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Triodos Sustainable Trade Fund
Impact Report 2010
TLIM
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Sustainability
as our core value
As one of the world´s most sustainable banks,
Triodos Bank is committed to an approach to money
that values people, planet and profit. This Triple
Bottom Line approach is also the driving force for
the Triodos Sustainable Trade Fund, which provides
pre-export finance to sustainable agricultural
companies in Africa, Latin America and Asia. The
fund’s mission is to improve the lives of farmers and
to stimulate sustainable agriculture as an
alternative to conventional, chemical-intensive
agriculture. The Triodos Sustainable Trade Fund
actively engages with sustainable value chains,
where transparency, fairness and care for the earth
are the guiding principles. This is visible in the high
content of fair trade and organic farming in the
fund’s portfolio.
This Impact Report 2010 is our first attempt to
document the results of the Triodos Sustainable
Trade Fund in terms of realising its mission. We have
chosen to work in line with the IRIS reporting
standard as well as to relate the fund’s objectives to
the Millennium Development Goals.
Reporting non-financial data is still a relatively new
phenomenon in agricultural and other financing. It is
an area undergoing development in which we are
active participants. We hope you enjoy reading our
report, whilst appreciating that this is work in
progress and that the data presented have not been
verified by a third party.
Zeist, The Netherlands
September 2011
Koert Jansen
Fund Manager Triodos Sustainable Trade Fund
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Impact Report 2010
This Impact Report 2010 uses the IRIS reporting
standards as a guideline and relates the objectives
of the Triodos Sustainable Trade Fund to the
Millennium Development Goals (MDGs).
About IRIS
Impact Reporting & Investment Standards (IRIS)
were developed to provide a common reporting
language for impact-related terms and metrics. By
standardising the way organisations communicate
and report their social and environmental
performance, IRIS aims to increase the value of
non-financial data by enabling performance to be
compared and benchmarked, while also streamlining
and simplifying reporting requirements for
companies and their investors.
IRIS indicators span an array of performance
objectives and include specialised metrics for a
range of sectors, including financial services and
agriculture.
IRIS was initiated and is governed by the Global
Impact Investing Network (GIIN). This not-for-profit
organisation is dedicated to increasing the
effectiveness of impact investing. Impact
investments aim to solve social or environmental
challenges while generating financial profit
(www.thegiin.org). Triodos Investment Management,
the Fund Manager of the Triodos Sustainable Trade
Fund, is a member of the GIIN’s Investor’s Council.
IRIS is still in development. The Triodos Sustainable
Trade Fund has initiated collaboration between the
Finance Alliance for Sustainable Trade (FAST) and
IRIS to specifically develop performance metrics
suitable for agriculture and trade. This has resulted
in a tangible project executed in part by consultants
of Triodos Facet BV.
AFRICAN CASHEW NUTS
Africa is rapidly becoming a major player in the cashew industry thanks, in part, to organisations like the
Trade & Development Group. This Dutch company has been active in the African cashew trade for many
years and initiated local processing companies in Burkina Faso, Mozambique, Benin and Ghana. Here the
raw cashew nuts are cracked to release the cashew kernels, which are then dried, peeled, sorted and
shipped to final destination. Benefits include fairer prices for farmers selling directly to processors, as well
as jobs and more money in local pockets. The Triodos Sustainable Trade Fund provided trade finance to the
processing companies which enables them to pay the farmers directly upon delivery of their harvest.
