share a vision aligned with the principles of the UN Decade on Ecosystem Restoration. 1t.org emphasizes the additionality of corporate commitments, meaning that participation in 1t.org activities stems from a sense of environmental responsibility and mission, rather than mere compliance with regulations. By engaging in more strategic landscape conservation and restoration projects, companies can generate a greater impact than investing in smaller, isolated initiatives, further enhancing their social image and brand value. Currently, 85 companies worldwide have committed to protecting and restoring forests equivalent to 9.4 billion trees.

Moreover, 1t.org serves as a valuable platform for companies striving for net-zero emissions or carbon neutrality targets. On this platform, companies can share experiences, learn from industry experts, and establish close partnerships with NGOs, project implementers, and other stakeholders. This collective action and structured collaboration not only strengthens corporate initiatives but also improves the efficiency and effectiveness of achieving environmental goals. In essence, 1t.org fosters a business and practice community that is evolving into an action community.

CST: Specifically, how does 1t.org motivate private sector engagement and stakeholder participation, and what unique value does it offer in this process?

Florian: The private sector is increasingly recognizing that investing in nature is not just a matter of corporate social responsibility but a forward-looking and strategic business decision.

Firstly, we emphasize the business wisdom of investing in nature. By investing in forests, companies can mitigate compliance risks and costs to meet current and future regulatory requirements. Secondly, this also aids in securing financing for companies, thereby enhancing their operational resilience. The financial sector's demands for increased transparency in disclosure mean that if companies wish to continue accessing financing, they must report on Environmental, Social, and Governance (ESG) indicators, including evidence of proactive action taken to address natural risks.

Furthermore, we observe a new trend where companies are not only focused on risk reduction and compliance but also seeking growth opportunities from nature conservation. To this end, we've established an innovative ecosystem that encourages and supports the development of eco-entrepreneurs. We've organized innovation challenges to gather and select these "ecopreneurs." These entrepreneurs prioritize not just commercial success but also solving environmental and social issues. They demonstrate through practical actions that running a business with both economic value and positive impact is achievable.

We now have a community of 200 ecopreneurs who have collectively restored and protected nearly 3 million hectares of land. These achievements were financed through social enterprises without relying on public funds or donor support, amounting to approximately USD 300 million. Therefore, shifting the perception of "investing in nature" from a cost or charity to a growth opportunity is crucial.

We believe that the nature and climate sector represents a trillion-dollar industry. Achieving climate targets by 2030 necessitates annual investments of USD 5 trillion. This is a substantial amount that cannot be solely covered by government spending. We are convinced that only through the active participation and sustained investment of the private sector can we realize the ambitious global climate goals and environmental protection blueprints, while also creating numerous business opportunities in the process.

Driving Collective Action for Transformative Impact

CST: This year, China has issued multiple policies related to sustainable information disclosure. Integrating ESG into corporate management has also become a global trend. How does participating in 1t.org enhance a company's ESG performance?

Florian: We clearly see that one of the primary drivers for companies to integrate ESG into their operations is the increasing regulatory pressure. In China, as well as globally, a series of new disclosure regulations and policies are in place, and many large enterprises are intertwined with the global market. This adds obligations and pressure for companies to integrate sustainability into their daily operations, but doing so well enhances and promotes their ESG performance.

From our perspective, we assist companies by systematically considering their natural risks, how to invest in nature more effectively, and providing support in implementing such investments. For many companies, investing in forests is not their core business. We can help design strategies to ensure effective investments, as forest investments can be high-risk. For example, you need to ensure the right trees are planted in the right places with support from local communities and governments. This essentially requires forming partnerships, and our role is to facilitate these partnerships, enabling companies to jointly face challenges and seize opportunities. Additionally, we strive to channel corporate commitments into collective action, ensuring impact through a focus on strategic areas that are critical resource sources or biodiversity hotspots. By concentrating resources in these areas, they can generate transformative impacts.

