eco.business sub-fund for Latin America and the Caribbean

Impact Story

The Salvadoran shade-coffee scene

"Don Miguel Menéndez has been a client of Banco Hipotecario, a key partner institution of the eco.business Fund, since 1997. Miguel oversees the family-run company Casal, an integrated producer, processor, and exporter of green coffee for buyers interested in specialty Salvadoran coffee. Don Miguel’s farms shade-grown coffee which are often called coffee forests for the numerous and vital environmental services they provide. These include the sequestration of CO2, soil preservation, protection of the region’s biodiversity (such as migratory and resident birds, small mammals, and reptiles, among other species), and preservation of groundwater resources. Today, Casal operates eight farms which altogether produce around 4,000 bags of 46 kg of coffee per year. Casal employs around 100 full-time employees year-round, of which 40% are female, plus an additional 20 staff at the mill that increases to 500 during the harvest season. By applying sustainable practices throughout the entire value chain, Casal protects natural resources, thereby ensuring production well into the future. Casal’s farms are exemplary of the Salvadoran shade-coffee scene where coffee production interacts freely with native tree species; Don Miguel’s company has created a reserve of more than 50 hectares of protected native forest on one of its farms. For Casal, sustainability builds its business foundation while improving productivity and quality and reducing costs. The company’s strategy is clear: Focusing on producing high quality coffees which can be differentiated not only by their quality and traceability but also by their genetic material, processing methods and the sustainable agricultural practices applied."

Photo Credit: Carlos Romero | 1espacio

Impact Story

Flower sustainability in Colombia

Colombia is ranked second globally in terms of flower exports which is why it is high on the agenda for the eco.business Fund to make this sector more sustainable. In order to identify businesses that are eligible to receive funding, the eco.business Fund draws on sustainability standards as a high-quality tool to make a trusted selection of investees, which believe in sustainability. An example of this can be seen in Colombia where the now internationally recognized Florverde Sustainable Flowers® certification was designed. Thus far, partner financial institutions of the eco.business Fund, Itaú Colombia and GNB Sudameris Colombia, are on-lending to flower producers certified by Florverde. The certification ensures that only farms products whose processes meet the environmental and social requirements established in the Florverde normative documents are certified. Each month the farms must report their consumption of water, energy, and active ingredients to Florverde so that they can be monitored on the efficient management of these resources. With its high social standards, Florverde can also guarantee that the flowers offered under its sustainability label are produced by farms that meet basic labor conditions as set by the International Labour Organization and national laws. The eco.business Fund’s approach of combining financing with sustainability standards and practices provides an innovative approach to create much needed synergies, for people and the planet.

Photo Credit: Pedro Samper | Surreal S.A.S.

Impact Story

Aglomerados Cotopaxi achieves the Carbon Negative Certification

Together, eco.business Fund and the Ecuadorian forestry company, Aglomerados Cotopaxi, are demonstrating a path to sustainable forestry. Aglomerados Cotopaxi is a leader in forestry, producing and selling wooden boards. The organization became the first Ecuadorian company to receive the Carbon Negative Certification, with support from eco.business Fund.

The work to achieve the Carbon Negative Certification not only reduced Cotopaxi’s carbon footprint, but also opened the possibilities for additional income streams by creating the opportunity to sell carbon credits. In addition to avoiding deforestation, sustainable forestry systems like the one implemented by Cotopaxi, support the redevelopment of wildlife habitats. Cotopaxi’s work demonstrates benefits of obtaining the Carbon Negative Certification within the forestry sector.

Photo Credit: eco.business courtesy of Fund Finance in Motion GmbH

Impact Story

A sustainable turn for Ecuador’s sugar industry

Azucarera Valdez, the second largest sugar producer in Ecuador, partnered with eco.business Fund and Banco Produbanco to implement a responsible sourcing program with over 400 sugarcane suppliers. Azucarera Valdez had already achieved the Bonsucro certification, a renowned sustainability standard in the sugar industry, however the real challenge was implementing the sustainable practices across its vast network of sugarcane suppliers. Together, the eco.business Fund’s Development Facility and Banco Produbanco embarked on a journey to scale the adoption of sustainable practices in the sugar industry by creating the Responsible Sourcing Program that would not only redefine business practices but also contribute to the wellbeing of ecosystems and communities.

The Responsible Sourcing Program involves a unique, holistic strategy to tackle significant issues within Ecuador’s sugarcane industry. Through technical assistance and knowledge-sharing, the program empowers suppliers to adopt best practices, ensuring that every step of the supply chain upheld environmental and social responsibility.

Photo Credit: eco.business courtesy of Fund Finance in Motion GmbH

Impact Story

Upala Agrícola’s commitment to sustainability in growing pineapples

The region of Upala, Costa Rica, is bordered by Nicaragua to the north, by two rivers to the northwest and southeast, and the Cordillera de Guanacaste mountain range to the south. Although traditionally a cattle ranching region, its microclimate and rich soil make it ideal for growing pineapples. Upala Agrícola, one of Banco Davivienda’s borrowers, was established in this region in 1996 and acquired in 2008 by a group of Costa Rican entrepreneurs interested in growing and exporting sustainable pineapples produced according to environmental best practices. Today, the company grows pineapples on more than 2,400 hectares, has two packaging facilities, and exports around 100 containers weekly. It employs more than 950 people, making it the largest employer in the region. Upala Agrícola’s sustainability certifications include Rainforest Alliance, among others, as well as ISO 14001 which refers to environmental management standards.

Upala Agrícola’s commitment to sustainability can be appreciated throughout the entire pineapple production process. Three full-time employees are responsible for ensuring the implementation of good agricultural practices and the responsible use of natural resources. Approximately 38% of its land is allocated for conservation and used as biological corridors, allowing connectivity between habitats, while great care is given to the land used for production.

An environmental risk matrix is used to identify potential impact of pineapple cultivation based on soil studies and landscape assessments. Water is also important for Upala Agrícola. Water sources and nearby communities are protected by establishing buffer zones where no chemical products are applied. Vegetation zones are respected along roads. Drainage systems and pathways are created to avoid erosion from planted areas and prevent water sedimentation. The company treats wastewater in its own water treatment plant. The company also reduces its carbon footprint and environmental impact through precision agriculture. For example, Upala Agrícola is experimenting with precision agriculture by using drones to conduct field and soil analyses, and planning seed planting patterns to enhance environmental benefits.

Upala Agrícola has also achieved carbon neutrality by minimizing energy use, planting trees, and buying carbon credits. More than 3,000 native trees are grown in the company’s tree nursery. These trees are used for restoration projects. For example, the company grows the tropical hardwood Almendro Amarillo – the main shelter of a local endangered green parrot. On top of the efficient management of natural resources, Upala Agrícola has also been able to recover land that was degraded and deforested due to livestock farming. Water sources previously contaminated by cattle are now protected by natural barriers that prevent runoff of polluted water.

Finally, as the company is the largest employer in the area, it runs a Corporate Social Responsibility program aimed at maintaining good relationships with local communities. This includes helping improve roads and supporting educational and health projects.