00
About this report
Welcome to the &Green Annual Report covering activities from 1 January to 31 December 2022. This report is designed to be accessible whether you have a deep insight into our work or discovering us for the first time. In addition to a comprehensive overview of our activities and expanding investment portfolio, we include information about why we do what we do, our investment approach and our growing network.
The Annual Report 2022 builds on the success of the digitalized version we published for the first time in 2021. A highly visual and interactive experience means readers can jump quickly between different sections to explore deeper detail through layered content.
For example, we have defined words key to understanding &Green’s activities. Hovering over a word that looks like this will show the concept definition. The left-hand menu provides support as a constant overview and enables full Report navigation.
A special focus in this years’ Report is the concept of transformational change and how we expect this transformation to look. &Green was created to drive transformational change across core global supply chains, and which is why we have thus chosen it as an underlying theme for the 2022 Report to make it easier for the reader to make a somewhat abstract concept clearer.
&Green’s financial and impact performance is captured in the 2022 Annual Impact KPIs (Section 11) and the 2022 Annual Financial Report (Section 13).
We are excited to present how &Green is bringing its purpose to life, creating transformational change while remaining committed to the highest levels of reporting transparency.
01
&Green's Purpose
We have a vision of people thriving on a sustainable planet.
&Green was created within this context to finance the transformation of global commodity supply chains so that they can have positive climate and biodiversity impacts while still delivering on growth targets.
02
2022 Highlights
&Green Highlights
NEW TRANSACTION: MERCON USD 20 MILLION LOAN
NEW TRANSACTION: FS USD 30 MILLION LOAN
NEW TRANSACTION: HDL USD 12 MILLION LOAN
USD 165 MILLION TOTAL CAPITAL DEPLOYED
USD 50 MILLION PARTNERSHIP WITH THE CENTRAL AFRICAN FOREST INITIATIVE (CAFI)
Operational Highlights
This year, we added 3 Full Time Employees (FTE)
Sail Ventures, our investment manager, won the 2022 Asset Manager of the Year – mid size Award.
Four transactions received Technical Assistance (TA) in 2022, financed by &Green’s TA or the IDH TA Facility for &Green
In 2022, we started 2 new partnerships
03
Letter from the Board
A YEAR OF DEAL MOMENTUM
On the back of new investors in 2021, &Green closed and disbursed on four transactions within a 12-month period demonstrating we are building strong market interest, and we now have the systems and people in place to allocate funding effectively.
NANNO KLEITERP
Chairperson of the &Green Board of Directors
STRATEGIC PROGRESS
During 2022, &Green added Vietnam as a new jurisdiction to our portfolio. The team closed a corporate transaction with Mercon Group, a top 10 global coffee producer, that focuses our partnership on their Vietnamese sourcing strategy.
This transaction is timely given the EU reached agreement in December on a new law to prevent companies from placing commodities linked with deforestation and forest degradation onto the EU market. While the exact mechanics of the law are still being settled, coffee was listed as one of these commodities fueling expectation that the sector will need to provide evidence it is not linked to deforestation. Vietnam is one of the highest risk countries for the coffee sector. &Green’s efforts with Mercon fit into this agenda and we see opportunity with other actors in the supply chain as well.
In Brazil, we closed a transaction with a company buying corn from farmers in Mato Grosso. Corn is the farmers’ second crop for soy (main crop) and, through the client’s deforestation-free commitment to &Green, it is essentially a soy supply chain approach. The client is also making other impactful changes to its business with the support of &Green, see the portfolio section for more.
I was pleased to announce a planned partnership with the Central African Forest Institute (CAFI) at COP27. &Green intends to scope the potential in Central Africa over the coming years, backed by funding from CAFI and supported by the UN Development Program («UNDP»). The Congo Basin is the largest primary tropical forest in Africa and, with a lack of opportunities for the highest-growth population in the world, the forest faces a continuous and increasing cycle of deforestation. &Green will assess whether there are commercially scalable opportunities to address this threat over the coming years.
Operational Highlights
The financial performance of 2022 was in line with expectations as &Green maintains its ability to preserve capital for investors. Despite increasing our provisions on RLU, the financing was eventually repaid in its entirety with the &Green investment team managing the process well. We are disappointed to be out of that project, as we laid a lot of key foundations with the client for them to grow sustainably in the coming years. Nevertheless, with access to preferential pricing from a large parent company, RLU is primed to be a success and we wish them well.
