Latin American Agribusiness Development Corp.
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Green Finance
Sustainability has become a key pillar in LAAD’s strategy, and in 2021 we completed a key step towards this goal by developing our Green Finance Framework, which will serve as our roadmap in financing activities that improve our clients’ sustainability and environmental performance.
The Green Finance Framework outlines the methodology and associated procedures for classifying financial products offered by LAAD as green finance. It specifies the classification logic, the eligibility criteria, the applicable environmental and social due diligence requirements, and the verification process for green finance. It also outlines reporting principles and requirements.
This framework covers activities that help clients reduce their carbon emissions, adapt to climate change, improve resource and water use efficiency, and reduce or eliminate negative impacts on the environment.
LAAD obtained a Second Opinion on this framework from CICERO Green, who is recognized as the leading provider of independent reviews of green loans and green bonds. Cicero Green rated LAAD’s Green Finance Framework as MEDIUM GREEN and found it to be in alignment with the Green Loan Principles and Green Bond Principles. See the descriptions of the Shades of Green and details on the categories of Green Loans provided by LAAD at LAAD Green Finance Second Opinion (provided by Cicero).
Green Finance Second Opinion - Cicero Green (pdf)
With the Green Finance Framework in place, we were able to secure our first Green Loan from the International Finance Corporation.