Celebrating 25 Years of Impact.
25 1987-2012 Annual Report Special Edition 25th Anniversary Supplement
OUR VISION
CI
handinhand
We imagine a healthy, prosperous world in which societies are forever committed to caring for and valuing nature, our global biodiversity, for the long-term benefit of people and all life on Earth.
OUR MISSION
Building upon a strong foundation of science, partnership and field demonstration, CI empowers societies to responsibly and sustainably care for nature, our global biodiversity, for the well-being of humanity.
CI | 2011 ANNUAL REPORT | 1
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Leadership Message
contents
10
Board of Directors
2 | 2011 ANNUAL REPORT | CI
Financials
12
Chairman’s Council
14
Senior Leadership
CI | 2011 ANNUAL REPORT | 3
LEADERSHIP MESSAGE This year, Conservation International (CI) is celebrating 25 years of protecting nature for the well-being of humanity. And as we reflect now on the many conservation milestones and victories we have realized, it is gratifying to see just how far CI has come—and humbling to consider just how far we have yet to go. But as we stand on the verge of our next quarter-century, we couldn’t be more encouraged by the progress we have made—and the difference we are making.
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When CI was founded on a snowy night at Washington, D.C.’s historic Tabard Inn in 1987, our success was anything but assured. The small band of dedicated conservationists that gathered that evening had little more than a shared belief that the time for a new approach had come—that science, economics and local communities all have vital roles to play in international conservation. 4 | 2011 ANNUAL REPORT | CI
In our first year, we broke new ground by signing the first-ever debt-for-nature swap agreement with the government of Bolivia, which was—just the first of many solutions we would pioneer in the years to come. Since then, we have continued to innovate and scale up our efforts at a rapid pace. And through it all, we have stayed true to the ideals we’ve held since the beginning—our foundation of science, partnership and field demonstration remains as strong as ever. And while our original mission was to protect biodiversity around the world, the seeds of our renewed mission— protecting that biodiversity for the well-being of humanity— were there all along. They were present in our early efforts and enterprises that were grounded by a simple understanding: In order for conservation to succeed, it must reconcile both the needs of the planet and its people, and it must secure both life and livelihoods. Today, milestone by milestone, we are witnessing this vision coming to fruition in ways and in proportions we once only could have imagined. We see it in our work on the Pacific Oceanscape, the most ambitious marine conservation in history, where the leaders of 16 island nations are bringing cooperative management and protection to 10 percent of the planet’s ocean surface—an area larger than the surface of the moon. These efforts aim to increase fish stocks, empower community conservation and promote effective adaptation to the impacts of climate change. We see it on the African continent, where our pilot project with the Bill & Melinda Gates Foundation has given rise to a renewed commitment and funding to create Vital Signs—a robust monitoring network that will inform smart agricultural investment at a time of great intensification by measuring and integrating essential ecosystem services into decision-making. Through Vital Signs, a dynamic
network of scientists and policymakers will benefit from critical data as they figure out how to produce enough food to feed the world’s growing population without damaging precious natural resources. We see it on the world stage in forums like the Summit for Sustainability in Africa—convened by His Excellency Ian Khama, president of Botswana, in cooperation with CI board members Rob Walton and Laurene Powell Jobs— where the leaders of 10 resource-rich nations committed to taking nature’s full measure and worth into their national accounting. Recognizing that healthy ecosystems underscore sustainable development, these governments are pledging to follow an economic development path that considers the value of nature and its services. And, finally, we see our vision becoming reality with the creation of the first trust fund to protect the Amazonian rainforest territories of Brazil’s Kayapó indigenous peoples. An initial donation of $8 million from CI’s Global Conservation Fund provided by the Gordon and Betty Moore Foundation and Brazil’s National Economic and Social Development Bank with support from the Amazon Fund will conserve 3 percent of the Amazon while offering sustainable economic activities for 7,000 people. More than ever, CI’s mantra—that safeguarding our future lies in safeguarding our planet—is resonating with community leaders, captains of industry and heads of state; these leaders increasingly understand that it is in their enlightened self-interest to properly value and protect the gifts of nature that sustain us. So we embark on the next quarter-century with a renewed sense of hope and, with your continued support, confirmation that we are charting a path toward a brighter future for the planet and the seven billion of us—and counting—who call it home. CI | 2011 ANNUAL REPORT | 5
Since our inception in 1987, CI has matured into a $140 million organization with more than 800 employees in offices spanning 28 countries across the globe. Funding to protect our precious, life-giving planet is scarce, and today we spend every conservation dollar as carefully and deliberately as we did when we first began on a shoestring budget of less than $2 million. CI’s funding model is rather unique within the nonprofit community. We are not a membership organization. In contrast to other organizations of our size, we are supported by a comparatively small group of dedicated, highly engaged donors who commit themselves to supporting high-impact, multi-year programs. This model allows us to minimize our fundraising costs while focusing our dollars and efforts on maximizing programmatic delivery. Our statement of activities, presented on page 9, outlines our revenue sources and illustrates how we invested these resources in fiscal year 2011. 6 | 2011 ANNUAL REPORT | CI
Donors + Revenue
from the Walton Family Foundation to support our Bird’s Head and Eastern Tropical Pacific Seascapes programs.