The rest of the portfolio has been performing consistently, and costs came in under budget. This means &Green remained fiscally sustainable during 2022 having paid all its financing costs, the investment advisor, and all other operating expenses.
We remain vigilant however, given the Fund’s long duration and with principal repayments typically back-ended. The Board remains cautious about the expected financial performance of &Green and is managing the credit risk closely.
Unlike the past two years, &Green was able to have physical meetings in the year, and the Board met twice in The Hague (May and November). All governance bodies also came together for a day in November in which the current state of the Fund was discussed, as well as the Fund’s path forward to scale.
Looking Ahead
2023 is an important year to create a mechanism for scale for &Green. &Green is an open-ended investment approach which needs to reach a critical scale for it to be a relevant tool in actually achieving the zero-deforestation world we want. Governments, and corporates, upped the ante at Glasgow 2021 (COP26) by declaring 2030 as the date to achieve this.
In 2023, we will extend our efforts to bring in further new funding to &Green to allow us to meet our portfolio targets over the coming years. Besides engaging with leading climate donors, multilaterals and development banks, &Green is also deepening its understanding of the requirements for private investors to finance the further scaleup of this initiative.
We will continue to diversify our portfolio in 2023, bringing high value opportunities to the fore and showcasing to the market how financing can be put to work to support the transition towards deforestation-free and sustainable supply chains.
Finally, we remain committed to the highest level of transparency. Our website and reports, most of which can be made public, will continue to provide all stakeholders with the opportunity to engage meaningfully with our approach and our portfolio. The team at &Green continues to seek new ways to explain the mission and theory of change of &Green, and then link that to the impacts being generated by our portfolio.
04
The &Green Approach
WHERE we invest
Our focus sectors and Geographies
&Green’s targets sectors linked to land degradation and deforestation . Sectors include agriculture (palm oil, soy, coffee, cocoa among others), cattle/dairy, and plantation forestry (such as rubber).
CATTLE
SOY
COFFEE
FORESTRY
PALM
RUBBER
We concentrate in selected geographies where globally significant commodity value chains are active and there is a clear risk of them being a driver of deforestation , today or in the near future.
&Green finances transactions where there is a clear investment rationale for how our financing will play a demonstrative role in de-linking deforestation and land degradation from commodity production in a way that is commercially attractive. This investment rationale leads to blueprint transactions.
Our current investment portfolio – geography and commodities; at the end of 2022 is:
*Total Portfolio excludes RLU as it was redeemed in the third quarter of 2022.
To mitigate portfolio concentration risk, and minimize the potential impact of sector or country volatility, &Green aims to diversify its geographic exposure in the coming years. This strategy aligns with the principles of best fund management practices.
OUR FOCUS CLIENTS
&Green invests early in transformative transactions led by businesses with the capacity to drive sustainable and deforestation-free production, influencing the industry and driving it towards a sustainable future.
We fund transactions to serve as blueprints which other sector actors can adopt and follow.
01
SCOPE
Volume and quality of forest and/or potential of the jurisdiction hold substantial importance on a global scale.
02
AMBITION & STRATEGY
Jurisdiction has a clear strategy with targets to track deforestation reduction against historical trends.
03
PROGRESS
Jurisdiction’s strategy shows timely progress towards milestones on the path to achieving deforestation reduction targets.
04
MRV
Jurisdiction has transparent monitoring, measuring, reporting, and verifying deforestation reduction systems. Forest and peat degradation systems where applicable.
05
SOCIAL & ENVIRONMENTAL SAFEGUARDS
Jurisdiction demonstrates progress implementing the Cancun Agreement .
Vietnam
Zambia
Laos
Indonesia
Colombia
Brazil (Para)
Brazil (Mato Grosso)
Ecuador
Peru
Gabon
Liberia
Paraguay
Democratic Republic of the Congo
Cote d'Ivoire
Cameroon
Malaysia
Brazil (Roraima)
Mexico
Brazil (Tocantins)
Ghana
Central African Republic
Equatorial Guinea
Republic of Congo
HOW WE INVEST
OUR FINANCING PROPOSITION
&Green offers borrowers a bespoke market-specific solution that includes long-term financing tailored to their business and to supply chain transformation.
