ESG

Choosing to participate in a project that will increase productivity, fight climate change and deliver a return to investors is ‘a no-brainer’, says FarmTogether CEO Artem Milinchuk.

The firm is 'seriously considering' a distinct forestry vehicle that would target institutional investors, with its latest series of deals set to take it beyond £100m deployed into the asset class.

The blended-finance impact vehicle was initiated by the UN and has made five investments with underlying commodities such as cocoa, hazelnuts and timber.

The vehicle will invest in 10 venture capital funds across food and ag, production and mobility in North America, Europe and Asia.

The British fund manager anticipates strong interest in the vehicle, which will combine returns from commercial forestry, carbon credits and asset appreciation.

The bloc’s farm-to-fork strategy includes strong environmental targets, but simply creating organic supply will not be enough to sustainably reconfigure its food supply chain.

A funding round for Sea Forests, backed by MIRA, demonstrates that investors are keen to find ESG-positive investments in agriculture even if they carry risk.

Sheep industry ‘will not shy away’ from questions over sustainability as regular performance benchmarks will be established to monitor progress.

Several of the most talked-about topics feature in the five most popular stories from the first quarter of 2021.

Return rates delivered by the 2008-vintage vehicle were undisclosed but managing director Joe Sanderson says figures in the 15% to 20% range are ‘not uncommon’ in the sector.