2023-11-15T16:46:30-06:00 2022-12-31 410746749 CLIFTONLARSONALLEN LLP 227 WEST TRADE STREET SUITE 800 CHARLOTTE NC 28202 990 2022-01-01 861877472 ECOSYSTEM SERVICES MARKET CONSORTIUM ECOS 7754768248 3426 GREENTREE DRIVE FALLS CHURCH VA 22041 DEBBIE REED CEO 7754768248 2023-11-14 1 DEBBIE REED 999009999 1 JOHN NORMAN P01506766 7049985200 2023-11-14 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z DEBBIE REED 3426 GREENTREE DRIVE FALLS CHURCH VA 22041 6599215 0 X HTTPS://ECOSYSTEMSERVICESMARKET.ORG/ X 2020 VA TO ADVANCE ECOSYSTEM SERVICE MARKETS THAT INCENTIVIZE FARMERS AND RANCHERS TO IMPROVE SOIL HEALTH SYSTEMS THAT BENEFIT SOCIETY 7 7 0 7 0 0 1778442 6538452 0 60679 7 84 0 0 1778449 6599215 0 0 0 0 0 303658 0 0 0 1990291 6403171 1990291 6706829 -211842 -107614 5709025 4460746 3011254 1870589 2697771 2590157 X ESMC IS A NON-PROFIT THAT WORKS TO COMPENSATE FARMERS AND RANCHERS WHO IMPROVE THE ENVIRONMENT THROUGH THEIR AGRICULTURAL PRACTICES. OUR MARKET PROGRAM REDUCES GREENHOUSE GASES, IMPROVES WATER QUALITY, AND INCREASES OTHER ECOSYSTEM SERVICES TO BENEFIT SOCIETY. 0 0 6093724 60679 ECOSYSTEM SERVICES MARKET CONSORTIUM (ESMC) IS A NON-PROFIT, MEMBER-BASED ORGANIZATION LAUNCHING A NATIONAL SCALE ECOSYSTEM SERVICES MARKET PROGRAM FOR AGRICULTURE TO RECOGNIZE AND REWARD FARMERS AND RANCHERS FOR THEIR ENVIRONMENTAL SERVICES TO SOCIETY. ESMC MEMBERS REPRESENT THE SPECTRUM OF THE AGRICULTURAL SECTOR SUPPLY CHAIN WITH WHOM WE ARE SCALING SUSTAINABLE AGRICULTURAL SECTOR OUTCOMES, INCLUDING INCREASED SOIL CARBON, REDUCED NET GREENHOUSE GASES, AND IMPROVED WATER QUALITY AND WATER USE CONSERVATION. (CONTINUED ON SCH O)DURING 2022, WE CONTINUED TO SUCCESSFULLY ENGAGE AGRICULTURAL VALUE CHAIN AND SUPPLY CHAIN PARTNERS IN MARKET PROGRAM INNOVATION, TESTING, AND REFINEMENT TO FURTHER BUILD OUR PROGRAM. REFINEMENTS TO PROTOCOLS, DATA COLLECTION, PROJECT DEVELOPMENT AND PARTNERSHIP ENGAGEMENT MODELS PROCEEDED, AS DID EFFORTS TO TEST AND EMBED ADVANCED TOOLS AND TECHNOLOGIES INTO OUR PLATFORM.THE RESULTS INCLUDE CONTINUED PROGRAMMATIC STREAMLINING AND ACHIEVEMENT OF CRITICAL COST-EFFICIENCIES TO ENABLE SCALED PROGRAM OPERATIONS. WITH THE GENEROUS SUPPORT OF A GRANT FROM THE FOUNDATION FOR FOOD AND AGRICULTURE (FFAR) AND FROM MANY ADDITIONAL FUNDERS, MEMBERS, AND COLLABORATORS, WE HAVE ACHIEVED CRITICAL PROGRESS SINCE LAUNCHING OUR PUBLIC PRIVATE PARTNERSHIP IN 2019 AND OUR MARKET PROGRAM IN 2022.WE LAUNCHED 16 DEMONSTRATION PROJECTS WITH PARTNERS ACROSS 8 ESMC PROGRAM REGIONS COVERING MORE THAN 55,000 ACRES. MANY OF THESE PROJECTS HAVE ACHIEVED A STATE OF MARKET-READINESS, WHICH WILL ENABLE THEM TO BECOME SCALED MARKET PROJECTS. WE ARE TARGETING ENROLLMENT OF 500,000 ACRES IN 2022 PROJECTS. NEW PROJECTS LAUNCHING IN 2022 PROJECTS INCLUDE PROGRAM EXPANSION INTO CALIFORNIA'S CENTRAL VALLEY AND THE CHESAPEAKE BAY REGIONS.WE INCORPORATED ADDITIONAL ENHANCEMENTS AND INNOVATIONS IN PROGRAM OPERATIONS