Project detail - Stichting Hivos-Triodos Fonds

Who is our prospective customer?

Stichting Hivos-Triodos Fonds is a foundation based in the Netherlands. Its strategic purpose is to contribute to the sustainable development of countries that are lagging behind in terms of prosperity and well-being. Stichting Hivos-Triodos Fonds tries to achieve its goals by providing loans and guarantees and participating in the equity of companies, institutions, and organizations that have a positive social, environmental, or cultural impact and demonstrably contribute to sustainable development.

What is our funding objective?

With FMO’s financing, Stichting Hivos-Triodos Fonds will further expand its portfolio of investments. By investing in the Stichting Hivos-Triodos Fonds, FMO will indirectly reach micro-, small- and medium-sized enterprises (MSMEs) operating in the nexus of agribusiness and renewable energy in Africa, Asia, and Latin America. FMO will also support underlying smallholders, the backbone of the agricultural sector and local workforce, address climate change, improve livelihoods, and reduce inequalities for low-income communities and vulnerable groups.

Why do we want to fund this investment?

MSMEs in developing countries are of key importance for food security and combatting climate change but are underserved in terms of financing. Despite its economic significance, agriculture in low-income countries receives disproportionately low formal credit, and only a small fraction of global climate finance reaches small-scale agriculture. Stichting Hivos-Triodos Fonds addresses these gaps by providing essential short- and long-term financing to MSMEs in the agribusiness and renewable energy sectors, promoting sustainability, inclusiveness, and economic growth.

What is the Environmental and Social categorization rationale?

Stichting Hivos-Triodos Fonds is an E&S category-B foundation that maintains a portfolio of MSMEs and financial institutions in the agriculture/food and renewable energy sectors. Stichting Hivos-Triodos Fonds operates in regions in Africa, Latin America, and Asia, well known to FMO. Whilst the risk level is limited for most investments, the prospected portfolio may include exposure to all IFC Performance Standards (PSs). Key environmental and social (E&S) risks include labor rights and working conditions (PS-2), occupational and community health and safety (PS-2/4), community support, and biodiversity (PS-6). Risks are mitigated through a risk-commensurate E&S management system (ESMS) and adequate ESG integration in the investment processes, upheld by competent E&S professionals of Triodos Investment Management.