Financing a greener future
Praxis supports sustainable investment in Latin America and the Caribbean
The eco.business sub-fund for Latin America and the Caribbean (EBF LAC) is at the forefront of mainstreaming green financing in a region where sustainable development is critical. By providing innovative financial solutions both directly and through local financial institutions, EBF LAC is dedicated to conserving nature and fostering biodiversity across four key sectors: agriculture and agri-processing, fishery and aquaculture, forestry, and tourism.
Praxis’ community investing partner, Calvert Impact Capital, has played a pivotal role in supporting this initiative by financing five financial institutions in Panama, Honduras, and Costa Rica. This collaboration not only expands funding for biodiversity conservation but also strengthens the investment capacity of the fund, ensuring more capital flows into sustainable enterprises.
To effectively finance sustainable businesses in Latin America and the Caribbean, EBF LAC employs a blended finance approach. This strategy attracts capital from both public and private institutional investors—such as Calvert Impact Capital—by offering varying risk/return profiles. By leveraging these contributions, the fund amplifies its impact, channeling more resources into green investments.
These investments are essential for achieving critical environmental outcomes, including reducing agrochemical usage, improving liquid waste management practices, enhancing socio-economic conditions for borrowers and their communities, sequestering CO2 through agroforestry initiatives, and increasing agricultural yields under sustainable management practices. Through these concerted efforts, EBF LAC is not only fostering economic growth but also ensuring that ecological integrity is preserved for future generations.
Impact story: Azucarera Valdez
Sugarcane plantation worker at Azucarera Valdez
To address these challenges, the eco.business Fund's Development Facility and Banco de la Producción S.A. partnered to establish the Responsible Sourcing Program. This program is designed to redefine business practices, strengthen environmental and social responsibility throughout the supply chain, and empower suppliers to adopt sustainable development goals.
By taking a holistic approach, the program addresses key challenges within Ecuador’s sugarcane industry, ensuring that every stage of production upholds ethical standards while contributing positively to local ecosystems and communities. Through this initiative, Azucarera Valdez is not only reinforcing sustainability within its operations but also driving meaningful change across the broader industry.
The Praxis commitment
Praxis Investment Management supports organizations through investments in Calvert Impact, an impact-investing institution that helps people around the world through community development financing. It’s part of the Praxis commitment to place approximately 1% of each of its funds to benefit neighborhoods and individuals through community development investments.