Frequently asked questions about Better Globe
Our aim with Better Globe is to be as transparent as possible for a for-profit company. On this page, we have gathered some of the most common questions that stakeholders have had before they became our clients. If you have any question that is not answered below, click here to contact us.
If the question that your have is not answered below, please contact us.
- What if my tree is attacked by pests or burns up?
- How does the return come from the trees?
- How can you guarantee the return?
- What happens if there is extreme drought or crop failure one year?
- Africa is politically unstable. What happens if there is a change of power?
- Is Better Globe a charitable organization?
- Does three euros for schools and microcredit activities really make a difference?
- Does Better Globe make money on the poor in Africa?
- What happens if the price of timber falls?
- In which countries is Better Globe in business?
- How do I know that Better Globe will do what you say you will do?
- Who are the people behind Better Globe?
- What do you think about the problems with “land grabbing”?
- How do I become a client of Better Globe?
- How much of the donation package goes to charity?
- Is Better Globe ISO or FSC certified?
- The Better Globe film doesn’t work on my smartphone – e. g. Nokia N8
- Are the trees from Better Globe insured in any way?
- How many trees are there per hectare?
- Have you taken the ground water level into account when drilling for water?
- Have they considered that when using such small amounts of water at a time, there is a risk of salt staying in the dirt around the tree and eventually killing it?
- Has Better Globe paid out any returns on investments to tree buyers?
- How can Better Globe guarantee 15 % return and then 10 times the money in 20 years?
- How will lumber prices change over time?
- What risks are there?
- What happens if for instance the Euro collapses?
- What happens if Better Globe goes out of business?
- What does “the numbers” look like for Better Globe?
- What is and what does an ambassador do for Better Globe?
- How are my Better Globe trees taxed?
What if my tree is attacked by pests or burns up?
At home, we write on most pages that once you buy a tree you then have a right to it for 20 years. This means that you actually own a tree but not a specific tree. Had there been a definite physical tree, the risk of the individual tree owner would have been too great. However, our trees are of a special kind, namely Mukau, which we are very experienced in growing with great predictability and creating a positive return.
When Better Globe plants many of these trees, you own one of them. Eventually, Better Globe will always plant more trees than those owned by our customers—at least two trees per owner. You need not worry if your individual trees are attacked by insects, fire, or die in some other way. Similarly, since we have plantations in several different areas, this reduces the risk of fire and other local influences.
Where does the return from the trees?
It simply comes from our business. We sell timber, fruits, and other products that are harvested at our plantations. We also deal with seeds of various trees, and we will soon run nurseries and sawmills and more. Our business has many sources of revenue. For example, when your tree is felled to make way for a new tree, it is sold for considerably more than the € 15 that it cost you when you bought it.
How can you guarantee the return?
Better Globe cannot guarantee any returns. We mean an expected return, which is based on what we know about the cost of labor and machinery and other forms of overhead and also what we know about the price of trees and other things that we sell today.
As with any other activities, you can project expected growth, which we have done. What we do not have in our calculation is any price increase in timber from its level today. We have, therefore, been extremely cautious and made moderate calculations in declaring what we intend to give back to those who own the trees.
What happens if there is extreme drought or crop failure one year?
Our climate and terrain remain constant. We are good at what we do, and we are experienced through a number of years of development. Naturally, anything can happen in the forest industry, but we believe we are very well prepared. In addition, we have plantations in several different places, just to be able to isolate different types of disruptions that may occur.
Africa is politically unstable. What happens if there is a change of power?
We are establishing ourselves in regions that are politically stable, but, of course, anything can happen in theory. In general, Africa is more unstable than many other countries in the world, but we are establishing ourselves in countries such as Kenya and Uganda, where stability is good and has been over time. More and more countries are moving in that direction now, and we hope to contribute with a positive impact on this development.
Is Better Globe a charitable organization?
No, it is not based on the concept of “charity.” We do well in our work and perhaps resemble a charity, but we are not. We believe in operational forces and that people will do their best to lift themselves out of any predicament.
Does three euros for schools and microcredit activities really make a difference?
Yes, it really makes a big difference. When many people work for a common cause, it helps a lot, and in a case such as microfinancing, the money is recirculated so that new people can be helped as older borrowers repay their loans. 1.50 euros in the context of building schools is sufficient for many schools if enough people add 1.50 euros each month.
