ANNUAL REPORT 2020

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W hile it's my first year as CEO of The Nature Conservancy, I've been a longtime admirer of this great organization, coming from a 20-year career at Conservation International. What drew me to TNC was not only its strong reputation for collaborative, science-based global leadership to achieve cutting-edge conservation at scale, but also its local presence.
I came here to learn more about the amazing work we are doing on the ground, and I am inspired by all that you are helping TNC accomplish in Brazil-from using nature-inspired solutions to restore key watersheds around major metropoles and support rural communities living upstream, to developing new technologies and a management tool to support indigenous communities cope with Covid-19. Our efforts to promote sustainable agriculture and cattle ranching using already open areas to drive production to avoid further deforestation are a must do to protect the rich biodiversity and the abundant natural resources of Brazil.
Over the past year, the devastation of the COVID-19 pandemic has underscored the urgency of our conservation mission, bringing into sharp focus the inextricable link between human and planetary health. Science tells us that healthy lands and waters can help reduce the risk of future zoonotic outbreaks, which are partly driven by habitat loss and climate change. Indeed, one of the World Health Organization's top prescriptions for rebuilding a healthier world in the wake of the pandemic is to do more to protect and preserve nature-which underpins our economies and provides us with clean air, fresh water, healthy food, and so much more. As we rebuild our communities and economies, Brazil plays an important role to protect the last remnants of tropical forests and demonstrate it is possible to have a regenerative agriculture without a need of further deforestation.

Conservation from Local to Global
The Nature Conservancy (TNC) is a global conservation organization dedicated to protecting the lands and water from which all life depends. Guided by science, TNC creates innovative local solutions for the main global challenges so that nature and people can thrive together. Working in more than 70 countries, the organization uses a collaborative approach, involving local communities, governments, the private sector, and civil society. In Brazil, where it has worked for over 30 years, TNC's efforts are focused on solving the complex conservation challenges in the Amazon, Cerrado, and Atlantic Forest through a systemic approach centered on implementation and impact generation for climate change and biodiversity.

LEVEL 1 Iconic Places
LEVEL 2 National/Regional Public Policies Value Chains Systemic Change F ocusing on iconic places, TNC works collaboratively with local communities, governments, the private sector, and civil society, using a systemic approach centered on matching the conservation agenda to local socio-economic development.
Systems thinking involves moving from observing events and data to identifying patterns of behavior, mental models, and underlying structures of an entire system that are not satisfactorily addressing contemporary, chronic problems that demand integrated and sustainable solutions.
Our objective is to contribute to a new, low-carbon economic development model that promotes efficient land use, the conservation of natural resources, protection of human rights, and inclusive income generation for local communities.  T HE LARGEST TROPICAL FOREST ON EARTH, in its multiple realities, is home to one in ten species in the world and has the greatest socio-diversity on the planet, with more than 300 ethnic groups/Indigenous Peoples, in addition to being a living repository of thousands of tons of carbon. The negative synergies between deforestation, climate change, uncontrolled fires, and agricultural production without environmental parameters pushed the forest ecosystem to its limits. Generating profound changes to complex and persistent problems like those and succeeding in changing the historical paradigm of destructive development demand systemic vision.
The compatibility between economic production and environmental protection and the promotion of local development are the great challenges for conserving the Amazon and maintaining its ecosystem services. And they must be addressed while valuing the standing forest, creating prosperous socio-economic a n d e n v i r o n m e n t a l conditions, and reducing poverty through equity and social justice.

