“Becoming sustainable means a transformation in the business, this can be difficult at times, it is particularly so when it comes to having access to long-term financing, with this letter comes the eco.business Fund, a fund that not only provides financing and it stays at that, it goes further, offering technical assistance for both partner institutions and borrowers, ”said Dr. Jens Mackensen, chairman of the board of the eco.business Fund.
From the point of view of this fund, the key to overcoming the challenges that companies face in the field of sustainability is knowledge, which is why the eco.business Fund provides adequate training and the necessary tools to implement practices. that protect biodiversity by promoting a responsible use of natural resources and that the effects of climate change can be mitigated, seeing in companies an improvement in productivity and sustainability.
“Eco.business Fund fulfills its mission by providing specialized assistance to financial institutions and businesses committed to responsible environmental practices in strategically ecological territories in both Latin America and sub-Saharan Africa, focusing on sustainability in four sectors: agriculture and agricultural processing, fishing and aquaculture, forestry and tourism ”, Dr. Jens Mackensen added.
The fund’s way of operating is by dividing its capital first into a base of public investors and donors who provide a kind of risk protection to unleash the financial influence of private institutional investors. In the case of intermediaries, these can be local financial institutions with which the fund works to deliver funds to businesses or producers, it also includes intermediaries from the aforementioned sectors, as well as buyers of basic products that seek to improve the sustainability of supply chains that they use through adequate financing to associated producers. It also applies to businesses seeking funds for green investments. On the other hand, both fund beneficiaries and intermediaries can access technical assistance from eco.business.
“When the fund was established, we were determined to show how many businesses in the portfolio of financial institutions would benefit as well as contribute to promoting a resilient economy in the country. Particularly in these times since Covid-19 has caused the worst recession in Latin America and the Caribbean in a century. The economic impacts on business have been very strong. That is why the fund is willing to support financial institutions as they play a key role in the economic recovery and the challenges it faces and in this way reduces the vulnerability of ecosystems and threatened societies ”, explained the president of the board of directors of eco.business Fund.
In general, the fund seeks to rebuild economies that are both sustainable and resilient, which is why green finance is key to obtaining concrete and measurable results. To date, the fund has supported the storage of 8.8 million tons of CO2 in the agroforestry plantations that receive financing.
It should be noted that Mercader Financial is the first partner of the fund in the country with a senior loan of 15 million dollars destined to finance sustainable practices in companies in the agri-food sector, this sector is one of the priorities for the fund and the investment will mean support borrowers to make a successful transition from eco-fiendly equipment and sustainable agricultural practices. In a matter of identifying whether a company is a candidate to receive the loan through eco.business funds, there is a predetermined criterion through a list to detect potential clients.
The list comprises more than 70 activities detected and pre-approved by the fund in the four priority sectors that are eligible for funding. The financing is used directly in the acquisition of specialized equipment for protected agriculture, fruit or vegetable production greenhouses, efficient machinery for food processing in the industry, as well as other technological solutions for the production of grains or fruits that are related to the reduction pressure from land use and more efficient water management.
“The anticipated impact includes a water saving of 66%, reduction of fertilizers and pesticides by 40% and 67% respectively, the reduction of energy consumption by 60% and 60% also in the evasion of CO2 emissions ”Commented Dr. Jens Mackensen.
Finally, the eco.business Fund calls on companies to incorporate sustainable measures since it is not only good for the environment, there are also economic benefits by maintaining sustainable production hand in hand with profitability.
Reference-www.eleconomista.com.mx