Annual Report 2021-11-18-2021-Figure 4

The initiative focuses on the agriculture and forestry sectors, with a particular emphasis on reducing greenhouse gas emissions and promoting sustainable commodity production. Key findings from the past year include the signing of the Sustainable Coconut Charter by six leading corporates, which account for at least 40 percent of the global coconut market share. The initiative also expanded its work in the coffee sector, conducting an in-depth carbon assessment of JDE Peet's sustainability interventions in Vietnam and establishing a memorandum of understanding with Nestlé to help reduce its carbon footprint in Southeast Asia. The initiative helped secure $11 million in investment for a carbon project in Indonesia that restores and conserves tropical wetlands. Additionally, it supported the design of an environmental and social management system for Forest Carbon, which restores tropical wetland forests in Indonesia to reduce greenhouse gas emissions. The initiative also provided technical assistance to 24 companies that have signed memoranda of understanding with the Activity. These companies work in commodities such as biomass, cacao, carbon, cinnamon, coconut, coffee, timber, rubber, and bamboo. The initiative has identified lead commodities and technical assistance needs of the remaining companies yet to receive technical assistance. The Activity provides technical assistance to agriculture and forestry businesses to improve their sustainable commodity production and help manage their environmental risks. It has a pipeline of companies and a network of financial institutions and investors dedicated to environmentally and socially-responsible profitable land use businesses. As part of investment-readiness technical assistance, the Activity matches companies with investors. The initiative has made significant progress in reducing greenhouse gas emissions, with a cumulative target of 25 million metric tons of CO2e over 15 years. As of 2018-2021, the initiative has achieved 8.7 million metric tons of CO2e reduction, representing 59 percent of the cumulative target. The initiative has also mobilized $42 million in investment, with a total of $400 million in projected investment. The Activity continues to engage with companies in its pipeline, as well as connect with new potential businesses and financial institutions. At the time of publication, almost 200 companies seeking technical assistance have contacted the Activity. The initiative has a pipeline of 50 companies, of which 36 have signed memoranda of understanding with the Activity, and 28 have received or started receiving technical assistance. The geographical coverage of the initiative is focused on Southeast Asia, with companies in its pipeline based in one of the countries where USAID Green Invest Asia operates. The initiative has a distribution of active companies across Indonesia, Laos, the Philippines, Vietnam, Thailand, and other countries. The initiative provides technical services tailored to company needs, including carbon assessment of farms, factories, and supply chains; feasibility mapping; development of investment decks for capital; creating financing models for investors; gender-lens and overall business advisory; identification of sustainable business investment pipeline; climate-smart cultivation, including intercropping; and ESG management for investors and bankers. The initiative has supported the design of an environmental and social management system for Forest Carbon, which restores tropical wetland forests in Indonesia to reduce greenhouse gas emissions. The company will secure areas under threat of forest fires and conversion to commercial plantations.