NO PLACE IN THE AMAZON REGION
is more conducive to testing solutions that protect the biome from deforestation than the state of Pará. With more than 20 years working in the Amazon, TNC was chosen by the state of Pará as the official partner to help in its transition plan to a low-carbon economy and the preparation of its State Policy on Climate Change plan. As a result of this collaboration and the joint work with various stakeholders and funders, the Amazônia Agora State Plan (PEAA in Portuguese) emerged, establishing a sustainable territorial policy and a state environmental compliance and land-tenure program.
In addition to the commitment to contribute to a collaborative approach, we have made efforts to transform traditional production systems, such as agriculture, into regenerative models that use natural resources sustainably. The work also includes implementing high added-value agroforestry systems and territorial and environmental management actions with local communities, peoples, and Indigenous organizations to strengthen the bioeconomy of forest products and contribute to their prosperity. T he approval of Decree 9,048/2020, which instituted the State Policy on Climate Change, was a direct result of the committed efforts of the Pará state government team, with technical support from TNC. Contributors to the bill included Indigenous Peoples, Quilombolas 1 , traditional communities, research institutes, non-governmental organizations, and the private sector and governmental agencies that together make up the Pará Forum on Climate Change and Adaptation.
Under this new and crucial regulatory framework, the Pará government institutionalized the Amazônia Agora State Plan. The Plan's central objective is to make the state "carbon neutral" by 2036 regarding land and forest use changes since those are responsible for 85 percent of the state emissions. The Plan also establishes reducing deforestation by 37 percent by 2030 and by 43 percent by 2035, based on the emissions average between 2014 and 2018. In addition, it sets the goal of restoring 7.39 million hectares by 2035.
TNC conducted the study "For a strategy of socio-economic development in Pará based on zero deforestation" in partnership with the World Agroforestry (Icraf ) to strengthen the Amazônia Agora Plan. The study made general and specific recommendations on several themes: governance and social participation, specific rights for Indigenous Peoples and traditional communities, gender equity and equality, and systems for monitoring and promoting transparency.
Also in 2020, Pará state invited TNC to be part of the Eastern Amazon Fund Management Committee. That is a financial instrument that, together with an ecosystem of funds, represents an important step in channeling resources to initiatives that contribute to achieving the established goals of the State Policy on Climate Change.
TNC HELPED DEVELOP of the Partnerships for Responsible Farming Program (PAR), whose testing phase started in Pará. The program promoted the development and improvement of a traceability and source control tool, the Conecta Platform, and engagement and environmental compliance tools for responsible commercialization in the beef chain. The UK Government supported the program through the Partnership for Forest (P4F), in partnership with Safe Trace and Amigos da Terra Amazônia Brasileira.
This innovative arrangement allowed the integration of data from different sources, such as GTA, CAR, and PRODES 3 , making it possible to carry out a socio-environmental analysis of properties in the state. Additionally, it allowed for the control of animal origin throughout the livestock chain, from birth to slaughter. Thus, tracing deforestation-free animal production is essential for directing public and private investments to tackle climate change. The platform is inclusive, and blockchain technology encryption permits data confidentiality and security.
The Pará government will expand the data integration model to a Public-Private Livestock Chain Traceability System.

Sustainable Livestock Farming
Territorial Intelligence Model Deforestation-Free Animal Tracing T he Pará State Agency for Agricultural Development and Fisheries created the "GTA/CAR Working Group," seeking greater transparency in the livestock chain via effective mechanisms to link the issuance of the Animal Transport Guide (GTA) to rural properties' lawful entry into the Rural Environmental Registry (CAR). This linkage will enable the identification of direct and indirect suppliers and monitor animal transport during the breeding, rearing, and fattening phases. Additionally, the mechanisms can guide rural properties to the Environmental Compliance Program (PRA) when appropriate.
As an invited member of GTA/CAR Working Group, TNC supported the development and validation of the methodology through tests carried out in São Félix do Xingu. The municipality has the largest cattle herd in Brazil and one of the highest deforestation rates and GHG emissions, but also millions of hectares of conserved forests in Indigenous Lands and Conservation Units. TNC tested the model on 1.4 million hectares that accommodate 1.6 million animals and results provided information for establishing priority strategies for the Sustainable Territories Program. By the beginning of 2021, around 830 rural producers representing about 102,000 hectares had expressed interest in the program. Of those, 21,000 hectares had legal reserve and permanent preservation areas 2 liabilities. So far, 139 producers have already gone through the qualification phase.

Agroforestry-Systems Restoration
In-person Technical Assistance IN SEPTEMBER 2020, we resumed our activities in the field to carry out training and technical assistance in each of the rural properties. We also helped farms include more ecological management of those SAFs, reducing the use of fertilizers and chemical pesticides, minimizing the contamination risk to farmers and local soil and waters.
TNC served 150 rural producers and helped them plant 300 hectares of SAF-cocoa. We also developed a transition plan for producing cocoa organically and aided in creating three pesticide-free demonstration units.

Remote Technical Assistance
TNC CREATED A REMOTE SERVICE CENTER to provide continuity and technical support to project farmers to follow social-distancing protocols due to Covid-19. Women and young people had strong participation. TNC served 180 families via the WhatsApp application and produced 18 videos and 30 cards, and audios. We also carried out a campaign to prevent and control brush and forest fires.

Ecological Restoration of Environmental Liabilities
TNC SUPPORTED 141 FARMING FAMILIES via the environmental study of their lands and the development of environmental compliance and forest restoration plans carried out on their rural properties. That is a necessary step before PRADA 4 , the environmental compliance project. As part of the Plan, the families agreed to the ecological restoration of 680 hectares of environmental liabilities, mainly in Permanent Preservation Areas.
Facilitating Access to Rural Credit ACCESS TO RURAL CREDIT is one of the strategic aspects to take SAFs and forest restoration in family farming to scale. In 2020, TNC, in partnership with Coordenada Rural Agro Socioambiental and the Banco da Amazônia, managed to approve 23 SAF and forest restoration rural credit projects, totaling approximately US$2.2 million in investment and funding.

