Securing Our Food Forever
Looking Ahead: Responsible Investing
In this period of reduced overseas development aid and declining grants from governments, it has become necessary and urgent for the Crop Trust to explore new ways to engage a broader group of public and private donors in helping us reach our USD 850 million target.
Investing in the future
The Crop Trust considers integrating environmental, social and governance (ESG) concerns into its investment process to be an important part of its investment strategy, and one that supports its broader mission and objectives. As a responsible asset owner, the Crop Trust believes responsible and sustainable investment and good financial stewardship will enhance the long-term performance of the Endowment Fund. Responsible investing aligns well with our mission to generate returns that can continue to support crop conversation and use for future generations.
The Crop Trust is a signatory to the United Nations Principles of Responsible Investment (UNPRI), an initiative that includes an international network of investors working together to put responsible investment into practice. As part of its commitment to the UNPRI, the Crop Trust is committed to undertaking annual UNPRI reporting, the results of which are publicly disclosed.
In line with the Crop Trust’s commitment to environmental stewardship, we support the Paris Agreement, enacted in 2016, which commits all parties to adhere to nationally determined long-term strategies for reducing greenhouse gas emissions.
Toward an ESG Strategy
The Crop Trust is working with its investment managers to further develop its ESG Strategy and better integrate social factors, environmental concerns (such as climate change effects and net zero emissions), good stewardship and other such considerations to meet investment objectives.
Innovative finance
The Innovative Finance Working Group (IFWG) was established by the Crop Trust Donors’ Council in June 2018 to review innovative finance mechanisms that could complement official development assistance and government grants in contributing to the Endowment Fund. The IFWG has identified possible solutions to provide additional, long-term sustainable funding that could be pursued by the Crop Trust.
In 2020, the IFWG focused primarily on developing a Food Security Bond (FSB) concept, and a feasibility study on the FSB was carried out. The Crop Trust is now in bilateral discussions with potential donors to move this initiative forward.