Partnership between &Greeen Fund and FS to develop deforestation-free corn chain in Mato Grosso

The &Green Fund (Stichting andgreen.fund) and the company FS Bionergia have recently announced a partnership to establish a deforestation-free corn and biomass supply chain in the state of Mato Grosso.

The eight-year facility worth US$30 million is provided to FS for it to improve the traceability of its supply chain, mitigate deforestation risk, and promote production intensification and forest restoration.

Corn plantation in Sorriso-MT. Photo: Silvio Esgalha/IDH

According to a plan, FS has committed to conserve 224,000 hectares of forest through its direct and indirect suppliers; intensify production on 40,000 hectares of low-productivity areas; and restore 5,000 hectares of degraded forest areas through engagement with suppliers and local partners.

"This &Green and FS transaction represents an opportunity to positively influence the soybean and corn production chains in Mato Grosso. FS will impact about 15% of the soybean production areas in the state and is expected to grow even further. The commitments undertaken by FS under the facility will enhance the transformation of land use practices by grain growers with a view to developing a blueprint for deforestation-free production practices that ensure effective forest protection and sustainable land intensification," said Rosa Lemos de Sá, member of the &Green Advisory Board.

"This partnership is and evidence that sustainable production and forest protection can go hand in hand and that the current efforts of modern Brazilian agriculture can be progressively improved. We really value the fact that &Green recognizes the efforts of FS and our suppliers in Mato Grosso, and we are proud to see international investors supporting agricultural companies that take long-term ESG concerns seriously in Brazil," said Rafael Abud, FS CEO.

Contribution to landscape development

The partnership is in line with the State the Produce, Conserve and Include Strategy, implemented in Mato Grosso with the support of IDH. The achievements made possible through the implementation of the Action Plan will contribute directly to the achievement of priority goals in the production and conservation axes of the State Strategy and of the PCI Regional Compact of Sorriso, to which FS is a signatory.

"This operation materializes part of the investments required for the fulfilment of the PCI goals, and shows to industries and markets that there is an investment model that can lead to the transformation of food systems with impacts along the chain and with shared benefits in the landscapes", points out Marcela Paranhos, IDH's Global Carbon Finance Manager

This is the second example of this investment model in Mato Grosso. In February 2021, Marfrig announced a 10-year US$30 million financing agreement through the &Green Fund to be invested in a deforestation-free cattle supply chain in the Amazon and Cerrado. The Action Plan, developed in partnership with IDH, yields results in the Production, Conservation and Inclusion goals of the State PCI Strategy and of the PCI Regional Compact Vale do Juruena, supported by Marfrig.