Cacau Floresta
C urrently, TNC works with 250 family farmers in the municipalities of São Félix do Xingu and Tucumã in Pará. TNC provides remote and in-person technical support for implementing agroforestry systems (SAFs) and promotes good agricultural practices and the restoration of degraded areas. It is in those areas that producers grow cocoa as the main crop along with other agroforestry products.
"We were used to having face-to-face training and meetings, and the pandemic created an adverse scenario.
Despite the difficulties brought on by the pandemic, we now have access to technology, and we sent videos and photos when we had doubts or technical difficulties. The images allowed the technicians to help us identify weeds or deficiencies in the planting, showing us how to treat or correct the problems we had with crops."

Forest Nurseries and Seed Collection
FOREST NURSERIES WITH native species of agroforestry seedlings are critical to implementing our projects.
In 2020, TNC supported the expansion of the forestseedling nursery in the municipality of Tucumã. The supply of seeds is also essential, and that has been one of the biggest blocks to bringing SAFs and ecological restoration to scale in southeastern Pará. To solve the issue, TNC started a local seed-collector nucleus and supported the expansion of seedling production from 60,000 seedlings/year to 140,000 seedlings/year. TNC also produced 12 video classes and trained 60 farmers in seed collection.

Gender Equity in the Countryside
TNC hired a specialized consultancy TO CREATE EQUITY STRATEGIES that can help resolve the substantial gender inequality in southeastern Pará. With the help of 30 local producers, the consultancy identified topics of interest and trained technicians, generating more knowledge on the subject and raising awareness. We also produced technical booklets on gender equity in the field, SAFs, recipes for cocoa products and by-products, and a vegetable garden manual. T NC has been strengthening the indigenous organization Associação Bebo Xikrin -ABEX in the Trincheira Bacajá Indigenous Land (IL), in partnership with the Xikrin people. ABEX represents the entire IL. TNC has provided technical assistance for resource management and equipment to improve business management. We have hosted meetings, and virtual dialogues with women, strengthened the value chain for non-timber forest products and provided ongoing training for Indigenous environmental managers, experts in the chestnut chain operating at the five canteens (local management and chestnut sale units). In 2020, the IL signed a partnership agreement with the sustainable bag and backpack company BossaPak, which began using the ecological fabrics painted by the Xikrin women in one of their final products.

Management and
"I was chosen by the women of my and other villages to be a leader in managing the babaçú oil chain, in always fighting not only for me but for all the Menire (women)." T NC supported the organizational strengthening of the Association of Indigenous Women Task Force (AMIM) in the Oiapoque Indigenous Lands, enabling the association to carry out four projects in 2020, especially those to fight the pandemic and to strengthen food security in the ILs. The projects valued the knowledge of Indigenous women and offered workshops to 40 women in the villages. Topics were silk screening and sewing, painting, face-mask production, and the production of t-shirts and bags bearing the graphics of the Oiapoque Indigenous Peoples. In 2020, representatives of the fishing colonies in the ten riverside communities started a participatory mapping process to develop a baseline of the fishing conditions in the Tapajós River and their need for training, technical assistance, monitoring of stocks, and techniques for fish processing. The training involved riverine leaders, the presidents of fishing colonies, and MOPEBAM representatives and discussed ways to improve management in the fishing colonies and design projects.

Research and Knowledge
THE PARTNERSHIP BETWEEN UFOPA AND TNC contributed to strengthening research on the Tapajós River carried out by professors and students at the university and allowed the acquisition of various equipment and supplies, increasing the capacity for analysis and fieldwork.
The research activities aim to assess the level of mercury contamination (due to illegal prospecting) in fish and riverside communities. It also seeks to identify the contamination and situation of turtle populations in the Tapajós River, their use, and local importance; deepen knowledge about the availability of fish stocks and fishing activities and analyze the cyanobacterial blooms in the river and their impact. In the first scientific expedition, preliminary results have identified more than 50 species in the stretch between Itaituba and Santarém, with two potential new fish species not yet classified. The Atlantic

Tapajós Riverine Communities
Forest T he Atlantic Forest is one of the most biodiverse and threatened tropical forests in the world. With a long history of occupation, the vast resources of the Atlantic Forest have fueled for centuries the economy of several coastal states in Brazil, where the majority of the population lives. Those cycles and the intense urbanization that has taken place reduced the forest to 12 percent of its original vegetation. Restoration and environmental conservation actions are critically needed to maintain the viability of the forest and the continued provision of the ecosystem services so necessary for agricultural and water production, pollination, and climate regulation. TNC chose the Mantiqueira Mountain Range as its priority area of action in the Atlantic Forest to build a solid example of restoration to tackle climate change, thus helping to ensure water security for thousands of people and increasing the income of rural landowners.

