Our Impact
Our Contribution to Sustainable Development
First Results
Our passionate team contributes to the growth of the impact investment sector. We develop innovative financing solutions aiming at bringing a positive social and environmental impact.
FairCapital finances sustainable supply chains in areas where access to capital is limited or non-existent. This allows smallholder farmer organizations to access better trade conditions. All investees are Fairtrade certified and/or generate comparable substantial social impact. Most of them are smallholder farmer organizations organized as a cooperative. They all commit to fair trade practices and have often also adopted organic production.
Achievements
USD 30M+
CURRENT
PORTFOLIO
USD 100M+
FINANCING SOLUTIONS GRANTED SINCE 2019
70+
FARMER ORGANIZATION SUPPORTED
12
COUNTRIES IN LATIN AMERICA AND AFRICA
Fairtrade
Our commitment to Fairtrade is due to the rigorous audit that organizations undergo to obtain the certification. This helps ensure the impact of our loans on smallholder farmers.
Fairtrade changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries. Its approach enables farmers and workers to have more control over their lives and decide how to invest in their future.
Our commitment to Fairtrade is due to the rigorous audit that organizations undergo to obtain the certification. This helps ensure the impact of our loans on smallholder farmers.
Fairtrade changes the way trade works through better prices, decent working conditions and a fairer deal for farmers and workers in developing countries. Its approach enables farmers and workers to have more control over their lives and decide how to invest in their future.
Small-scale farmers and workers are among the most marginalized by the global trade system. At Fairtrade, they are at the center. The certification opens doors to global markets that value ethically and sustainably sourced products.
Fairtrade means:
Minimum prices that cover the average costs of producing their crop – a vital safety net when market prices drop
The Fairtrade Premium – an extra payment on top of the selling price to invest in sustainable community development
The decent working conditions and a ban on discrimination, forced labor and child labor
Being able to plan more for the future with more security and stronger relationships with buyers
SDGs Alignment
FairCapital is addressing the Sustainable Development Goals (SDGs) by contributing to social and environmental ideals. The overarching goal to end poverty and promote sustainable and fair agriculture is central to our mission, among other SDGs that we help to deliver.
End poverty in all its forms everywhere
Target 1.2 “Reduce at least by half the proportion of men, women, and children of all ages living in poverty”
Fair products: Financing is provided for organizations that are aligned with Fairtrade price policies and practices, with a strong preference for organic production. When products are not included in the Fairtrade certification framework, we make sure that there is clear evidence of benefit to the farmers.
Minimum price: Financed export contracts align with Fairtrade’s minimum price, offering a safety net against price volatility for smallholder farmers.
Premiums: Contracts also include a Fairtrade Premium, which supports sustainable development initiatives, and an organic premium when applicable.
Impact on smallholder farmers: The higher prices and differentials translate into measurable incremental income for smallholder farmers.
Contracts financed by FairCapital include prices that are significantly above international prices. For coffee, it was on average 20% higher in 2024.
End hunger, achieve food security and improved nutrition and promote sustainable agriculture
Target 2.3 "By 2030, double the agricultural productivity and incomes of small-scale food producers.”
Fair products: Financing is provided for organizations that are aligned with Fairtrade price policies and practices, with a strong preference for organic production. When products are not included in the Fairtrade certification framework, we make sure that there is clear evidence of benefit to the farmers.
Minimum price: Financed export contracts align with Fairtrade’s minimum price, offering a safety net against price volatility for smallholder farmers.
Premiums: Contracts also include a Fairtrade Premium, which supports sustainable development initiatives, and an organic premium when applicable.
Impact on smallholder farmers: The higher prices and differentials translate into measurable incremental income for smallholder farmers.
Contracts financed by FairCapital include prices that are significantly above international prices. For coffee, it was on average 20% higher in 2024.
Achieve gender equality and empower all women and girls
Target 5.5 "Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life."
Women in agriculture face challenges like lack of land ownership, limited access to resources, and reduced decision-making power. Financing provided by FairCapital contribute to overcome these barriers.
Promoting gender equality: We finance smallholder farmer organizations where women hold key leadership positions. This helps break traditional gender roles in agricultural communities. Additionally, for organizations certified by Fairtrade, the label supports gender equality and women empowerment.
Encouraging women’s participation: By financing them, FairCapital fosters gender equality by prohibiting discrimination and actively encouraging women’s involvement in decision-making processes at all levels.
Empowering women farmers: Women represent 25% of farmers and workers in Fairtrade organizations. By financing these cooperatives, FairCapital fosters their inclusion and promotes equal opportunities.
The Fairtrade premium can be used to offer trainings to women farmers or launch projects that empower them. We notably saw initiatives to sell coffee exclusively grown by women farmers.
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
Target 8.2 “Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation”
Enhancing economic growth: Financing Fairtrade-certified farmer organizations enables them to generate a Fairtrade Premium. It can be used for infrastructure investments, such as upgrading processing facilities, maintaining equipment, and enhancing quality control. These improvements lead to increased productivity, more value creation at origin and better product quality. Additionally, training programs and technical assistance provided by the organizations empower workers and farmers with new skills, improving production efficiency.
Supporting good working
conditions: Infrastructure improvements enable farmer organizations to offer
better working conditions, contributing to more stable and dignified
employment.
In
addition,
the
high standards set by Fairtrade International, along with independent audits,
ensure good working conditions.
Ensure sustainable consumption and production
Target 12.3 & 12.4 “Reduce food losses including post-harvest losses“ & “Achieve the environmental sound management of chemicals and reduce their release to air, water and soil."
Smallholder farmers are greatly affected by climate change, as rising temperatures and irregular precipitations reduce crop yields and suitable cultivation areas, impacting production and farmers’ incomes.
Promoting organic production: The focus on financing organic-certified farmer organizations supports environmentally friendly and sustainable agriculture, reduces chemical use, and enhances soil health. The Fairtrade premium is often used to distribute organic fertilizers. Farmers adopting an organic production also receive an organic premium for their certified products.
Mitigating climate change impact: The Fairtrade premium can finance reforestation initiatives integrated into agricultural systems. This supports soil fertility, water retention, and natural pest control, enhancing resilience and productivity while capturing CO2.
Reducing Food Losses: Technical assistance and infrastructure improvements provided by Fairtrade certified organizations minimize post-harvest losses and maintain product quality, while giving income stability to farmers.