Alden Impact Capital participates in case study on practical implementation of responsible investment principles

Responsible investments in agriculture, in practice: Results and conclusions from a case study review

Date:  March 6, 2015

 

Responsible investments in agriculture

The abstract of the report is included below. The report can be accessed here.

(Abstract)

“In 2014 EBG Capital, an independent advisory company focused on agricultural investments, was mandated by the German Development Agency to compile case-studies on the practical implementation of responsible investment (RI) principles – particularly around land tenure – by private investment companies.

EBG reached out to 35+ asset managers with exposure to land who are known as “leaders” in RI. Case studies were received back from eight investment funds, who we have anonymized here for confidentiality reasons. They responded to questions about which RI principles they adhere to, what DD they undertake, how they approach land tenure and how impacts are monitored.

The results showed that all investors are concerned about securing land-based rights and they undertake extensive DD. They often prefer to acquire existing businesses or assets rather than green-field sites, since this makes land tenure more secure. Every investor aims to create positive impacts for local stakeholders, typically via improved infrastructure, healthcare and education, better pay and access to markets. But some see RI as a cost of doing business, rather than a point of principle, and the quality of impacts varies relative to the obligations implied by the international principles to which they are all signatories.”

Copyright 2015 by EBG Capital AG. All rights reserved.