As environmental, social, and governance (ESG) investing gathers detractors, innovative approaches to conservation are more crucial than ever. Adam Joseph, Associate Director of Strategy on the Market Lab team at The Nature Conservancy (TNC), offers fresh insights into how market mechanisms can drive meaningful conservation outcomes.
After years in management consulting at BCG, Joseph found himself navigating the complex world of conservation finance, a field that tests one's strategic understanding in unique ways. He's understood that a desire for conservation practices spans the political spectrum, hence the "purple path."
As Joseph notes, "The political spectrum comes full circle where hunters and conservationists actually share a lot of overlap."
This unexpected alliance traces back to the genesis of the North American conservation movement, initiated by Teddy Roosevelt's concern for hunting sustainability. Joseph's work at TNC involves developing market-based solutions for conservation, leveraging his diverse background to lead innovative projects that bridge the gap between environmental protection and economic viability.
The Burning Platform
Joseph's journey from management consulting to conservation embodies a growing trend of professionals leveraging business acumen to tackle societal issues. "
I've always been drawn to what I'd call public good industries," he explains, highlighting the interdisciplinary nature of conservation work.
Joseph's background is diverse, spanning management consulting, design innovation, international development, finance, and entrepreneurship. This varied experience has uniquely positioned him to address complex conservation challenges.
At TNC, Joseph was tasked with developing market-based solutions for conservation. Despite not being an environmental scientist, he leverages his diverse background to lead innovative projects.
As he puts it, "I love the interdisciplinary nature of conservation issues, combining history, policy, economics, science, culture... Every single one of these things we've talked about is some mishmash of that."
This interdisciplinary approach allows Joseph to take "disparate and interdisciplinary data sets and problems and try to spin them up into novel solutions or novel mechanisms."
Market Mechanisms for Conservation
In seeking solutions, Adam emphasizes the power of market-based mechanisms and their role in conservation. One innovative example is TNC's reverse auction system for California's Central Valley farmers. This program pays farmers to temporarily flood their fields, creating crucial wetland habitats for migratory birds along the Pacific Flyway.
Joseph explains, "It's a reverse auction system to help pay farmers to flood their fields at the right time in the winter to allow water on them to grow. Let them essentially recreate a wetland habitat that at the right time, birds can stop through right on their way."
This approach provides an alternative revenue stream for farmers while achieving conservation goals more cost-effectively than outright land purchases.
As Joseph notes, "We're getting the same ecological outcome that we would have liked to see for a fraction of the cost at the right times, only when it matters."
Other emerging trends in conservation finance include:
- Carbon Markets: While considered "low-hanging fruit," carbon credits drive corporate sustainability engagement and compliance.
- Biodiversity Credits: This is a more complex but promising area that emphasizes outcomes by aiming to quantify and incentivize biodiversity protection.
- Soil Health Initiatives: Focusing on regenerative practices that maintain long-term soil productivity and ecosystem health in a circular pattern.
- 30 by 30 Goals: Global initiatives to protect 30% of lands and waters by 2030, creating new opportunities for conservation financing.
Joseph stresses the need for a balanced approach: There's a new wave of opportunity and financial mechanisms around tying value to conservation outcomes. Once you start to put value through ecosystem services on the actual conservation outcome you want to see, you're off to the races."
Building Trust and Communication
Joseph's approach centers on transparent communication and stakeholder engagement. He implemented a strategy of asking two key questions: "Why?" and "How do we know?" This method proved vital in aligning diverse teams and overcoming initial skepticism.
The "Why?" question is particularly useful when trying to understand complex problems and opportunities, especially when working with people from different backgrounds. Joseph elaborates, "Typically, when you're trying to understand a problem and an opportunity and how they map together, like working with folks with different kinds of policy or science backgrounds, but maybe don't have the experience synthesizing disparate information into a cohesive narrative and decision-making framework, there are often questions around causal links and behavior and outcomes."
The "How do we know?" question helps verify information and establish the burden of proof. Joseph notes, "It's saying we think we have this information. How have we verified it? And then what's the special little burden proof for believing in that."
These questions help frame relationships with information and drive key decisions that maximize clarity, confidence, and direction. Joseph finds this approach particularly valuable when working with policy or science experts: "That's where I find folks with policy or science backgrounds get the most value from working with someone like me, helping them frame their relationship with information and driving it towards key decisions that maximize clarity and confidence and direction and where they're going."
The Human Element in Conservation Finance
Building human connections proved crucial, even in technical projects. These relationships often became pivotal during critical moments. Joseph emphasizes that outsourcing conservation efforts rarely runs perfectly, particularly as organizations adapt to new processes.
Joseph's work at TNC involves a wide range of projects, from "trying to save kelp forests" to "coming up with business models for coral reefs." In each of these diverse contexts, the human element remains crucial. As Joseph notes, "The point isn't that I replaced them or better than them. The point is that we work together and have complementary skill sets."
The importance of human connections is particularly evident in Joseph's approach to working with different stakeholders. For instance, when discussing the challenges of getting corporations to incorporate conservation costs, he emphasizes the need for trust and partnership: "You have to find your way into the DNA of these organizations, and they're risk averse by definition. And so you have to make it as easy as possible."
Joseph also highlights the importance of understanding local dynamics in conservation efforts. He explains, "It's typically, so it's some local trade-off between I think it's really important to understand the dynamic between the conservation thinking, the local industry, and wherever you are, and what economic opportunity that presents, and increasingly urban development. And those are when I can tell the three pressures that play out at a relative at a very local level."
Some advice? Keeping a finger on the pulse of market mechanisms while fostering human relationships is key to successful conservation finance.
Our Responsibility to Nature
The experience has shaped Joseph's conservation and sustainability initiatives approach. Drawing from lessons learned as a strategist in both the corporate and nonprofit worlds, he now dedicates time to developing innovative financial models for conservation.
Key Takeaways for Leaders:
- Embrace interdisciplinary approaches to complex problems.
- Prioritize clear, frequent communication with stakeholders.
- Build cross-sector partnerships to drive conservation outcomes.
- Stay involved in emerging trends like carbon markets and biodiversity credits.
- Use market mechanisms as tools, not silver bullets, for conservation.
Whether facing critical environmental challenges or driving sustainable business practices, the key lies in recognizing the interconnectedness of ecosystems, economies, and human systems. By embracing market-based approaches, fostering communication, and continually learning, every leader can take crucial steps forward – solving immediate problems and creating lasting, positive change for our planet and future generations.
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