The mission CI has undertaken is complex, and the solutions that we offer require ongoing commitment and perseverance.
We also reported $1.9 million in grant cancellations and deobligations in fiscal year 2011, largely due to the fact that several projects were completed for less than the amount of the grant awarded to us. This was a big change from fiscal year 2010 when the lingering effects of the global economic downturn resulted in the early termination of several large, multi-year grants.
CI’s donors are our partners in the truest sense of the word. We have been fortunate to receive transformative grants from donors such as the Gordon and Betty Moore Foundation; the Walton Family Foundation; the French, German and Norwegian governments; Disney; and Starbucks Coffee Company. Our donors not only provide critical financial support, but also engage with us in our work and develop their own long-term environmental strategies, thus greatly leveraging our mutual impact. In fiscal year 2011, CI received funding from approximately 4,700 individual, foundation, corporate, government and multilateral donors. For an organization of our size, this is a relatively small, but highly committed and engaged donor base. Although most of our funding comes in the form of large, multi-year restricted awards, unrestricted funding provides us with the critical flexibility to respond to urgent needs and opportunities. Unrestricted funding also allows us to support new programs for which funding has not yet been secured. CI’s long-term sustainability depends on raising an appropriate balance of both restricted and unrestricted funding. In fiscal year 2011, we received several generous grants that allowed us to realize significant growth in most revenue categories, including $16 million from the Walton Family Foundation and USAID to launch our Sustainable Landscapes Program. This program will encourage low-carbon, private sector investments designed to reduce or eliminate deforestation in Indonesia through innovative, public-private partnerships. Additionally, we received more than $13 million from the German Ministry of the Environment, Disney, The Norwegian Agency for Development Cooperation and JPMorgan Chase Foundation for forest conservation in Africa, Asia and South America. Other noteworthy grants included $30 million
Expenditures We are committed to maintaining the highest standards of stewardship over the funds entrusted to us by our donors. In fiscal year 2011, 81 percent of every dollar spent directly supported CI’s programs. Management and operations accounted for 11 percent of total spending, and development expenditures accounted for 8 percent of total spending. Our goal is to ensure that CI has robust systems and infrastructure in place to effectively manage and support a complex global operation. We also aim to carefully manage our costs to maximize dollars available for programmatic use. CI consistently invests the largest portion of our resources in our people and partners—66 percent in fiscal year 2011. Specifically, 47 percent of our budget went to support our staff, who are recognized experts in their respective fields and countries. Grants to partners comprised 19 percent of our expenditures. Grantmaking represents a cornerstone of CI’s programmatic delivery. At CI, we believe that the greatest programmatic impacts are achieved by supporting and building the capacity of local organizations and peoples in managing their own natural resources. In fiscal year 2011, several programs implemented during previous years came to completion. Consequently, we awarded fewer grants to partners in fiscal year 2011 than in fiscal year 2010. This lower rate of grantmaking was the primary driver in reducing our expenses by $17 million for this period.
Summary Those who read CI’s financial statements often ask us why our revenue fluctuates—sometimes dramatically—between years. For example, our revenues rose by almost $70 million, from $77.8 million in fiscal year 2010 to $147 million in fiscal year 2011. The funding CI receives in form of large, multi-year gifts must be reported as revenue in the year we receive them. As a result, our reported revenue can fluctuate significantly while our expenses remain more consistent from year to year. Thus in years that we have received significant new grants that will be spent during subsequent years, our financial statements may reflect large surpluses. In later years when these programs are implemented, our statements may reflect deficits. Net assets represent the cumulative amount of revenue that we have raised in excess of our expenditures since our inception. Thus, our net asset balance is what we have available to invest in conservation in the current and future years and as such is an important indicator of CI’s financial health and sustainability. Based on the changes in our net asset balance over the years, it is clear that CI has enjoyed consistent growth. CI is indeed fortunate to stand on very sound financial footing with total net assets of $259 million at the close of fiscal year 2011.
