Business Plan

Market Assessment

Sustainable Investing in:

Agroforestry, Restoration &

Conservation

Many of our biggest sustainability challenges directly relate to Sustainable Agriculture,

Agroforestry and Conservation (Forests and Biodiversity): Climate change mitigation,

biodiversity conservation, food security, healthier food, sustainable cities, regional

development represent some of the most important global challenges of the 21st

century.

Tackling these issues from an investing perspective demand a different mind-set in the

sense of “valuing” impact and return - which many times are still “intangible” - as well

as applying new business models.

There are already several initiatives in Agriculture and Agroforestry with a sustainable

investing mindset. However, many of them under the radar.

A market assessment is required as the basis to promote new “joint initiatives” that

could increase the amount of private investing together with FDIs in order to prove it is

possible to scale up sustainable agriculture and agroforestry.

Introduction

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Market Assessment: Objective

To provide a panorama of sustainable investing in

Agroforestry, Restoration and Conservation in Brazil

and in Peru as a reference/benchmark to guide further

investing, propose blended finance models, allocate

capital and finally, scale-up initiatives that have a direct

contribution towards climate change mitigation, climate

resilience, and biodiversity conservation.

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Guiding Principles of the Market Assessment (1/2)

As the Assessment aims at identifying and analyzing the already in place

business and blended finance models1 that would allow a larger flow of

(positive) impact driven investing in Agroforestry, Restoration and

Conservation, the Assessment will focus on the investors’ perspective.

The Assessment sample includes: Investment Funds, Sovereign Funds,

Foundations, Development Finance Institutions (DFIs), Private Investors,

Companies and/or food value chain integrators that have intentionally of

investing in Agroforestry, Restoration and Conservation as part of their

business.

Domiciled/headquartered in Europe, USA and Latin America.

There is a clear regional focus to allow a more in-depth analysis – Brazil and

Peru.

(1) Blended finance is defined as “the strategic use of development finance and philanthropic funds to mobilize private capital

flows to emerging and frontier markets"

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Guiding Principles of the Market Assessment (2/2)

The Assessment will apply a qualitative approach and concentrate on in-

depth interviews and selected case studies “in the ground” – making the

experience more tangible with interviews, pictures and videos.

The Assessment also includes the development of a webpage which aims

at consolidating the available knowledge (studies, reports, cases, videos) in

the area of sustainable investing and agroforestry.

The Assessment will provide the point of departure and kick-off the

conversation of a “Transformation Leaders Network” formed by a group of

private investors, (U)HNWIs, foundations, institutional investors FDIs and

Governmental Sovereign Funds to work together in a proposal that aims at

incubating and scaling up sustainable investment in Agroforestry,

Restoration and Conservation.

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We look at Agroforestry as it being the use of spatial and/or temporal

combinations of trees, crops and/or animals within the same area.

Our understanding of Agroforestry

Agroforestry Systems

• Planting of permanent crops, such as coffee and cocoa in areas shaded by trees;

• Timber plantations with sequential agro-forestry;

• Orchards (i.e., fruit and nut trees) combined with crops;

• Silvo-pastoralism (livestock and forestry combinations); and Inter-twinned agro-

forestry.

Extractivism

• Acai, Brazilian Nut, and other native species according to selected biome

Value Chain Development

• Initiatives that integrate value chains (i.e. smallholder farmers) aiming at product

value-adding and having a positive impact in biodiversity conservation.

• We will also look at the input factors influencing the value chains:

• Water management (access, irrigation)

• Other relevant input factors for value chain development

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We look at Restoration from a Systemic perspective following the Bonn

Challenge principles.

Our understanding of Restoration

• We will look into both Landscape and Individual Restoration initiatives as we

believe the individual ones are a good starting point to be integrated to the larger

picture.

• Restore functionality, giving preference to original vegetation

• Allow multiple benefits – from adding trees to agricultural land to enhance food

production, reduce erosion and provide shade; to adding trees aiming at

sequestering large amounts of carbon, protecting downstream water supplies or

providing habitat for the wildlife

• Tailored to local conditions

• Involves different stakeholders

• And avoids further deforestation

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This Assessment will search for practices of sustainable investing in

Agroforestry in selected countries of Latin America, more

specifically: Brazil and Peru

The Amazonia relevance for its biodiversity, fresh water flows,

carbon sequestration, natural resources, traditional

communities, etc. justifies focusing on these two countries,

mainly:

The largest part of the Amazon is in Brazil (60% of total)

The largest part of Peru is in the Amazon (60% of Peru is in the

Amazon and 13% of the Amazon is in Peru)

Due to the relevance of family farming as the main source of

income and the flag-ship of many sub-regions in those countries

Those countries are the cellar of new sort of functional food

In Brazil we will also be looking at investments done in the

biome Mata Atlantica and Cerrado.