Tailored financial terms
A long-term partnership
Supporting the borrower to be a climate champion
A transition strategy through &Green’s Landscape Protection Plan
Capturing the Environmental and Social integrity of the borrower
The &Green team assists clients develop credible landscape, plans to generate economic, social and environmental value in geographies that hold critical importance for local communities, food security, biodiversity and the global climate.
OUR REPORTING AND MONITORING
KPI FRAMEWORK AND ENVIRONMENTAL & SOCIAL MANAGEMENT SYSTEM (ESMS)
&Green relies on a series of tools and processes to gauge transformation and to monitor impact in each transaction.
These tools and processes are embedded in the investment process. For example we use a set of Key Performance Indicators (KPIs) at the portfolio level which are publicly reported as a dashboard and updated annually . These KPIs are derived from clients’ reported Environmental and Social Action Plan (ESAP) outcomes, supplemented by additional analysis conducted by Sail Ventures, the Investment Manager, using client data and publicly available information. &Green also uses a real-time satellite monitoring system to track forest dynamics within the jurisdictions it operates.
In 2021, &Green updated the KPI Framework to improve its ability to track transformational change and impact. This update reflects the importance of using evidence-based data for our growing community of stakeholders and investors.
The updated KPI Framework – which builds on and integrates previous indicators – tracks forest, climate, social, and financial KPIs. The data used to establish the revised KPIs is systematically aggregated from a range of additional operational indicators. These indicators play a crucial role in informing both the monitoring of environmental and social compliance, and the tracking of impacts.
All KPIs, like JECAs , form part of &Green’s Environmental and Social Management System (ESMS). The ESMS is designed to systematically identify, manage and report on environmental and social aspects as well as potential impacts of &Green’s investments.
&Green aims to establish a cohesive and standardized investment process flow that encompasses financial considerations, impact assessment, and environmental and social compliance aspects. Our ESMS is underpinned by the International Finance Corporation (IFC) Performance Standards , a globally recognized benchmark for identifying and managing environmental and social risks. These standards were developed by the World Bank’s private sector arm, the IFC, and have been used by international investors investing in developing countries for over two decades. Standards are consistently adapted and improved.
KPI FRAMEWORK
For each investment, the most suitable indicators are identified to track the transformational change sought to generate evidence.
The identified indicators demonstrate progress towards the vision outlined in the Landscape Protection Plan, tracking both quantitative impact and its contribution to supply chain, sector, and business transformation.
STANDARD-RELATED ELEMENTS OF &GREEN’S ESMS
Click on the respective underlined elements to view more information:
EU TAXONOMY
The EU taxonomy establishes a classification system for environmentally sustainable economic activities based on their contribution to meet environmental objectives. Although not mandatory for &Green, the Fund continually improves its environmental and social management practices to align with this taxonomy. &Green successfully developed the Forest & Biodiversity Framework and plans to expand its methodology for climate adaptation objectives in 2023 to enable robust reporting on Principal Adverse Impacts and showcase best practices within &Green’s ESMS .
LPP
The Landscape Protection Plan (LPP) is a comprehensive, long-term land use and management plan jointly developed by the prospective client, &Green, and key stakeholders. The LLP assesses the client’s operational baseline and evaluates the potential impact of the proposed transaction. In addition, the LPP plays a crucial role as part of &Green’s impact driven approach. The LPP sets impact targets and milestones for the loan duration, outlined in an Environmental and Social Action Plan (ESAP) that ensures compliance with IFC Performance Standards (and sustainable supply chain standards).
The LPP act as the ‘overarching plan’ for clients to fulfill the NDPE , the Forest & Biodiversity Framework, E&S compliance and other sustainable supply chain standards.
Client LPP and ESAP commitments are published on the &Green website and rigorously monitored. These requirements mitigate risks and enhance long-term sustainability for investors and clients alike.
NDPE
The No Deforestation, No development of Peatlands, and No Exploitation (NDPE) is a public commitment made by our clients to ensure that their operations are sustainable. This commitment ensures that there is no deforestation, peatland destruction, or exploitation of Indigenous People within their business operations and supply chains.
A combined investment approach risk-and impact-based approach completes the NDPE policy:
- The risk-based approach ensures clients are aligned with &Green’s vision within the approved jurisdictions and throughout their global operations.
