Project detail - Mirova Sustainable Land Fund 2 SLP RAIF

Who is our prospective customer?

Mirova Sustainable Land Fund 2 (MSLF2) is a close-ended hybrid fund with a target size of EUR 350mln, recently launched by Mirova. The Fund Manager is Mirova, the impact investment arm of Natixis Investment Managers.

What is our funding objective?

MSLF2 provides long-term financing to sustainable land use projects and companies that will support the certified production of food and fiber value chains through sustainable forestry and sustainable agricultural practices. The Fund targets positive impacts in terms of climate mitigation and adaptation, biodiversity protection, community inclusion and gender equality with an existing pipeline across Africa, Asia and Latin America.

Why do we want to fund this investment?

By investing in MSLF2, FMO gains diversified exposure to a wide range of countries across the globe in sustainable forestry and agribusiness sectors. FMO 100% Green label is expected to be applicable, as MSLF2 is in line with Climate Mitigation and Biodiversity objectives of FMO’s Green Label, enabled by international certifications such as Rainforest Alliance, and FSC. FMO 100% Reducing Inequality label is expected to be applicable, based on the gender approach of the MSLF2 and the tentative alignment to the 2X criteria at both fund and portfolio level.

What is the Environmental and Social categorization rationale?

Because of the global mandate, restrictions related to the Fund’s exclusion list, as well as its forestry and regenerative agriculture and agroforestry sector focus, the Fund’s E&S risk categorization is 'Private Equity risk category A'. It should be noted, however, that category A investee companies will not be pursued, and that the size of investments is relatively small. E&S risks most likely to be encountered at the investee companies are expected to be linked to IFC PS 1 to 4 (Risk management, Labor, Resource efficiency, and Community), PS5 (land acquisition related), PS 6 (Biodiversity) and PS 7 (indigenous people). Besides this there are risks related to the human rights contexts in some areas of operations. Mirova, the investment house, has developed a strong E&S management system which will be applied at fund level and requires its team to incorporate and record E&S analysis throughout the entire investment process and aligns with FMO E&S requirements, including compliance with (i) the IFC exclusion list, (ii) local environmental, health & safety and labour laws and regulations, and (iii) IFC Performance Standards and ILO Core conventions.