2025-05-08T13:11:31-05:00 2024-12-31 410746749 CLIFTONLARSONALLEN LLP 227 WEST TRADE STREET SUITE 800 CHARLOTTE NC 28202 990 2024-01-01 861877472 ECOSYSTEM SERVICES MARKET CONSORTIUM ECOS 7754768248 12835 COOK DRIVE THORNTON CO 80241 MARGARITA D MCINTOSH CHIEF FINANCIAL OFFICER 7754768248 2025-05-06 1 1 KATHRINE A WARLICK P02065266 7049985200 2025-05-05 2024 2025-03-06 01:10:19Z ALANA PACHECO 12835 COOK DRIVE THORNTON CO 80241 3397008 0 1 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 6 6 18 13 0 0 2113031 2556956 721074 836391 84 3661 0 0 2834189 3397008 0 0 0 0 322052 2308292 0 0 0 3322600 1574156 3644652 3882448 -810463 -485440 3913667 4442872 2133973 3148618 1779694 1294254 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 3106949 836391 ECOSYSTEM SERVICES MARKET CONSORTIUM (ESMC) IS A NON-PROFIT, MEMBER-BASED ORGANIZATION THAT RECOGNIZES AND REWARDS 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. WE LAUNCHED ECO-HARVEST, A VOLUNTARY, NATIONAL ECOSYSTEM SERVICES MARKET PROGRAM IN MAY 2022. (CONTINUED ON SCH O) DURING 2024, 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. AS OF MARCH 2025, WE HAVE 11 PROJECTS ACROSS THE US AND CANADA WITH 232,581 ACRES ENROLLED. WE CONTINUE TO WORK TOWARD SCALING THESE PROGRAMS, WITH A GOAL OF ENROLLING 445,000 ACRES BY THE END OF 2025. THE MAJORITY OF THESE ACRES WILL BE ROW CROPS, WITH A FOCUS ON CORN, SOY, WHEAT, AND COTTON. IN ADDITION, ESMC IS PILOTING PROJECTS IN GRAZING (BEEF) AND DAIRY SYSTEMS, LAUNCHING A PROTOCOL FOR WATER QUALITY OUTCOMES, AND PILOTING EDGE-OF-FIELD PROJECTS TO MAKE NARRATIVE CLAIMS FOR BIODIVERSITY BENEFITS. WE CONTINUE TO WORK TO COMPLETE A PROTOCOL FOR ABOVE AND BELOWGROUND BIODIVERSITY. ESMC HAS PARTNERED WITH NEW MODELING SERVICE PROVIDERS AND IS DEVELOPING PROTOCOLS FOR THESE SYSTEMS. ESMC CONTINUES TO EXPAND OUR WORK TO ADDRESS THE NEEDS OF ECONOMICALLY DISADVANTAGED PRODUCERS. IN 2024, WE PARTNERED WITH THE NATURE CONSERVANCY ON A PROJECT TO MAP PRODUCERS ACROSS 13 U.S. STATES. WE ARE EXPANDING THIS WORK IN 2025 TO ENCOMPASS THE ENTIRE LOWER 48 AND TO INCORPORATE CARBON SEQUESTRATION POTENTIAL AND IMPAIRED WATERWAYS. THIS WORK WILL HELP US CONNECT PRODUCERS WITH SUPPLY CHAIN PARTNERS AND WILL ALSO HELP US PRIORITIZE PROJECT DEVELOPMENT IN THOSE AREAS WITH THE BEST POTENTIAL FOR POSITIVE CARBON AND WATER OUTCOMES. ON THE BUYER FRONT, WE SUCCESSFULLY IMPLEMENTED A CO-INVESTMENT MODEL WITH TWO CORPORATE PARTNERS. A BUYER OF IMPACT UNITS CAN CLAIM A SHARE OF EMISSIONS REDUCTIONS OR REMOVALS WITH OTHER STAKEHOLDERS IN THE VALUE CHAIN; CO-CLAIMING IS A UNIQUE FEATURE OF SCOPE 3.CO-CLAIMING TRANSACTIONS ARE TRACKED ON SUSTAINCERT'S VIVID PLATFORM TO PREVENT DOUBLE-COUNTING AND TRACK APPROPRIATE VOLUME OF TRANSACTIONS. UTILIZING THIS PROGRAM AS A TEMPLATE, WE WILL LOOK TO REPLICATE THIS CO-CLAIMING MODEL WITH OTHER EXISTING AND EMERGING PROJECTS. THIS IS A POWERFUL PROGRAM OFFERING TO BOOST PROGRAM ECONOMIC FEASIBILITY AND SCALE. WE WORKED TO IMPROVE OUR PRODUCER PAYMENT MODEL BY GATHERING FEEDBACK FROM PRODUCERS AND ON-THE-GROUND PARTNERS. GIVEN THIS FEEDBACK, WE ARE MOVING TOWARD A HYBRID PRODUCER PAYMENT MODEL THAT PROVIDES UPFRONT PAYMENTS FOR PRACTICE IMPLEMENTATION AND OUTCOME PAYMENTS ONCE OUTCOMES HAVE BEEN ACHIEVED. WE LOOK FORWARD TO TESTING THIS MODEL IN PROJECTS THROUGHOUT 2025. 