- The impact-based approach, looks forward, and delivers impact for both the client and sector. The building blocks include the financial and sustainability requirements applied to all transactions within &Green’s eligible jurisdictions.
TASKFORCE ON NATURE-RELATED DISCLOSURE (TNFD)
&Green is the first impact fund to pilot the TNFD beta framework to manage and disclose nature-related risks and opportunities in our investments. The TNFD is a global, market-led initiative, established to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related risks. The mission of the TNFD is well aligned with the &Green Fund: to support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes.
&Green is an active member of the TNFD Forum, which facilitates the exchange of learnings with the community. In 2022, we were hosted by the TNFD Piloting Clinic to speak about “The LEAP Approach for Financial Institutions – Scoping, Locate, Evaluate”. These clinics are intended for the finance community to exchange insights from the TNFD piloting experience, and more generally about the opportunities and challenges that investors face in realizing a nature-positive investment strategy. The event drew over 500 participants in two sessions, signalling a keen interest from the financial sector in biodiversity.
05
The Investment Manager
SAIL Ventures
Sail Ventures (SAIL) is an emerging global alternative asset manager headquartered in the Netherlands. SAIL finds transformational opportunities for investors seeking to drive positive change and achieve attractive, long-term absolute returns.
The investment firm integrates environmental and social returns into the investment strategy to build asset portfolios at scale. Our portfolios strive to generate compounding impact and economic returns by implementing our transformational change approach, exemplified in the &Green Fund.
Wholly owned by management, SAIL operates with a diverse and dedicated team. The team combines financial acumen with extensive environmental, social, and governance expertise with over 245 collective years of experience in private market investing.
SAIL is &Green’s trusted partner and advisor since July 2017 to identify, prepare, structure, execute and monitor investments. SAIL is also responsible for Fund partnerships with co-investors, and fundraising and investor relations activities.
Multidisciplinary Team
THE FACES OF SAIL
Diverse, experienced, and passionate team
NEW
NEW
NEW
In 2022, three additional resources have joined the SAIL team to enhance our investment process.
06
The Portfolio
OUR INVESTMENTS
With three new investments made in 2022, the &Green portfolio now comprises seven transactions:
07
Fund Performance
2022 NET RESULT BRIDGE
There was an improvement in the provision for impairment under the Expected Credit Loss (ECL) method primarily due to the writing back of the provision relating to RLU once it was repaid in full. However, there was also an increase in financing costs due to the further draw down from FMO. The Net Result for 2022 of USD 11.8 million was skewed by the significant unrealized FX gains primarily relating to the Fund’s Norwegian krone (NOK)-denominated grant contribution (which further depreciated in value by USD 9.6 Million over 2022 due to the weakening of the NOK). Operating Costs were in line with the budget set by the Board.
The conversion of the HSJ transaction from being a hedged floating rate loan denominated in COP in to a fixed rate loan denominated in USD, meant that the loss caused by the depreciation of the COP against the USD was realized at the same time that the commensurate profit on the cross currency interest rate swap was paid out when that hedge was terminated.
EXPECTED CREDIT LOSS (ECL) METHOD
2022 was the second year during which the Fund implemented the more prudent ECL method to estimate allowances for expected credit losses and impairments of &Green portfolio investments. The ECL method categorises investments as either:
Stage 1
Which are Performing Investments with no significant increase in credit risk since investment, and for whom the provision for impairment is equal to the 12 month ECL.
Stage 2
Which are Investments for which the credit risk has significantly increased and the provision for impairment is increased to the Lifetime ECL for the investment.
Stage 3
Which are Credit Impaired Investments for which the Lifetime ECL has been written off.
As at 31 December 2022, all investments were assessed to be Stage 1. Although the RLU investment had been assessed to move from Stage 1 to Stage 2 during 2021, this investment was repaid in full during 2022 and the Lifetime ECL provision was reversed.
2022 ECL APPLICATION
CASH GENERATION
&Green’s operations generated a net cash inflow of USD 2.6 Million which is now available for further investment in to the portfolio. The cash returns that were generated by the investment portfolio comfortably financed the operating expenses and financing costs in 2022. The USD 23.8 Million received as the prepayment from RLU together with the USD 42.5 Million that was drawn down from Contributors were primarily used to finance the USD 60.8 Million invested in HSJ, HDL, FS and Mercon.
