Archive for the ‘social lending’ Category

SIFT is a social lender

Tuesday, February 1st, 2011 by Admin

IMG_9064

The funding that we provide from our trust funds is normally in the form of either a grant, a loan or an equity invesment (or a combination of all types). Because the loans that we make are to achieve our trust objectives (to reduce waste to landfill, improve the health of the environment and create sustainable development of Canterbury businesses) these are social loans or social lending (also called social finance).

Social Lending is a relatively new term to New Zealand, but growing in use as a term and in use by organisations.  It has been utilised within the UK and USA for at  least a couple of decades by such organisations as Triodos and Self Help. There is a solid group of social lenders in New Zealand (including Prometheus and the Tindall Foundation, to name a couple) who are focussed on helping their communities – rather than giving them a hand out focussing on giving them more of a helping hand through empowerment. I had the pleasure of meeting some of them at a social lender’s forum in December (organised by Philanthropy NZ).

Social lending is defined as “a tool to empower communities, organisations, families and individuals. It is a way to fund projects, buildings, businesses, ideas and dreams” ( Benedict, L (2010). Social Lending: A tool for grantmakers, an opportunity for communities, Ian Axford (New Zealand) Fellowships in Public Policy).

And that is exactly what SIFT does. We fund projects and provide businesses and individuals with advice and support around achieving their projects. For some we start off by with a grant to fund a feasibility study or develop a commercial business model, for others it is a loan for a machine that will recycle a waste and for others it is an equity investment in their company that has a great idea or business plan to reduce waste in a new, unique and innovative way but just needs some capital to make it happen.

The future for SIFT is to focus more on social lending and equity investments to have more of an impact on the enviroment and to achieve our trust objectives. This may also require collaboration and co-funding with other investors and organisations to create even greater impact. We will still be a grantmaker and give funding that requires only a social and environmental return but social lending will continue to grow in New Zealand as a  great tool for our communities to achieve a sustainable future, and SIFT will be apart of that.

An excellent explanation on social lending in New Zealand is Laura Benedict’s research report (below and referenced above).

Benedict, L (2010). Social Lending: A tool for grantmakers, an opportunity for communities

Another great read is Forces for Good: The six practices of highly impactful non-profits by Leslie R. Crutchfield and Heather McLeod Grant (2007).

Comspec

Tuesday, November 9th, 2010 by Admin
Milk bottles being processed at Comspec

Milk bottles being processed at Comspec

At SIFT we like to have ongoing relationships with those people that we have funded or given some financial assistance to especially during the course of the project with regular meetings and catch ups (especially if there are milestones associated with the project). I visited the lovely and hard working team of Robert & Stephanie Fowler of Comspec, in Hornby, this morning to catch up on how they going with recycling the majority of the South Island’s plastic milk bottles and to just say hi. To quote Martha Stewart what they are doing is “a good thing”.

You can read more of the good work that they are doing and how SIFT are helping them to do it here.

Comspec website.