The Mantiqueira Mountain Range
T he rocky massif was named Mantiqueira (a-manti-kir in the Tupi language, meaning the mountain that weeps) by the first peoples who inhabited the region because of the large number of springs found there. They are the most important source of water in southeastern Brazil, supplying more than 20 million people. Despite its high ecological importance and considerable history of urbanization, the region has had more than 70 percent of its native vegetation deforested.
TNC, together with various organizations and stakeholders, is developing the Mantiqueira Conservation Program, which covers 425 municipalities in the states of São Paulo, Minas Gerais, and Rio de Janeiro. The program is based on the payments for environmental services (PES) mechanism pioneered by the municipality of Extrema in Minas Gerais state, a project of which TNC has been a partner from the beginning. The Mantiqueira Conservation Program aims to work with decision-makers to channel public and private resources to restore critical areas for water protection.

Developing Municipal Programs for Watershed Conservation and Restoration
MUNICIPAL GOVERNMENTS play a vital role in the development of public policies and rural environmental programs. Those efforts provide payments for environmental services (PES) and inputs such as fences and seedlings, technical assistance, and monitoring to enable territorial management and water security for producers, the local population, and large urban centers. In 2020, we worked with municipalities such as Queluz, Jacareí, Cruzeiro, Pindamonhangaba, Taubaté, and Águas da Prata in São Paulo state, and Caldas, Campestre and Monte Santo de Minas in Minas Gerais to advise them on the implementation of their municipal programs. There are already more than 70 municipalities involved in the Mantiqueira Conservation Program.
"When I arrived here in 1984, the riverbank was completely deforested, and cattle were grazing right there. Today we see a dense forest near the river, and the water running is much cleaner."

Diversification of restoration techniques on model farms
TNC HAS LONG USED MODEL FARMS to demonstrate diverse forest restoration techniques, and to empower landowners, local governments and land managers on how to restore degraded areas with species natives. In 2020, TNC re-established the model farms in the town of Cruzeiro (SP), which had been burned, and community members received on-site training in different restoration methods, in order to monitor how forest species become reestablished.
"The forest restoration demonstration units will generate scientific data that will help rural producers assess the costbenefit of restoration techniques and define how the resources they use can be more effective and lead to fewer loses."

Financial Mechanisms that Expand Restoration
Watershed Committee Sets Aside Approximately US$577,000 to Support Forest Restoration and Conservation and Better management T he traditional forest restoration methods, such as planting the total area, demand high financial investments, making implementing environmental compliance projects in rural properties challenging to the landowner. That difficulty and the urgent demand to restore degraded areas vital to water protection and climate change mitigation caused TNC and partners to work to identify and unlock potential funding sources that can support property owners who want to restore their properties and make them environmentally compliant. In 2020, as one of the members of the Paraíba do Sul Watershed Committee, TNC demonstrated how important forest restoration is for water security. As a result, the Committee decided to allocate US$577,000 to restoration projects. TNC also provided the training of local partners so they could submit projects to the Committee, and three of them were approved, totaling 120 hectares.
"My parents have owned the property since 1998, and we have always tried to protect the areas close to springs and streams. A few years ago, we learned that the municipality was part of the Mantiqueira Conservation Program, and we decided to join in restoring other degraded areas as well."

Scientific Tools and Monitoring System
Developing Platforms to Facilitate the Engagement of Rural Producers T NC invested in updating the Mantiqueira Portal, a restoration management and monitoring tool for programs and projects in the region, adding new functionalities to help the decision-making process. One of the latest tools is the databank listing areas available for restoration, which facilitates the identification and engagement of rural landowners interested in restoring their properties. Municipal technicians will also use the portal as a territorial management tool. "Fortunately, rural owners have been reaching out to us a lot and have received us well. They feel valued by the technicians' periodic visits to support the owners' restoration and sanitation actions and offer agricultural assistance guidance.
And this helps them understand the fencing of priority areas for conservation and natural regeneration."

