The IPCC Mitigation of Climate Change report published in April emphasises the key role of the agricultural and forestry sectors in the reduction and absorption of CO2 emissions needed to achieve global carbon neutrality. The major role of land use in meeting the challenge of combating climate change, as well as nature protection and food security, will also be the focus of the 15th Conference of the Parties (COP) of the United Nations Convention to Combat Desertification (UNCCD), which begins on May 9 in Abidjan.

Agroecological transition involves implementing sustainable land management practices through large-scale projects and programmes in the agricultural and forestry sectors, requiring long-term investments.

Mirova has been developing an approach dedicated to sustainable land use for the past six years, emphasising the value creation potential and positive environmental and social impact of agricultural and forestry value chains. Following the announcement of the closing for the fund dedicated to sustainable land use, at more than $200 million, Mirova unveils today three new investments representing a commitment of over $38 million.

  • Atlas Fruits (Morocco): supporting the development of Atlas Fruits Company to implement sustainable practices in the citrus production sector in Morocco, with a particular focus on water resource management. The team will acquire a minority stake in Atlas Fruits Company to improve irrigation systems, set up agroforestry systems, and develop precision farming in existing orchards.
  • Aloe Agroflorestal (Brazil): a partnership between Mirova and the French group SLB to develop land restoration projects, with a focus on the use of biochar. This first investment in Brazil aims to restore up to 2,000 hectares of degraded land through sustainable forestry practices.
  • Kennemer Food (Philippines): supporting Kennemer's implementation of sustainable agroforestry practices in the cocoa and fruit sectors in the Philippines, in partnership with more than 19,000 independent producers.

With these three new investments, the team has invested in nine projects and programs in 11 countries (Bhutan, Brazil, Colombia, Ghana, Kenya, Laos, Morocco, Nicaragua, Peru, the Philippines, and Sierra Leone) in diversified value chains (wood, coffee, cocoa, fruits, and nuts, etc.).

The value creation and impact potential of the underlying projects are based on improved yields made possible by agroecological practices, certification premiums (organic, fair trade, FSC, etc.), as well as processing units, and the generation of carbon credits.1

The team is targeting new investments by the end of 2022, with projects in Africa, Latin America, and Asia currently under review.

Mirova is more committed than ever to financing Nature-based Solutions to pursue the agroecological transition and the growth of an asset class dedicated to the protection and restoration of natural capital.

For Further Reading:

1 Carbon credit: unit equivalent to one ton of CO2 avoided or sequestered.

Mirova
Mirova is an affiliate of Natixis Investment Managers.
Portfolio management company - French Public Limited liability company
Regulated by AMF under n°GP 02-014
RCS Paris n°394 648 216
Registered Office: 59, Avenue Pierre Mendes France – 75013 – Paris.
www.mirova.com

Natixis Investment Managers
Natixis Investment Managers is a subsidiary of Natixis.
Portfolio management company - French Public Limited liability company
RCS Paris n°453 952 681
Registered Office: 43, Avenue Pierre Mendes France – 75013 – Paris.
www.im.natixis.com

This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.

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