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1
7
6
8
ERADICATEEXTREME POVERTYAND HUNGER
ENSUREENVIRONMENTALSUSTAINABILITY
COMBAT HIV/AIDS,MALARIA AND OTHERDISEASES
GLOBALPARTNERSHIP FORDEVELOPMENT
Geographical specification
(as % of total EUR transacted in 2010)
Product specification
(as % of total EUR transacted in 2010)
AFRICA 47%
LATIN AMERICA 32%
SOUTH ASIA 12%
EASTERN EUROPE AND
CENTRAL ASIA 6%
MIDDLE EAST AND
NORTHERN AFRICA 3%
COFFEE 21%
ARTEMISININ 15%
SESAME 14%
CASHEW NUTS 10%
COTTON 9%
COCOA 6%
SOYBEANS 5%
SUGAR 4%
OLIVE OIL 3%
CLOVES 3%
RAISINS 2%
APPLES AND PEARS 2%
HERBS 2%
MANGOS 1%
QUINOA 1%
COCONUT OIL 1%
The MDGs are in total eight international
development goals that aim to encourage
development by improving social and economic
conditions in the world’s poorest countries.
About the Millennium
Development Goals
In September 2000, world leaders met at the United
Nations Headquarters in New York to adopt the
United Nations Millennium Declaration, committing
their nations to a new global partnership to reduce
extreme poverty and setting out a series of time-
bound targets – with a deadline of 2015 – that have
become known as the Millennium Development
Goals (www.un.org/millenniumgoals).
The Triodos Sustainable Trade Fund entered into a
Millennium Agreement with the Dutch Ministry of
Foreign Affairs on 2 March 2009. It aims to contribute
to three of the eight Millennium Development Goals,
those related to alleviating poverty, sustainable
development and fair trade.
The key instruments for this are:
• expanding the fund’s financing activities to the
bottom of sustainable value chains;
• promoting the concept of value chain financing in
mainstream sustainable value chains, and
• promoting the concept of value chain financing to
the local financial sector in developing countries.
The Millennium Agreement is being executed in
partnership with the Dutch Sustainable Trade
Initiative, the Dutch development organisations
Hivos and ICCO, the Royal Tropical Institute and
Tradin Organic Agriculture BV.
On 6 July 2009, Triodos Sustainable Trade Fund
entered into an agreement with UNITAID. UNITAID’s
mission is to contribute to scaling up access to
treatment for HIV/AIDS, malaria and tuberculosis,
primarily for people in low-income countries.
UNITAID is embedded within the World Health
Organisation (WHO) which serves as its trustee and
host of the UNITAID secretariat. The agreement
between the Triodos Sustainable Trade Fund and
UNITAID is about a dedicated prefinance facility for
the production of Artemisinin. Artemisinin is the key
ingredient for the only WHO-approved category of
malaria medicines, the so-called ACTs (Artemisinin
Combination Therapies). Artemisinin is derived from
a herb, Artemisia Annua, which is mainly grown in
China and Eastern Africa.
The UNITAID Artemisinin pre-finance facility now
brings the total number of MDGs targeted by the
Triodos Sustainable Trade Fund to the following four:
Portfolio
Triodos Sustainable Trade Fund
Impact through financing
activities in 2010
IRIS Category IRIS
Indicator
UN
MDGs *
Product Description Product Information Unit of Measure PD1602 Metric tonnes
Product/Service Type PD3017 Agriculture
Target Beneficiaries Client Type PD7993 Cooperatives and
Small-to-Medium Enterprises
Target Beneficiary Setting PD6384 Rural
2010 2009 % YtY change
Operational Impact Environmental Performance Cultivated Land Area OI1937 No. of hectares 7 218,840 179,754 22%
Sustainable Cultivated Land OI2605 No. of hectares 7 154,912 136,918 13%
Employees Permanent Employees OI8869 No. of people 1 2,395 958 150%
Temporary Employees OI9028 No. of people 1 4,194 1,057 297%
Product Impact Quantity and Reach Units/Volume Exported: total PI1290 No. of metric tonnes 1 91,477 51,296 78%
Units/Volume Exported: fair trade & organic ** No. of metric tonnes 1 11,103 6,133 81%
Units/Volume Exported: organic ** No. of metric tonnes 1 42,254 36,763 15%
Units/Volume Exported: fair trade ** No. of metric tonnes 1 3,792 2,603 46%
Units/Volume Exported: other ** No. of metric tonnes 1 34,128 5,797 489%
Units/Volume Exported: prefinanced by the fund ** No. of metric tonnes 1 22,626 11,775 92%
Units/Malaria medicine equivalents ** No. of treatments 6 16,875,000 n.a. n.a.
