eco.business Fund publishes second annual impact report
The eco.business Fund has released its second annual impact report today. By highlighting the various ways the fund has advanced green finance in Latin America and the Caribbean, “Sowing Impact” reveals how the fund and its Development Facility supported businesses and consumption practices that contribute to biodiversity conservation, the sustainable use of natural resources, and mitigation and adaptation to the effects of climate change in 2019.
Over the course of 2019, the fund grew its outstanding portfolio from USD 242 million to over USD 330 million, investing this increased funding for impact across the following countries: Honduras, El Salvador, Nicaragua, Panama, Costa Rica, Ecuador, and Colombia. Through these investments, the fund has contributed to maintaining a stock of 7.9 million tons of CO2 through its financing of agroforestry activities, and supported more than 261,000 hectares of sustainably managed farmland since its establishment in 2014. By working with local partner financial institutions, the eco.business Fund bolsters the ability of the local financial infrastructure to deliver financing that protects biodiversity-rich ecosystems.
The impact report also features four “pillars of sustainable success” which the eco.business Fund adopted in 2019 to guide its journey going forward providing innovative, impactful, meaningful investment and technical assistance services. Labelled as “scaling Impact, consolidating success, diversifying growth and becoming an agent of change,” these pillars reaffirm the eco.business Fund’s commitment to continue delivering on its mandate.
Dr. Jens Mackensen, Chairperson of the Board of Directors of the eco.business Fund, stated: “The title of the report, ‘Sowing Impact,’ reflects the eco.business Fund’s holistic approach to making a long-term difference. We are pleased to share how the fund, in collaboration with our partners, has been able to promote positive impact for the environment, climate, and biodiversity in Latin America and the Caribbean. In a time when the world is feeling the repercussions of a global pandemic, the eco.business Fund remains a reliable partner for local financial institutions and businesses. Now more than ever, these partnerships are important for us to continue our mission to promote practices that conserve the unique ecological landscapes of the region.”
The full eco.business Fund Impact Report 2019 can be found online here.
About the eco.business Fund
The eco.business Fund aims to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources, and to mitigate climate change and adapt to its impacts. By providing financing for business practices that conserve nature and foster biodiversity, the fund seeks investments with both environmental and financial returns. The fund mainly provides loans to qualified financial institutions that on-lend the money to eligible borrowers, which include holders of recognized certifications or those making improvements in line with conservation and biodiversity goals. The fund supports sustainable operations in the sectors of agriculture, fishery (including aquaculture), forestry and tourism.
The eco.business Fund was initiated by Germany’s KfW Development Bank and Conservation International with financial support from the German Federal Ministry for Economic Cooperation and Development (BMZ). It has received further donor support from the European Commission The fund’s additional investor base comprises IDB Invest, a member of the Inter-American Development Bank (IDB) Group, the U.K. government’s Department for Environment, Food and Rural Affairs, Dutch development bank FMO, Austrian development bank OeEB, and institutional investors such as sustainable banking institution ASN Bank, German ethical bank GLS Bank, Calvert Impact Capital, and Raiffeisen Bank International. Finance in Motion, a leading impact investing company, is also an investor.
Operating hand-in-hand with the eco.business Fund, the eco.business Development Facility provides high-impact technical assistance to financial institutions and final borrowers.
For more information please visit www.ecobusiness.fund and follow us on Twitter @ecobusinessfund.