Net Assets In millions of US dollars
FINANCIALS
$350 $300 $250 $200 $150
Net Assets
$100 $50 $FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 CI | 2011 ANNUAL REPORT 7 CI | 2008 ANNUAL REPORT | |29
Statement of Activities*
Revenue and Expense Summary
2010
2011
UNRESTRICTED
Governments, NGOs and Mutilaterals 20%
Ecosystem Finance and Markets 18%
Individuals 11%
Management and Operations 11%
Science and Knowledge 9%
Corporations 10%
EXPENSES
REVENUE $147.2 Million in FY 2011
$121.6 Million in FY 2011
Investments 4%
Development 8%
Other Income 1% Center for Conservation and Government 4%
Revenue Grants and contributions Foundations Individuals Corporations Non-U.S. Government U.S. Government NGO/Multilaterals Cancellations and deobligations Investment income Licensing agreements, product sales and other income Net assets released from donor restrictions
Total Revenue Expenses Program services Field Programs Ecosystem Finance + Markets Science + Knowledge Center for Conservation + Government Global Marine Communications Global Initiatives Total program services Supporting services Management and Operations Development Total supporting services
Field Programs 40%
Global Marine 4% Communications 4%
Foundations 54%
Global Initiatives 2%
Total Expenses Changes in net assets before non-operating activity Nonoperating activity Gain (loss) on foreign currency translation
$6,537 6,624 2,350 12 2,040
TEMPORARILY RESTRICTED
$72,579 9,878 12,621 13,367 10,203 5,748 (1,941) 3,699
PERMANENTLY RESTRICTED
$51 3 -
TOTAL
TOTAL
$79,167 16,505 14,971 13,367 10,203 5,760 (1,941) 5,739
$25,475 21,803 17,894 9,094 4,205 3,775 (11,559) 5,261
3,471
(83)
-
3,388
1,868
102,062
(102,062)
-
-
-
123,096
24,009
54
147,159
77,816
48,526 21,136 11,371 5,105 5,011 4,611 2,633 98,393
-
-
48,526 21,136 11,371 5,105 5,011 4,611 2,633 98,393
58,012 29,003 11,442 3,924 4,598 5,907 1,481 114,367
-
13,232 9,928 23,160
14,856 9,600 24,456
13,232 9,928 23,160 121,553 1,543
24,009
-
2,881
Changes in Net Assets Net assets at beginning of year Changes in net assets
$1 ,543
$26,890
17,656 1,543
199,491 26,890
Net Assets at End of Year
$19,199
$226,381
54
121,553 25,606
138,823 (61,007)
2,881
(3,889)
$54
$28,487
($64,896)
13,201 54
230,348 28,487
295,244 (64,896)
$13,255
$258,835
$230,348
-
* For the Fiscal Years Ending June 30, 2011 and 2010, in Thousands 8 | 2011 ANNUAL REPORT | CI
CI | 2011 ANNUAL REPORT | 9
Board of Directors*
Wes Bush
Chairman of the Board and Chief Executive Officer
Paula Hannaway Crown
Peter A. Seligmann Conservation International Arlington, Virginia
Chairman of the Executive Committee Rob Walton
Chairman of the Board Wal-Mart Stores, Inc. Bentonville, Arkansas
board
Vice Chair Harrison Ford
Actor Los Angeles, California
Jared Diamond, Ph.D.