3106949 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 96 0 1 18 1 0 0 0 0 0 0 0 0 0 0 0 0 X 6 6 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 VA X MARGARITA MCINTOSH 3035482047 12835 COOK DRIVE THORNTON CO 80241 X CHAD ELLIS CHAIR 1.00 X X 0 0 0 KRIS JOHNSON PHD VICE-CHAIR 1.00 X X 0 0 0 EMILY JOHANNES BOARD MEMBER 1.00 X 0 0 0 RATTAN LAL BOARD MEMBER 1.00 X 0 0 0 ASHLEY MCKEON BOARD MEMBER 1.00 X 0 0 0 JAY WATSON BOARD MEMBER 1.00 X 0 0 0 DEBBIE REED EXCUTIVE DIRECTOR 40.00 X 157500 0 0 MARGARITA MCINTOSH CFO 40.00 X 140315 0 3018 ALANA PACHECO PRESIDENT 40.00 X 120833 0 0 ISIDORA JIMENEZ DIRECTOR OF FINANCE 40.00 X 103757 0 2910 522405 0 5928 4 0 1 0 OPTIMUM EMPLOYER SOLUTIONS 3426 RED HILL AVE SUITE 200 SANTA ANA CA 92705 OUTSOURCED STAFFING 780317 REGROW AGRICULTURE INC 87 PACKERS FALLS ROAD DURHAM NH 03824 MARKET PROGRAM VALIDATION AND MONITORING 204655 TETRA TECH INC 3475 EAST FOOTHILL BOULEVARD SUITE PASADENA CA 91107 TECHNICAL WORKING GROUPS SUPPORT AND DEV 188815 PLANT GROUP LLC 2315 SPRUCE STREET PHILADELPHIA PA 19103 SOFTWARE MAINTENANCE 154281 HEARTLAND SCIENCE AND TECHNOLOGY GROUP 801 WEST MAIN STREET SUITE B214R PEORIA IL 61606 SOFTWARE DEVELOPMENT 148527 4 437979 548887 1570090 2556956 MARKET PROGRAM PARTNER 541700 836391 836391 836391 3661 3661 3397008 836391 0 3661 421666 282516 139150 1669983 1119203 550780 34745 23947 10798 181898 125367 56531 16989 16989 33056 33056 94357 94357 22752 22752 5751 4626 1125 1007097 1007097 59583 59583 3651 3651 132 132 13218 13218 SOIL SAMPLING 317456 317456 114 114 3882448 3106949 775499 0 3310777 3349313 426378 426463 175337 666020 1076 1175 0 3913667 4442872 315833 447330 1363115 1329408 455025 1371880 2133973 3148618 X 1779694 1294254 1779694 1294254 3913667 4442872 -485440 0 X X 0 1 X 1 0 X 1778442 6538452 2113031 2556956 12986881 60679 721074 836391 1618144 1778442 6599131 2834105 3393347 14605025 30240 467016 590811 225000 1313067 228651 18016 375285 102760 724712 258891 485032 966096 327760 2037779 12567246 7 84 84 3661 3836 7 84 84 3661 3836 1778449 6599215 2834189 3397008 14608861 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 MARKET PROGRAM PRODUCER LIABILITY 1371880 1371880 X 3601718 204710 204710 3397008 0 3397008 4087158 204710 204710 3882448 0 3882448 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, 2024. 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, 2024. NORTH AMERICA 0 0 PROGRAM SERVICES ECOSYSTEM SERVICES DESIGNED TO ENCOURAGE FARMING PRACTICES THAT ADDRESS SOIL CARBON, GREENHOUSE GASES, WATER QUALITY AND WATER USE CONSERVATION. 238492 0 0 0 0 0 0 238492 0 238492 0 0 0 0 0 0 PART I, LINE 2: ESMC RECEIVES FUNDS TO DISTRIBUTE OUT TO SPECIFIC CUSTOMERS. FOR 2024, THE FUNDS WERE DISTRIBUTED TO CANADIAN PRODUCERS THAT ALIGNED WITH SPECIFIC PROJECTS.THE PAYMENTS MADE TO THE PRODUCERS WERE CAREFULLY MONITORED AND DISTRIBUTED IN STAGES UNTIL THE FULL AMOUNT WAS RECEIVED BY THEM. X X 0 0 0 0 0 0 0 0 0 DEBBIE REED EXCUTIVE DIRECTOR 157500 0 0 0 0 0 0 0 0 0 157500 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 DRAFTED FORM 990 IS REVIEWED INTERNALLY BY THE CFO AND FINANCE DIRECTOR THEN PROVIDED TO THE EXECUTIVE DIRECTOR FOR REVIEW BEFORE FINALIZING. 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. MANAGEMENT POSITIONS ARE BENCHMARKED ON AN ANNUAL BASIS. THE PROCESS DESCRIBED HERE WAS LAST COMPLETED IN 2024. 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 VII, SECTION A, LINE 1A IN ADDITION TO W2 COMPENSATION PAID BY ECOSYSTEM SERVICES MARKET CONSORTIUM, THE FOLLOWING EMPLOYEES ALSO RECEIVED W2 COMPENSATION FROM OPTIMUM EMPLOYER SOLUTIONS, LCC, AN UNRELATED ORGANIZATION: DEBBIE REED $105,000 MARGARITA MCINTOSH $70,580 ALANA PACHECO $58,333 ISIDORA JIMENEZ $50,665 FORM 990, PART XII, LINE 2C: AUDIT REVIEW PROCESS IS UNCHANGED FROM PRIOR YEAR. 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