DGB N : DGB announces Q3 trading update

Press release

DGB announces Q3 trading update

8 October 2021 | 08: 00h CET

Dutch Green Business Group N.V. ("DGB", "DutchGreen" or "the Group") (Euronext: DGB), a leading reforestation and carbon ofsetting company, presents its trading update for the third quarter ending 30 September 2021.

DutchGreen specialises in generating carbon ofsets from its sustainably managed nature-based projects which are sold to businesses and consumers.

The third quarter has been a period of growth for the Group as it has signed its frst carbon ofsets oftake agreements, announced a new capital raise, grew its headcount, strengthened its Board of Directors with two non-executives, invested in more projects and achieved milestones on its project pipeline.

Q3 Highlights:

• Entered into frst binding oftake agreements:
• • During Q3 DGB has entered into its frst binding carbon ofsets oftake agreements, pursuant to which DGB committed to ofset 8,841 tons of carbon emissions for various business customers at an average price of €16.95 per ton.
  • DGB uses third-party verifed carbon ofsets for ofsetting carbon emissions, ofsetting impact on biodiversity and planting trees for businesses.
• Project milestones:
• • DGB is currently (co)developing nine carbon or biodiversity ofset projects aimed to prevent deforestation, restore ecosystems and protect nature in order to create a greener, more biodiverse and more resilient world while generating carbon ofsets for businesses and individuals.
  • The Group has signed letters of intent in respect of (i) a project spanning Cameroon and Kenya whereby it will plant 6 million trees and introduce a cookstove community initiative, (ii) a nature conservation and reforestation project in Tanzania covering an area of 10,000 hectares,T (iii) a biodiversity and reforestation project in Uganda with a minimum amount of 1 million trees planted per year.
  • DGB has 250,000 hectares of sourced land under review and is exploring funding options for the acquisition of additional land. To date DGB has not made any land acquisitions.

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• Capital raise:
• • As announced on 30 September 2021, DGB has launched a €4.5m capital raise via a private placement of convertible loan notes. Proceeds from this green impact bond will be invested in the Group's project pipeline. DGB will update the market on the fundraise process and associated transactions as and when required.
• Appointed new Board members:
• • The AGM approved the appointment of Ms. Hilda van der Meulen and Mr. Dick den Hartog as Non-Executive Directors of the Company.
• Established a Impact Consultancy team:
• • 11 new members joined the team in the technology and impact consultant arenas in the Netherlands, United Kingdom and India.
  • In Q4 DGB intends to ofer a consultancy service that will help companies become carbon neutral, provide carbon footprint analysis, value chain analysis, carbon neutral product verifcation and impact measurement.
• Software development and licensing:
• • In Q1 of this year DGB started developing remote sensing, artifcial intelligence and immutable ledger technology to verify and check its own projects.
  • DGB expects to launch its proprietary technology platform in Q4 and expects to generate cash fows from third-party project developers using the platform.

COP26 meeting in Glasgow

DutchGreen is focused on taking action and delivering positive impact in the near-term rather than taking up precious time deliberating and not seizing the initiative. To that end its activities are already addressing the frst three goals of COP261, namely:

1. Developing nature-based solutions as one way to secure global net zero by mid-century;
2. Protecting and restoring ecosystems to help communities and natural habitats;
3. Mobilising fnance - it provides an easy and accessible way for funding to drive on the ground change.

1 COP26, COP26 Goals: https://ukcop26.org/cop26-goals/

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Project pipeline

• Two projects with a total ofset capacity of 157,000 tons have been submitted to the Verifed Carbon Standard ("VCS") and are ofered to companies as VCS verifed carbon ofsets. Ofsets are expected to be ready to retire for business customers of the Group within the next six months.
• The projects in the Philippines, Tanzania, Kenya/Cameroon have passed the pre-feasibility phase and are now entering the full feasibility phase. The verifcation process can take from 1-18 months contingent on whether the ofset needs to meet the industry standard of VCS or other verifying standard. Projects are ready to be signed for (carbon fnance) oftake agreements due in Q4.
• Romania and Australia are on-going projects, where DGB will add its skills and expertise to enhance the initiatives. Both projects generate biodiversity ofsets now being ofered to companies.
• The projects in Malaysia and Uganda are in very early stages of development for carbon ofsets and/or biodiversity ofsets. DGB has located the right project managers and is exploring several options during the pre-feasibility phase.

