Sustainable Finance

The Playbook of Financing Solutions

The Playbook of Financing Solutions, developed in collaboration with Bain & Company, is an interactive online tool, referencing concrete, already implemented or piloted financing mechanisms that have successfully helped unlock capital for sustainable food systems globally

Strategic Approach

This playbook draws on insights from 7 Working Groups convened with over 50 Financial Institutions and Food Corporates. It synthesizes practical examples and innovative models to support climate smart investment and shape global conversations (i.e., COP)

Solutions Funded

Eight solution types support food system transformation, spanning all stages of the value chain


Financing Models

Innovative financing models can reduce barriers and unlock the commercial capital needed to scale food system transformation globally

De-risking Tools

De-risking tools are essential to unlocking investment at the scale needed for food system transformation

Description financing model: Corporate price premiums as a de-risking mechanism for preferential bank lending, conditional on sustainbility performanceCorporate offtakers leverage their sustainability procurement commitments to de-risk upstream dairy farmers, bundling price premiums and technical assistance with preferential bank financing - incentivising the adoption of measurable on-farm sustainability practices.Applicability: Best suited to supply chains where corporate buyers can formalise sourcing specifications and offer measurable price incentives. Considerations: Scalability depends on sustained corporate willingness to maintain price premiums and on the availability of robust MRV systems to reliably quantify and verify on-farm GHG reductions and sustainable practices at scale.Description of de-risking tool(s):Price premium / offtake agreement: Nestlé and Vreugdenhil commit to defined sourcing specifications and pay farmers a premium on their milk for adopting measurable sustainability practices. This revenue certainty de-risks the farmer's business case for investment and improves their bankability, enabling Rabobank to offer discounted interest loans directly linked to programme participation.Case study description:This model supports dairy farmers across the Netherlands in transitioning to more sustainable practices - including GHG emissions reduction, regenerative agriculture, and improved farmer livelihoods. The Tomorrow's Dairy programme operates as a downstream-driven financing mechanism: Nestlé and Vreugdenhil create an incentive programme granting price premiums on milk to enrolled farmers who adopt measurable on-farm sustainability practices. This revenue certainty acts as a de-risking signal for Rabobank, which in turn offers preferential loans to participating farmers, allowing them to access discounted financing for sustainable business improvements, supporting their transition and strengthening their financial resilience.As part of the programme, enrolled farmers work with agricultural advisors to develop tailor-made business plans with measurable sustainability goals.(1)  Nestlé and Vreugdenhil, under a five-year collaboration agreement, define sourcing specifications and commit to paying a price premium for milk produced with measurable on-farm sustainability practices (2)  The price premium acts as a de-risking mechanism: it provides revenue certainty to farmers and signals demand for sustainably produced dairy to Rabobank(3)  Rabobank links its lending conditions to the incentive programme, offering preferential (discounted) interest loans to farmers who meet minimum performance standards on a selection of the following sustainability indicators:a.   Number of cows per hectareb.   CO₂-equivalent emissions per kilogram of milkc.    Share of protein from own landd.   Share of permanent grasslande.   Nitrogen surplus per hectaref.     Productive lifespan of dairy cowsg.   Grazing practices(4)  Nestlé and Vreugdenhil provide technical assistance to farmers to help them implement measurable on-farm sustainability practices, including supporting them in working with agricultural advisors to develop tailor-made business plans with measurable sustainability goals(5)  Farmers repay their loans to Rabobank; the premium revenue from corporate offtakers supports their financial position and ability to service the debt Since its launch in 2022, over €50 million has been committed through 2030, more than 150 farmers have been engaged, and the programme targets a 50% reduction in GHG emissions by 2030 compared to 2018 levels.