Consistent and sustained contributions make the difference, not the actual amounts. That is the reason why we focus so much to create an ecnomic upside for the tree buyers and our stakeholders. If there is an economic upside, it becomes obvious to contribute in the long-term, rather then giving a one-off charity at a charity gala. Long-term commitment is the key to real change.
Does Better Globe make money on the poor in Africa?
No, absolutely not! Better Globe earns money on the management of forestry products. We give full-time support to the poor and help them all that we can. They are able to work on a salary, have good health, good employment, and receive an education by working with us. They are also able to get loans and water and have their children in school. It is a win-win-win concept, and we make absolutely no money on “the poor in Africa.”
What happens if the price of timber falls?
Better Globe will earn less money, and this may lead us to revise our estimates. We do so, of course, regularly in any case. Even if prices do fall, however, it will not affect the agreements already made regarding the trees. Owners of trees will get their agreed return, even if we have to change the yield for those buying new trees.
We think it is quite unlikely that the price of trees will fall, since the imbalance between supply and demand on the earth’s resources of trees is very high today. We believe there will always be a shortage of timber, given how much we have destroyed forests in the last 60 years.
In which countries is Better Globe in business?
We currently have plantations in a few places in Kenya, and Child Africa conducts its operations in Uganda and Kenya. People who buy trees and donation packages live in over 60 countries worldwide.
How do I know that Better Globe will do what you say you will do?
You do not know, but we will arrange trips to Africa at least once a year, and we have done so since 2008. On each such trip, many of our customers will have a wonderful journey and an experience to remember—many do it just to see for themselves what we do and how we do it.
We try to be as informative and transparent as we possibly can. We regularly send out newsletters, and we have a magazine called Miti, which also provides information about what we do.
Who are the people behind Better Globe?
Better Globe is privately owned, and Rino Solberg is the initiator, chairman of the board, and hardworking majority owner. A number of other different owners are also involved in the group—either to market the company or who participate in Child in Africa or Better Globe Forestry.
What do you think about the problems with “land grabbing”?
This is a huge problem worldwide, and it affects poor countries and poor individuals. We are totally against such development, but we are also fully aware of what poor people with few resources will do.
Many multinational corporations work with poor governments that sell out their people. This is just one more reason why it is so important that we make our project work and need your help. Without us, sooner or later someone will take land from these people instead of someone like us—who do not buy their land—but give them jobs, schools, water, and many other things.
How do I become a client of the Better Globe?
You can buy donation packages and / or buy trees. Click here to become a client of Better Globe right now »
How much of the donation package goes to charity?
Of the donation package, which costs 49 €, 19 € goes to charity, since the remaining 30 € is used to purchase the two trees you as a customer own and give a return for 20 years. 100 % of the money allocated to micro loan, school construction, and water will go to those purposes.
Is Better Globe ISO or FSC certified?
Better Globe does not currently have any such certifications. Better Globe Forestry who works with the forestry operation is today operating in accordance with both environmental and QMS certifications built around ISO 9001 and ISO 14001, but they are not yet certified. We plan on getting those within the next few years.
Concerning FSC certification; that is also something we’re considering, but that won’t be for another couple of years when we have planted more trees.
The Better Globe film doesn’t work on my smartphone – e. g. Nokia N8
The website can unfortunately, due to technical reasons, not always identify your phone – we’ve especially had problems with Nokia N8. One solution is to download another web reader, for instance Opera and install it on your phone. Then visit the website again in Opera, which should work.
Are the trees from Better Globe insured in any way?
We have researched the possibility to insure the trees. It is possible to insure the trees, but the premiums we’ve been quoted have been so high that it is not reasonable to insure them from a business or financial perspective.
And insurance would only cover the purchase price which would not be enough for our customers. We are therefore working actively to mitigate the risks in many different ways. Our plantations are geographically spread out, we are continuously working on improving the quality of the trees we’re planting, and we have good margins on everything we do.
We have the ambition to in a very near future plant two trees for every one sold to ensure as far as possible that regardless of what happens to an individual tree, we can keep our promises.
How many trees are there per hectare?
Today we’re planting about 400 trees per hectares. A hectare is 10,000 square meters or an area of 100 by 100 meters.
Have you taken the ground water level into account when drilling for water?
Yes, these issues are also monitored by NEMA (National Environment Management Authority) who has to give their approval before any drilling for water can take place.
