Welcome to our
2023 Annual Report
Our Message
Our world is changing more rapidly than at any time in human history. Organisations must evolve and adapt to this new context. It’s appropriate then that 2023 was a year of change and transition for the HCV Network.
We developed a new 2030 strategic vision and a set of Principles to augment the HCV Approach. We expanded into new countries, including Cameroon, Guatemala and the Philippines. We increased our membership by 20%. We did some deep listening and thinking on our governance model, and what sort of structure is required for us to work
collaboratively to achieve greater impact into the future.
And the leadership baton was passed from my pioneering predecessor, Paulina Villalpando, to me. I’m thrilled to be leading the Network in this next phase of growth in support of global sustainability goals.
The urgency to develop solutions for global environmental and social crises is greater than ever. We are the custodians of one such solution: the High Conservation Value Approach is a tried-and-tested means to protect the world’s most unique and significant environmental and social values, whilst also facilitating commodity production to meet human needs.
Our team looks forward to working collaboratively with our incredible members, partners and funders to achieve our ambitious mission.
Our time is now. Let’s do it!
Our Approach
Our 2030 Roadmap was published in August 2023, and articulates the strategic vision for the network.
A high conservation value (HCV) is a biological, ecological, social or cultural value of outstanding significance or critical importance.
The HCV Network is a membership-based non-profit organisation that works globally to protect these values in support of the global sustainability goals.
Our pragmatic methodology, refined through 20 years of field-level implementation, is a pathway to achieving this vision.
With the HCV Approach used in nearly 20 certification schemes and hundreds of corporate policies and commitments, we work with commodity industries (including oil palm, cotton, sugar, rubber, soy and coffee) and forest products (including timber, pulp and paper).
We work in South-East Asian, Latin American and African contexts. And we work across multiple ecosystem types (from forests to grasslands) and a wide range of scales (from large jurisdictional landscapes to smallholdings).
Impact and Milestones
Our work has four pillars: policy, implementation, assurance and learning.
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Impact 1
Policy
Through our policy pillar, we seek to accelerate the adoption and impact of the HCV Approach.
See MilestonesImpact 1
Key Milestones for 2023:
- We published Principles of the HCV Approach to improve consistency in the use of the HCV Approach.
- We engaged with global and regional sustainability initiatives regarding HCVs, including the Taskforce for Nature-related Financial Disclosures (TNFD), and the European Sustainability Reporting Standards (ESRS).
- We advocated for HCVs with several platforms and standards, including the Forest Stewardship Council (FSC), the Sustainable Coconut Partnership, Fairtrade, Better Cotton and Plan Vivo.
- We became members of the Biodiversity Credit Alliance and continued to actively engage with the Global Platform for Sustainable Natural Rubber and the Accountability Framework initiative’s coalition.
- With support from members and partners RSPO, Proforest and FEMEXPALMA, we established the Latin American HCV Working Group.
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Impact 2
Implementation
Through our implementation pillar, we provide those directly implementing the HCV Approach with a clear journey to follow and the tools to support it.
See MilestonesImpact 2
Key milestones for 2023:
- With members WWF and Rainforest Alliance, we adapted and tested the Forest Integrity Assessment (FIA) Tool in Cameroon and Guatemala. Local communities use the tool to assess and monitor forest biodiversity and forest carbon stock.
- We worked with WWF to identify HCV areas to be included in the Bhutan national spatial plan, using the HCV lens as a cross-cutting theme for district level forest management plans.
- We worked with members Daemeter and GPSNR to pilot smallholder-adapted tools for Nature Positive Farming. We also developed a draft smallholder policy for the natural rubber industry.
- We supported member Better Cotton to update their production standard by conducting a review of the challenges of broadening the Standard’s land-use change requirements to include both HCV and natural ecosystem protection, especially in Australia, Brazil and Mozambique.
- We worked on six landscape scale jurisdictional projects in Indonesia, Malaysia, the Philippines and the Republic of Congo with members RSPO, Kaleka, FPP and WWF.
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Impact 3
Assurance
Through our assurance pillar, we provide a system for making credible claims around use of the HCV Approach.