General expenses were well managed to remain in line with the budget set by the Board.
CAPITAL
During 2022 &Green drew down the first USD 17.5 Million of the USD 31.5 Million concessional debt facility from the British government’s Mobilising Finance for Forests fund (MFF) managed by the Dutch development bank, FMO. The financing costs, including the interest and monitoring fees, increased the cost base of the Fund, but were comfortably covered by the investment income from the portfolio of &Green
General expenses were well managed to remain in line with the budget set by the Board.
08
Funding
CURRENT CONTRIBUTORS
The total contributions made to &Green as of December 2022 amount to
USD 180 Million
USD 100M
USD 58M
USD 25M
USD 2M
PARTNERSHIPS AND ALLIANCES
&Green has fostered strategic partnerships which elevate its mission and add critical safeguards to the underlying &Green portfolio.
Ultimately the &Green approach and investment process can be quicker, smarter and more inclusive if strong field-level and global partnerships and alliances are built.
&Green is continuously building an active network of partners in the areas where it is investing. Partners such as IDH Sustainable Trade Initiative, The Nature Conservancy, and the World Wildlife Foundation are often our first call in a new region or when dealing with a new supply chain. By building strong, trusting relationships with these and other similar partners &Green: gains valuable market intelligence from the field, is steered towards opportunities, can learn from the past, and often finds a partner willing to engage in its transactions. An example of this is how IDH partnered with &Green and Marfrig.
Furthermore, &Green’s landscape approach requires participation from more than just the &Green client and its supply chain. To safeguard the broader landscape, &Green works and commits clients to working in close collaboration with existing initiatives and local organizations. Although &Green does not engage local government or regulators itself – our role is to be a frontrunning investor in these landscapes, but not a convenor or lobbyist – our partners are often working together with these actors within a landscape, and &Green helps them in approaching and navigating the stakeholder universe in their respective landscapes. The primary goal for &Green is to make sure that clients are supported by strong partnerships that increase the likelihood of delivering on ambitious commitments and therefore to reduce the risk of our investments.
09
Governance
10
Investment Outlook
GOALS FOR &Green
At &Green, our goal remains to get to sufficient scale to be able to drive a tipping point by which the outcome we seek – removal of deforestation from commodity supply chains – is sufficiently embedded in jurisdictions and across industries that it becomes the standard business practices and thus a barrier to entry for the sector; therefore, driving a race to 100% deforestation-free sourcing across the tropics.
In 2023, we continue our focus on raising the funding needed to drive scale. We are targeting a new funding round close within the year, but also to have a packed mature pipeline to allocate funding timeously.
On that front, the &Green investment team started will be building out its geographical focus in 2023, assessing investment rationales for investing in parts of Africa, Vietnam, Ecuador and elsewhere. The team will further explore agroforestry and regenerative transactions accross the Tropics.
&Green’s Targets for 2023 include:
Attract further capital into the fund and close a funding round to setup the Fund for growth towards our 2025 target of USD 500 Million deployed.
Work closely with our portfolio clients to maintain momentum on their impact plans.
Expand investment geographies to continue diversification of the portfolio.
11
ANNUAL IMPACT KPIs
KPI REPORTING
| KPIs 2022 | DSNG | RONCADOR | MARFRIG | HSJ | FS | HDL | TOTAL |
|---|---|---|---|---|---|---|---|
| Forest Protected (ha) | 10,693 | 63,465 | 2,774,229 | 1,697 | 779,292 | 721 | 3,630,097 |
| Climate Benefits (tCO2e) | 46,323 | -56,800* | 5,328,493 | 10,466 | 1,300,559 | 544 | 6,629,585 |
| Ecosystems with Improved Resilience (ha) | 86,951 | 121,957 | 2,774,229 | 6,057 | 783,331 | 6,109 | 3,778,633 |
| People with Increased Resilience (#) | 19,171 | 429 | 5,761 | 885 | 931 | 27,170 | 54,347 |
| People Benefitting (#) | 19,171 | 429 | 5,761 | 885 | 931 | 27,385 | 54,562 |
| Capital Mobilized (USD Million) | 607 | 120 | 7,153** | 1 | 568 | 1*** | 8,448 |
*In 2022, there was a fire that affected ca.800 ha of forest at the farm, resulting in the GHG emission rate higher than the sequestration rate.
