ESG and impact
We have disbursed more than USD 128 million impacting the lives of 330,000 smallholder farmers in Africa and Latin America.
Key impact statistics
327.137
smallholder farmers and collectors served
10%
increase
in producer organisation productivity organisation productivity
750+
hectares
sustainably cultivated land
$12 m
funding
for schools, medical care via use or premiums
$250
incremental income
per farmer family
$69 m
in premiums received by investees
through their certifications
Methodology
The Fairtrade Access Fund invests in producer organisations and financial institutions serving the agriculture sector. These institutions are able to demonstrate a high level of social and environmental performance. Impact is measured at different stages of the investment process.
FAF Technical Assistance facility (FAF TAF) helps existing and potential FAF investees in addressing the challenges related to agricultural finance. The scope of the TA services includes improvement of the organizational, social and environmental performance of the FAF investees, improving the productivity and quality of smallholder agriculture, meeting certification requirements as well as sharing knowledge and best practices to promote sustainable agricultural finance. FAF TAF aims to increase the available donor funding and is currently open for fundraising.
SDG Alignment
The Fair Trade Access Fund has fund specific impact measurement indicators that have been developed in alignment with the UND SDGs. We track these at the individual SDG target level. The FAF has the greatest impact on the following SDG goals.
Social and environmental impact
Social Impact
Through its investmens the fund aims to improve smallholder farmers’ livelihood and to reduce migration from rural areas to cities:
- using Fairtrade premiums by producer organisations for social purposes (education, medical care)
- improvement of labour conditions
- promotion of illicit crop substitution and contribution to peace building activities in some regions
- promotion of organic and sustainable agriculture has positive externalities on health and wellbeing
The fund also fosters education and skill development for the investees and their staff, for example:
- improving financial and business skills
- improving productivity and quality of cultivated crops
- complying with sustainable certification
- promoting sustainability and mitigating risks
- measures around climate change adaptation and mitigation
Environmental Impact
Fair trade and sustainable value chains have standards and codes of conduct on environmentally sound agricultural practices, including minimised and safe use of agrochemicals, proper and safe management of waste, maintenance of soil fertility and water resources and no use of genetically modified organisms.
The fund also invests and provides technical assistance to projects that support climate change adaptation and mitigation.