Support for the Creation of the Paraíba Valley Agroforestry Network
THROUGHOUT 2020, TNC worked to formalize the creation of the Vale do Paraíba Agroforestry Network, an association of people who promote knowledge about agroforestry systems to restore the Atlantic Forest to scale. The network focuses on developing participatory research and projects and partnerships that help small rural properties join the fair-trade market, which values forest products, such as seeds and native fruits. The creation of the network increased the volume of collected seeds and, thus, the number of species used. In total, 29 native seed species were included in the project. Cerrado CERRADO A pproximately the size of Mexico and occupying a quarter of the Brazilian territory, the Cerrado is known as the country's water reservoir. That stems from the region's concentration of some of Brazil's main springs and some of the most important tributaries of the three largest river basins in South America (the Amazon, Paraguay, and São Francisco). Rich in fauna, flora, and cultural diversity, the Cerrado is home to around 216 Indigenous Lands (ILs) from 83 different ethnic groups, 44 Quilombola territories, and various traditional communities. The Brazilian Savannah is also one of the largest beef and grain production centers globally: Currently, 41 percent of its area is occupied by those activities, which are expected to expand.

WRI -World Resources
In the Cerrado, the pasture area suitable for planting soybeans (18.5 million hectares) is sufficient for supplying more than twice the expansion foreseen by the National Supply Company (Conab) by 2030 (7.3 million hectares). At the same time, livestock farming is a low-productivity activity but with significant potential for intensification. Sustainable intensification of livestock farming generates increased productivity and profitability since it frees up land. When combined with the expansion of soy crops in open areas, it is a strategic element to achieve deforestation-free value chains.
• Home to the springs of the Amazon, Paraguay, and São

Francisco rivers • 216 Indigenous Lands
• One of the world's largest centers for agriculture and livestock activities C onsidering the scale of the environmental challenges in the Cerrado, TNC adopted a systemic approach, focusing on priority areas and the integration of multiple technological, financial, territorial management, and best agricultural practices solutions. TNC chose the portion of the Araguaia River basin that covers Mato Grosso, Goiás, and Tocantins as a priority territory and focused its efforts to disseminate sustainable livestock intensification in the municipality of Barra do Garças. Those efforts involve restoring degraded pastures and optimizing land use, preventing further deforestation, and strengthening territorial governance in the transition to regenerative agriculture in the region.
TNC has also developed environmental and territorial management actions with the Xavante Peoples TNC CREATED THE ENVIRONMENTAL CONDUCT GUIDE to assist decision-makers on the financing of deforestation-free soy production. The guide includes the requirements for offering green credit lines to rural producers to help ensure that funded projects are more sustainable. The publication also provides a control panel for identifying priority regions for soy expansion without deforestation and a carbon calculator that estimates expected deforestation and the associated avoided emissions for each municipality in the Cerrado. Historically, agricultural credit directly influences the disposition of Brazilian land use and can be decisive in implementing sustainable production, especially in the expansion of soy production in the Cerrado.

Territorial Governance in Barra do Garças
TNC, supported by the IDH -Sustainable Trade Initiative, supported implementing and strengthening the PCI Program in the municipality of Barra do Garças, one of the leading production centers in the Araguaia Valley region in the state of Mato Grosso. TNC partnered with the municipal and state governments. After the approval of Municipal Law 4,156, which made the creation of the program, the council, and the management fund official, Municipal Decree No. 4,381 was published in 2020, regulating the law and the building of a tool to monitor the progress of PCI-BG indicators and targets.
The program aims to recover around 9,000 hectares of permanent preservation areas ( IN 2020, TNC SIGNED a partnership with the Walmart Foundation to promote the adoption of regenerative agricultural practices in the Araguaia territory to improve productivity and recover degraded soils. Those actions can enhance conservation in the Cerrado and protect its rich biodiversity. The project focuses on working in rural properties that produce beef in Barra do Garças and in the surrounding region to provide specialized technical assistance and identify bottlenecks and opportunities for improvement. Additionally, TNC will carry out actions with the Mato Grosso government to promote traceability in sustainable beef production.

Fomenting Regenerative Agriculture and the Recovery of Degraded Land
Expansion of Agricultural Production in Opened Lands UNDER THE REVERTE PROJECT, an initiative of TNC in partnership with Syngenta, the parts signed agreements in 2020 with Embrapa and the North Export Corridor Research Support Foundation (FAPCEN) in the state of Maranhão. The goal is to carry out a survey and analysis of the main production systems and good practices adopted in the focus regions of the Reverte project. The project will launch a guide in 2021 based on a broad consolidation of research already carried out by Embrapa and FAPCEN in a survey of more than 40 rural producers. The publication will have guidelines and recommendations for rural producers on expanding sustainable agricultural production in degraded pastureland in the Cerrado biome, focusing on soil recovery and regenerative agricultural practices.

