Responsible Commodities Facility

Brazil

Tool Type

Improvements | Landscape and jurisdictional approach | Monitoring and reporting

Risk Type

Climate change | Environmental

Feed Ingredients

drawing of an algae cell

Algae

line drawing of a chicken

Animal proteins (LAP/PAP)

link drawing of a fish skeleton

Aquaculture trimmings

line drawing of wheat sprigs

Cereals

line drawing of insect larvae

Insects

line drawing of a palm with an oil droplet

Palm oil

line drawing of dna and molecule structure

Single-cell proteins (SCP)

line drawing of soy pods

Soy

line drawing of a vitamin gel capsule

Vitamins & minerals

line drawing of a fish

Wild capture fisheries

What is it?

The Responsible Commodities Facility is an initiative of Sustainable Investment Management, an environmental finance firm based in the UK and Brazil.

The RCF promotes the production and trading of responsible commodities, by creating financial instruments to provide incentives to those involved in the production of commodities that meet the growing international demand for sustainable supply chains.

Participants in the facility are continuously monitored and independently verified to ensure compliance with the eligibility criteria of the various funds of the facility.

Compliance with environmental criteria and the impacts of the operations financed are reported to an Environmental Committee which advises on the methodologies and reviews the results.

The environmental impact of its programs are independently verified and discussed with the Environmental Committee, to be reported to financial supporters.

The first RCF program is the RCF Cerrado Programme 1, that provides low-interest credit lines to soy farmers in Brazil that commit to zero deforestation.

The RCF Cerrado Programme 1 finances farmers that meet its strict environmental Eligibility Criteria.

Investors in the RCF Cerrado Programme 1 receive Statements of Environmental Impact with the pro-rata impact of their individual investments stating, for instance:

  • The amount of Deforestation and Conversion-free soy produced;
  • The area of native vegetation conserved in the production areas financed by the RCF; and,
  • The amount of carbon stored in these farms.