Jacaranda Capital’s value proposition

Why settle for net-zero when net-positive is possible?

 

Considering the current state of the climate crisis, the “do not harm” approach is not enough. We decarbonize suppliers at the first link of the supply chain while sequestering a significant amount of carbon dioxide.

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1. Regenerative supply chains: we transition growers, the first link of the supply chain, to regenerative farmers, enabling corporations to continue purchasing from their current sellers without operational disruptions and meeting net-zero pledges.

 

Regenerative agriculture

 

"If you’ve never heard about the amazing potential of regenerative agriculture and land use practices to naturally sequester a critical mass of CO2 in the soil and forests, you’re not alone. One of the best-kept secrets in the world today is that the solution to global warming and the climate crisis (as well as poverty and deteriorating public health) lies right under our feet, and at the end of our knives and forks."

-Ronnie Cummins, Regeneration International Steering Committee Member

 

Jacaranda is a regenerative endeavor. On the first stage of regeneration, trees are being incorporated into existing agricultural operations, creating a variety of living species, including the plants, animals, bacteria, and fungi needed to rebuild biodiversity. Trees hold the moisture that allows micro-organisms and beneficial fungi to grow. This is the first step in rebuilding healthy ecosystems that will sequester and store carbon.

 

Scale

 

“Scaling is super-important – if you are only 10% of a supplier’s business they will likely not change – you need critical mass to get a movement.”

Marc Engel, Chief Supply Chain Officer, Unilever

 

Directly engaging farmers is especially impactful since a significant share is controlled by only a few companies. For instance, four major grain traders, Archer Daniels Midland (ADM), Bunge, Cargill and Louis Dreyfus, account for more than 75% of the global demand. Only joined efforts will make it possible to achieve regenerative, deforestation-free agriculture.

 

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2. Reduce corporate emissions: 60% - 70% of CO2 emissions come from farming operations in their supply chains. We plant trees and implement other regenerative farming methods that sequester atmospheric CO2 and store it deep in the soil. The roots stabilize the soil, retain water, and fertilize it with carbon removed from the atmosphere. Increasing farm biodiversity will reduce emissions and sequester CO2 at higher rates.

 

“Reducing the company’s carbon footprint alone is not enough – enabling supply-chain emission reduction is a must”

Anirban Ghosh, Chief Sustainability Officer, Mahindra Group

 

 

3. Improve public image

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A promising branding is universal, opportunity is not. Jacaranda offers the opportunity to show your brand values - and mean it.

 

Amazon Ads commissioned a survey from Environics Research about the values that matter most to consumers. “83% of US respondents felt more brands should do their part in helping the world”. Among other findings, the survey reports that:

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• 72% of consumers are willing to pay more for brands that come from a place of authenticity,

• 55% of consumers are willing to pay more for a brand that stands for a social issue that they consider important,

• 62% of consumers indicate that they currently purchase from brands whose values align with their own, and

• 80% believe they can make a change with their purchases by supporting brands with serious corporate responsibility impact.

 

COVID-19 is a health crisis and it continues to increase awareness around the food we eat and the way we grow it. Consumers, especially the younger generations, expect brands to be values-driven and take action on climate change, social and economic development, and responsible business practices, among others.

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4. Share-price and employee attraction

 

Good sustainability and environmental, social, and governance (ESG) practices correlate with lower operating costs, better profitability and superior economic performance.  Studies indicate that managing for a low carbon future improves financial performance.

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Beyond the bottom line, there is enough proof that pollution and environmentally harmful practices cause significant drops on stock values. Investors have become increasingly interested in tracking ESG issues.

 

Companies are paying more attention to their environmental impact because customers and employees demand it. Increasingly customers cease buying products or services from companies with poor environmental values. These companies also struggle to attract younger talent, many of whom are highly concerned about sustainability.

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5. Guaranteed carbon credits for 10 years

 

Investors own full rights to 50% of all carbon credits generated by the farmland in which they invest. These carbon credits can be used to compensate against emissions for 10 years.

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