Market Assessment: Regional Focus

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Market Assessment: Investor Selection Criteria

Investors Selection Criteria

Investor Domicile Europe, USA, Brazil and Peru

Investor Size Any

Investment Theme Sustainable Agriculture and Agroforestry

Geographic investment focus Brazil and Peru

Asset Class All

Target Returns Minimal: Return of invested capital

Minimum Investment Size US$ 100,000

Fund stage Open - Post First Close, Closed

Investment Status Open-investing, Closed-investing, no longer

investing

We will be looking at “for-profit” initiatives involving institutional investors,

direct investors, (U)HNWIs, Family Offices and Foundations.

There will be a separated session about investments made by Development

Finance Institutions (DFIs), other Governmental Funds.

Corporations will be added if they have a proven intentionality in

implementation agroforestry projects. Those doing it as part of compensation

agreements will not be considered.

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The market assessment will be developed following the qualitative

research method with selected case studies. It is composed by:

Desk research(1) which will provide a first assessment of the

sustainable investing initiatives in Agroforestry and Conservation

according to investors domicile country and projects geographic

location. It will also provide a summary of other co-related market

overview and business model studies in this subject.

In-depth interviews(2)

Selected case studies will be portrayed(3)

(1) In a preliminary desk research we have identified over 26 investors domiciled in Europe, Latin

America and the USA in the area of agroforestry with focused region Peru and Brazil.

(2) We will perform 10 (ten) in-depth interviews (on-site whenever possible otherwise by phone)

(3) The amount of 5 (five) cases will be selected to be written and portrayed in the Market Assessment

Market Assessment: Methodology

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Interative Online in a webpage which will include:

– the Assessment Report Highlights

– the Report version for download

– selected cases in written and illustrated with project pictures andinvestor/entreprenuer interviews

– video statments with the market assessment sponsors about the importance and relevance of sustainable investing in Agriculture andAgroforestry

– a “reference library” including a reference to co-releated studies andmarket assessments about Agroforestry and Conservation in projects based in Latin America

The Assessment Report will be available in English only

A launch event will take place in partnership with strong institutional partners in Brazil and/or Peru and in Europe

Media Coverage

Market Assessment: Form & Content

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Market Assessment: Timeline

ActivitiesOctober

November DecemberJanuary February

Review and define report structure

and the key facts&figures to be

accessed during desk research

Desk Research – active funds, DFIs,

funds and direct investment in Brazil,

Peru

In-Depth Interviews

Compare desk research and in-depth

interviews + Data Analysis and

Structuring

Validate information and preliminary

conclusions with Knowledge Board

Case Study Writing

Report writing

Pre-final version submission to

Knowledge Board for overall review

English text review

Report Lay outing and Online

Uploading

First-Hand Presentation to Sponsors

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Alimi Impact Ventures is an advisory firm assisting sustainable companies

and fund managers seeking solutions including raising capital, evaluating

strategic financial options and searching for new deals in order to scale-up

Sustainable Investing in Social-Environmental Impact Businesses in Latin

America.

We act based on a Systemic Perspective by including the different key

players in international value chains, impact investors, large corporations,

policy makers, and development banks.

Our action is consolidated in four main streams:

Assess and Develop Investable Deals

Engage Large Companies into Sustainable Investing

Promote a Transformation Leaders Network

Educational programs aiming at strengthening social finance and impact

investing in Latin America

www.alimi.com.br

Who we are – Alimi Impact Ventures

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Impact Hub Brasil Part innovation lab, part business incubator, and part

community center, they offer their members a unique ecosystem of

resources, inspiration, and collaboration opportunities to grow impact.

Impact Hub believe a better world evolves through the combined

accomplishments of creative, committed and compassionate individuals

focused on a common purpose.

Since 2012 the Impact Hub Global and WWF Switzerland have established

a fellowship program in Biodiversity & Resource Efficiency.

In Brazil, since 2017 the Impact Hub Association, in partnership with WWF,

have launched the “Desafio Ambiental” (Environmental Challenge) which is

a call for entrepreneurs in areas co-related to restoration in Brazil which are

economically viable.

The Impact Hub adds a lot to this project due to its experience in fostering

entrepreneurship through like-minded people sharing the same space, as

well as its capitarity – both needed for the identification and incubation of

investable deals in Agroforestry and Conservation.

http://saopaulo.impacthub.com.br/

Who we are – Impact Hub Brasil

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Angélica Rotondaro (Project Supervision) is a fouding member of Alimi Impact

Ventures, co-founder the multi-stakeholder platform Impact Investing Latin America

(IILA) and a member of the Advisory board of Insper-Metricis. From 2009 to 2016 she

was the executive Director of the St.Gallen Institute of Management Latin America

(Switzerland) in São Paulo. Before that she was a senior consultant for branding,

responsible for Latin America and Spain in an international Swiss company. In

parallel, she was the co-founder and vice-president of the private foundation for

investments in the 3rd sector and coordinated projects related to grass roots

development. In the environmental field, she implemented a brand positioning project

of alternative energy business in Asia and Latin America. She holds a PhD in

Organizational Studies by the University of St.Gallen.

