#14 The Business of Tree Planting: Bas Fransen from EcoMatcher

Today's guest is Bas Fransen, CEO and founder of EcoMatcher. Originally from Holland, Bas started his career in the Royal Dutch Navy and went on to become a technology executive with long stints at Phillips Semi Conductors, and then IBM.

He founded the tree-planting company he runs today, called EcoMatcher, in 2016. The for-profit business has by now planted over a million trees and is on track to plant several million more in the coming years.

Linkedin: https://www.linkedin.com/in/basfransenhk/
EcoMatcher:  https://www.ecomatcher.com/
The Hidden Life Of Trees: https://www.amazon.sg/Hidden-Life-Trees-Communicate_Discoveries-Secret/dp/1771642483

Hosted by Arshad Chowdhury, Managing Partner at Betatron: Betatron.co
Twitter: @arshadgc
LinkedIn: https://www.linkedin.com/in/arshadgc/

TRANSCRIPTION

Arshad: 0:00
This is Betatron Investing in Asia, a podcast for people who want to invest in Asia’s future. I’m your host, Arshad Chowdhury, a partner with Betatron Venture Group based in Hong Kong.

Arshad: 0:11
Today’s guest is Bas Franssen, CEO and founder of EcoMatcher. Originally from Holland, Bas started his career in the Royal Dutch Navy. He then went on to become a technology executive with long stints at Philips Semiconductors, and then IBM. He founded the tree-planting company he runs today, called EcoMatcher, in 2016. The for-profit business has by now planted over a million trees and is on track to plant several million more in the coming years. EcoMatcher is a Betatron portfolio company. Thanks for joining today, Bas, as you help us understand the ins and outs of the tree planting business here in Asia.

Bas: 0:52
Thank you, Arshad.

Arshad: 0:53
So how did you get into this business?

Bas: 0:55
I am super passionate about technology, and I developed a passion for sustainability about eight years ago. I’ve always been thinking, how can we combine both in a venture that enables me to contribute and do something really cool for the foreseeable future? I’m 58, and I’m not a guy who wants to spend his time on the golf course. I really want to make a difference, meet interesting people, and travel the world. Initially, I started off with a venture making iPhone cases out of reclaimed teakwood. The feature was that we would laser engrave a number into every iPhone case, representing the tree people would have planted or adopted when they bought that iPhone case. They could track it on a simple app. This was more like the iPhone case was the key product, and the tree was one of the features. My corporate clients, as I marketed the products to them as corporate gifts, said, “Bas, we are more intrigued by that number linked to an environmental asset; it’s truly scalable.” So I started talking to FedEx, for example, to link the tree to a tracking number. Step by step, I came to the conclusion that the key part of the value proposition was not the iPhone case but was the tree or that number linked to an environmental asset. So I discontinued that first company and established a new software platform company, focusing purely on this number linked to an environmental asset, which at this moment is a tree. Instead of companies giving their customers a plastic pen, they can now gift a tree. The transaction is simple: the customer receives a URL, and through the EcoMatcher platform, they can virtually travel to the tree in 3D, look at the tree, the farmer, listen to sounds, and even chat with the tree because every tree is chatbot-powered. We do that to make sustainability more fun and engaging. After this corporate gifting focus, we were approached by companies in the market research business who wanted to use trees as rewards for survey respondents. Now we work with market research companies offering trees as rewards for people finishing surveys. We’re also working with brands on loyalty programs; the more products you buy, the more trees you can get. We’ve tried to build a digital platform linked to real trees and offer a value proposition to companies to integrate tree planting into their business with the objective to increase customer loyalty and employee engagement.

Arshad: 4:14
Planting a tree may seem simple, but what complexities have you encountered in the tree planting business?

Bas: 4:24
Tree planting is a science, with many elements that must be addressed to ensure a proper survival rate. You need to physically dig a hole, plant the seedling, cover the ground, water it in the first few weeks, monitor growth, and ensure no invasive species take over. But even before planting, you have to grow seedlings to the right height and physical mass for transport. All of this requires knowledge, attention, and care. The more I’ve involved myself and planted trees in different parts of the world, the more I’ve realized it’s not as simple as it may seem. We vet foundations and NGOs carefully when partnering with them to ensure they follow best practices in tree planting. What we don’t want is to plant a tree, only for it to die after a few weeks, wasting effort.