Netherlands
Rabobank x Nestlé/Vreugdenhil Tomorrow’s Dairy programme
Description financing model: Cooperative-mediated supply chain finance and risk-sharing arrangementThe off-taker leverages its balance sheet to de-risk upstream suppliers, bundling yield insurance, with premiums covered by the cooperative, and technical assistance to incentivize the adoption of sustainable practices and secure supply. Applicability: Best suited to well-structured supply chains with formal offtake agreements Considerations: Scalability depends on the willingness of food & agri corporates to cover the insurance premium cost on behalf of their suppliers and on the availability of sufficiently granular MRV data to trigger payout reliably at scaleDescription of de-risking tool(s):Third party insurance premium coverage: Third party coverage of insurance premium costs, for climate, yield, or other production risks, enabling farmers and smallholders to access risk protection tools that would otherwise be financially out of reach, and reducing the risk aversion that deters adoption of new practicesOfftake agreements: Contractual commitments by value chain actors to purchase sustainably produced outputs at pre-agreed terms, providing revenue certainty for farmers and improving bankability for external financingCase study description:This model supports farmers in the Loiret region (France) in transitioning to protein pea cultivation – a low fertilizer, plant-based protein substitute that offers strong agronomic potential but is exposed to significant yield volatility. The cooperative addresses this barrier directly by bundling technical assistance with yield insurance for farmers who commit to supply, reducing the perceived risk of adoption and driving the uptake of regenerative practices across the value chain. By covering the insurance premium on behalf of farmers, the cooperative reduces significantly the financial deterrent at the point of decision, making the transition both accessible and commercially credible. (1) Insurance broker Bessé works with Axéréal, a French agricultural cooperative and off-taker, to assess the insurance needs of protein pea growers(2) AXA Climate designs a tailored insurance product for protein pea cultivation, defining premium costs, payouts levels (in €/ha) and the yield-loss thresholds that trigger them(3) Axéréal subscribes to the AXA Climate policy distributed through Bessé, covering the premium cost on behalf of its growers to protect them against yield loss(4) Axéréal provides growers with technical assistant to support the proper adoption of regenerative agriculture practices throughout the growing cycle(5) Monitoring, reporting and verification (MRV) is conducted to assess harvests’ performance against agreed benchmarks(6) Harvest performance data are shared with AXA Climate to assess whether payout thresholds have been breached and trigger disbursement accordingly(7) Axéréal consolidates insurance payouts and redistributes them to affected farmers in case of yield lossTo date 400-500 farmers and 5,000-7,000 hectares have been covered by the insurance program. Estimates tell that without the insurance incentive, almost half of the farmers would have dropped growing peas.  
France
AXA Climate x Axéréal
Description financing model: Intermediated Financing FacilityCommercial capital is channeled through a facility that extends loans to farmers. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and returnApplicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of de-risking tool(s):Tranching: Investment structure split into tiers with different risk-return profiles, enabling blended capital participation by matching investor risk appetiteOfftake agreements: Contractual commitments by value chain actors to purchase sustainably produced outputs at pre-agreed terms, providing revenue certainty and improving bankabilityCase study description: This model supports soy farmers in Cerrado, that forego their legal right to clear native vegetation in their farms (preserving > 5% than legally required)SIM and Traive screen farmers against the RCF’s environmental eligibility criteria and conduct credit analysisSIM approves loans, and farmers enter into loan agreements with the RCF, backed by collateral worth 115% of loan value(3a) Once a pool of loans is formalized, OPEA issues Certificates of Agricultural Receivables (CRAs) and register them in the Vienna and Brazil Stock exchange(3b) Investors subscribe to the CRAs and deposit funds in a bank account managed by Paying Agents (UMB)(3c) Capital raised is immediately transferred to farmers’ accounts(4a) Farmer enters into offtake agreement with traders and deliver them soy at harvest(4b) Farmers assign offtake agreements to RCF that receives payment directly from traders(4c) After harvested, traders pay RCF to repay investorsAt the end of each cycle, independent verification of impacts and confirmation of RCF alignment with Green Bond PrinciplesRCF 2025-26 crop cycle: Supported 280 farms; Raised ~$60M
Latin America
Responsible Commodities Facility (RCF)
Banco Santander, Rabobank, IDB Invest, AGRI3 Fund
Description financing model: Intermediated Financing FacilityCommercial capital is channeled through a facility that extends loans to farmers or agri SMEs. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and return.Applicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of de-risking tool(s):Guarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment riskCase study description: Private sector lending to agri SMEs in Burundi facilitated through The Multilateral Investment Guarantee Agency (MIGA)'s provision of non-commercial risk insurance to the investors. This insurance type covers currency inconvertibility, expropriation, war/civil disturbance, breach of contract, and non-honoring of sovereign obligations.MIGA issues guarantees of $5.6 million to a consortium of foreign investors, to cover the equity, shareholder loans and retained earnings of their investments for a period of up to 10 yearsA consortium of foreign investors make equity investments and provide shareholder loans to 3 local SMEs in the coffee sectorIn the case of the materialization of political risks, including transfer restrictions, expropriation, war and civil disturbance, MIGA covers the losses of the investor consortium up to the guarantee amountThe project supports existing operations of the country’s main coffee exporter. 55,000 indirect jobs are impacted, including farmers and others throughout the value chain.
