Investment Strategy

&Green provides credit or guarantees to finance commodity supply chain projects in jurisdictions with progressive forest and/or peatlands protection strategies & policies.

Projects are expected to provide substantial Environmental Return that can be monitored throughout the investment period, and must adhere to strong social and environmental covenants as well as a plan for the protection of the wider landscape around the project.

All &Green investments must be additional and leverage significant 3rd party financial participation.

&Green does not provide grants or non-commercial investment, and it does not fund projects without a direct land-use impact.

Environmental Return

&Green has an Environmental Return target of 5 million hectares of tropical forest protected or restored.

&Green will assess every transaction with respect to its potential for generating Environmental Return, and will monitor its achievement through a suitable set of transparent KPIs. The level of Environmental Return has a direct impact on &Green’s pricing.

Conserved Forest: existing primary forest protected; i.e. the upkeep of existing natural resources within a forest.
Avoided Deforestation: The avoidance of converting intact forest for production uses through the intensification of existing production, resulting in equal output on fewer hectares.
Restored Forest: The restoration of degraded forest to its original state, that is, to re-establish the presumed structure, productivity and species diversity of the forest originally present at a site.

&Green investments must contribute to Environmental Return in at least one of these dimensions commensurate with the amount of investment provided.

Social Inclusion of local communities and/or smallholders is an essential component of a robust Environmental Return.

Environmental, Social and Governance Safeguards

&Green investments safeguard environmental, social and governance standards as part of the investment process. In addition to compliance with all applicable laws and regulations, …

  • … investments must follow the IFC Performance Standards (or equivalent) and implement an Environmental and Social Action Plan in order to address gaps and risks identified;
  • … investee companies must make a commitment to No Deforestation, No Development of Peatlands, and No Exploitation (NDPE) at organizational level; and
  • … investees must obtain Free, Prior and Informed Consent (FPIC) of all local communities in the production and conservation areas of the project.

The project area and all adjacent high carbon stock and high conservation value forest and peatlands must be covered by a long-term Landscape Protection Plan.

Financial institutions acting as &Green’s co-investor in any project are expected to comply with environmental, social and governance standards, specifically the IFC Performance Standards or the Equator Principles.

 
 

Financial Instruments

&Green is derisking investments in sustainable agricultural production with a strong component of tropical forest protection or forest restoration.

&Green provides loan or guarantee instruments, with the capacity to provide long-term (5-15 years plus) tenors as needed for the transition to more sustainable ways of production. In order to leverage additional investments, &Green’s participation in any project is capped at 25% of total risk. &Green aims for an average investment of USD 10-15 million in projects it participates.

The pricing of &Green investments will be structured in a manner that maintains the fund’s capital base over the long term. &Green can partially compensate clients for the additional upfront project development costs resulting from environmental and social criteria by providing a more attractive financial offer over the term of the investment..

Target Client Base

&Green invests in private companies that directly or indirectly are involved in commodity production, including sufficiently independent state-owned enterprises:

  • Supply chain companies directly sourcing from land-users and their aggregation structures
  • Medium- to large-scale plantation and farming businesses
  • Financial institutions managing an agriculture portfolio or similarly influencing land-users, including special purpose vehicles such as funds
  • Service and input providers in the agricultural supply chain that can influence land-use behavior directly.

Where it supports &Green’s Theory of Change alternative business models are also eligible for investment.

Investment Process

&Green’s investment process allows for continuous assessment of potential investments and combines financial and environmental, social and governance due diligence.

The final Investment decision on any investment is made by an independent Credit Committee, appointed by the &Green Board of Directors.

Prins Bernhardplein 200, 1097JB
Amsterdam, The Netherlands
info@andgreen.fund
+31 (0)20 240 2200

Investment Advisor:

&Green was developed under the leadership of IDH as incorporator of the Fund in close collaboration with NICFI. IDH has received design and structuring advice from Innpact, a consulting firm specialized in the setup of impact finance funds.