Contact details:

DGB GROUP NV [e-mail]

[phone] (NL)

[phone] (EN)

About DGB:

Dutch Green Business Group N.V. is a public company traded on the main Dutch stock exchange Euronext Amsterdam under the ticker symbol AEX:DGB and ISIN-code NL0009169515. DGB's strategy is to participate in large forest carbon ofset projects around the world that deliver commercial and environmental benefts. DGB's vision is to be a leading high-impact investor in sustainably managed forests by providing competitive real investment returns for shareholders combined with high social impact. www.dgb.earth

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Frequently Asked Questions (FAQ)

What are nature-based solutions?

The world needs a range of measures to limit carbon dioxide (CO2) emissions while meeting rising energy demand. They include the protection and restoration of natural ecosystems such as forests, grasslands and wetlands. Nature-based solutions are the management and use of land for tackling social and environmental challenges. Nature conservation, aforestation, reforestation, agroforestry and urban greening are all land based projects which qualify as nature-based solutions2.

What is a carbon ofset?

Individuals and corporations around the world are recognizing the importance of reducing their GHG emissions. As a result, many of them are reducing their carbon footprints through energy efciency and other measures. Quite often, however, it is not possible for these entities to meet their targets or eliminate their carbon footprint, at least in the near term, with internal reductions alone. They need a fexible mechanism to achieve these aspirational goals and enter the carbon markets.

By using the carbon markets, entities can neutralize, or ofset, their emissions by retiring carbon credits generated by projects that are reducing GHG emissions elsewhere. Of course, it is critical to ensure, or verify, that the emission reductions generated by these projects are actually occurring.

Companies and private individuals are interested in contributing to their living environment. In order to translate this willingness into implementation, nature ofsets and especially carbon ofsets make nature compensation easy and provide an appropriate, fexible system of compensation.

Although there is an interest in contributing to nature conservation from the point of view of corporate social responsibility (CSR), this interest has seen a rise in the last year due to the need to reduce and ofset carbon emissions. Carbon ofsetting happens on a mandatory basis, as well as on a voluntary basis for Corporate Social Responsibility (CSR) and public relations.

• Shell. Nature-Based Solutions:

https://www.shell.com/energy-and-innovation/new-energies/nature-based-solutions.html

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What is a biodiversity ofset?

A biodiversity ofset is an innovative approach to quantify in a transparent way the net positive impacts of an investment on 1 hectare preserved, restored, or managed through sustainable land practices. It will allow business to invest in projects that add value to the company and create tangible benefts for a region of land and its communities.

Compensating damage to nature or biodiversity is a way by which the harmful impact that an activity or intervention has upon it, can be mitigated.

Biodiversity ofsetting happens on a mandatory basis, as well as on a voluntary basis for Corporate Social Responsibility (CSR) and public relations.

What does it mean 'to retire an ofset'?

By "retiring" a carbon ofset or biodiversity ofset on behalf of its clients, DGB removes the ofsets from the market, rendering them unusable by the heavy-polluting companies. To "retire" a carbon ofset, DGB ofcially registers the ofset as "used". Until a carbon ofset is retired, it is available for trading and cannot be used to ofset emissions of the current holder.

How does DutchGreen verify its ofsets?

DutchGreen verifes its carbon ofsets according to the VCS Program Rules. The VCS Program is the world's most widely used voluntary GHG program. Nearly 1,700 certifed VCS projects have collectively reduced or removed more than 630 million tonnes of carbon and other GHG emissions from the atmosphere.

Projects developed under the VCS Program must follow a rigorous assessment process in order to be certifed. VCS projects cover a diverse range of sectors, including renewable energy (such as wind and hydroelectric projects), forestry (including the avoidance of deforestation), and others.

The VCS Standard lays out the rules and requirements which all projects must follow in order to be certifed. All VCS projects are subject to desk and feld audits by both qualifed independent third parties3 and Verra staf to ensure that standards are met and methodologies are properly applied.

Projects are assessed using a technically sound GHG emission reduction quantifcation methodology4 specifc to that project type.

• Verra. Validation & Verifcation: https://verra.org/project/vcs-program/validation-verifcation/
  4 Verra. Methodologies: https://verra.org/methodologies/
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