The &Green Fund

01 / SUSTAINABILITY

THE FUND

&Green’s goal is to finance the delinking of major commodity supply chains from deforestation in a way that is commercially viable and replicable. The Fund focuses on the tropical forests and peatlands most in need of protection and invests in the commodity sectors most active in those valuable ecosystems, i.e., beef (livestock), palm oil, soy and forestry (including rubber).

Pelerson Penido Dalla Vecchia, CEO of Group Roncador &Green portfolio company since 2020

Supporting farmers in their efforts to develop more efficient production models in food production, soil regeneration and carbon capture is critical in tomorrow's land use strategies. We welcome &Green's focus on financing companies like ours, working on creating sustainable and commercially viable projects for the sector.

02 / THE OPPORTUNITY

WHY WE INVEST

Despite concerns about climate change and biodiversity loss, natural ecosystems are being converted at an alarming pace. The agriculture sector continues to be one of the drivers of this conversion. However, it is also a sector that can contribute to mitigating climate change and halting biodiversity loss by implementing sustainable and inclusive practices.

To date, farmers, cooperatives and other supply chain actors find it difficult to attract funding for the transformation of conventional agricultural operations into sustainable practices. As a consequence, business continues as usual. At &Green we believe this is a missed opportunity. There are clear blueprints for new agricultural models that not only provide environmental and social returns, but also result in attractive financial benefits.

Via innovative financial instruments that take away part of the risks of investing, &Green paves the way for other investors to participate in these opportunities. This results in attractive returns on investment and truly sustainable, deforestation-free and regenerative land-use.

03 / THE STRATEGY

OUR THEORY OF CHANGE

With its impact statement, &Green defines in a clear and concise way the impact it aims to achieve with its investments; “&Green works across tropical forest landscapes to support agri-commodity businesses that empower communities, protect forests and optimize production to drive transformational change of global supply chains”.

While this statement represents &Green’s impact strategy at a high level, it can be further unfolded to a second – more detailed – layer showing the different pathways through which &Green’s activities enable the achievement of its vision. This is the &Green’s Theory of Change.

04 / INNOVATIVE FINANCE

OUR SOLUTIONS

While financing conventional agriculture is a mainstream activity – financing existing agribusinesses to provide more sustainable outcomes is perceived as a high-risk activity. There is still not enough evidence of viable short term business cases that – in addition to protecting forests and peatland – also result in attractive returns on investment.

&Green offers solutions that demonstrate the blueprints for successful agricultural transformation which offer attractive returns. As an investment fund, &Green provides patient, long-term financial support to carefully selected clients. &Green has the ability to provide finance which is repaid after the client’s other financiers (subordinated debt) and to provide greater flexibility than traditional lenders. With &Green in the project, it is less risky for other investors to step-in. In this way we make it more attractive for global capital markets to allocate the significant investments required to address deforestation.

&GREEN IN PRACTICE