01 / TRANSFORMATIONAL CHANGE

INVESTMENT STRATEGY

&Green is a thematic investor looking for businesses which fit squarely within the core mission of delinking deforestation from major commodity supply chains. We finance the transition of these supply chains from extractive to truly sustainable blueprints for others to adopt, replicate and scale. &Green identifies those businesses directly or indirectly involved in commodity production, downstream and upstream in the supply chain in our Approved Jurisdictions.

Prospective clients are those who are willing and able to map out and then commit to:

  • A No Deforestation, No Peat and No Exploitation (NDPE) Policy;
  • An Environmental and Social Action Plan (ESAP); and
  • A Landscape Protection Plan

By implementing these commitments, our clients transform their agricultural operations to become more sustainable – and more attractive to further investors.

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

THEORY OF CHANGE
02 / COMMODITY SUPPLY CHAINS

OUR TARGET CLIENTS

We invest in businesses that are directly or indirectly involved in production of our target commodities in our Approved Jurisdictions.

We monitor the impact of our investment in a Landscape by measuring:

ENVIRONMENTAL RETURNS

hectares of forest conserved or restored and
avoided deforestation

SOCIAL IMPACT

households and
smallholder farmers benefitting

Our clients make notable public commitments in their Landscape Protection Plans and we measure and report their progress against those commitments publicly.

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03 / DE-RISKING INVESTMENTS

Financial instruments

&Green provides USD 5 million to USD 30 million in long term (5-15 year) credit or guarantees. Our experience and skills enable us to structure and price credit facilities which are both affordable to our clients and responsibly mitigate and manage our investors’ credit risk. At the same time we provide our investors with attractive risk adjusted returns.

The Fund can absorb higher short and medium term risk, so the credit can accommodate lower cash flow requirements in the early years. This partially compensates our clients for the additional upfront project development costs, particularly related to environmental and social criteria requirements.

&Green also has a budget for providing Technical Assistance (TA) to prospective clients. With this additional support they can improve their practices and get ready for the investment.

OUR PORTFOLIO
04 / RIGOROUS SCREENING

Investment process

The Investment Advisor SAIL Investments only presents credible investment opportunities, that meet the &Green investment criteria, and heavily scrutinized by the Investment Committee (“IC”). The Investment Committee, is appointed by the B.V.’s Board, although the Stichting has a right to make one nomination (of an independent). The IC makes all final investment decisions and oversees restructuring and impairments.

ONGOING

PRE-ORIGINATION

Jurisdictional Approval

  • Jurisdictional Eligibility Criteria assessment is done on relevant jurisdictions
  • Approved by the Advisory Board of &Green.

Market Research

  • Ongoing market analysis (sectors, regulation, deals and players)

List of eligible countries

Weekly market discussion meetings

1 MONTH

ORIGINATION

Deal Pipeline

  • Global in-house team, on the ground, and specialist network

Investment memo, approved by investment & sustainability team

2 MONTHS

4 MONTHS

1 MONTH

DEAL EXECUTION

Investment/Sustainability Risk Screening

  • Pipeline deal filtering
  • Credit risk screening: initial term sheet, credit risk, mandate fit, structure of transaction
  • Sustainability risk screening includes (proprietary risk frameworks):
  • Forest & Biodiversity
  • Human Rights
  • Gender
  • Reputational
  • Climate

Due Diligence (DD)

  • Credit analysis (commercial, financial, legal)
  • Sustainability team engages external experts for E&S DD
  • Analysis of E&S DD findings to develop LPP and define ESAP.

Contracting & Disbursement

  • Executing of Facility Agreement, including both:
  • Term sheet, Financial terms, covenants, lender protections
  • E&S covenants (accepting ESAP, LPP and NDPE covenants)
  • AML and legal analysis
  • Co-Investors engagement

Deal Note, submitted to Investment Committee (IC)

Final proposal submitted to Investment Committee (IC)

Signing and disbursement schedule

5-10 YEARS

PORTFOLIO MANAGEMENT

Monitoring & Reporting

  • Ongoing client engagement on risk and sustainability monitoring
  • Quarterly, Semi-Annual, Annual reporting, following leading sector and disclosure frameworks
  • Restructuring, early warning system and work out management

Annual , Semi-Annual, quarterly reports: UNPRI, SFDR Art 9., TNFD, TCFD

3-9 MONTHS

EXIT

Exit Report

  • Financial and E&S analysis of borrower performance

Exit Report

OUTPUTS OF THE INVESTMENT PROCESS

06 / LAWS AND REGULATIONS

Environmental, Social and Governance (ESG) safeguards

We work in sectors and regions with progressive forest protection policies. In addition to the required compliance with all applicable local laws and regulations, &Green investments also safeguard Environmental, Social and Governance (ESG) standards as part of the investment process as follows:

  • Investments must follow the International Finance Corporation Performance Standards (IFC PS), or equivalent;
  • Clients must implement an Environmental and Social Action Plan (ESAP) in order to address gaps with the IFC PS and the E&S risks identified;
  • Clients must make a commitment to No Deforestation, No Development of Peatlands, and No Exploitation (NDPE) at organizational level;
  • The project area forest and peatland must be covered by a long term Landscape Protection Plan (LPP), and
  • Co-investors in a project must comply with ESG standards, specifically the IFC PS or the Equator Principles