Africa
MIGA
World Bank Group
Description financing model: Intermediated Financing FacilityCommercial capital is channeled through a facility that extends loans to farmers or agri SMEs. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and return.Applicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of de-risking tool(s):Guarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment riskCase study description: Provision of trade financing to agribusinesses in Senegal facilitated through The Multilateral Investment Guarantee Agency (MIGA)'s provision of trade finance guarantees for public sector risk. These guarantees guard lenders against non-payment by a sovereign or state-owned entity of its obligations relating to cross-border trade finance.MIGA issues a trade finance guarantee of €300M to an international lender (Standard Chartered), covering the risk of non-payment by the Government of Senegal (GoS)Standard Chartered provides a short-term revolving loan facility to the Government of Senegal. The loan can be repeatedly drawn and repaid within its 1-year tenor.The GoS allocates or on-lends the trade financing budget made available through the Standard Chartered facility to local intermediary banks, at agreed upon termsLocal lenders provide trade financing at preferential rates to agribusinesses for importing agricultural inputs and exporting agri-productsAgribusinesses repay local banks after completing trade cycles (exports, sales, etc.)Local banks pass repayments back to GoS and Standard Chartered, and potentially reuse revolving creditIn the case of GoS default on its payments, MIGA covers Standard Chartered’s losses up to the guarantee amountThe project supports GoS food security and agricultural programs, and is expected to ease the financial challenges faced by local intermediaries in the agriculture sector.
Africa, Africa
MIGA
World Bank Group
Description financing model: Intermediated Financing FacilityCommercial capital is channeled through a facility that extends loans to farmers. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and returnApplicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of de-risking tool(s):Guarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment riskCase study description: Brazilian farmers receive funding for regen ag practices from a lender syndicate of 4 banks, backed by a full loan guaranteeJPM DFI and Export and Agency Finance assessed the project’s sustainable development intentions and how it would support UN SDGsMIGA issued a $1.2B guarantee for 10 years to the 4 banks for their loan to Banco do BrasilA lender syndicate of 4 banks provides a $800M loan to Banco do BrasilBanco do Brasil provides revolving working capital loans up to $2M for agri MSMEs to adopt conservation agriculture methods (e.g., no-till farming practices)After loans are repaid, farmers can apply for new loans in subsequent years to sustain their farming operationsIn case of failure by Banco do Brasil to re-pay principal and interests in full, the guarantee provider pays out the principal and interest to the lender syndicate$800M loan facility can finance cultivation of 1M ha & avoid almost 12M tonnes of GHG emissions over 10 years 
Latin America
MIGA
World Bank Group
Description financing model: Direct Farmer Financing (Market)Direct Farmer Financing (Market) involves pioneering banks providing loans directly to farmers, supported by catalytic capital through de-risking instruments or financial incentives to improve loan affordability and uptakeApplicability: Applicable to broad range of farmers and agri-SMEs that meet defined eligibility criteriaConsiderations: Scalability depends on the availability of catalytic capitalDescription of de-risking tool(s):Guarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment riskCase study description: The Banpará-Bio program was launched in 2021 by the Government of Pará to facilitate access to credit for small producers and family farmers, including cattle ranchers.Banpará, a state-owned bank, offers microcredit to rural producers ranging from US$1,000 to US$6,000 under favorable terms. This includes a repayment period of up to 3 years and a grace period of up to 12 months.​These loans are earmarked for small rural producers, with a priority given to Indigenous peoples, quilombolas, and traditional communities. The credit can be used for a wide range of activities, provided they do not cause environmental degradation.​Pará's Secretariat of Environment and Sustainability (SEMAS) backs these loans with a guarantee, enabling Banpará to offer credit for higher-risk endeavors without requiring traditional collateral. ​Emater-Pará, a public technical assistance company, ensures that the funds are used correctly and without causing environmental harm.​As of May, between US$9 million and US$10 million has been disbursed, benefiting over 1,000 rural producers.​