Quality and Performance Producer Price Premium PI1568 EUR 2,047,666 952,181 115%
Supplier Information Supplier Individuals PI5350 No. of people 1 116,272 49,697 134%
Supplier Individuals: female PI1728 No. of people 1 34.282 16,559 111%
Supplier Individuals: rural PI2566 No. of people 1 116,272 49,697 134%
Supplier Individuals: smallholder PI9991 No. of people 1 115,994 49,697 134%
Supplier Individuals: certified organic ** No. of people 1 75,642 35,410 114%
Purchases from Supplier Individuals: smallholder PI7852 EUR 1 38,393,739 17,853,392 115%
* United Nations Millennium Development Goals
** Indicators introduced by the Triodos Sustainable Trade Fund and not (yet) incorporated in the IRIS standards
TRIODOS SUSTAINABLE TRADE FUND
PORTFOLIO 2010 BY COUNTRIES, PRODUCTS
AND NUMBER OF FARMERS
MEXICO ●
Coffee
4,993 farmers
NICARAGUA ●
Coffee
1,296 farmers
PERU ●
Coffee
8,387 farmers
Mangos
450 farmers
BOLIVIA ●
Coffee
403 farmers
Sesame
1,310 farmers
Quinoa
409 farmers
ARGENTINA ●
Sugar
48 farmers
Apples and pears
8 farmers
BRAZIL ●
Soybeans
230 farmers
MADAGASCAR ●
Artemisinin
4,667 farmers
Cloves
300 farmers
MOZAMBIQUE ●
Cashew nuts
7,363 farmers
TANZANIA ●
Cotton
1,742 farmers
Cocoa
11,729 farmers
CHINA ●
Artemisinin
4,000 farmers
VIETNAM ●
Artemisinin
350 farmers
TURKEY ●
Herbs
951 farmers
Raisins
149 farmers
PALESTINE
TERRITORIES ●
Olive oil
938 farmers
KYRGYZSTAN ●
Cotton
986 farmers
SRI LANKA ●
Coconut oil
491 farmers
MALI ●
Sesame
5,205 farmers
BURKINA FASO ●
Cashew nuts
5,464 farmers
SIERRA LEONE ●
Cocoa
3,000 farmers
GHANA ●
Cashew nuts
3,300 farmers
BENIN ●
Cashew nuts
4,146 farmers
ETHIOPIA ●
Coffee
19,000 farmers
Sesame
1,307 farmers
UGANDA ●
Sesame
24,000 farmers
Impact through
other activities
In addition to the impact the Triodos Sustainable
Trade Fund realised through its financing activities
the fund also realised impact through other
activities. This impact is related to Millennium
Development Goal 8: Global Partnership for
Development.
Value Chain Finance Book
As part of its Millennium Agreement with the Dutch
government, the Triodos Sustainable Trade Fund has
contributed its expertise and funding to the
publication of a practical book on value chain finance:
Value Chain Finance, beyond microfinance for rural
entrepreneurs. The book documents thirteen case
studies of successful value chain finance models in
various developing countries. The objective of the
book is to share experiences in this area among
different actors in the value chain and the financial
sector. The book was officially launched at the Value
Chain Finance Seminar held on 22 April 2010 at the
Dutch Royal Tropical Institute (KIT). The book was
produced jointly by KIT and the International
Institute for Rural Reconstruction (IIRR), Kenya.
The book has been very well received. Since the
launch, around 4,000 copies have been printed
(originally 2,500 were planned), most of which have
already been distributed. A second edition is
expected. The book has also been made available as
a downloadable PDF. A Spanish translation is ready
and a French translation is underway.
