Enable forest conservation using blockchain-based assets

As biodiversity considerations gained prominence in sustainability strategies, the cooperative faced the challenge of contributing to nature protection beyond traditional financial mechanisms. Operating in Brazil, where the Atlantic Forest is one of the most threatened biomes globally, the organization sought a credible, traceable, and voluntary approach to support forest conservation while aligning with its broader climate and sustainability commitments.

The cooperative’s decarbonization and nature strategy includes supporting initiatives that prevent emissions, protect ecosystems, and encourage innovative finance mechanisms without direct economic exploitation of natural assets.

Location of the initiative: Latin America, Brazil, Serra da Bocaina (Atlantic Forest biome)

The cooperative implemented an initiative to support forest conservation through the acquisition of non-fungible tokens (NFTs) representing surplus preserved native forest areas.

The initiative is based on a partnership with a technology startup that converts preserved land into digital assets validated through blockchain technology. Each asset corresponds to a defined forest area and is linked to continuous satellite monitoring to verify land integrity.

Key steps of the solution include:

• Identification of preserved forest areas eligible for voluntary conservation

• Digital registration of areas as blockchain-based assets

• Continuous satellite monitoring to ensure forest integrity

• Public disclosure of conservation commitment without economic exploitation of land

The value of the asset lies exclusively in maintaining standing forest and generating positive environmental outcomes.

Sustainability impact

Climate

Emissions scope addressed: Scope 3 emissions (Category 15: Investments – indirect climate contribution)

The initiative contributes indirectly to climate mitigation by preventing deforestation. The preservation of 1 hectare of Atlantic Forest is expected to avoid approximately 15 tCO₂ emissions that would otherwise result from land-use change. While not counted as direct emissions reductions, the initiative acts as a climate enabler by reducing deforestation risk over the asset’s monitoring period.

Nature

The initiative protects a remnant of the Atlantic Forest, contributing to biodiversity conservation, habitat preservation, and ecosystem integrity. Continuous monitoring reduces the risk of illegal deforestation and land degradation in a highly threatened biome.

Social

By supporting voluntary conservation, the initiative contributes to the protection of ecosystem services that benefit local communities, including water regulation, climate resilience, and biodiversity preservation. It also promotes awareness of innovative conservation finance mechanisms.

Business impact

Benefits

• Strengthened sustainability and biodiversity strategy

• Increased organizational awareness of nature-related risks and opportunities

• Strategic positioning within emerging climate and nature finance ecosystems

• Reputational benefits from transparent and traceable conservation support

Costs

• Investment required: Limited upfront acquisition cost for digital conservation assets

• Operating costs: Ongoing monitoring and blockchain validation fees, included in the asset structure

Costs are primarily dependent on the size of the preserved area and monitoring duration. Costs can be optimized by aggregating assets and prioritizing high-risk deforestation zones to maximize avoided emissions per hectare.

Typical business profile

• Financial institutions and cooperatives

• Organizations at early-to-intermediate maturity on nature and biodiversity strategies

• Companies seeking indirect climate and nature impact beyond operational boundaries

Approach

1. Identify biodiversity priorities aligned with corporate sustainability strategy

2. Select preserved areas eligible for voluntary conservation

3. Partner with a monitoring and blockchain validation provider

4. Acquire and register conservation assets

5. Integrate monitoring data into sustainability reporting

Stakeholders involved

• Project leads: Sustainability and ESG teams

• Company functions: Strategy, risk, communications

• Main providers: Environmental traceability and blockchain technology provider

• Other stakeholders: Conservation area owners, satellite data providers

Key parameters to consider

• Initiative maturity: Emerging but operational technology

• Implementation timeline: Less than 6 months

• Average lifetime: Multi-year monitoring period

• Technical prerequisites: Satellite coverage and blockchain infrastructure

• Geographical relevance: High-deforestation-risk regions

• Regulatory considerations: Voluntary, non-financial asset classification

Implementation and operations tips

• Clearly define the non-commercial nature of the asset

• Align legal, sustainability, and risk teams early

• Use transparent reporting to avoid greenwashing risks

• Prioritize monitoring credibility over asset volume