Professor, Geography and Physiology UCLA Los Angeles, California
André Esteves
CEO Banco BTG Pactual S/A São Paulo, Brazil
Mark L. Feldman
President and Chief Executive Officer L & L Manufacturing Company Los Angeles, California
Robert J. Fisher
Board Members Roger Altman
Ann Friedman
Henry H. Arnhold
Chairman of the Board Arnhold & S. Bleichroeder Holdings, Inc New York, New York
Dr. Alex Balkanski General Partner Benchmark Capital Woodside, California
Skip Brittenham C I | 2 0 0 8 A N N U A L R E P O RT | 5 1
Principal Henry Crown and Company Chicago, Illinois
Director Gap, Inc. San Francisco, California
Founder and Chairman Evercore Partners New York, New York
10 | 2011 ANNUAL REPORT | CI
Chairman, Chief Executive Officer and President Northrop Grumman Corporation Falls Church, Virginia
Senior Partner Ziffren Brittenham LLP Los Angeles, California
Teacher Bethesda, Maryland
Dr. Victor Fung Chairman Fung Global Institute Hong Kong
Jeff Gale
Gale Force Studios Las Vegas, Nevada
Richard Haass, Ph.D. President Council on Foreign Relations New York, New York
Laurene Powell Jobs
Pavan Sukhdev
Hon. Alexander Karsner
John Swift
Founder and Board Chair Emerson Collective Palo Alto, California
CEO and Founder Manifest Energy, LLC Washington, DC
President S. K. Ian Khama
CEO, GIST Advisory Study Leader, TEEB Gurgaon, Haryana, India
Conservationist Cayucos, California
Dr. Enki Tan
Republic of Botswana Gaborone, Botswana
Executive Chairman GITI Tire Co. Ltd. Singapore
Heidi Miller
Victoria Tauli-Corpuz
President of International (retired) JPMorgan Chase New York, New York
Kris Moore
Conservationist Los Altos Hills, California
Paul Polman
Chief Executive Unilever London, United Kingdom
Stewart A. Resnick Chairman of the Board Roll International Corporation Los Angeles, California
Story Clark Resor Principal Conservation Consulting Wilson, Wyoming
Orin Smith
Executive Director Tebtebba (Indigenous Peoples’ International Centre for Policy Research and Education) Baguio City, Philippines
Ray R. Thurston Retired CEO UPS Logistics Group Jackson, Wyoming
President Anote Tong Republic of Kiribati Bairiki, Tarawa
Byron Trott
Chairman and CEO BDT Capital Partners, LLC Chicago, Illinois
William Wrigley, Jr. Wrigley Management Inc. Chicago, Illinois *As of December 2012
Chief Executive Officer (retired) Starbucks Coffee Company Seattle, Washington
Amb. Thomas F. Stephenson Partner Sequoia Capital Menlo Park, California
CI | 2011 ANNUAL REPORT | 11
Chairman’s Council* Chairperson Maureen Schafer Las Vegas, NV
Elizabeth Fisher San Francisco, CA
Nancy Frisch Portland, OR
Members Catherine Adler New York, NY
Patrice Auld Seattle, WA
Sybilla Balkanski Woodside, CA
Kyung Choi Bordes and Peter Bordes
council
New York, NY
Carolyn Brody New York, NY
Thomas Byers Palo Alto, CA
J. Rodney & Nancy Chiamulon Pacific Palisades, CA
Suzie Coleman Healdsburg, CA
Ann Colley New York, NY
Alan Dynner Boston, MA
David Fenton
Jane Gale Las Vegas, NV
Mary C. Gallo Modesto, CA
Cori Glaser Seattle, WA
Howard Gould New York, NY
Renee Harbers New York, NY
Jane Hartley New York, NY
James N. Hauslein Hobe Sound, FL
Ann-Eve Hazen Tiburon, CA
Sydney McNiff Johnson Washington, DC
James Jordan New York, NY
Jeffrey Lesk
Rosemarie Rotella
Finn Longinotto
Kim Samuel-Johnson
Thomas E. Lovejoy
Pablo Sanchez Navarro
George Meyer and Maria Semple
Jessica and Richard Sneider
Washington, DC
Washington, DC
McLean, VA
Seattle, WA
Cristina Mittermeier
Nanoose Bay, British Columbia, Canada
Eddy Moretti New York, NY
Claire Ngo Singapore
Fabian and Nina Oberfeld Los Angeles, CA
Trina Overlock Greenwich, CT
Christopher Redlich Hillsborough, CA
Toronto, Canada
Mexico City, Mexico
Los Angeles, CA
Wm. Laney Thornton San Francisco, CA
Mike Velings
Utrecht, The Netherlands
Katie Vogelheim Tiburon, CA
Bradford Wurtz Portola Valley, CA
Gillian Wynn Santa Monica, CA
Darlene Ziebell Hoffman Estates, IL *As of December 2012
Sarah Johnson Redlich Hillsborough, CA
Tyler Kelley
Anders Rhodin and Carol Conroy
Los Angeles, CA
Lunenburg, MA
Frans Lanting
Nancy Morgan Ritter
Santa Cruz, CA
Kirkland, WA
Los Angeles, CA
New York, NY 12 | 2011 ANNUAL REPORT | CI
C I | 2 0 0 8 A N N U A L R E P O RT | 5 1
CI | 2011 ANNUAL REPORT | 13
Senior Leadership* Chairperson’s Office Chairman of the Board and Chief Executive Officer
Vic Arrington
Niels Crone Chief Operating Officer
General Counsel’s Office Amelia Smith
Executive Vice President Senior Vice President, Center for Environmental Leadership in Business
John De Wet Vice President, Finance and Operations
Patricia Zurita Vice President, Critical Ecosystem Partnership Fund
Senior Vice President and General Counsel
Center for Environment + Peace
The Gordon + Betty Moore Center for Ecosystem Science + Economics
Martha Stein-Sochas
Greg Stone, Ph.D. Executive Vice President
Sandy Andelman, Ph.D.
