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Cross-cutting insights from our portfolio

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What we found out at IDH

Overarching trends and insights from IDH

The five external conditions described above set the context in which IDH operated in during 2025. Looking across our portfolio, a set of cross-cutting insights emerged from our own review of our reporting and evaluation materials for the 2021-2025 cycle.  

These insights reflect what we observed across our work with partners, where progress took hold, where it proved harder to sustain, and under what conditions market change was most durable.  

Cross cutting insights from our portfolio

Insight 1

Supply security has become the most powerful entry point for sustainability investment

Insight 2

Where commitments became procurement decisions, market change followed

Insight 3

Women’s and youth economic participation is a structural condition for how markets function

Insight 4

Pre-competitive action achieved what no single company could do alone

Insight 5

The most credible evidence of impact is what endures without us

Insight 1: Supply security has become the most powerful entry point for sustainability investment

For markets to deliver outcomes for people and planet alongside business performance, sustainability investment needs to connect to the commercial logic that drives business decisions. When we worked with our private sector partners in 2025, the most consistent and immediate driver of sustainability investment was the need to secure supply of high-quality produce. The pressure intensified across the year and was felt by traders, manufacturers, brands, and retailers alike. 

Examples from our portfolio show that investments in farm-level systems, e.g. soil health, input efficiency or harvesting practices, bring positive benefits on multiple fronts. For farmers, these translate into lower input costs, better access to finance and higher incomes. For buyers and others in the value chain, the same investments improve quality, consistency and volumes of supply. 

Farm-level investment delivered these combined gains only where the rest of the chain could absorb them, through professionalised services, local processing, and access to formal markets. Women farmers gained inputs, technology, and finance most consistently where that chain integration was in place. For us as IDH, the entry point to continue working with the private sector on sustainability is increasingly about security of supply, while the outcomes are extending well beyond it.  

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What has become increasingly visible across 2021-2025 is that supply security is no longer only a sourcing issue. It is also deeply connected to farmer income stability, labour resilience, climate adaptation, ecosystem functionality and the long-term viability of production regions themselves. This is increasingly pushing sustainability closer to the operational centre of how companies assess commercial risk and future sourcing strategy. 

For example, in our cotton work in India, program farmers cut synthetic pesticide use to a fraction of baseline levels and now sell directly to registered ginners who confirm higher quality cotton, illustrating how farm-level practice change and supply chain integration can move together. These are precisely the kinds of interventions where IDH's understanding of farming systems and market dynamics, in combination with a business understanding, drive shared value for our partners. 

While the business case looks different across value chains and geographic contexts, working with our partners on securing quality and supply of agricultural products opens the door to further investments. Translating that into lasting market change requires those investments to reach procurement decisions and operations.  

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Insight 2: Where commitments became procurement decisions, market change followed

Sustainability commitments only translate into lasting market change when they become embedded in how companies buy, source, finance, and manage supplier relationships. Over the past five years, the strongest examples of sustained market change across our portfolio emerged where sustainability shifted from corporate ambition into operational practice: into procurement criteria, sourcing strategies, supplier contracts, financing structures, and performance management systems. 

This shift was driven by more than IDH's work. Science-based targets, disclosure regulation, and pre-competitive sector frameworks pushed companies to operationalise commitments they had set in earlier years, often independently of our involvement. Where we worked, our role was to make this shift practical and at scale, through tools, sector frameworks, and financing infrastructure that helped companies translate ambition into operational decisions. 

In 2025, we created the Procurement Library  (developed with procurement experts) that guides companies through integrating sustainability into each stage of their sourcing strategy: from supplier analysis to implementation and performance tracking. It is built on a Total Cost of Ownership approach that makes sustainability risks such as supply disruption, regulatory exposure and reputational damage visible as commercial risks. Alongside this, tools such as the Income Driver Calculator help companies take data-driven decisions on closing living income gaps in their supply chains. These are available for our partners and the broader sector to use. 

Yet, moving from individual company commitments to sector-wide norms requires more than tools. In the coffee sector, IDH supported the agreement of sector-level procurement principles that define sustainable sourcing as a shared standard rather than a competitive differentiator. That shift from individual companies’ initiative to common practice is where procurement decisions begin to reshape market practice. 

Lastly, ensuring commitments and procurements principles become a reality also requires the appropriate finance mechanism. Matching procurement commitments with the right finance mechanisms - catalytic, blended, sector-anchored - will remain central to our work in 2026 and beyond.

