Case Study

Agricultural Outgrower - Philippines

An agricultural producer and trader based in the Philippines and specialising in banana, cocoa and abaca production was seeking access to international finance to support a planned expansion programme.  The organisation, which operates through both corporate-managed farms and outgrower programmes proactively supports its smallholder farmers, through both sustainable agriculture practice capacity building and the provision of non-bank financial services.

As part of the pre-financing work, Earth Active and our partner MFC, were contracted by an international fund to conduct an environmental and social due diligence (ESDD) of existing operations against relevant international ESG standards, with a particular focus on management of social performance, biodiversity, pollution control and working conditions.  The work involved a series of site visits and detailed reviews of KFI’s processes, capacity and implementation track record.  Robust research techniques were employed including enhanced interviewing techniques to obtain high-quality, accurate information. The organisation was closely involved from the outset with solution/good-practice identification and workshops were held to agree on key issues and gaps to be addressed.

Specific guidance was also provided on climate change benefits of agro foresty systems and associated carbon credit generation. A Climate Action plan was produced to address climate change related risks to crop production, such as drought and flooding.  Based on our recommendations the project was successfully financed, following development of a robust but pragmatic Action Plan and monitoring programme.

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Climate Risk Assessment

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