**Equity calculated on a controlling basis
***Includes shareholder loan
12
&Green Vocabulary
AFi
Accountability Framework initiative
Aval GANSO
The Aval GANSO is a Colombian certification programme developed by GANSO in collaboration with the International Center for Tropical Agriculture (CIAT).
Blueprints
Blueprints are sustainable practices that our clients adopt to create impact and which are replicable by other participants in the same market, thereby leading to Transformational Change. Replicable means that the Blueprints can be implemented by other participants in the same market/sector as our clients (and possibly other similar sectors), i.e. once our clients have shown it can be done, others will replicate. To be replicable, projects must also be commercially viable.
CPO
Crude Palm Oil
Cancun Agreements
The Cancun Agreement is a global agreement that was signed in 2010 at the 16th Conference of the Parties (COP16) in Cancun, Mexico. It aimed to strengthen the global response to climate change by taking a range of actions, including setting up a Green Climate Fund and making commitments to reduce emissions.
Center for Tropical Agriculture CIAT
The International Center for Tropical Agriculture (CIAT) is a not-for-profit organization that conducts socially and environmentally progressive research aimed at reducing hunger, poverty and preserving natural resources in developing countries
Deforestation
Deforestation means the clearance of natural forests, including through fires, typically for the purpose of taking commercial advantage of the cleared land. Although Deforestation is often illegal, it can, in some cases, be in compliance with local law.
E&S
E&S is a term used often in the development finance space referring to Environmental & Social
E&S risk category
&Green categorizes its investments into one of three categories: A (high potential for adverse social or environmental impacts); B (adverse social or environmental able to be mitigated); or C (minimal or no adverse social or environmental impacts). It uses a categorization process that identifies and scores potential environmental and social risks and is aligned with the categorization of projects under the IFC Performance Standards. The Facility’s full categorization process for projects is set out in the &Green Environmental and Social Guidelines available on the &Green website.
ESAP
An Environmental and Social Action Plan (ESAP) is a detailed plan implemented by our clients to address gaps in their practices which, when closed, will mean they comply with international standards, specifically the IFC PS. This ensures that the project’s E&S risks are identified and well managed.
ESMS
Environmental and Social Management System (ESMS) is an internal system which we require from our clients to manage their E&S risks and to develop approaches to mitigate these risks.
EU taxonomy
The EU taxonomy regulation describes a framework to classify “green” or “sustainable” economic activities executed in the EU.
Eligible jurisdictions
Eligible jurisdictions are those jurisdictions in which &Green may invest because they have met the Fund’s Jurisdiction Eligibility Criteria (JEC) and have been approved by the Advisory Board.
Extractive production
Food systems that focus on yields and profits.
FFB
Fresh Fruit Branches
GANSO
A partnership between Climate Focus and the International Center for Tropical Agriculture, that focuses on transforming degraded pastures into sustainable landscapes
GHG
Greenhouse Gases
GIS
Geographic Information System
HCV/HCS
High Conservation Value (HCV) / High Carbon Stock (HCS) means areas that are important for conservation (environmental values) and livelihoods (social values) and for which it is important that no-deforestation commitments apply in order to protect biodiversity.
ICL
Integration Crop and Livestock model.
IFC PS
The International Finance Corporation Performance Standards (IFC PS) set out international standards for managing environmental and social risks and are recognized as the gold standard by many international investors and development banks.
INCRA
National Institute of Colonization and Agrarian Reform (Instituto Nacional de Colonização e Reforma Agrária).
IP
Indigenous People (IP) means the communities that are considered indigenous to a Landscape in which a client operates.
Innovative Finance for the Amazon, Cerrado and Chaco IFACC
Innovative Finance for the Amazon, Cerrado and Chaco. An initiative of the Nature Conservancy (TNC), Tropical Forest Alliance (TFA) and UN Environmental Programme (UNEP).
JECA
Jurisdictional Eligibility Criteria Assessment
Jurisdiction
Jurisdiction means a country, region or province which &Green would consider investing in.
LAT
A tool designed to guide HSJ in its land acquisition processes.
LIFT
LIFT is a sustainable proprietary production platform that provides valuable tools, training, and services to coffee farmers and coffee communities.
LPP
A Landscape Protection Plan Is a roadmap to Transformational Change contractually agreed with our clients to achieve Environmental & Social compliance and create impact.