Waste Minimisation Funding Recipients 2010

Monday, November 1st, 2010 by SophieR
Organisations that received Waste Minimisation Funding
It is really exciting for SIFT to see which companies have been given funding through the latest Waste Minimisation Funding round. It demonstrates the direction of the Ministry for the Environment strategy, and that industry initiatives have a strong focus. We will keep updating this list as Nick Smith announces more successful applicants.
eDay (2020 Communications Trust, RCN Group and Community Recycling Network) – eDay is a community initiative designed to raise awareness of the benefits of recycling computers and the hazardous nature of electronic waste (e-waste), while offering an easy way for households and schools to dispose of old computers and mobile phones in an environmentally sound manner. eDay 2010 will be held in more than 40 centres throughout New Zealand on Saturday 6 November 2010. Organisers are aiming to divert as much as 1,300 tonnes of electronic waste (e-waste) from landfills, up from last year’s record of 976 tonnes. Total WMF funding $1.15million – The first grant of $750,000 is to the 2020 Communications Trust to run eDay on 6 November 2010 at more than 40 venues right across New Zealand. The second grant of $400,000 is a joint venture between the RCN Group and the Community Recycling Network towards developing a nationwide network of 20 permanent depots for e-waste as well as recycling facilities in Auckland, Wellington and Christchurch.
http://www.eday.org.nz/
Envirocomp Solutions – The company which launched the first commercial plant to compost disposable nappies and other sanitary hygiene products e fund will enable Envirocomp Solution Ltd to conduct a feasibility study to assess demand and identify a suitable location for installing a 2nd plant in the Greater Wellington region. Kimberly-Clark New Zealand which markets HUGGIES® Nappies, will support the study by conducting research with its Wellington based HUGGIES® club database as part of its ongoing sponsorship. The plant processes 15,000 nappies or incontinence products per day into compost. WMF Funding totals $30,000
www.envirocomp.co.nz
Scion Research Limited – Innovative thermal oxidation technology developed by Scion Research Ltd is designed to break down this waste and greatly reduce the amount entering landfills as well as cut greenhouse gas emissions. I am pleased to announce that Scion will receive $1 million from the Waste Minimisation Fund to pilot a process that reduces this waste.
Scion has named this project ‘Waste 2 Gold’ as the thermal oxidation process also generates useable by-products.
http://www.scionresearch.com/
Tyregone Processors Limited
The Auckland based company will receive $300,000 total WMF funding to expand operation of its pyrolysis plant, which converts tyres into carbon, steel, oil and gas.  Once expanded, the plant will process more than 2000 tonnes of tyres in the first year.
The Bay of Plenty Regional Council is to receive $100,000 to investigate expanding its vermicomposting facility so it can process a wider range of organic material, including wood waste from the Tasman and Carter Holt Harvey mills.
Glass Packaging Forum  The Glass Packaging Forum – (GPF) is a non-profit organization, which aims to ensure the ongoing performance of glass as environmentally acceptable packaging. GPF will receive $1.6 million to increase the number of recycling bins and bottle banks across the country for the Rugby World Cup.  http://www.glassforum.org.nz/

It is really exciting for SIFT to see which companies have been given funding through the latest Waste Minimisation Funding round. It demonstrates the direction of the Ministry for the Environment strategy, and that industry initiatives have a strong focus. We will keep updating this list as Nick Smith announces more successful applicants.

eDay E day and Hairy LEmon

eDay is a community initiative designed to raise awareness of the benefits of recycling computers and the hazardous nature of electronic waste (e-waste), while offering an easy way for households and schools to dispose of old computers and mobile phones in an environmentally sound manner. eDay 2010 will be held in more than 40 centres throughout New Zealand on Saturday 6 November 2010. Organisers are aiming to divert as much as 1,300 tonnes of electronic waste (e-waste) from landfills, up from last year’s record of 976 tonnes.  2020 Communications Trust to run eDay on 6 November 2010 at more than 40 venues right across New Zealand will receive $750,000.

RCN Group and Community Recycling Network

The second ewaste grant of $400,000 is a joint venture between the RCN Group and the Community Recycling Network towards developing a nationwide network of 20 permanent depots for e-waste as well as recycling facilities in Auckland, Wellington and Christchurch.  http://www.eday.org.nz/

Envirocomp Solutions

envirocomp

The company which launched the first commercial plant to compost disposable nappies and other sanitary hygiene products will be giving funding to enable it to conduct a feasibility study to assess demand and identify a suitable location for installing a 2nd plant in the Greater Wellington region. Kimberly-Clark New Zealand which markets HUGGIES® Nappies, will support the study by conducting research with its Wellington based HUGGIES® club database as part of its ongoing sponsorship. The plant processes 15,000 nappies or incontinence products per day into compost. WMF Funding totals $30,000 www.envirocomp.co.nz

Scion Research Limited

Innovative thermal oxidation technology developed by Scion Research Ltd is designed to break down this waste and greatly reduce the amount entering landfills as well as cut greenhouse gas emissions.  Scion will receive $1 million from the Waste Minimisation Fund to pilot a process that reduces this waste. Scion has named this project ‘Waste 2 Gold’ as the thermal oxidation process also generates useable by-products. http://www.scionresearch.com/

Tyregone Processors Limited

The Auckland based company will receive $300,000 total WMF funding to expand operation of its pyrolysis plant, which converts tyres into carbon, steel, oil and gas.  Once expanded, the plant will process more than 2000 tonnes of tyres in the first year.

