Facilitating responsible investments in agriculture and food systems
Investments in the agricultural and food sectors of developing countries can play a transformative role in disseminating new technologies, building markets, linking supply chains, generating employment and increasing the income of smallholder farmers.
To this end, agribusinesses and investors in the food and agriculture sector increasingly seek to ensure their activities generate positive social and environmental outcomes. This requires the implementation of responsible business practices in agribusinesses on the one hand and responsible investment strategies by the investors on the other hand.
SSNUP and the International Institute for Sustainable Development (IISD) analysed how well investees of SSNUP impact investors implemented these responsible business practices in accordance with the World Food Security’s Principles for Responsible Investment in Agriculture and Food Systems (CFS-RAI). The aim of these case studies was to identify best business practices to maximise the positive impact of investments for farmers, rural communities, local businesses and other stakeholders.
Testing a new tool for measuring RAI compliance
In addition to the social and environmental benefits of sustainable agriculture, proven compliance with RAI principles can help agricultural value chain actors attract new investments and enhance their overall operational and market positioning by strengthening their market credibility, providing access to certification and premium markets, mitigating operational risks and fostering long-term growth.
IISD and Cerise have developed a tool to enable agricultural value chain actors to prove their compliance with the principles. This RAI tool translates the high-level principles into actionable guidance for value chain actors involved in the production, processing and trading of agricultural products, particularly those working with smallholder farmers. This tool not only has the potential of simplifying the adoption of responsible business practices but also of helping to mainstream responsible agricultural investments.
To test the tool, it was applied to SSNUP investees from different segments of the agricultural and food sectors in five case studies. In addition to providing recommendations to the specific challenges faced by the companies, farmers and other stakeholders, the studies also make more generic recommendations on how agricultural value chain actors can improve CFS-RAI compliance.
The case studies and the accompanying synthesis report are particularly relevant for impact investors, agricultural value chain actors, international organizations, civil society representatives, think tanks and development partners.