Marian Grabowski (Project Manager – Ouside LatAm Investors & Fundraising) is a

Double-Degree Master student in Finance and International Affairs at Sciences Po

Paris and St. Gallen University. With over 4 years of work experience in the

Development Finance industry, he currently works as Commodity Research Analyst

for responsAbility investments. His master thesis is about sustainable agriculture in

Malawi (Africa) where he has previously worked.

Carlo Iengo (Project Manager – LatAm Investors & Transformation Leaders

Network) obtained his Bachelor's in Economics and Social Sciences at Bocconi

University. Currently enrolled in the Master of Quantitative Economics and Finance at

St.Gallen University, his research interests are Impact Investing and Social Finance.

Assessment’s Development Team

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Technical partner in the area of Agroforetry and Conservation

1 Research Assistant will be responsible for the desk research, questionnaire

review, scheduling in-depth interviews, structuring data for analysis, graphs

development, texts. Candidates should be from the area of agribusiness (master

or PhD level) and fluent in Portuguese, English and Spanish.

1 Project Trainee aiming at engaging new talents into the topic, a trainee from

either bachelor or master level will be invited to be part of the study team. Good at

preparing presentations. Fluent in Portuguese and English.

Third Parties

Visual media specialist - Case studies visual reporting – video and pictures

Online media responsible – For the webpage development

Media Relations

Assessment Development Team

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Cecile Koller (Lima, Peru) Director at ResponsAbility Latin America

Andrea Minardi (São Paulo, Brazil) - Venture Capital professor a Insper Business

School

Amandine Favier (Zurich, Switzerland) WWF – Sustainable Responsible Investing

(tbc)

Jaap Bos (Maasstricht, Netherlands) Impact Investing and Blended Models

professor and the University of Maastricht and originally from EU Central Bank

(tbc)

Joe Koechlin (Cuzco, Peru) – founder of InkaTerra (tbc)

Editorial Board

The editorial board is formed by prominent experts in the area of agroforestry,

restoration, conservation and finance. They have volunteered to provide advice

about the study structure, case studies selection and analysis, provide feedback

about study conclusions as well as be an ambassador of the study and support

identifying other conferences where it could be presented.

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Annexes

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In 2010, emissions from agriculture, forestry and other land use accounted

for around 25% of total greenhouse gas (GHG) emissions. While, agriculture

alone accounts for 10-12% of GHG emissions, forestry and other land use

account for another 12%.

(1) LULUCF: Land Use, Land Use Change, and Forestry

(2) Includes emissions from on-farm energy consumptions as well as from manufacturing of farm tractors, irrigation pumps, other machinery, and key imputs

such as fertilizer. It excludes emissions from the transport of food.

Source: Climate Action Now – Source for Policymakers 2015 (United Nations Climate Change Secretariat)

Why Sustainable Investing in Agroforestry

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(3) http://www.bmub.bund.de/fileadmin/Daten_BMU/Download_PDF/Klimaschutz/joint_statement_redd_cop21_en_bf.pdf

Picture source: Climate Action Now: Summary for Policymakers 2016 (United Nations Climate Change Secretariat

While with the expected temperature rise from 1 °C to 4 °C by 2050 will

affect agriculture yields (picture below), at the COP21 leaders from Germany,

Norway and the UK announced to provide over USD 5 billion from 2015 to

2020 if countries that have large forest areas demonstrate measured,

reported and verified emission reductions(3)

Why Sustainable Investing in Agroforestry

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(4) The Amazonia Legal is the largest socio-geographic division in Brazil, containing all 9 states in the Amazon basin. The region was created

in 1948 based on studies of the Brazilian government on how to plan the economic and social development of the Amazon region.

In the period from 2015 – 2016 there was a 30% increase in the level of

deforestation in the Brazilian’s “Amazonia Legal” (Legal Amazon)4, as

show in the graph below.

Why Sustainable Investing in Agroforestry

Source: Prodes/INPE, 2016

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Sustainable Investments in Agroforestry directly contribute to 6 of the 17

Sustainable Development Goals (SDGs) to be reached by 2030. Indirectly,

agricultural investments cover nearly every goal, as they address BoP

populations.

Maximising

Sustainable

Development

Why Sustainable Investing in Agroforestry

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Sustainable Investing encompasses ESG criteria, Social Responsible

Investing (SRI) and Impact Investing. The financial threshold is at least

return of the invested capital; and the values-drive one is the intentionality

that investment generates positive measurable socioenvironmental impact.

Our understanding of Sustainable Investing

Source: Based on Sustainable & Impact Investment - How we define the market, Bridges Ventures (2012)

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angelica.rotondaro@alimi.com.br

+55 11 98010 2299

Contact