eco.business Fund supports conservation and local business
Praxis funding impacts sustainability in Latin America and the Caribbean
The eco.business Fund is a joint initiative of investors’ intent on supporting the promotion of business and consumption practices that contribute to biodiversity conservation, the sustainable use of natural resources, climate change mitigation and adaptation to its impacts.
In providing financing to the fund’s target group for investing in activities that conserve nature and foster biodiversity in Latin America and the Caribbean, the eco.business Fund seeks investments that yield both financial and environmental returns.
The eco.business Fund is structured as a public-private partnership (PPP) and based on an innovative multiple tier capital structure, with participation of public investors, multilateral organizations, development finance institutions, NGOs, foundations and private institutional investors. The financing can be provided directly to businesses or through local financial institutions to reach enterprises in the same area.
The eco.business Fund concentrates on the following four types of sustainable activities: Agriculture and agri-processing, fishery, forestry and eco-tourism. In addition, end borrowers and local lending institutions can count on high impact technical assistance provided by the eco.business Development Facility.
Since its inception in December 2014, the eco.business Fund has disbursed more than USD 872.8 million to agricultural producers and other local enterprises related to the fund’s environmental goals. To enhance the impact of the investment activities, the fund has provided technical assistance to 61 projects, all via local financial institutions. Across the region, more than 21 capacity building projects with an aggregate project volume of USD 3.1 million have addressed topics such as environmental and social risk management, awareness raising, and product development.
The Praxis commitment
Praxis Mutual Funds® supports organizations such as the eco.business Fund through fund investments in Calvert Impact Capital, an impact-investing institution that helps people around the world through community development financing. It’s part of the Praxis commitment to place approximately 1% of each of its funds to benefit neighborhoods and individuals through community development investments.