• MDG 1 Eradicate Extreme Poverty and Hunger aims
to reduce by half the proportion of people who suffer
from hunger. People in developing countries spend a
large percentage of their income on food. Financial
speculation drives food prices up and therefore
leads to more hunger.
• MDG 8 Global Partnership calls for an ‘open,
rule-based, predictable, non-discriminatory trading
and financial system’. Many developing countries
depend on the export of commodities. Although
higher commodity prices might seem attractive from
this point of view, they can actually do harm when
artificial and highly volatile. Wrong price signals lead
to wrong investment and trading decisions. This is
contrary to the aims of MDG 8.
The commodity crisis has clear parallels with the
credit crisis, in that both were triggered by
investments in derivative products, disconnected
from the real economy. The problem with this is that
the ‘virtual reality’ created on derivative markets
directly distorts the functioning of the real
underlying markets.
The Triodos Sustainable Trade Fund commissioned a
study on coffee prices in 2009, and disseminated the
results further in 2010. We spoke at a number of
(governmental) meetings on food prices to share our
opinion and to engage in debate about the role index
investors play. Our point of view was also put forward
in interviews and articles in Dutch newspapers
(Trouw, 23 October 2010; Reformatorisch Dagblad,
5 November 2010) and in an item on commodity
speculation broadcast by Nieuwsuur, a highly
reputable news show in the Netherlands, on
9 December 2010. Marilou van Golstein Brouwers,
Managing Director of Triodos Investment
Management BV, featured as a thought leader on the
topic, together with Olivier de Schutter, the UN
Special Rapporteur on the right to food.
Max Havelaar Lecture
Each year in October, the Max Havelaar Foundation,
the Erasmus University Rotterdam and the Triodos
Sustainable Trade Fund organise the Max Havelaar
Lecture. The lecture is open to the public and
provides a platform where policy makers and the
scientific community can meet to discuss
developments in the Fair Trade movement. The
theme of the 2010 lecture was Power and
Responsibility. Among the speakers were Mr Sjaak
de Korte (Director of PLUS, the Dutch supermarket
that switched to selling 100% Fair Trade bananas),
Mr Rob Cameron (CEO of Fair Trade Labelling
Organisations International) and Mr Jan Pronk
(Former Minister for Development Cooperation,
former Minister of the Environment and former
Special UN Representative in Sudan). More about the
Max Havelaar Lecture 2010 can be found at
www.maxhavelaarlecture.org.
Commodity speculation
The Triodos Sustainable Trade Fund continued to
raise awareness in 2010 of the disastrous effects
financial speculation on commodity futures has on
the lives of millions of low-income people in
developing countries. These effects directly
undermine the international development agenda, as
set by the Millennium Development Goals (MDGs):
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2010.
General data
Objective
Stichting Triodos Sustainable Trade Fund (Triodos
Sustainable Trade Fund) started operations on
31 January 2008. The objective of the Triodos
Sustainable Trade Fund, as described in article 2 of
the Articles of Association, is: “to improve the
economic position of farmers in developing countries
and in Central and Eastern European countries as
well as to stimulate sustainable agriculture in these
countries, all this in the broadest sense of the term.
The foundation is a not-for-profi t organisation”.
The Triodos Sustainable Trade Fund provides trade
fi nance loans to cooperatives and private companies
operating in sustainable agricultural value chains,
and has a specifi c focus on organic agriculture and
fair trade.
Governance
The Board of Management of the Triodos Sustainable
Trade Fund consists of Ms Marilou van Golstein
Brouwers and Mr Bas Rüter.
The Triodos Sustainable Trade Fund is managed by
Triodos Investment Management BV, a 100%
subsidiary of Triodos Bank NV. Ms Marilou van
Golstein Brouwers and Mr Bas Rüter are the
managing directors of this company. Mr Koert Jansen
is the Fund Manager of the Triodos Sustainable Trade
Fund.