Read more about IDH EUDR Readiness reportRead more about IDH EUDR Readiness report
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Insight 3: Women’s and youth economic participation is a structural condition for how markets function

Across our portfolio, a consistent pattern emerges: where women and young people participate as economic actors whether as farmers, entrepreneurs, workers and decision-makers, market systems function differently. Outcomes become more stable, more productive and more resilient to external shocks. This is not primarily the result of targeted inclusion efforts alone. It reflects how markets respond when structural barriers to participation are reduced and when access to assets, finance, services, safe working conditions and opportunities becomes more evenly distributed. 

Evidence from our portfolio makes this clear. In our regenerative cotton program, we have seen that women’s collectives adopted regenerative farming practices at a higher uptake rate than their male-led counterparts. This delivered better outcomes for the farming system as well as the businesses that depend on it. 

Through the Mastercard Foundation-funded Women in Sourcing and Enterprise (WISE) program, 53,231 farmers were reached and 96,833 young people acquired work, with approximately 85% women’s participation. In Ghana, guaranteed off-take agreements were identified as a critical incentive for young women to enter tomato cultivation, providing stable year-round pricing and reducing exposure to seasonal volatility. These findings reinforce a broader pattern visible across our portfolio: where markets provide predictable commercial conditions, women and youth are more able to invest, remain economically engaged and participate in value chains over time. 

Yet, it’s important to state that participation is where IDH’s gender and social inclusion work only begins. Increased participation does not automatically translate into control over income, assets or decisions. Where structural barriers persist in access to finance, land or contracts, benefits remain uneven. Addressing these dynamics is central to how markets function. 

Rather than representing a departure from the ambition of gender equality and social inclusion, this pattern reflects a shift in how it is positioned within market systems. For IDH, this reinforces the need to embed gender and youth considerations directly within the economic logic of value chains, in procurement practices, access to finance, service delivery models, and sector governance, rather than treating them as standalone components.  

Taken together, the evidence points to a consistent conclusion: inclusion is not an add-on to market systems. It is part of how those systems function, and where it is constrained, performance and resilience are constrained with it. And as IDH, we work with our partners on putting the right pre-conditions in place for broader sector level changes to take place.  

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Insight 4: Pre-competitive action achieved what no single company could do alone

Most of the challenges at the heart of our portfolio cannot be solved by an individual company, however committed. A single buyer cannot build a traceability system that covers all smallholder farmers in a landscape. A single government cannot enforce deforestation standards across a fragmented value chain of hundreds of thousands of producers. The leverage point is the sector level: the shared platforms, governance structures, standards and tools that align multiple actors around challenges no single one of them can solve alone. 

This is increasingly where IDH’s institutional role sits: helping sectors build the shared infrastructure that allows sustainability to move beyond fragmented – and often unscalable - testing or individual corporate initiatives. Traceability systems, procurement frameworks, living wage methodologies, sector governance platforms and landscape approaches become most durable and scalable when they are collectively owned, operationally embedded and financially sustained beyond any single program or organisation. 

IDH's ability to work at this level depends on three specific things. We understand how companies think about value chain risk, which allows us to shape the business case for collective action. We have built government relationships over years, relationships that project-by-project organisations cannot replicate. And we can see and connect the middle layers of value chains - traders, cooperatives, processors and agri-SMEs that global buyers cannot reach directly but that determine whether sustainability commitments translate into farmer outcomes.  

A good example of this are the banana living wage commitments. These have been initiated under the sector work on fruit and vegetables. Without a clear sector approach where private companies were brought together on a common need, these commitments would not have been so successful. The clear benefit of these commitments for companies is the possibility to organise actions in a joint and effective way. Working together creates impact at scale at a lower cost.  

Many initiatives within IDH Sector Initiatives have been organised using the membership fee model. As such private sector takes the ownership and brings the costs associated to the management of these initiatives under their budget, whereas IDH support on the knowledge and convening level.  

The sector level is where testing business cases and voluntary initiatives become shared practice and, ultimately, market infrastructure. This happens when companies, governments, farmer organisations converge around a common solution and institutionalise them as part of their governing frameworks, sector agreements or broader policies and regulations. In 2025, we saw this evidence of IDH contribution to sector level change coming together. Traceability systems and farmer databases that IDH and partners had been developing for years became operational necessities under the EUDR. The ILO Living Wage Resolution and the World Social Summit declaration in Doha gave institutional standing to living wage frameworks that IDH had been building with partners for over a decade. 