See MilestonesImpact 3
Key milestones for 2023:
- In 2023, the Secretariat completed the evaluation process for 37 assessment reports covering 235,000 hectares, and including 43,000 hectares of HCV management areas. These assessments were led by 21 Licensed Assessors from Africa, Latin America, and Asia.
- By introducing fees to deter assessor resubmission delays and inappropriate use of the appeal mechanism, we reduced the overall duration of the report evaluation process, benefitting companies commissioning assessments and the smallholders they work with.
- Following overall improvements in quality of reports, the introduction of adaptive evaluation fees for resubmissions has reduced this cost by 43%.
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Impact 4
Learning
Through our learning pillar, we ensure all users understand the HCV Approach and can robustly implement it.
See MilestonesImpact 4
Key milestones for 2023:
- We trained 72 people from 13 countries on a range of HCV related processes.
- In partnership with Proforest, we developed and launched the course “Protecting HCVs in Landscapes”.
- In collaboration with some of our members, we developed and piloted a new course on HCV Management and Monitoring.
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Funding and Financials
Income vs Expenditure 2023
Personnel salaries and associated costs.
Contractors, partners, quality panel, translators, other.
Legal, accountancy, other.
Annual fees paid by HCV Network Members, Supporters and Donations.
Received from partner organizations for implementation of projects.
Application fees, annual renewal fees and fees paid for HCV and HCV-HCSA assessment report evaluations.
Provision of training, development of tools for partners and collaborator, other.
Legal, accountancy, other.
Contractors, partners, quality panel, translators, other.
Personnel salaries and associated costs.
Annual fees paid by HCV Network Members, Supporters and Donations.
Received from partner organizations for implementation of projects.
Application fees, annual renewal fees and fees paid for HCV and HCV-HCSA assessment report evaluations.
Provision of training, development of tools for partners and collaborator, other.
Expenditure
Income
The HCV Network is in the scaling phase of organisational development. We are expanding into new countries, commodities, ecosystem types and scales.
Governance
For the last 10 years, the HCV Network has been governed by a Management Committee of 10 members representing four constituencies: civil society organisations, producers and supply chain companies, standards and schemes, and technical service providers.
The day-to-day management of the organisation is undertaken by a Secretariat with fiduciary and regulatory oversight provided by a small board of directors.
At the request of members, the Secretariat worked in 2023 on developing a more inclusive, decentralised governance structure. Co-creation with members is ongoing.
Global Platform for Sustainable Natural Rubber
Singapore
GPSNR is an international, multistakeholder, voluntary membership organisation, with a mission to lead improvements in the socioeconomic and environmental performance of the natural rubber value chain.
SE Asia Rainforest Research Partnership
Malaysia
SEARRP facilitates world-class scientific research that addresses the major environmental issues facing the tropics - plantation development, habitat restoration, and climate change.
Earthworm Foundation
Switzerland
Earthworm Foundation join us in their global capacity, after many years of participation by their Indonesian country office.
PT Gaia Eko Daya Buana
Indonesia
Gaia, an environmental consultancy, helps businesses and organizations to deliver their climate, biodiversity, and social commitments.
Wilderness Society
Australia
Wilderness Society’s work focuses on ensuring a future that does not rely on continued destruction of nature and our climate, but rather flourishes because of our responsible stewardship of these core life support systems.
Kaleka
Indonesia
Kaleka ensures that oil palm producers in its jurisdiction identify, protect, appropriately manage, and regularly monitor HCVs in order to minimise negative impacts of any production activities such as logging and agricultural plantations.
Looking Ahead
Our theme for 2024 is Ideas to Action.
We’re developing a bold new decentralised membership model to ensure that our members are at the frontlines of the expansion and evolution of the HCV methodology. Members will have the opportunity to co-create and pilot with the Secretariat innovative new approaches and solutions. Everyone wins when there is true collaboration within an ecosystem.
We are excited about operationalising a measurable and impactful new 3 year strategy we’re developing. All of the Network’s programmes and activities will dovetail into this strategic framework.
Our other priorities for the year include:
- Expanding our reach geographically and sectorally;
- Evolving the methodology by laying the groundwork for updated interpretations and version 2.0 of the HCV Approach; and
- Increasing data-driven decision-making and reporting by designing a new impact framework.
What an exciting year ahead! We look forward to working closely with our members, partners and funders to realise our ambitious goals.