Bay of Plenty Regional Council Vermi Composting

The Bay of Plenty Regional Council is to receive $100,000 to investigate expanding its vermicomposting facility so it can process a wider range of organic material, including wood waste from the Tasman and Carter Holt Harvey mills.

Glass Packaging Forum logo

The Glass Packaging Forum – (GPF) is a non-profit organization, which aims to ensure the ongoing performance of glass as environmentally acceptable packaging. GPF will receive $1.6 million to increase the number of recycling bins and bottle banks across the country for the Rugby World Cup. http://www.glassforum.org.nz/

Councils asked for big solutions by MfE

Wednesday, October 27th, 2010 by Admin
Kate Valley Landfill, North Canterbury

Kate Valley Landfill, North Canterbury

One of the big issues or themes during the WasteMinz conference was how councils and other Territorial Authorities are to use their share of the waste disposal levies collected by the Ministry for the Environment. The levies collected have been put into a new fund called the Waste Minimisation Fund. Half of the funds collected go to councils “on a per head of population basis” to help them with their waste mangement and minimisation plans (WMMP) and the other half to individuals, businesses and other organisations that have projects that meet the WMF criteria (some of the fund will also pay administration costs).

To date councils across New Zealand have received approx $3 million each quarter this year (with another about to paid). That’s a total of approx $12 million that, states Director of Operations for the Ministry for the Environment Martyn Pinkard, is to be used for solutions that are innovative, wide reaching within the community and have a direct impact on reducing the amount of waste that goes to landfill.

To July 2010 the district councils in Canterbury have received a total of $1.2 million with Christchurch City Council taking the largest share due to the largest population being in their jurisdiction ($815,000).

The Sustainable Initiatives Fund Trust can play a key role in helping local Canterbury territorial authorities to come up with and implement solutions that are both attractive and appropriate to the Ministry for the Environment and it’s aims in Waste Minimisation. Collaboration and industry and council integration will be vital in the success of projects that are to reduce waste to landfill and recover and use our resources more efficiently. Local solutions tailored to each community that have a long term effect will also be important.

Calling all Canterbury Territorial Authorities

Any district council in Canterbury that has a project or idea for a project that they could collaborate or co-fund with SIFT on can give us a call to discuss the possible solutions. If the project meets our criteria and the SIFT board give it the go ahead then our links, networks, ideas and possible funding could help to bring the project to fruition. Collaboration within the waste and sustainability fields are key to developing a sustainable future for Canterbury.

More information on payments to individual territorial authorities.

Downloadable maps of where the waste disposal sites are in New Zealand can be found here.

**Image by SIFT from WasteMinz Conference field trip 2009

Did you miss out on funding from the WMF?

Wednesday, June 16th, 2010 by Admin
Source: Flickr speckled_beckle's photostream

Source: Flickr speckled_beckle's photostream

Yesterday, most of the 164 applications for funding for waste project(s) from the Ministry for the Environment’s Waste Minimisation Fund would have received a letter telling them their application has been turned down. Congratulations to the 29 who did make it through to the next stage – we are interested to see what these projects are. If this was you and your project is based in Canterbury have you thought about approaching the Sustainable Initiatives Fund for assistance?

The purpose of the Waste Minimisation Fund is not too dissimilar to the objectives of the Sustainable Initiatives Fund Trust. The WMF was developed to boost New Zealand’s performance in waste minimisation through educational, promotional, technological or infrastructure projects. The objectives of the Sustainable Initiatitives Fund Trust are about reducing or avoiding waste that goes specifically to Canterbury’s landfills through new technology/process or recovering new waste streams or by developing new products or technologies out of recovered materials. Other sub-objectives include creating useful sustainable educational applications from the products or technologies that are developed and/or creating sustainable energy products out of waste and/or creating sustainable job opportunties and contributing positively to Canterbury’s economy. The Sustainable Initiatives Fund Trust is apart of a new generation of social lenders with the primary motivation of reducing negative environmental impacts – decreasing waste to landfill.