Good Agricultural Practices and Riparian Forest Restoration
TNC AND AMAGGI have collaborated for over ten years and have renewed their partnership to promote the benefits of good agricultural practices and the restoration of riparian forests. Those efforts increase the resilience of rural properties and encourage the expansion of soy production and associated crops in already open areas as an alternative to deforestation. As part of this partnership, the parts carried out a landscape analysis in Mato Grosso municipalities in 2020 to identify areas at higher risk of deforestation and with potential for agricultural expansion. The goal was to support a more sustainable agricultural landscape.

Fire Prevention, Firefighting, and Restoration Territorial Management
IN PARTNERSHIP WITH Operation Native Amazon -OPAN and IBAMA's PREVFOGO Program, TNC supported the maintenance of the structure that houses the forest seedling nursery and the acquisition of tools and equipment for the Indigenous fire brigade. The brigade's purpose is to manage and prevent fires and work in the forest restoration of the Marawatsede IL of the Xavante People in the Araguaia basin. Those efforts are essential to the reforestation strategy, food security, and the maintenance of landscapes in the villages as specified in their Territorial and Environmental Management Plan (PGTA). In 2020, the partnership planted 3,000 seedlings, and the nursery has a total of about 16,000 seedlings growing for the next planting season. Regarding fire prevention, TNC studied the fire dynamics in the Marawatsede IL and surrounding areas to strengthen Xavante monitoring, including observing satellite images from the National Institute for Space Research (INPE).

Strengthening the Juruena Basin Wazaré and Halitinã Indigenous Associations
IN 2020, TNC SUPPORTED THE STRENGTHENING of the Wazaré and Halitinã Indigenous associations and Paresi People leaders and communities to implement communitybased tourist activities as an income alternative. Those efforts were part of the Territorial and Environmental Management Plan (PGTA). The Paresi developed a tourist expedition proposal with a package of integrated tours involving six experimental tourist centers. TNC trained the Paresi Indigenous managers of the tourist centers to act as guides on the trails and to accompany tourists who wish to experience a typical meal in the villages, organized and prepared by Indigenous women. The Regional and General Coordination of FUNAI's Ethno-development unit monitored the entire process.

IN 2020, TNC SUPPORTED THE SEED COLLECTION WORK OF 48
Xavante women from the Marãiwatsédé central village in the Cerrado. Our support consisted of helping them organize to collect, count, weigh and prepare orders for seeds, whose sale generates income for their families and the community in the villages. Also in 2020, TNC supported the production of the short film Pi'õ rómnha ma'ubumrõi'wa -Xavante Women Seed Collectors. Directed by OPAN and Danielle Bertolini, the film shows the work of women seed collectors. The short was chosen as the best resistance short film by the official jury of the 19th Latin American University and Independent Audiovisual Exhibition (Maual).

A Mobilization Campaign
NATURE-BASED SOLUTIONS, such as the conservation and restoration of forests and ecosystems, represent more than one-third of the actions needed for humanity to tackle climate change. The restoration of degraded areas can occur via several techniques, depending on various external factors, including soil conditions, proximity to forest remnants, the presence of a local seed bank, and the history of use and occupation of the area-monitoring and carrying out proper maintenance to ensure that the restoration is successful, along with selecting the most appropriate techniques, are fundamental.
TNC signed a cooperation agreement with the Atlantic Forest Restoration Pact to develop a new protocol to guide and facilitate restoration monitoring through remote sensing and the measurement of ecological and socio-economic indicators. As part of the agreement, TNC is developing an application that collects and analyzes field data from areas undergoing restoration and preparing a study on natural regeneration socio-economic trends in the Mantiqueira Range. The analysis will also address ways to engage rural producers in restoring their properties. I n 2020, Restaura Brasil turned two and celebrated all the forest restoration efforts that TNC has undertaken in the country since 2001: The restoration of more than 265 million trees in the Amazon, Cerrado, and Atlantic Forest. It also contributes to strengthening the Digital Coupon program, which avoids printing invoices and sends them to customers' email to engage them in the positive efforts for a healthier planet."

JOÃO CARLOS REDONDO, RAIADROGASIL SUSTAINABILITY DIRECTOR
"By helping hundreds of millions of people around the world to replace more than 20 billion sheets of paper through digital processes, we have enabled companies to move away from paper and processes that involve a printed document's course through the entire chain. We are happy to partner with TNC because that has allowed us to help restore degraded areas in our forests."

