Award-winning agri-lender solution for climate-smart lending
Our system is built for funds which:
- invest for environmental impact or must satisfy ESG investment criteria
- recognise the link between financial and environmental sustainability
- are concerned about climate change mitigation, adaptation and environmental risk
We provide a simple and supported investment methodology for funds to place investment with agri-lenders or outgrower produce buyers for financial and environmental returns. The 5-step methodology is slightly different depending on whether you want to place an investment with a produce buyer or an outgrower. Both approaches are shown in the respective sections below.
Work with F3 Life to Source Investments with Envirovironmental and and Climate Returns
You can use our tools to develop your own deals, or we will accept mandates to develop deals for you according to our approach and with our systems. Please contact us for further information.
Agri-lender climate-smart investments for funds
A fund provides a loan to an agri-lender conditional upon agri-lender clients adopting sustaianble or climate-smart farming practices.
The agri-lender includes requirements for sustainable farming measures into its loan agreement with its farming clients.
As the farmer repays their loan, the farmer adopts required sustainable farming practices
Our monitoring and remote-sensing system is used to verify that a farmer complies with the terms of their loan for sustainable farming practices.
Lenders use this information about farmer sustainability to inform further credit decisions and to report to their stakeholders on their climate and environmental impact.
Smallholder produce buyer climate-smart investment for funds
A fund provides a loan or equity investment to an outgrower conditional upon smallholder outgrower farmers adopting sustaianble or climate-smart farming practices.
The outgrower includes requirements for sustainable farming measures into produce offtake agreements with contracted smallholder farmers.
Alongside fulfilling the production contract, the farmer adopts required sustainable farming practices.
Our monitoring and remote-sensing system is used to verify that a farmer complies with the terms of their agreeement for sustainable farming practices.
Outgrowers use this information about farmer sustainability to inform further offtake agreements, set produce purchase prices and to report to their stakeholders on their climate and environmental impact.
F3 Life Fund Tools
We help funds develop investments which provide defined financial and environmental returns. We licence our tools to funds and also accept mandates to develop investments which provide a return and environmental impact using our methodologies. F3 Life provides:
Investment Design Tools
Climate-smart land management designs
We provide off-the-peg climate-smart or sustainable land management designs for inclusion in smallholder credit or offtake agreements. We make clear the land-management measures that your clients should implement in order to increase their climate resilience and reduce their credit default risk.
To demonstrate the benefits of our system, we provide: (1) lender/produce buyer financial projections, (2) farmer financial projections, and (3) environmental cost benefit analysis, associated with use of our tools. We build these financial models to show how adoption of the our system will (1) benefit the lender or offtaker, (2) improve farmer productivity and mitigate weather-related losses, and (3) help achieve environmental objectives.
Environmental Project Milestones
The F3 Life system helps farmers implement a step-by-step process for land-managment improvement. We set these pragmatically in a specific, measurable, attainable, realistic and time-bound fashion to facilitate reporting against credible achivements.
Our system sets out precisely what these environmental project milestones are and allows you to integrate these with your own fund objectives.
Deal Documentation Tools
Term Sheets for Investors
Funds can use our tools in order to achieve climate and environmental objective which they are mandated to pursue.
We help this process by providing precedent term sheets which identify the financial and environmental terms of loans, using established environmental metrics.
Provisions for Inclusion in Loan Agreements
We provide precedent climate-smart loan provisions for both loan agreement with farmer clients and for loan agreements with agri-lender funders.
Terms of Reference for Contractors
Climate-smart or sustainable investments will frequently require (1) limited external advice on the inclusion of sustainable land-management agreements in investment agreement terms and, (2) provision of advice to farmers on implementing these measures. We provide terms of reference/job descriptions for the contracting or employment of these service or expertise providers.
Impact Reporting Tools
Land Mapping Tools
We provide simple and cost-effective tools for the mapping of land subject to improved land-management requirements. Mapping or locating this land is necessary for the monitoring and reporting of impact.
Sustainability Rating System
We use established sustainability rating systems against which users of our system can report to provide you with comparable sustainability ratings across your investment portfolio.
Impact Verification & Climate and Environmental Reporting Tools
Businesses must evidence their impact in a verifable and auditable way. Our verification and monitoring systems creates an evidence trail of your environmental impact for use by your investors and other important stakeholders.
Underpinning the use of all these tools, we provide an online training system for back and front office staff to develop and implement climate-smart lending projects. If necessary, we can augment this training with face-to-face support.
Environmental Impact Reporting
F3 Life uses the Sustainifi platform.
This IT paltform aggregates evidence of environmental compliance into reports against appropriate impact metrics selected from the IRIS catalogue of impact metrics.
We are further developing a reporting module which provides a US$ value for the production of ecosystem goods and services which investments using the F3 Life methodology result in.
Once the F3 Life Sustainifi platform is complete, we will be updating these training modules with modules which specifically relate to the use of the easy-to-use platform.
Credit Product Design ToolsLevel 1
- Land-management requirements
- Climate-smart credit designs
- Lender financial analysis
- Outgrower financial analysis
- Farmer cost-benefit analysis
- Environmental cost-benefit analysis
- Environmental milestones
Deal Documentation ToolsLevel 2
- Term sheets for investors
- Climate-smart provisions for investment agreement agreements
- Climate-smart provisions for loan and produce supply agreements
- Terms of reference for contractors
Mapping & Reporting ToolsLevel 3
- PAYG = Pay-as-you-grow, designed to cost-effectivecly fit your project size
- Land mapping tools
- Environmental activity verification tools
- Impact monitoring tools
- Climate risk and impact reporting tools