Have they considered that when using such small amounts of water at a time, there is a risk of salt staying in the dirt around the tree and eventually killing it?
Yes, we have over 5 years of our own research in combination with both our own empiric experience and expert advice on how we can create the best conditions for cultivation at our different plantations.
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Has Better Globe paid out any returns on investments to tree buyers?
Yes, Better Globe paid out the first returns in 2010 to those who purchased trees in 2006, and a second payment in 2011. Those who purchased trees in 2007 got their first return paid out on December 7th, 2011. The number of people who received payments in 2011 was 909.
How can Better Globe guarantee 15 % return and then 10 times the money in 20 years?
Better Globe cannot guarantee any return, but those are numbers we are confident, from what we know today, that we can deliver. The yearly return comes from so called cash crops such as applemango that we can plant in Nyongoro, but also from other products in the operation that we can sell, such as seeds, fruit, consulting, Miti, and more. We are also counting on being able to sell other products based on Mukau trees, starting in 2012. Better Globe is of course like any other company depending on being able to sell our products on the market. Please take a look at the answer to the next question as well.
How will lumber prices change over time?
We are continuously following ITTO market reports and analyses, even if their reports aren’t specifically about Mukau trees, which are the trees we have. Mukau is actually of better quality than mahogany, which they do report on, and the market analyses are in our favor. According to ITTO the price (Export sawnwood prices) for Kiln Dried Mahogany was 665 € per cubic meter in the end of 2009, and in the end of 2011 it was 685 € per cubic meter. An increase of about 3% in two years.
Our mahogany tree Mukau is also of significantly better quality than “African mahogany” of which a fully grown tree of about 0.35 cubic meters is worth about 230 € today (2012), which is more than enough to cover the 150 € to be paid out after 20 years.
In addition, we don’t think the price for mahogany will be stagnant in the next 20 years, but even if it would be, there are enough margins to cover our obligations. We therefore consider this market risk minimal.
What risks are there? E.g. lumber price, euro collapsing, the company goes bankrupt, one of the employees die, etc.
Of course there are risks with Better Globe and we work hard on mitigating and minimizing these risks. We discussed lumber costs in the question above; the collapse of the euro has a very small impact since we can pay out the return in another currency if needed. The risk for a company without debt is small, but that is of no consequence since the trees are owned by the people who purchased them. Please take a look at the answer to the next question as well. All employees will sooner or later expire, but the trees belong to the owners regardless, and it would of course be a practical problem if all employees died at the same time.
What happens if for instance the Euro collapses?
From the tree owners’ perspective, a collapse of the euro is almost negligible, since the return is depending on our ability to sell our products on the world market, where payments are made in the currency requested. That means that we, if the situation demands it, can fulfill our commitments in other currencies such as US dollars, British pounds, or any other currency.
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What happens if Better Globe goes out of business?
You as a customer of Better Globe already have a document showing that you own a certain number of trees purchased in a specific year. Our forestry company Better Globe Forestry Ltd. in Kenya has, on their own initiative, contracted with an attorney to draw up a letter that will function as additional proof of ownership. Our ambition is to complete it during 2012.
What does “the numbers” look like for Better Globe?
The Norwegian company falls under Norwegian law for incorporations, which means that you can get the annual report every year. You can look at the records from the Norwegian Bolagsverket by clicking here or here. Our entity number is 992593148.
What is and what does an ambassador do for Better Globe?
An ambassador for Better Globe is a person who likes the operation of Better Globe so much that he or she wants to share it with other people in their environment. It’s a person who is an ambassador for the brand and the company Better Globe. Just like any other company, Better Globe appreciates if existing customers recommends new customers. As a thank you, Better Globe gives a bonus donation to all customers, regardless whether or not they are ambassadors, who helps out and recommends 6 new customers who purchase a monthly donation package. Read more about recommending Better Globe here »
There is also an opportunity for ambassadors to sell trees and donation packages on a professional level for compensation from Better Globe for every sold tree. For more information, contact your ambassador or read more here »
How are my Better Globe trees taxed?
The trees are tax in accordance to the tax law you fall under. It would be administratively impossible for Better Globe to send out tax information to several thousand customers in over 60 countries, so it is your responsibility as a customer of Better Globe to make sure you’re following the tax code in your country.
Talk to your accountant or tax attorney to find out how the trees are taxed if you own them through your company.
If you can’t find answers to your questions on this page, please click here to contact us.