GUSTAVO BRANT, DOCUSIGN LATIN AMERICAN VICE-PRESIDENTE OF SALES
"Sustainability is in Canal OFF's DNA, and our operations have increasingly made efforts in this area.
With TNC, we will create campaigns on important dates to encourage society to contribute to the environment. We are just beginning a promising partnership." Taking Restoration to Scale OVER THE LAST TWO DECADES, developing and implementing forest restoration projects allowed TNC to realize that to take forest restoration to scale, it needs to act in three main areas: a) engagement of rural producers so that they become interested in restoring part of their properties; b) bringing in resources to pay for the restoration on the ground, and; c) develop the restoration chain (seeds, seedlings, services, monitoring, and training).
As part of that effort, TNC intensified its work with networks and collectives to give scale to those critical lines of action, including with the Climate Coalition, Forest and Agriculture, Pact for the Restoration of the Atlantic Forest, Alliance for the Restoration of the Amazon, and the Brazilian Society for Ecological Restoration. We developed important work and task forces that culminated in large restoration projects and innovative public policies, such as the National Policy on Payments for Environmental Services (Law nº 14.119 of January 13, 2021).

Transparency Regarding Areas Undergoing Restoration
SHOWING WHERE AND HOW RESTORED AREAS are faring is of utmost importance. TNC registers all the locations in which it operates in a spatial-database web system that allows and facilitates the management and monitoring of projects, providing accurate information about the restored sites. That tool is very useful for managing our projects, but it also contributed to developing the Restoration Observatory with the Climate, Forest, and Agriculture Coalition and several partners. The Observatory is a digital platform that integrates available data on restoration throughout Brazil, allowing the country to follow its restoration goals as agreed in national and international commitments.

Restaura Brasil Supporters
IN 2020, THE RESTAURA BRASIL CAMPAIGN developed important partnerships. TV channel CANAL OFF joined the campaign to strengthen its sustainability actions and promote the restoration of our natural habitats. The channel contributed to the planting of 1,000 seedlings and promoted our efforts on their digital platforms, programming, and through their spokespersons involved with the theme. The first action between our two brands is part of the series "How to Change the World Without Leaving Home," available on Canal OFF's YouTube channel and in the International Day of Forests video. The development of the action is a partnership between Canal OFF and Globo's Social Value and Operations and Environmental Management areas.
Five Years of the Green-Blue Water Coalition T he Green-Blue Water Coalition entered its fifth year demonstrating how a collective platform is a meaningful way to carry out actions that increase water availability for thousands of people. Created in 2015, the Coalition is a TNC initiative in collaboration with the private sector and key stakeholders, such as municipalities, the National Water Agency, watershed committees, water companies and regulatory agencies, civil society organizations, teaching and research institutions, and rural producers and unions. Together, they represent the strength of this Coalition. The objective is to join efforts in ensuring water security in important Brazilian metropolitan regions under risk of water shortage and where the implementation of nature-based solutions can generate a more significant impact.
The Coalition operates in São Paulo, Rio de Janeiro, Belo Horizonte, Curitiba, Brasília, and Camboriú, and in collaboration with the Espírito Santo government through the Reflorestar Program. The Coalition signed 78 partnership and ten cooperation agreements with public and private institutions in Brazil.

© Felipe Fittipaldi
Re na to Br an dã o/ Ma rio Ka nn o

S O L U Ç Õ E S B A S E A D A S N A N A T U R E Z A P A R A A S E G U R A N Ç A H Í D R F U N D O S D E Á G U A D E O N D E V E M A Á G U A E Q U A IS O S R IS C O S H ÍD R IC O S A T U A IS ?
A q u íf e ro s, ri o s e la g o s sã o a n o ss a m a io r fo n te d e á g u a . E le s tê m si d o fo rt e m e n te im p a ct a d o s p e la u rb a n iz a çã o , so b re u so , p o lu iç ã o , d e sm a ta m e n to , ex tr e m o s cl im á ti co s e fa lt a d e m a n e jo a d e q u a d o d a s b a ci a s h id ro g rá fi ca s

E X IS T E S O L U Ç Ã O ?
S im , p a rt e d a so lu çã o é p ro te g e r e re st a u ra r a s á re a s q u e co n to rn a m n a sc e n te s e ca b e ce ir a s, m a ta s ci lia re s e á re a s d e re ca rg a . A ve g e ta çã o n a ti va é re sp o n sá ve l p o r fi lt ra r p o lu e n te s, re ca rr e g a r a q u íf e ro s, d im in u ir a e ro sã o e a in ci d ê n ci a d e e n ch e n te s e se ca s.  se a d a s n a n a tu re za p a ra a co n se rv a çã o e p ro d u çã o d e á g u a n a s b a ci a s h id ro g rá fi ca s … a tr av é s d a id e n ti fi ca çã o d e á re a s p ri o ri tá ri a s; a p ri m o ra m e n to d e m e ca n is m o s fi n a n ce ir o s e g o ve rn a n ça e a im p le m e n ta çã o d e a çõ e s n a s á re a s ru ra is S a n e a m e n to R u ra l Children play in a Pindamonhangaba stream in São Paulo, with the Mantiqueira Range in the background.