Land Acquisition
Land Acquisition means the expansion of the land area on which a client operates through the purchase of new land from others.
Landscape
Landscape is the Project Area from which &Green’s Environmental and Social Return are to be derived and includes areas with direct and indirect influence from the client.
MRV
Monitoring, Reporting and Verification
NDPE
A No Deforestation, No Peat and No Exploitation (NDPE) commitment is a public commitment by our clients in order to make their operations sustainable. The commitment should pledge to have zero-deforestation, peatland destruction or exploitation of indigenous people in the operations and supply chain of their business.
Net Gain Framework
The Net Gain Framework (NGF) is a strategy developed by the International Finance Corporation (IFC) to address the sustainability of business investments. The NGF is based on the idea that any investment should generate economic returns, and have a positive environmental and social impact. The NGF encourages businesses to think beyond traditional financial returns and consider the broader impacts of their activities.
Peatlands
Peatlands are wetland ecosystems in which waterlogged conditions prevent plant material from fully decomposing. They have the highest store of global soil carbon.
Principal Adverse Impacts
Negative, material, or likely to be material effects on sustainability factors that are caused, compounded by, or directly linked to investment decisions and advice performed by the legal entity
RSPO
The Roundtable on Sustainable Palm Oil (RSPO) aims to transform markets to make sustainable palm oil the norm. It is the leading global palm oil certification.
Regenerative production
Regenerative agriculture broadly refers to the adoption of production practices that, among other benefits, improve water and air quality, enhance ecosystem biodiversity, produce nutrient-dense food, and store carbon to help mitigate the effects of climate change.
Technical Assistance (TA)
Technical Assistance (TA) is grant funding assistance provided to a (prospective) client for expert assessment. Assessments guide process and practice improvement.
Transformational Change
&Green’s Transformational Change entails a shift from a current system to a fundamentally new system that thereafter forms the mainstream. Transformational Change can be achieved by accelerating change, and/or inducing change which catalyzes further changes. It enables &Green to realize its vision of sustainable deforestation-free and socially inclusive agricultural commodity supply chains in the Tropics.
AFi
Accountability Framework initiative
Aval GANSO
The Aval GANSO is a Colombian certification programme developed by GANSO in collaboration with the International Center for Tropical Agriculture (CIAT).
Blueprints
Blueprints are sustainable practices that our clients adopt to create impact and which are replicable by other participants in the same market, thereby leading to Transformational Change. Replicable means that the Blueprints can be implemented by other participants in the same market/sector as our clients (and possibly other similar sectors), i.e. once our clients have shown it can be done, others will replicate. To be replicable, projects must also be commercially viable.
CPO
Crude Palm Oil
Cancun Agreements
The Cancun Agreement is a global agreement that was signed in 2010 at the 16th Conference of the Parties (COP16) in Cancun, Mexico. It aimed to strengthen the global response to climate change by taking a range of actions, including setting up a Green Climate Fund and making commitments to reduce emissions.
Center for Tropical Agriculture CIAT
The International Center for Tropical Agriculture (CIAT) is a not-for-profit organization that conducts socially and environmentally progressive research aimed at reducing hunger, poverty and preserving natural resources in developing countries
Deforestation
Deforestation means the clearance of natural forests, including through fires, typically for the purpose of taking commercial advantage of the cleared land. Although Deforestation is often illegal, it can, in some cases, be in compliance with local law.
E&S
E&S is a term used often in the development finance space referring to Environmental & Social
E&S risk category
&Green categorizes its investments into one of three categories: A (high potential for adverse social or environmental impacts); B (adverse social or environmental able to be mitigated); or C (minimal or no adverse social or environmental impacts). It uses a categorization process that identifies and scores potential environmental and social risks and is aligned with the categorization of projects under the IFC Performance Standards. The Facility’s full categorization process for projects is set out in the &Green Environmental and Social Guidelines available on the &Green website.
ESAP
An Environmental and Social Action Plan (ESAP) is a detailed plan implemented by our clients to address gaps in their practices which, when closed, will mean they comply with international standards, specifically the IFC PS. This ensures that the project’s E&S risks are identified and well managed.
ESMS
Environmental and Social Management System (ESMS) is an internal system which we require from our clients to manage their E&S risks and to develop approaches to mitigate these risks.
