Avenue #2 Supply chain offtaking Supply chain offtakers that integrate mangrove conservation or restoration activities into a corporation’s supply chain provide both a market signal and financial capital for mangrove- positive interventions. Commercially established supply chains that have either existing or potential interactions with mangroves can provide powerful, long-lasting investment into mangroves as well as sending demand signals for mangrove-positive action. For companies that use products in their supply chains that interact with mangroves or have the potential to do so in the future, there is an opportunity to shift supply chains to become mangrove-positive through specifications in offtake agreements that explicitly prohibit mangrove destruction or reward mangrove conservation and restoration. Specifications can also prohibit purchases from supply chains that have net- negative effects on mangroves after an agreed cut-off date. Effective transparency along the supply chain is needed to ensure supply chain purchases follow these specifications. In many cases, additional financial, technological or social support is needed to ensure that transparency. Through offtake agreements of mangrove-positive products, including those sourced through jurisdictional and landscape approaches (discussed in section 3.4), corporations can support mangrove-positive markets by creating confidence in the demand for such product. Certainty of demand will incentivize producers and manufacturers to transition their operations to become mangrove-positive. By leveraging the influential nature of offtake agreements on upstream stakeholders, such as producers and market access players, corporations can also help unlock bottlenecks unique to specific localities and supply chain dynamics, such as formalized land tenure or regulatory inefficiencies. Companies can design offtake criteria to include impact targets that address such bottlenecks, as well as criteria developed by the local community (via fractal scalability) for people, nature and climate goals. Technical assistance can play a key role in enabling offtake agreements to incorporate mangrove- positive elements, by funding jurisdictional shared infrastructure and resources (e.g. laboratories, communication platforms for disease outbreaks, water management, improved roads, transparent pricing platforms) that are fundamental to successful sourcing through those agreements. For corporations with philanthropic arms, funding such shared infrastructure through technical assistance can provide attractive opportunities for the commercial business by improving accessibility to high-quality and sustainable products. Certainty of demand will incentivize producers and manufacturers to transition their operations to become mangrove-positive. Examples of relevant business models Wild-caught fisheries Shrimp aquaculture Salt productionTimber harvesting Saltwater agriculture Rice cultivation Investing in Mangroves: The Corporate Playbook 23

Investing in Mangroves 2025