The ultimate test of the resilience and durability of progress at sector and landscape governance is when project and program timelines conclude and IDH or other initiating partners step back or change their role. Governance platforms, shared tools and policy frameworks only demonstrate their value when they continue to function and can be financed without the organisations that helped create them. Designing exit strategies is core to our approach to ensure the initiatives we drive can sustain and scale themselves independently, and without us in the room. 

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Insight 5: The most credible evidence of impact is what endures without us

Across 2021–2025, some of the strongest indicators of durable change emerged where systems, institutions and sector platforms continued operating independently of IDH funding or direct management. This reflects a core principle underlying IDH’s approach: long-term market transformation depends on building systems that sectors themselves eventually own, finance and govern. 

Over the past five years and beyond, IDH has developed and convened landscape initiatives across Asia, Africa and Latin America that bring together companies, governments, farmers and communities around shared land use and market challenges that no single actor can address alone. Landscape and jurisdictional approaches are no longer a standalone program model as part of IDHs portfolio. Landscapes approaches are being embedded across our commodity and food systems work as a mainstream strategy to driving field-level at regional level. 

What we have seen from our work over ten years of convening landscapes is that there is a business case for pre-competitive collaboration. An independent analysis from Vietnam's Central Highlands shows that achieving regenerative outcomes collaboratively at landscape level cost up to fifteen times less than when companies acted individually. The knowledge and tools built on top of our Landscapes Program are now publicly available through SourceUp, where organisations can explore over 65 existing landscape initiatives by commodity and country.  

The Life and Building Safety Program (LABS) illustrates this pattern well. It was designed for independence from the start and now operates without IDH co-funding, reaching over 1.3 million workers across Vietnam, India, Cambodia and Indonesia, and contributing to national fire safety standards that apply far beyond the factories IDH directly supported. LABS is one example of a broader pattern we see across our portfolio: initiatives where IDH's most important contribution was creating the conditions for others to contribute and lead. 

By the end of 2025 IDH transitioned out of the different international sustainability Sector Initiatives it helped to create and host, support or advise in the past 15 years: SIFAV (Fresh Fruit and Vegetables), FSI (Flowers), SSI (Spices), SVI (Vanilla), SJC (Juices), SNI (Nuts) and ASC (Aquaculture)2. Over the past years they all matured into financially self-sufficient initiatives with active governing bodies, maintaining their influential role in their sectors as active sustainability platforms.  

Alongside landscape programs and other initiatives, from 2021-2025, IDH has invested in building data and insights tools and public knowledge resources that generate ripple effects well beyond our direct reach. These tools are foundational pieces of our broader work on Better Income, Better Jobs and Better Environment and will be outlined in more detail. These assets shift behaviours at sector level, not through direct engagement, but through making evidence on what works accessible to anyone who needs it. 

Additionally, IDH has also contributed to building initiatives that are now fully owned and financed by the private sector. IDH's role in these is not always visible as it is also changing as we adapt together with our partners. We often play a role in initiating, convening and getting things off the ground. Over time, as sectors develop their own capacity and ownership, our role shifts: from convenor or co-funder to advisor. Sometimes we exit entirely.  

Catalysing investment is the final and perhaps most structural part of this story. Transforming agricultural markets requires capital at a scale that public funding alone cannot provide. One of the most persistent barriers is that smallholder agriculture and agri-SME finance remain perceived as high-risk by mainstream investors, leaving farmers and the businesses that serve them chronically underfunded. Over the past six years, the IDH Farmfit Fund has worked to change that perception by demonstrating that viable, impactful investments can be made in smallholder agriculture. Across 18 investments in 15 companies, the Fund has contracted 55.7 million in investments and mobilised over €150 million in co-financing, with investees expected to reach six million farmers through services, credit and off-take(assuming investments reach full potential and deliver projected targets). The overarching objective is not to create dependency on IDH's instruments, but a financial sector that treats smallholder and agri-SME finance as a mainstream asset class. 

Tracing and measuring what outlasts us remains a genuine challenge and a priority for the next cycle. The chapters and case studies that follow show where and how this has already been happening in 2025 as the final year of our 2021-2025 strategic cycle.