Arshad: 6:12
Who maintains and monitors the trees in the areas where you operate?

Bas: 6:18
We primarily plant trees in developing countries around the equator, such as Uganda, Ecuador, the Philippines, Indonesia, and India. We work with foundations and NGOs that we vet and bring on board to our platform. They receive funding from our clients and are responsible for planting trees on smallholder farmer premises, in monasteries, and on lands owned by others. The local farmers take charge of monitoring and ensuring the trees grow successfully because the trees provide economic benefits. The soil improves, water wells return, and farmers can also grow crops between the trees. We’ve seen many cases where initially poor land transformed into valuable assets through tree planting.

Arshad: 8:09
In terms of carbon sequestration, how do you measure it, and how much carbon does each tree sequester?

Bas: 8:24
We have data on the carbon sequestration of every tree species we plant, which comes from academic studies. We calculate a standard 25 kilos of CO2 sequestered per tree per year, over a period of 10 years, totaling 250 kilos of carbon sequestration over the tree’s lifetime. While this may vary slightly for different tree species, it’s a useful average estimate.

Arshad: 9:51
The tree planting industry has faced controversies and fraudulent practices in the past. How do you address this issue, and what can listeners do to identify potentially fraudulent companies or practices?

Bas: 9:51
There is a lack of transparency in the tree planting industry. Not every organization is fraudulent, but many are only interested in making money, without ensuring their tree planting efforts are legitimate. At EcoMatcher, we prioritize transparency. We provide our customers with data on every tree planted, including pictures and GPS data. We use blockchain technology to give clients visibility into where their funds are going. Clients receive digital tree planting maps, offering insight into the projects they support. To identify potentially fraudulent companies, listeners can check organizations’ websites, track records, customer profiles, and social media presence. Be cautious of organizations with no or very few followers on social media, outdated posts, or lack of official registration as a foundation in their planting country.

Arshad: 12:38
You mentioned that you weren’t originally a “tree hugger.” Has your perspective changed after being in the tree planting business, and have there been any unexpected personal changes?

Bas: 12:38
Indeed, I remember that conversation where I was primarily a gold entrepreneur chasing business opportunities. I’m not necessarily a “tree hugger” in the traditional sense, but I’ve gained a deeper appreciation for the complexity of trees and their contributions to society. Trees are fascinating; they can communicate with each other underground through their roots and have a significant impact on the environment. I’ve also seen how tree planting can improve people’s lives in places like Uganda, where people depend on subsistence farming. I now see the bigger picture and understand that tree planting can make a huge difference, both environmentally and economically.

Arshad: 14:30
What are the key trends and opportunities you see in the tree planting and carbon offset industry in Asia?

Bas: 14:44
There’s a growing interest in carbon offsetting. More companies want to integrate sustainability into their operations. The Paris Agreement and climate discussions have driven this trend, prompting companies to take action. This opens up a massive market for the tree planting industry, especially in Asia, which has a significant carbon footprint. Companies are increasingly focusing on ESG (Environmental, Social, and Governance) metrics and are willing to pay for verified carbon offsets. The challenge is to create transparency and ensure that the carbon offset claims are legitimate. I see opportunities for the tree planting industry to grow and provide meaningful, verifiable offsets to companies in Asia.

Arshad: 16:27
What’s next for EcoMatcher?

Bas: 16:32
We’re in the process of raising funds to expand our platform further. We want to work with more foundations, NGOs, and corporations, bringing them onto our platform and helping them integrate tree planting into their operations. We also plan to expand our product range, offering different environmental assets besides trees. Our ultimate goal is to make environmental engagement as common as receiving a pen as a corporate gift, but with a much more significant impact on the planet.

Arshad: 17:05
Thank you, Bas, for sharing your insights on tree planting and sustainability in Asia. It’s been great having you on the podcast.

Bas: 17:12
You’re welcome, Arshad. Thank you for having me.