AND SYSTEMS OF OUR NATIONAL SCALE, HARMONIZED, STANDARDIZED ECOSYSTEM SERVICES MARKET PROGRAM. THE RESEARCH AND DEVELOPMENT PHASE OF OUR PROJECTS HAS GENERATED SIGNIFICANT IMPROVEMENTS IN EFFICIENCIES AND COST REDUCTIONS FOR EVERY STEP OF THE PROGRAM WHICH IS GRAPHICALLY DISPLAYED IN THE FOLLOWING PROCESS DIAGRAM.ESMC'S V8.3 PROTOCOL WAS UPDATED, EXPANDED, AND IMPLEMENTED FOR 2020 CROPLAND PROJECTS IN ESMC'S MIDWESTERN CORN AND SOY, GREAT LAKES, AND SOUTHERN GREAT PLAINS REGIONS. THESE PROJECTS WERE SUBMITTED IN 2021 FOR VALIDATION, VERIFICATION, AND VCI CERTIFICATION BY GOLD STANDARD, WITH RESULTS AND APPROVAL EXPECTED IN Q2 2022. SEVEN CROPLAND PROJECT PRODUCERS PARTICIPATED IN THE VALIDATION/ VERIFICATION AUDIT PROCESS IN 2021 INCLUDING THIRD-PARTY ASSESSMENT OF PROJECT DESIGN, PROTOCOL, AND CREDITS GENERATED. A SIGNIFICANT REVISION OF ESMC'S INTEGRATED PROTOCOL (V9.0) WAS FINALIZED IN DECEMBER 2021 TO INCLUDE STANDALONE MODULES FOR EACH CREDIT TYPE, MORE CLEARLY DEFINED ELIGIBILITY CRITERIA, A REVISION OF THE FIELD STRATIFICATION AND SOIL SAMPLING PROTOCOL, MORE RIGOROUS QA/QC PROCESSES FOR DATA COLLECTION AND HISTORICAL DATA GAP-FILLING, AND A SHIFT TO USING ACTUAL PRACTICE BASELINES RATHER THAN PREVAILING PRACTICE BASELINES.THE ESMC MONITORING, REPORTING AND VERIFICATION (MRV) PLATFORM UNDERWENT SIGNIFICANT DEVELOPMENT WITH THE RELEASE OF V2 OF THE PRODUCER PORTAL WHICH WAS TESTED AND REFINED FOR 2021 PROGRAM ENROLLMENT, DATA COLLECTION, AND CREDIT GENERATION. SIMULTANEOUSLY, FRONT-END DESIGNERS AND BACK-END SUPPORT WERE ADDED TO DEVELOP THE DESIGN AND SPECIFICATIONS FOR MRV PLATFORM V3.DEVELOPMENT OF ESMC/ESMRC'S FIELD STRATIFICATION AND SOIL SAMPLING APP, WHICH IS CURRENTLY ACCESSIBLE TO ALL PROJECT PARTNERS, HAS IMPROVED IN-FIELD FUNCTIONALITY, PROJECT MANAGEMENT CAPABILITIES, AND MRV INTEGRATION THROUGH AUTOMATED DATA TRANSFERS AND API MODULES.THE ESMRC TEAM WORKED TO ADVANCE AND IMPLEMENT NUMEROUS MEMBER-APPROVED RESEARCH AND DEVELOPMENT PROJECTS FOCUSING ON SOIL ORGANIC CARBON, GHGS, AND WATER DURING 2021.- ESMRC MADE SIGNIFICANT PROGRESS ON THE ADVANCED SOIL CARBON QUANTIFICATION TECHNOLOGY ASSESSMENT PROJECT, WHICH FOCUSES ON THE IDENTIFICATION, ASSESSMENT, TESTING, AND DEVELOPMENT OF ADVANCED TOOLS AND TECHNOLOGIES TO MORE EFFICIENTLY AND COST EFFECTIVELY MEASURE AND QUANTIFY CHANGES TO SOIL CARBON AND AVOIDED OR REDUCED GHGS.- THE N2O QUANTIFICATION PROJECT WAS LAUNCHED IN JULY 2021 AND INVOLVES USING MEASUREMENTS AT LONG-TERM MONITORING SITES, REMOTE SENSING, NEURAL NETWORKS, AND MACHINE LEARNING TO TEST AND IMPROVE ALTERNATIVE METHODOLOGIES FOR PREDICTING N2O EMISSIONS AT A FIELD SCALE. THE RESULTS WILL IMPROVE THE SCOPE AND ACCURACY OF GHG CREDIT QUANTIFICATION AND INFORM WATER QUALITY MODELING APPROACHES. PRELIMINARY RESULTS ARE CURRENTLY UNDER REVIEW FOR MODEL VALIDATION AND ASSESSMENT OF IMPROVEMENTS TO MODEL PERFORMANCE.