THE WHAT? Unilever has announced that it has signed a memorandum of understanding with AXA and Tikehau Capital outlining their shared ambition to create an impact fund dedicated to accelerating and scaling the regenerative agriculture transition.
THE DETAILS The fund is designed to promote regenerative agriculture practices by focusing on three core areas: protecting soil health; contributing to the future supply of regenerative ingredients; and unlocking technological solutions to accelerate the transition to regenerative agriculture.
The three partners aim to invest €100 million each and the find will be open to investors who wish to participate, with a target size of €1 billion.
THE WHY? With land use, agriculture and deforestation representing the second-largest source of greenhouse gas emissions globally and the primary driver of biodiversity loss, regenerative agriculture practices play a crucial role in reversing the trend and addressing climate change.
Eric Soubeiran, VP Climate & Nature Fund, Unilever, explains, “We know that one of the key ways to address climate change is through nature, and agriculture is a part of that solution. This is why in 2020 Unilever committed to invest €1bn in climate and nature projects, connecting value chain transformation with our business and brands, allowing Unilever to take targeted and meaningful action to address climate change and grow responsibly. Eventually, we would expect projects to include accelerating the transition of regenerative surfactants, scaling low carbon dairy and plant-based acceleration. We look forward to working with partners on this new regenerative agriculture finance mechanism.”