Latin America
Banpará-Bio
Government of the State of Pará
Description financing model: Direct Farmer Financing (Market):Direct Farmer Financing (Market) involves pioneering banks providing loans directly to farmers, supported by catalytic capital through de-risking instruments or financial incentives to improve loan affordability and uptakeApplicability: Applicable to broad range of farmers and agri-SMEs that meet defined eligibility criteriaConsiderations: Scalability depends on the availability of catalytic capitalDescription of de-risking tool(s):Tranching: Investment structure split into tiers with different risk-return profiles, enabling blended capital participation by matching investor risk appetiteCase study description: The CNA Fiagro program was launched by the Brazilian Confederation of Agriculture and Livestock (CNA) to provide micro-credit to small and medium-sized farmers who face difficulties in obtaining resources from traditional banks (e.g., bureaucracy, guarantees, and additional costs) The CNA Fiagro program was launched by the Brazilian Confederation of Agriculture and Livestock (CNA) to provide micro-credit to small and medium-sized farmers who face difficulties in obtaining resources from traditional banks (e.g., bureaucracy, guarantees, and additional costs) 1. The CNA Fiagro fund was launched with $5M in capital, of which $2M came from CNA as the junior tranche and the rest from external investors as the mezzanine/ senior tranche. EcoAgro, a Brazilian asset manager, manages the funds2. Rural farmers receive the loans, ranging from $5K to $50K ($17K on average) with terms of up to 12 months and a 16% annual interest rate4. Farmers use the loan for short-term needs like working capital or short-term capital expenditures (e.g., installation of photovoltaic panels or irrigation systems)3. SENAR (National Rural Learning Service) technicians act as credit agents, gathering detailed information about the proposed use of funds, visiting the producers in order to help them improve their operations & fill out the mandatory MRV form.
Latin America
CNA Fiagro
Brazilian Confederation of Agriculture and Livestock (CNA)
Description financing model: Intermediated Financing FacilityCommercial capital is channeled through a facility that extends loans to farmers. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and returnApplicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of de-risking tool(s):Tranching: Investment structure split into tiers with different risk-return profiles, enabling blended capital participation by matching investor risk appetiteGuarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment riskCase study description:IDH Farmfit Fund, managed by IDH Investment Management, is a blended fund that deploys capital to de-risk investments in smallholder farming, with the aim to increase smallholder income in emerging marketsThe €100M IDH Farmfit Fund de-risks investments into smallholder value chains by taking the high-risk positions to mitigate the risk of co-investorsThe Fund is supported by a second loss guarantee facility from DFC (up to ~€220M)The IDH Farmfit Fund Technical Assistance Facility de-risks and accelerates investments by funding advisory, capacity building, and ESG improvements for agribusinesses, financial institutions, and smallholders. The TAF grants are funded by IDH Stichting (Foundation)€100M mobilised from investors, of which €51M already disbursed (and €17M to be disbursed in 2026). Investees expect to reach 3M farmers through services, credit and off-take
Asia Pacific, Africa, Latin America, Middle East & North Africa
IDH Farmfit Fund
Rabobank, IDH, Unilever
Description financing model: Direct Farmer Financing (Corporate Supply Chain)Direct Farmer Financing (Corporate Supply Chain) is offered to suppliers of food & agri corporates on preferential terms, subsidized by food & agri corporatesApplicability: Best suited to well-structured supply chains with formal offtake agreementsConsiderations: Scalability depends on the willingness of food & agri corporates to absorb part of the costDescription of de-risking tool(s):Third party interest coverage: Third-party funding used to subsidize loan interest payments, reducing the cost of capital for borrowers (oftentimes farmer) and improving project viabilityPrice premium: Value chain actors pay higher prices for sustainably produced goods. These premiums monetize sustainability and serve as an additional revenue streamOfftake