We have a number of projects on the go at the moment that are a mix of grants, loans and equity investments and cover a range of waste streams and issues. You can check out more of our past projects here.

We had a board meeting yesterday and again the board reiterated that projects need to show their reduction in environmental impact first and foremost. We are super keen to see the waste reduction numbers for the waste stream your project deals with.

If you have an idea that requires financial assistance we may be able to help. Call myself (Olivia Day, General Manager) to discuss if you are eligible and if we can help. Our number is 03 3655655.

Missed out on MfE WMF funding?

Thursday, April 15th, 2010 by Admin
Light at the end of the tunnel Hidcote Manor Garden

Light at the end of the tunnel Hidcote Manor Garden

Yesterday the Ministry for the Environment announced that it was into the first stage of looking at all the eligible applications to its Waste Minimisation Fund. All 164 of them. That means some  might have missed out as they were not eligible.

If that is you or someone you know you might be eligible for financial assitance from us, the Sustainable Initiatives Fund Trust. Check how to apply here.

With 164 applications requesting $55 million from a total of only $6 million there will be many who do not receive funding for what are possibly worthy projects. If you have a project that is focussed on Canterbury feel free to call or email us to discuss whether or not your project might be eligible for funding from us.

Photo source: AntonyChammond Flickr

NZ Behind in Social Lending says recent research

Friday, December 4th, 2009 by Admin
Glen Saunders (R) with Tindall Foundation's Trevor Gray (Foundations Manager) on the left

Glen Saunders (R) with Tindall Foundation's Trevor Gray (Foundations Manager) on the left

SIFT CEO Linda Norris travelled to Auckland on Wednesday to attend an insightful workshop on Social Lending. Presented by Glen Saunders the workshop was on his recently completed research into social lending in New Zealand that had been commissioned by the ASB Community Trust and the Tindall Foundation. Glen Saunders was the Managing Director of the European bank Triodos Bank and has experience in socially responsible investment and global investment markets.

The ASB Community Trust and the Tindall Foundation wanted to find out:

  • What trusts and foundations are doing overseas in social lending and investment?
  • What is happening in social lending in New Zealand.
  • And what are the prospects of increasing social lending in New Zealand.

Social lending is a type of investment that “sits between commercial loans and investment, on the one hand, and charitable grants and donations, on the other.” Social Lending has been used overseas for many years to help fund initiatives with a social goal but isn’t been utilised in New Zealand much at all. In fact, Glen’s reserach found that New Zealand isn’t keeping pace with “the international development of social enterprise and lending”.

As Glen Saunders states in the handout “Foundations should consider [social lending] for a number of reasons:

  • [That it will] increase their impact by extending their reach both in amount and type of project,
  • Allow successful projects to achieve greater scale,
  • Build stronger projects by improving a project’s management,
  • Provide better focus on long-term operational sustainability in projects,
  • Allow projects to acquire assets,
  • Avoid the weakening of a project through inappropriate grants,
  • Help build social markets, and
  • Allow systematic interventions where a mixture of loans and grants are needed.”

Along with diligent investment/lending practices and sound management of the project social lending will allow many with the ideas and projects to make them happen. If New Zealand is to become a more sustainable country reducing its waste to landfill and tackling climate change then individuals that have the solutions will need a hand to make them successful. Social lending will allow for public-private partnerships and the individuals and communities to lead the change required. All will benefit from this new way of investing.

Since the reserach has been collected SIFT has grown its loan portfolio in both number and size and we have made our first major investment in a project. SIFT is moving towards being the key social lender for waste reduction initiatives in Canterbury.

You can find more information here (a presentation by Glen Saunder’s to Philanthropy NZ in March 2009).