- THE ALTERNATIVE SCOPE 3 SOIL SAMPLING PROTOCOLS EVALUATION PROJECT EXPLORED ALTERNATIVE STRATIFICATION, SOIL CARBON SAMPLING PROTOCOLS, AND MEASUREMENT RESULTS TO IMPROVE ESMC MARKET PROGRAM OPERATIONS. PRELIMINARY RESULTS FROM TWO SEPARATE ANALYSES SHOWED THAT SIGNIFICANTLY REDUCING SOIL SAMPLING DENSITY ON A FIELD- OR PROJECT-LEVEL BASIS HAS LITTLE IMPACT ON SOIL CARBON CREDITING OUTCOMES. CONTINUED EVALUATIONS USING BOTH 2020 AND 2021 PILOT DATA WILL RESULT IN UPDATED RECOMMENDATIONS FOR SOIL SAMPLING DENSITY AIMED AT GENERATING SUBSTANTIAL COST REDUCTIONS FOR THE MARKET PROGRAM WHILE ENSURING CONTINUED SCIENTIFIC RIGOR.- THE ALTERNATIVE SCOPE 3 WATER QUALITY QUANTIFICATION TOOL EVALUATION PROJECT COMPLETED A TECHNICAL EVALUATION OF POTENTIAL WATER QUALITY QUANTIFICATION MODELS AND TOOLS TO MEET SCOPE 3 CORPORATE SUPPLY CHAIN REPORTING NEEDS. BASED ON PROJECT RESULTS, ESMRC IS DEVELOPING A CUSTOMIZED MODEL FOR SIMPLIFIED SCOPE 3 WATER QUALITY CREDIT GENERATION.- ESMRC IS CONTINUING WORK ON THE WATER QUALITY MODELING IMPROVEMENT PROJECT TO TEST AND IMPROVE APEX MODEL FUNCTIONALITY FOR CREDIT GENERATION. FOUR NEW CONSERVATION PRACTICES DRAINAGE WATER MANAGEMENT, BIOREACTORS, CONSTRUCTED WETLANDS, AND SATURATED BUFFERS WERE ADDED TO THE APEX MODEL SPECIFIC TO TILE DRAINAGE MANAGEMENT ACTIVITIES.- THE WATER QUANTITY ASSET DEVELOPMENT PROJECT RESULTED IN THE DEVELOPMENT OF A NEW SCOPE 3 WATER QUANTITY CREDIT THE ENVIRONMENTAL FLOW CREDIT USING QUANTIFICATION OF HYDROLOGY CHANGES FROM AGRICULTURAL MANAGEMENT PRACTICES. THIS CREDIT, MEASURING BOTH SURFACE WATER FLOW REDUCTION AND GROUNDWATER RECHARGE, WAS INCORPORATED INTO PROTOCOL V9. 6093724 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 56 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 7 7 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X DEBBIE REED 7754768248 3426 GREENTREE DRIVE FALLS CHURCH VA 22041 CHAD ELLIS CHAIR 2.00 X X 0 0 0 KRIS JOHNSON PHD VICE-CHAIR 2.00 X X 0 0 0 EMILY JOHANNES BOARD`MEMBER 1.00 X 0 0 0 MARY JANE MELENDEZ BOARD MEMBER 1.00 X 0 0 0 RYAN SIROLLI BOARD MEMBER 1.00 X 0 0 0 ASHLEY MCKEON BOARD MEMBER 1.00 X 0 0 0 GENE LOLLIS BOARD MEMBER 0.00 X 0 0 0 DEBBIE REED EXCUTIVE DIRECTOR 50.00 X 303658 0 0 303658 0 0 1 0 1 0 SUSTAIN CERT 1 RUE DE TURI BLOC A LIVANGE RO LU CLIMATE TECH & SOFTWARE 2140650 HEARTLAND SCIENCE AND TECHNOLOGY GROUP 60 HAZELWOOD DR CHAMPAIGN IL 61820 DEV/DESIGN OF THE MRV 1266104 TETRA TECH INC 3475 EAST FOOTHILL BOULEVARD SUITE PASADENA CA 91107 EMISSION QUANTIFICATION 420050 PLANT GROUP 2315 SPRUCE STREET PITTSBURGH PA 19103 SUPPLIER 366536 4 712500 73719 5752233 6538452 MARKET PROGRAM PARTNER 541700 60679 60679 60679 84 84 6599215 60679 0 84 X 303658 276069 27589 75258 68420 6838 136095 123730 12365 6074424 5522522 551902 3939 3939 2626 1880 746 16975 16975 68159 68159 3360 3360 10102 10102 DUES AND SUBSCRIPTIONS 12030 12030 FILING FEES 203 203 6706829 6093724 613105 0 4796218 3895707 426211 426294 482335 