agreements: Contractual commitments by value chain actors to purchase sustainably produced outputs at pre-agreed terms, providing revenue certainty and improving bankabilityCase study description: Part of McCain’s Regenerative Agriculture Framework, supporting Dutch growers in transition to regen agRabobank provides discounted interest loans (for advanced/leading growers and/or transition loans) to growers involved in the initiativeMcCain matches the Rabobank discount when growers invest in precision agriculture equipmentMcCain offers commercial support, by giving growers 3-year offtake agreements, incl. a price premium McCain & Aequator provide training and technical assistance to farmers (e.g., on soil life, organic matter & crop diversification)
Europe
McCain x Rabobank
Rabobank, McCain Institute
Description financing model: Direct Corporate FinancingDirect Corporate Financing refers to capital provided directly to food & agri corporates through instruments like loans or bonds. Sustainable debt is a form of direct corporate financing offered by commercial lenders to corporates with strong credit profiles. These loans are linked to sustainability targets and help fund low-carbon, resilient supply chainsApplicability: Best suited for large borrowers with high credit ratingsConsiderations: Scalability improves with appropriate loan discount levels, especially when linked to clear, measurable sustainability KPIs that enhance credibility and impactDescription of de-risking tool(s):N/ACase study description: In a row of sustainable finance issuances incl. a KPI-linked RCF, short-term commercial paper and bonds, Ahold Delhaize issued Green Bonds of €500M in the capital markets in April 2023 and 2024Ahold Delhaize issued their €500M green bond in the capital marketsThe proceeds of the Green Bond are mostly allocated to investments focused on scope 1 and 2 emission reductionGreen buildings (38% allocated)Energy Efficiency (38% allocated)Pollution Prevention & control (14% allocated)Clean Transportation (8% allocated)Renewable Energy (2% allocated)Ahold Delhaize provides an impact report of their invested green projectsInvestors are paid back once the bond matures (principal with 5-year maturity), with discounted interest rates (3.4/3.5% annual coupon) linked to sustainable use of proceedsIn 2024, GHG emissions in Ahold Delhaize’s own operations were reduced by 36% compared to 2018
Global
Ahold Delhaize
Ahold Delhaize
Description financing model: Integrated Supply-Chain (Filière)The Integrated Supply-Chain (Filière) is a financing approach that channels capital across an entire food & agri supply chain, rather than just to one corporate. A food & agri corporate facilitates access to financing for all value chain participants, allowing financiers to scale lending efficiently while gaining greater transparency into underlying risksApplicability: Applicable to fully integrated, well-structured supply chains with formal offtake agreementsConsiderations: This one-to-many approach is enabled by the corporate’s coordination and credit strengthDescription of de-risking tool(s):Price premium: Value chain actors pay higher prices for sustainably produced goods. These premiums monetize sustainability and serve as an additional revenue streamThird party insurance premium coverage: Third party support to cover the cost of insurance (e.g., for climate or yield risks), enabling access to risk protection tools that would otherwise be unaffordableCase study description: Pilot in Caldas, Colombia (expanded to Indonesia, Kenya, Zimbabwe, Guatemala, Honduras and Peru). Insurance provision for remote small holder coffee farmers in case of excess rainfall or drought periodsBlue Marble, backed by a consortium of 5 insurance organizations, designs weather insurance product based on satellite dataSeguros Bolivar underwrites the insuranceNespresso provides access to the smallholder farmers, often through cooperativesFairtrade International establishes fairtrade standards for the farmers, including a fair price and a Fairtrade Premium (to be invested by the farmers in community projects/education/other initiatives)Nespresso pays Fairtrade Premium to the farmers and Fairtrade licence fee to use FT mark on productsFarmers collectively agree to use the Fairtrade Premium and government grants to pay the weather insurance feesAutomated payouts from insurer directly to registered farmers based on satellite weather dataReinsurers ensure financial backup to cover large claimsGlobal program protected ~118k beneficiaries in 2024 & farmers have received $7M in cumulative payouts to-date
Latin America, Africa, Middle East & North Africa, Asia Pacific
Blue Marble x Nespresso
Nestlé
