The &Green fund is now investing in Marfrig Global Foods, through a 10-year, USD 30 million loan agreement. The loan will finance Marfrig’s investments in a deforestation free cattle supply chain. The agreement formally ties Marfrig to specific steps leading to a fully traceable and deforestation free cattle supply chain in both the Amazon and the Cerrado biomes by 2030.
Will stop buying from deforesting farms
The Brazilian beef industry has been and still is intimately linked to high deforestation rates. Increasing pressure from campaigners, supermarkets and consumers has led Marfrig and other slaughterhouses to strengthen control over their direct suppliers of cattle. This has not been enough to stop cattle driven deforestation. Marfrig is now reconfirming its commitment to trace all cattle back to its place of origin and stop buying from deforesting farms, including their estimated 90.000 indirect suppliers.
The &Green Fund was set up to provide financial risk reduction for companies that want to transition to deforestation free production of soft commodities (e.g. soy, palm oil and cattle). It offers long term finance under conditions that are tailored to companies’ needs in return for strict environmental and social commitments by the companies. The specific commitments are specified in a Landscape Protection Plan (LPP) and an Environment and Social Action Plan (ESAP), which are integral to the legal loan agreement. The &Green fund is promoting transparency as a key element of their environment and social ambitions and are making both the LPP and the ESAP available at the webpage of the fund www.andgreen.fund.
Supported by Norway, operating independently
The &Green Fund is an independent entity with a professional credit committee and board that makes investment decisions. The donors, which include Unilever and Global Environment Fund in addition to NICFI, are not involved in investments decisions.
For further details, see www.andgreen.fund
Photo: NICFI