Senior Vice President
Frederick Boltz, Ph.D.
Marketing + Branding Heather Luca Acting Managing Director Development
Development Cynthia McKee Senior Vice President
Kraig Butrum Vice President, Major Gifts
Andrew Wilson Vice President, Foundation Relations
Field Programs José Maria Cardoso da Silva, Ph.D. Executive Vice President
Daniela Raik, Ph.D. Vice President, Field Program Management
Yasushi Hibi Vice President, Asia Policy and Managing Director, Japan
Africa + Madagascar Field Division
Senior Vice President
Celia Harvey, Ph.D.
Lilian Spijkerman
Benoit Kisuki
Joy Gaddy
Jean-Philippe Palasi
Senior Vice President
Scott Mills Vice President, Global Information Technology
Finance Barbara DiPietro Chief Financial Officer
Global Marine Greg Stone, Ph.D. Executive Vice President
Director, European Policy, Belgium
David Singh, Ph.D. Executive Director, Guyana
Tatiana Ramos Executive Director, Mexico
Luis Espinel Executive Director, Peru
Annette Tjonsiefat Executive Director, Suriname
Lisa Famolare Vice President, Strategic Projects, Guyana and Suriname
Asia-Pacific Field Division David Emmett Seng Bunra William Liao
Jessica Donovan
Vice President, Social Policy and Strategic Engagement
Executive Director, Ecuador
Country Director, Cambodia
Vice President and Senior Advisor, Global Policy
Global Operations
Luis Suarez
Managing Director, Africa and Madagascar Field Division and Vice President, Madagascar
Will Turner, Ph.D.
Kristen Walker-Painemilla
Executive Director, Colombia
Léon Rajaobelina
Carlos Manuel Rodriguez
Vice President, Global Public Partnerships
Fabio Arjona
Senior Vice President
Senior Vice President, International Policy
Senior Vice President
Vice President, Global Change and Ecosystem Services
C I | 2 0 0 8 A N N U A L R E P O RT | 5 1
Ecosystem Finance + Markets
Peter A. Seligmann
President
14 | 2011 ANNUAL REPORT | CI
Senior Vice President
Jennifer Morris
Russell A. Mittermeier, Ph.D.
staff
Sebastian Troeng, Ph.D.
Country Director, Liberia Country Director, Democratic Republic of Congo
Sarah Frazee Director and CEO, Conservation South Africa
Americas Field Division Fabio Scarano, Ph.D.
Vice President, China
Susana Waqainabete-Tuiese Country Director, Fiji
Ketut Sarjana Putra Executive Director, Indonesia
Jean-Christophe Lefeuvre Program Director, New Caledonia
Sue Taei Senior Director, Pacific Islands Oceanscape
Oliver Coroza
U.S. Government Policy
Senior Vice President
Jill Sigal
Vice President
Regional Director, Eastern Tropical Pacific Seascape
Enrique Nunez
News + Publicity
Eduardo Forno
*As of December 2012
Kim McCabe Vice President
Scott Henderson
Terrestrial Program, Philippines Marine Program, Philippines
Executive Director, Bolivia
André Loubet Guimaraes, Ph.D. Executive Director, Brazil CI | 2011 ANNUAL REPORT | 15
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CI’s Annual Report and Annual Report Supplement are published for supporters of Conservation International. A U.S.-based, international organization, CI is a nonprofit, tax-exempt corporation under Section 501(c)(3) of the Internal Revenue Code. All contributions are tax deductible to the full extent of the law. © 2011 Conservation International 16 | 2011 ANNUAL REPORT | CI
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