Description financing model: Direct Farmer Financing (Market):Direct Farmer Financing (Market) involves pioneering banks providing loans directly to farmers, supported by catalytic capital through de-risking instruments or financial incentives to improve loan affordability and uptakeApplicability: Applicable to broad range of farmers and agri-SMEs that meet defined eligibility criteriaConsiderations: Scalability depends on the availability of catalytic capitalDescription of de-risking tool(s):N/ACase study description: The product is part of a broader set of Itaú BBA’s ESG Agro products, designed jointly with Imaflora (Brazilian NGO), offering incentives to stimulate low-carbon agricultural practices, such as cover cropping and no-till farming1.Itaú BBA offers farmers loans with better than market interest rates on the condition that farmers plant a cover crop during the off-season & adopt no-till farming2.Farmers use these loans to finance their annual crop production costs3.Monitoring is carried out by an external MRV provider using satellite images assessing offseason cover crops adoptionSo far, €127M has been disbursed through the program, benefiting 14,126 ha of farming land (April ’24) 
Latin America
Itau BBA ESG Agro Product
Itaú Unibanco
Description financing model: Direct Farmer Financing (Corporate Supply Chain)Provides preferential financing to farmers within corporate supply chains, with corporates subsidizing part of the cost to support adoption of improved practices.Applicability: Best suited to well-structured supply chains with formal offtake agreementsConsiderations: Scalability depends on the willingness of food & agri corporates to absorb part of the costDescription of de-risking tool(s):Third party insurance premium coverage: Third party support to cover the cost of insurance (e.g., for climate or yield risks), enabling access to risk protection tools that would otherwise be unaffordableCase Study Description: Farmers receive additional protection against yield losses when transitioning to sustainable practices (e.g., Crop Plan Warranty-type guarantees). Risk is shared across insurers/reinsurers and corporate off-takers, who help cover protection costs. By reducing transition risk, the model increases farmer adoption and improves the risk profile for lenders.Value chain players (e.g., Manufacturers, Ag Retailers, CPGs, Non-profits, Grain Traders) define a crop plan for growers to implement; then define with Growers Edge the associated yield benchmark and the warranty payout amount. Growers Edge analyses data to price the per acre warranty feeValue chain players pays the flat, agreed-upon fee to Growers EdgeGrowers Edge administers and underwrites the program: value chain player (or third-party platform) white labels the warranty to growersGrowers Edge partners with MunichRE for reinsuranceValue chain player provides technical support alongside the warranty to farmers to ensure successful implementation of the program’s requirementsIn case of yield decline (compared to historical production), warranty is triggered, Growers Edge confirms yields with crop insurance documentation, and growers are paid by Growers Edge2m acres under warranty committed for 2026
North America
Growers Edge Model to protect farmers against revenue risks
Description Financing Model: Intermediated Finance FacilityCommercial capital is channeled through a facility that extends loans to farmers. These facilities often pool funding from both commercial and catalytic sources, enabling greater scale while balancing risk and returnApplicability: Well-suited for a range of asset owners (e.g., pension funds, institutional investors) who seek to support farmer financing without direct engagementConsiderations: Success is dependent on effective matching of stakeholders with different risk-return expectationsDescription of the de-risking tool(s):NACase study description:A platform designed to invest in incubators, accelerators and seed funds in emerging markets, which most often struggle to access capital, mentorship, and networksIFC allocates capital to the Startup Catalyst platform IFC mobilises additional equity to invest alongside the Startup Catalyst platform in incubators, accelerators and seed fund, including blended finance or catalytic investmentThe Startup Catalyst platform selects incubators, accelerators and seed funds operating in challenging VC ecosystems with nascent venture markets, to invest equity and boost the local ecosystemIn turn, the incubators, accelerators, and seed funds invest in (pre-)seed startups in their regionsIFC provides expertise to the fund managers receiving investment through the Startup Catalyst platform, to build their capacity. In turn, these investors provide access to networks and expertise to the startups in which they investAs the startups mature, they contribute to a pipeline of targets for later stage investment by IFC and other investors, attracting more capital to the ecosystem26 seed funds and accelerators supported and 768 startups in 55 emerging markets received funding until March 2025 (e.g., a women-led startup innovating health care in Egypt or a B2B procurement and supply chain transformation company in India creating jobs)
