Businesses supported by Fundo Vale promote solutions with a positive social and environmental impact and reconcile the conscious and integrated use of natural resources and ecosystem services.

In the transition to the bioeconomy, Fundo Vale has emerged as a catalyzer in promoting impact alliances, reaffirming its commitment to driving a more sustainable, fair and inclusive economy through social and environmental impact businesses. At the 28th UN Conference of the Parties on Climate Change (COP 28), held in December in the United Arab Emirates, Fundo Vale and its partners intensified their collaboration, outlining innovative strategies and boosting efforts to tackle challenges related to climate change through the development of nature-based solutions. COP 28 was significant for Fundo Vale, as it made its trajectory tangible and once again highlighted the collective power needed to solve complex, global social and environmental problems.

Although the emphasis of this edition was on the use of fossil fuels, the challenge discussed by Fundo Vale was how to scale up sustainable development models to keep the forest standing and restore degraded areas through production schemes. The overriding goals are to guarantee the quality of life of the communities that depend on the forest and make a significant contribution to mitigating the effects of climate change.

Accordingly, some initiatives supported by Fundo Vale actively participated in discussions about nature-based solutions and impact investment during the conference.

Synergy between Fundo Vale’s activities and Vale’s sustainability objectives

As well as taking part in a panel discussion organized by Conservation International together with BTG, Re-Green, Mombak & Mastercard, called “Expanding Nature-Based Solutions Through Financial Capital and Innovation,” Malu Paiva, Vale’s vice president for sustainability, also moderated a panel called “Business Models to Expand Forest Protection and Restoration,” which featured the leaders of Caaporã, Imaflora and Belterra, Fundo Vale partners that are helping scale up forest recovery and the bioeconomy in the Amazon.

Imaflora, a partner of Vale’s 2030 Forest Goal, is checking whether the chosen businesses are operating in compliance with legislation and best practices linked to agriculture, agroforestry, pastoral systems and social demands in the period in question. Meanwhile, Caaporã, which receives resources from Fundo Vale under Vale’s 2030 Forest Goal based on the number of hectares recovered, produces and sell dairy products under the No Carbon Milk brand – the first zero-carbon milk produced in Brazil. Caaporã integrates the poultry, pig, dairy and beef production chains through agro-silvopastoral systems. In turn, Belterra, one of the main businesses demonstrating a sustainable option for achieving Vale’s 2030 Forest Goal, has already restored around 1,800 hectares since 2020. In this context, many schemes are already being implemented, including agroforestry systems managed by Belterra, which have proven an efficient way to contribute to the production model in the Amazon, Xingu and Carajás cocoa production hubs.

The panel’s members discussed how to make the most of existing challenges and opportunities for the entire value chain of forest products, including demand, financing, research, development, innovation and labor. However, as Malu Paiva explained, restoring and protecting the forest is not enough. “It is necessary to develop consumer markets at scale and logistics chains to absorb what is produced by the forest and guarantee income for local communities,” she said.

Fundo Vale has been doing this for 14 years: fostering a new economic reality by investing in business development, knowledge generation and financial arrangements aimed at the conservation and recovery of biomes, paying special attention to the Amazon. By looking at Fundo Vale’s 2022 Impact Report, it is possible to understand the consistency of the initiatives supported and invested in over the last year.

State government of Pará and Vale sign memorandum of understanding to restore 10,000 hectares of forest by 2030

During a panel discussion called “Food Systems and Regenerative Agriculture, from COP 29 to COP 30,” organized by the state government of Pará, the government’s plan was presented and a memorandum of understanding with Vale and Fundo Vale was signed.

The aim of the memorandum of understanding is to strengthen the “Sustainable Territories Platform,” focusing on supporting commercial solutions for productive recovery on registered properties, covering up to 10,000 hectares by 2030. In addition, the agreement will support the platform’s operation and governance through resources to boost impacts, promote connections between private and public sector stakeholders, academia and civil society, and support the dissemination and exchange of knowledge, among other related activities.

This alliance will connect actors in different niches to increase the impact of the platform’s “Territorial Intelligence Module,” among other activities to leverage positive impacts on forest recovery and protection in Pará.

Fundo Vale signs Brazilian Philanthropic Commitment on Climate Change

During an event at COP 28, Fundo Vale also signed the Brazilian Philanthropic Commitment on Climate Change, led by the Group of Institutes, Foundations and Companies (GIFE), which is part of the #PhilanthropyForClimate international movement. “The aim is to serve as a common platform for action, learning and coordination of efforts by Brazilian philanthropy in the area of climate action. Brazilian philanthropists and social investors are coming on board the climate agenda, in line with the sector’s global movement, while emphasizing the specific features of our country and the Global South,” reads the commitment.

Structured around eight broad areas of action, the commitment provides for measures aimed at education and learning about the following:

1.    Climate change’s causes, impacts and systemic solutions, as well as implications for work;

2.    The allocation of financial resources and efforts to accelerate climate change mitigation;
3.    A systemic vision of initiatives for a net-zero emission world;

4.    Equity, funds and financial assets for reducing the impacts of climate change;

5.    Measures to minimize the climate impact of operations developed by the philanthropic sector itself;

6.    Coordination, lobbying and advocacy for aligned and collaborative action;

7.    Positioning and identity/singularity to diversify and complement visions and approaches on the climate agenda;

8.    Continuous learning and transparency in the measures taken.

Innovative livestock farming systems catalyzed by pioneering carbon-backed investments

Gustavo Luz, Fundo Vale’s director, gave the perspective of an impact investment organization focused on developing non-conventional financial instruments in a discussion about how innovative livestock farming systems, catalyzed by pioneering carbon-backed investments, can accelerate the transition to low-carbon beef production in Brazil, together with Caaporã, CGIAR/CIAT, Ecosecurities and Imaflora. The latter, responsible for developing this new methodology under the Verra standard, is running a pilot scheme as part of Vale’s 2030 Forest Goal, at a site in Tocantins, together with Caaporã.

Luz emphasized the opportunity to associate corporate ecosystem restoration goals with the implementation of integrated agro-silvopastoral production systems. While on the subject of cattle farming, he also highlighted Fundo Vale’s commitment to the productive model of livestock intensification proposed by Caaporã.

“In recent years, we have invested in this project, innovating in financing models, looking at blended finance models and models that use carbon credits as business assets. For this to happen, it is essential to have methodologies that guarantee the existence and robustness of credits. Accordingly, we didn’t just finance Caaporã, but also supported the development of the new carbon methodology currently under development, in partnership with Imaflora and Caaporã,”

Luz explained

Strengthening alliances to tackle Brazil’s climate emergency

Climate Ventures also launched the Green Wave Platform at a meeting organized in conjunction with the UN Global Compact. This platform will provide a network of solutions to accelerate the transition to a zero-carbon world in Brazil. It will connect those offering and those seeking transitional solutions, with the aim of leveraging green businesses in the country.

Courageous Land took part in GBB100, an innovative green business acceleration program led by McKinsey & Company, in collaboration with COP 28.

Sitawi Finanças do Bem, represented by its conservation and climate finance manager, Fernando Campos, and its CEO, Leonardo Letelier, participated in discussions about climate finance and the global carbon market.