EU taxonomy
The EU taxonomy regulation describes a framework to classify “green” or “sustainable” economic activities executed in the EU.
Eligible jurisdictions
Eligible jurisdictions are those jurisdictions in which &Green may invest because they have met the Fund’s Jurisdiction Eligibility Criteria (JEC) and have been approved by the Advisory Board.
Extractive production
Food systems that focus on yields and profits.
FFB
Fresh Fruit Branches
GANSO
A partnership between Climate Focus and the International Center for Tropical Agriculture, that focuses on transforming degraded pastures into sustainable landscapes
GHG
Greenhouse Gases
GIS
Geographic Information System
HCV/HCS
High Conservation Value (HCV) / High Carbon Stock (HCS) means areas that are important for conservation (environmental values) and livelihoods (social values) and for which it is important that no-deforestation commitments apply in order to protect biodiversity.
ICL
Integration Crop and Livestock model.
IFC PS
The International Finance Corporation Performance Standards (IFC PS) set out international standards for managing environmental and social risks and are recognized as the gold standard by many international investors and development banks.
INCRA
National Institute of Colonization and Agrarian Reform (Instituto Nacional de Colonização e Reforma Agrária).
IP
Indigenous People (IP) means the communities that are considered indigenous to a Landscape in which a client operates.
Innovative Finance for the Amazon, Cerrado and Chaco IFACC
Innovative Finance for the Amazon, Cerrado and Chaco. An initiative of the Nature Conservancy (TNC), Tropical Forest Alliance (TFA) and UN Environmental Programme (UNEP).
JECA
Jurisdictional Eligibility Criteria Assessment
Jurisdiction
Jurisdiction means a country, region or province which &Green would consider investing in.
LAT
A tool designed to guide HSJ in its land acquisition processes.
LIFT
LIFT is a sustainable proprietary production platform that provides valuable tools, training, and services to coffee farmers and coffee communities.
LPP
A Landscape Protection Plan Is a roadmap to Transformational Change contractually agreed with our clients to achieve Environmental & Social compliance and create impact.
Land Acquisition
Land Acquisition means the expansion of the land area on which a client operates through the purchase of new land from others.
Landscape
Landscape is the Project Area from which &Green’s Environmental and Social Return are to be derived and includes areas with direct and indirect influence from the client.
MRV
Monitoring, Reporting and Verification
NDPE
A No Deforestation, No Peat and No Exploitation (NDPE) commitment is a public commitment by our clients in order to make their operations sustainable. The commitment should pledge to have zero-deforestation, peatland destruction or exploitation of indigenous people in the operations and supply chain of their business.
Net Gain Framework
The Net Gain Framework (NGF) is a strategy developed by the International Finance Corporation (IFC) to address the sustainability of business investments. The NGF is based on the idea that any investment should generate economic returns, and have a positive environmental and social impact. The NGF encourages businesses to think beyond traditional financial returns and consider the broader impacts of their activities.
Peatlands
Peatlands are wetland ecosystems in which waterlogged conditions prevent plant material from fully decomposing. They have the highest store of global soil carbon.
Principal Adverse Impacts
Negative, material, or likely to be material effects on sustainability factors that are caused, compounded by, or directly linked to investment decisions and advice performed by the legal entity
RSPO
The Roundtable on Sustainable Palm Oil (RSPO) aims to transform markets to make sustainable palm oil the norm. It is the leading global palm oil certification.
Regenerative production
Regenerative agriculture broadly refers to the adoption of production practices that, among other benefits, improve water and air quality, enhance ecosystem biodiversity, produce nutrient-dense food, and store carbon to help mitigate the effects of climate change.
Technical Assistance (TA)
Technical Assistance (TA) is grant funding assistance provided to a (prospective) client for expert assessment. Assessments guide process and practice improvement.
Transformational Change
&Green’s Transformational Change entails a shift from a current system to a fundamentally new system that thereafter forms the mainstream. Transformational Change can be achieved by accelerating change, and/or inducing change which catalyzes further changes. It enables &Green to realize its vision of sustainable deforestation-free and socially inclusive agricultural commodity supply chains in the Tropics.
13
Annex: 2022 Audited Annual Financial Report
ANNUAL FINANCIAL REPORT
Click on the icon to read and download our audited 2022 Annual Financial Report.