Africa, Middle East & North Africa, Asia Pacific
IFC Startup Catalyst
International Finance Corporation
Description financing model: Direct Corporate FinancingDirect Corporate Financing refers to capital provided directly to food & agri corporates through instruments like loans or bonds. Sustainable debt is a form of direct corporate financing offered by commercial lenders to corporates with strong credit profiles. These loans are linked to sustainability targets and help fund low-carbon, resilient supply chainsApplicability: Best suited for large borrowers with high credit ratingsConsiderations: Scalability improves with appropriate loan discount levels, especially when linked to clear, measurable sustainability KPIs that enhance credibility and impactDescription of de-risking tool(s):N/ACase study description:Consortium of 19 banks provide revolving credit facility loan to COFCO with preferential interest rates based on traceability targets of Brazilian soyCOFCO implements projects (incl. through technical assistance) with their upstream supply chain, focused on traceability of soy in BrazilSustainalytics, an ESG ratings agency, provides an ESG management score for COFCO based on performance against KPIsCOFCO takes out a sustainability-linked loan (1- & 3-year credit facility)As COFCO meets ESG management score targets, it receives discounts on the interest payments of the loanCOFCO raised $1.6B through the loan, and met all supply chain traceability and socioenvironmental risk targets related to the loan
Latin America
COFCO
COFCO
Description financing model: Working Capital SolutionsWorking Capital Solutions enable suppliers to large food & agri corporates to access improved loan terms (e.g., earlier payment on invoices), often tied to specific sustainability performance indicators and backed by the strong credit profiles of their off-takersApplicability: Best suited to well-structured supply chains with formal offtake agreementsConsiderations: Effectiveness increases when working capital solutions align with credible sustainability criteria and strong supplier collaborationDescription of de-risking tool(s):N/ACase study description:Walmart’s suppliers in the SCF platform receive earlier payment on their invoices, enabled by HSBC, if they adhere to ESG criteria/KPIsWalmart establishes sustainability criteria their suppliers have to meetSuppliers’ science-based targets and progress is verified by CDP to get a sustainability scoringCDP validates suppliers’ ESG data against Walmart’s sustainability criteria Walmart places an order for goods and services from upstream supplierSupplier provides goods and services to Walmart and issues an invoiceSupplier sells approved invoices to bankWalmart shares sustainability scoring of suppliers with bankBank pays the suppliers ahead of invoice date at a discount on the original invoice, with discount size determined by Walmart’s credit risk score, reduced (if achieved) by supplier’s ESG ratingWalmart pays back HSBC on invoice due date+5000 suppliers are participating, representing 75% of Walmart’s U.S. sales
Global
HSBC x Walmart
HSBC, Walmart
Description financing model: Integrated Supply-Chain (Filière)The Integrated Supply-Chain (Filière) is a financing approach that channels capital across an entire food & agri supply chain, rather than just to one corporate. A food & agri corporate facilitates access to financing for all value chain participants, allowing financiers to scale lending efficiently while gaining greater transparency into underlying risksApplicability: Applicable to fully integrated, well-structured supply chains with formal offtake agreementsConsiderations: This one-to-many approach is enabled by the corporate’s coordination and credit strengthDescription of de-risking tool(s):N/ACase study description: Intesa Sanpaolo fosters collaboration between corporate “champions” and their supply chains, enhancing the competitiveness of Italian industries by improving SMEs’ access to credit and resourcesIntesa Sanpaolo selects prominent Italian corporates as champions, assesses credit rating of their value chain, and establishes a dedicated credit facilityThe bank provides loans at reduced rates to value chain SMEs for sustainability investments (e.g. green energy adoption, waste reduction). Rates are further improved by SMEs leveraging their champion’s credit ratingIntesa Sanpaolo offers value chain players a digital supply chain finance platform - within the ‘Sviluppo Filiere’ program called ‘Confirming‘- to optimize liquidity. It reduces costs related to late payments on both sides, with the bank acting as a guarantorIntesa Sanpaolo offers sustainability trainings to value chain SMEsSupports 172 agri-food supply chains, which have a combined turnover of ~€23B (2024)