O Q U E S Ã O A S S O L U Ç Õ E S B A S E A D A S N A N A T U R E Z A ?
ANNUAL REPORT 2020 • TNC BRASIL ANNUAL REPORT 2020 • TNC BRASIL 48 49 RURAL PROPERTY OWNERS can also be "water producers" -without his engagement, no municipal basin conservation program will succeed, nor will a strategic plan with nature-based solutions be of great value. All Coalition partners have a fundamental understanding of that fact. Therefore, rural producers' engagement is crucial.
To enable their engagement and implement the appropriate actions and to promote institutional arrangements and governance mechanisms, TNC has developed financial mechanisms such as the PSA for water security in conjunction with key actors in an area of influence greater than 50 Brazilian municipalities. In addition, TNC seeks environmental compensation mechanisms that can be directed to those priority areas in agreement with rural landowners, local resources, public calls for proposals such as those by ANA, and investments by the Basin Committees and Agencies, in addition to resources from companies.
PUBLIC POLICIES AND THE CREATION of legal frameworks are fundamental to developing and implementing largescale water protection projects. TNC has developed and applied several of those mechanisms with its partners, as described below.
• Establishment of 20 PES municipal policies • Unprecedented inclusion in developing a tariff review methodology for water and sanitation investment to protect water sources in São Paulo state. The process will be defined throughout 2021. • Support for the restoration of 22,000 hectares by the São Paulo state's Nascentes Program. TNC contributed to its creation and its early implementation. • Admission as a member of the Advisory Board of the Peixe Vivo Basin Agency, the "executive arm" of the river basin committees of the Rio das Velhas that supplies the Belo Horizonte Metropolitan Region the São Francisco River. The agency provides technical support for restoration, conservation, and best practices implementation to increase water security. • Support for developing the Water Governance Monitoring Protocol by the Brazil Water Observatory (OGA), an independent platform of institutions and researchers. Its main objective is to generate, systematize, analyze, and disseminate information on water governance practices by the stakeholders and institutions that make up the National and State Water Resources Systems in Brazil (https://observatoriodasaguas.org/).
In 2020, TNC, in collaboration with ARSESP -the São Paulo State Sanitation and Energy Regulatory Agency -and Sabesp -the São Paulo State Basic Sanitation Company, developed an analysis of the ecosystem benefits of forest conservation in the Cantareira System. We also developed a legal analysis of the sanitation law, demonstrating the benefits that nature-based solutions bring to the protection of water sources and water security. THE LINK BETWEEN THE 11 COMPANIES that make up the Green-Blue Water Coalition elevated the projects that TNC and partners already carried out in several basins to a higher level. The group created a pre-competitive collective action that was a win-win for all participants involved in the water protection agenda. If factories were already monitoring the quality and use of water resources, the challenge migrated outside their walls: it became urgent to protect the water-producing sources and the basins as well. Efforts include measuring the services natural ecosystems provide, such as filtering rainwater, and monitoring results via specific tools, protocols, and expertise, in addition to all restoration, conservation, and best agricultural practices actions.
• TNC is currently implementing the Municipal Environmental Portal (PAM) in São Paulo, Rio de Janeiro, and the Federal District. The PAM is a web platform with a spatial database that facilitates municipalities' territorial and environmental management and the engagement of rural producers in water projects.
• TNC contributed to the shared development of the Alto Descoberto basin strategic plan. The basin covers 44,500 hectares and is responsible for supplying approximately 60% of Brasília's water.
THE BENEFITS OF nature-based SOLUTIONS are not restricted to increasing water security. They also include measures to adapt to climate change, increase biodiversity, promote social and gender inclusion, income generation, and a better quality of life in rural and urban settings. In the municipality of Rio Claro, in the Guandu basin, which accounts for 80 percent of the supply to the Rio de Janeiro Metropolitan Region, the Coalition worked in partnership with the Water and Forest Producer Program led by the Guandu Basin Committee.
"Toucans now come to eat on my porch.

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We carry out our work with a deep commitment to responsibility, seeking to use every amount donated to TNC carefully considering effectiveness and efficiency through a solid corporate governance structure.
Our financial statements7 are audited by Verdus Auditores Independentes, presenting an unqualified opinion that the information is adequate.
Annual evolution of results (in thousands of reais)