Regarding technical reporting, we recognize that companies face multiple ESG reporting requirements, potentially increasing their reporting burden. Therefore, we work to align the 1t.org reporting framework with existing international and regional frameworks like the Corporate Sustainability Reporting Directive (CSRD) and the Taskforce on Nature-related Financial Disclosures (TNFD). This ensures that Chinese companies can report their ESG performance more efficiently and consistently, meeting the expectations and requirements of various stakeholders.

Ensuring Projects Align with China's Greening Goals

CST: With the support of the Chinese government, how does 1t.org operate in China?

Florian: China has made significant contributions to global afforestation and landscape restoration, leading the way in this field for the past 30 years. China's forest coverage has increased from approximately 16% in 1990 to over 24% today, achieving unique accomplishments.

China has set a goal to plant, protect, and restore 70 billion trees over the decade from 2021 to 2030, with 5 billion of these trees to be achieved through mandatory tree planting, sectoral greening, and social afforestation efforts. The role of 1t.org is to catalyze private investment to facilitate the achievement of this ambitious target. We are collaborating with the China Green Foundation to align our actions with the goals and plans of the Chinese government, guiding corporate commitments to suitable areas of priority for the government, particularly investing in desertification regions in Northeast China, North China and Northwest China and supporting mangrove restoration areas. This ensures that corporate projects are coordinated with national greening objectives, accelerating and facilitating the implementation of these plans.

CST: Is the natural capital created by 1t.org measurable?

Florian: Within the World Economic Forum framework, we have a team called the "Nature Action Agenda" dedicated to exploring and establishing a scientific methodology for accurately assessing the value of natural capital, integrating nature's consideration into various decision-making processes. This is particularly crucial for governments, as it prompts policymakers to consider the value of natural capital when planning environmental improvements, allocating public spending, and making public decisions, leading to greener and more sustainable development pathways.

Furthermore, we are delighted to observe a growing interest in the valuation of natural capital among the private sector. One of our current priorities is exploring how to transform this abstract yet valuable resource into quantifiable monetary values, making it a crucial reference factor in corporate decision-making.

Engaging Multiple Stakeholders to Honor Nature Together

CST: How does 1t.org plan to expand its influence and attract more stakeholders?

Florian: We are witnessing an increasing interest from private enterprises in investing in nature to better understand and manage their natural risks. While 1t.org is but one of many solutions, not the whole solution, tree planting and forest ecosystem restoration are highly effective tools for impacting nature and addressing the climate crisis.

We recognize the impact of forests and trees, which not only aid in carbon storage but also mitigate flood and drought risks, enhance agricultural productivity, and provide cooling during heatwaves. We focus on forest restoration and protection. Additionally, we are studying how to integrate forests into urban landscapes to improve urban quality of life.

To expand our influence, we plan to expand our work to more cities, strengthen cooperation with state-owned enterprises to jointly promote environmental projects such as afforestation, and build a network of environmental pioneers to encourage more individuals and organizations to become advocates and practitioners of nature conservation.

Recently, we launched a biodiversity challenge, calling on Chinese ecological innovators to offer solutions, and received enthusiastic responses. We received 30 highquality- applications and selected four top Chinese innovators who are providing specific solutions to environmental challenges. For instance, one company is developing an AI-powered wildfire early warning system to reduce wildfire risks in forests and other areas; another is researching how to leverage native plants and species to create more value for the pharmaceutical industry; two socially-minded startups are focusing on enhancing forest restoration efforts in southern China.

CST: Does 1t.org consider introducing cutting-edge technologies like remote sensing, drones, and AI to optimize and enhance project execution efficiency and outcomes?

Florian: Technology is undoubtedly a critical driver of innovation and optimization in our projects. Using drones enables cost-effective initial exploration and monitoring of forest areas, while satellite imagery significantly reduces the cost of long-term monitoring projects, providing real-time insights into project area dynamics. Acquiring accurate tree survival rates, a crucial metric for assessing project success, is essential yet often costly and time-consuming through traditional field verification methods. Therefore, we are actively exploring how to leverage advanced technologies to automatically analyze image data, quickly and accurately obtaining key information like tree survival rates, thereby enhancing our operational efficiency and data accuracy. Hence, we are more than willing to introduce frontier technologies to our projects, maximizing impact with the same resources.