129903 4261 8842 5709025 4460746 972834 1156455 2038420 696803 0 17331 3011254 1870589 X 2697771 2590157 2697771 2590157 5709025 4460746 -107614 0 X 0 1 X 1 0 X 1778442 6538452 8316894 60679 60679 1778442 6599131 8377573 30240 467016 497256 228651 18016 246667 258891 485032 743923 7633650 7 84 91 7 84 91 1778449 6599215 8377664 0.91120 1.00000 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 MARKET PROGRAM PRODUCER LIABILITY 17331 17331 X 10632463 4033248 4033248 6599215 0 6599215 10740077 4033248 4033248 6706829 0 6706829 PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AND IS NOT A PRIVATE FOUNDATION. ACCORDINGLY, NO INCOME TAXES HAVE BEEN PROVIDED IN THE ACCOMPANYING FINANCIAL STATEMENTS. MANAGEMENT HAS EVALUATED THE EFFECT OF THE GUIDANCE PROVIDED BY THE PROVISIONS OF U.S. GAAP ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. MANAGEMENT BELIEVES THAT THE ORGANIZATION CONTINUES TO SATISFY THE REQUIREMENTS OF A TAX-EXEMPT ORGANIZATION AT DECEMBER 31, 2022. MANAGEMENT HAS EVALUATED ALL OTHER TAX POSITIONS THAT COULD HAVE A SIGNIFICANT EFFECT ON THE FINANCIAL STATEMENTS AND DETERMINED THE ORGANIZATION HAD NO UNCERTAIN INCOME TAX POSITIONS AT DECEMBER 31, 2022. 1 NORTH AMERICA 0 0 PROGRAM SERVICES INTERNATIONAL PAYMENTS TO PRODUCERS IN CANADA WERE MADE UNDER OUR NATIVE PROJECT 127600 0 0 0 0 0 0 127600 0 127600 0 0 0 0 0 0 PART I, LINE 2: ESMC RECEIVES FUNDS TO DISTRIBUTE OUT TO SPECIFIC CUSTOMERS. FOR 2022, THE FUNDS WERE DISTRIBUTED TO CANADIAN PRODUCERS THAT ALIGNED WITH A SPECIFIC PROJECT. THE PAYMENTS MADE TO THE PRODUCERS WERE CAREFULLY MONITORED AND DISTRIBUTED IN STAGES UNTIL THE FULL AMOUNT WAS RECEIVED BY THEM. PART III ACCOUNTING METHOD: X 0 0 0 0 0 0 0 0 0 DEBBIE REED EXCUTIVE DIRECTOR 303658 0 0 0 0 0 0 0 0 0 303658 0 0 0 PART I, LINE 3 THE BOARD REVIEWS AND COMPARES LOCAL CEO AND TOP MANAGEMENT POSITIONS TO SIMILAR POSITIONS IN THE DC AREA. THE BOARD REVIEWS AND APPROVES THE COMPENSATION PACKAGES ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS REVIEWED AT A REGULARLY SCHEDULED BOARD MEETING PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY AND DISCLOSURE FORM IS REVIEWED AND SIGNED ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 WE REVIEW AND COMPARE LOCAL CEO AND TOP MANAGEMENT POSITIONS TO SIMILAR POSITIONS IN THE LOCAL DC AREA. THE BOARD REVIEWS AND APPROVES THE COMPENSATION PACKAGES FOR THE CEO AND TOP MANAGEMENT POSITIONS ON AN ANNUAL BASIS. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2022 FORM 990, PART VI, SECTION C, LINE 19 ALL GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL SERVICES: PROGRAM SERVICE EXPENSES 5,522,522. MANAGEMENT AND GENERAL EXPENSES 551,902. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,074,424. ECOSYSTEM SERVICES MARKET CONSORTIUM LLC 3426 GREENTREE DRIVE FALLS CHURCH VA 22041 861877472 TO INCENTIVIZE IMPROVEMENT IN CARBON AND WATER QUALITY VA 0 0 ECOYSTEM SERVICES MARKET CONSORTIUM