Europe
Intesa Sanpaolo
Intesa Sanpaolo
Description financing model: Multi-Stakeholder PlatformMore coordination is needed across the value chain to align farmers, food & agri corporates, retailers, financial institutions and catalytic funders. Multi-stakeholder platforms enable this by i) Curating a portfolio of initiatives that support farmers in driving change at scale; ii) Crowding in diverse sources of capital across commercial, concessionary, and catalytic sources; iii) Aggregating key actors across the system to fill key capabilities (e.g., MRV , technical assistance, financial actors, food & agri corporate actors)Applicability: Applicable to a diverse set of local initiatives, provided they align with signatories’ goals. It is well-suited for farmer financing in emerging markets, where accessing recipients remains most challengingConsiderations: Success is supported by a strong, scalable network of financiers (incl. commercial and catalytic) and on-the-ground initiatives, as well as a diverse set of financing mechanisms tailored to different needsDescription of de-risking tool(s):N/ACase study description: IFACC is an initiative of the UNEP, TFA and The Nature Conservancy, that foster lending and investment for deforestation/conversion-free beef and soy (and increasingly other commodities) in Brazil, Argentina and ParaguayIFACC defines appropriate indicators, connect catalytic capital providers with signatories, provides training, facilitates stakeholder involvement and participates in events (e.g., UN COPs, LCAW, NYCW, Davos)Signatories include banks, asset managers, catalytic funds, securitization companies, value chain players and facilities and operators These signatories collaborate on financial products tailored to specific region & solution, and they actively establish partnerships – incl. with non-signatories – to drive these initiatives forwardCurrently 17 financial products; $499M cumulative disbursements (Dec 2024); 24 signatories
Latin America
IFACC platform
Description financing model: Direct Farmer Financing (Market)Direct Farmer Financing (Market) involves pioneering banks providing loans directly to farmers, supported by catalytic capital through de-risking instruments or financial incentives to improve loan affordability and uptakeApplicability: Applicable to broad range of farmers and agri-SMEs that meet defined eligibility criteriaConsiderations: Scalability depends on the availability of catalytic capitalDescription of de-risking tool(s):Guarantees: Third-party assurances (typically by public or development actors) to cover losses in case of borrower default, reducing perceived investment risk"Case study description: Farm Credit Bank is a mission-driven, customer-owned cooperative network dedicated to supporting rural communities and agriculture with reliable, consistent credit and financial services​Farm Credit System is a network of cooperative lending organizations and regional wholesale banks providing capital to rural communities & agriculture ​Farm Credit System includes four regional banks:​CoBank​Farm Credit Bank of Texas​AgriBank​AgFirst Farm Credit Bank​1.The four banks raise funds by selling debt securities through their Farm Credit Funding Corporation​2. Proceeds from debt securities are used by the Farm Credit Banks (FCBs) to fund Farm Credit associations who support farmers, ranchers and rural homebuyers​3. As an Agricultural Credit Bank (ACB), CoBank uses the proceeds from debt securities to issue loans directly to farmer-owned cooperatives, rural infrastructure providers and other agribusinesses ​4. Through the FSA Guarantee Program, Farm Service Agency (FSA)2 guarantees a small percentage of individual loans, acting as a de-risking mechanism​$428.9B issued in total agriculture loans, supporting 600K farmers, ranchers, farmer co-ops, agribusinesses, rural infrastructure providers and rural homebuyers (2024)
North America
US Farm Credit System
CoBank

Sustainable Finance

A World Economic Forum Initiative
© 2026 All rights reserved
Privacy Policy & Terms of Service