Supporting the transition to sustainable supply chains

Mirova is mobilizing public and private investors to support agroforestry & regenerative agriculture projects to promote biodiversity conservation and decarbonize supply chains

Executive Summary

1. Making an agricultural model sustainable is a critical challenge to address.
2. Sustainable Land Use (SLU) is necessary to ensure resilience in production and improve crop yields 
   in view of climate change.
3. Increasing regulatory frameworks around deforestation-free products and mandatory due diligence 
   require ambitious changes.
4. Despite strong trends, some barriers need to be overcome to help producers in their agroecological 
   transition, especially in developing countries.
5. Mirova's strategy offers to mobilize public and private investors and promote regenerative agriculture, including agroforestry projects, throughout supply chains.
6. SLU can bring a "Regenerative Edge", meaning the potential to provide higher risk-adjusted financial returns to farmers and investors.

As the demand for food, fiber, and medicinal plants from the food, textile, beauty and pharmaceutical sectors is skyrocketing, unsustainable agricultural practices employed to meet this demand are partly responsible for land and forest degradation, climate change and poor living conditions of local communities.

The challenge of these activities is to produce more and better with less, by restoring land and improving productivity, while strongly reducing any negative environmental and social impacts in the long run.

The development of Sustainable Land Use (SLU), comprising methods such as regenerative agriculture practices like agroforestry, is key to reversing these trends, as it offers a way of restoring and preserving nature, soils, and climate. These SLU practices, which help ensure long-term soil health and fertility, water retention and conservation, and biodiversity and ecosystem services, are moreover strongly supported by international public and private initiatives.
In this context, Mirova launched a second vintage investment strategy in December 2023 to provide SLU projects and companies with long-term flexible financing solutions.