Sustainability as a pre-requisite for business

12TREE has dedicated itself to redefining the way how agriculture and forestry is practiced. We invest in ecosystems that are most vulnerable, such as the tropics and arid areas, where deforestation and desertification are pressing issues. We see a need to bring innovation and sustainable agroforestry practices to a sector that still relies on millions of small farmers who are trapped in poverty and are barely participating in the value creation from what they grow on their fields.

Our inclusive approach combines developing large-scale modern sustainable agroforestry projects that create hundreds of secure jobs in poor rural areas in the production of certified premium products such as cocoa, coffee, bananas, coconuts, timber and much else and enabling the nearby small producers to participate in global markets as they can sell their crops with improved quality that is rewarded with fair prices. This has a direct positive impact on their livelihoods and gives them and their families a future in farming.

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As a specialized asset manager with a strong ESG focus who is operating projects in many countries in Latin America and Africa we experience first-hand the negative impact that changing weather patterns have on the everyday life of farmers. More severe droughts and desertification are a reality today and not a theoretical discussion about the future of our planet. Intensive agriculture and rapidly progressing deforestation of precious forests have devastating consequences for entire ecosystems and destroy the last habitats for many animal species.

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Our approach makes investments in sustainable agroforestry scalable for large institutional investors who are seeking ways to deploy capital in real assets with high social and environmental impact, good governance and attractive stable returns.

We believe that sustainable land management practices and socially responsible employment in high-productivity farming are the future and not a conflict. Sustainable management really is a necessity for successful long-term investments as it mitigates operational risks and ensures that the ever-increasing global demand for certified, fairly-traded and traceable products can be satisfied.

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12TREE now is investing into reforestation and the development of new sustainable agroforests – the intelligent combination of agriculture and forestry that is proven to be much more biodiverse and resilient than conventional agriculture happening in monoculture plantations. We are not only experienced investment managers but also have strong local teams of seasoned experts with a broad range of technical expertise who supervise our projects and continuously strive to improve all project dimensions.

If you haven’t heard of us before is because we have been very busy. With more than 20.000 hectares of agroforests in 7 countries that we have established we may become the largest sustainable cocoa producer in the world in the next few years. That puts us in a position to really change the way things are traditionally done in this industry. We negotiate directly with large buyers who are looking for partners that can provide them with large volumes of sustainable production. We can invest fast and immediately change poor working conditions and destructive practices such as pollution and slash-and-burn practices. We think in value chains and landscapes, which means we employ regionally, we buy regionally, and we produce regionally to make sure that the region profits most from our investment.