The Supervisory Board monitors the Board of
Management’s policy and general state of affairs of
the Triodos Sustainable Trade Fund. The fund’s
annual accounts and the annual budget need the
Supervisory Board’s approval. The members of the
Supervisory Board are appointed by the Board of
Management. In 2010 Ms Lisette van Benthum and
Mr Allert van der Ham left the Supervisory Board and
were replaced by Mr Jeroen de Vries (Specialist
Producer Organizations and Value Chains of ICCO)
and Mr Ben Witjes (Director Programmes and
Projects of Hivos) respectively. The other members of
the Supervisory Board remain Mr Pierre Aeby (CFO
Triodos Bank NV) and Mr Hans-Peter Egler (Head
Trade Promotion Division of SECO).
The Triodos Sustainable Trade Fund also installed an
Advisory Board, to assist the Board of Management
and the Supervisory Board in the further
development of its sustainability policy. The
members of the Advisory Board are Ms Ute Eisenlohr
(Africa manager of IMO, Switzerland),
Mr Hugo Skoppek (former director of Nature & More
Foundation) and Mr Daniele Giovannucci
(co-founder of COSA).
PALESTINIAN OLIVE OIL
Canaan Fair Trade in the Palestine Territories supplies organic olive oil to retailers in the United States and
a number of European countries. The olive oil and all other products by Canaan Fair Trade follow the fair
trade movement’s principles of sustainability and improved incomes for marginalised farmers. One of the
farmers is Aida Karam. She and her brother inherited their land from their parents and have been carrying
on the tradition of planting and harvesting while, at the same time, adopting new methods of organic
agriculture to improve their soil and their environment.
Appendix A. Glossary
IRIS Indicators
Unit of Measure PD1602 Unit of measure for reporting the units sold, produced,
exported, or installed by the organisation.
Target Beneficiary Setting PD6384 Setting of the groups of beneficiaries targeted by the
organisation’s operations
Target Beneficiaries PD7993 Types entities that are buyers or recipients of the
organisation’s products and/or services.
Product/Service Description PD7899 Description of the product or service.
Cultivated Land Area OI1937 Hectares under cultivation
Sustainable Cultivated Land OI2605 Hectares under sustainable cultivation.
Permanent Employees OI8869 Number of people employed by the organisation at the end
of the reporting period. This is the sum of all paid full-time
and part-time employees.
Temporary Employees OI9028 Number of temporary employees during the reporting
period.
Units/Volume Exported PI1290 Amount of product or service exported by the organisation
during the reporting period.
Units/Volume Exported:
fair trade & organic
* Amount of certified fair trade and oganic product or
service exported by the organisation during the reporting
period.
Units/Volume Exported:
organic
* Amount of certified organic product or service exported by
the organisation during the reporting period.
Units/Volume Exported:
fairtrade
* Amount of certified fairtrade product or service exported
by the organisation during the reporting period.
Units/Volume Exported:
other
* Amount of non-certified product or service exported by
the organisation during the reporting period.
Units/Volume Exported:
prefinanced by the fund
* Amount of product or service exported by the organisation
during the reporting period that is prefinanced by the Fund.
Units/Malaria medicine
equivalents
* Amount of malaria treatments that can be produced by
the amount of Artemisinin prefinanced by the Fund.
Producer Price Premium PI1568 Price premium obtained, for the producer of goods, by
selling to the organisation. This is relative to the
average price that would otherwise be obtained in the
local area for a similar good during the reporting period
and related to the Triodos Sustainable Trade Fund
financed product volumes only.
IRIS Indicators
Supplier Individuals PI5350 Number of individuals who sold to the organisation during
the reporting period.
Supplier Individuals: female PI1728 Number of female individuals who sold to the organisation
during the reporting period.
Supplier Individuals: rural PI2566 Number of individuals, living in rural areas, who sold to the
organisation during the reporting period.
Supplier Individuals: smallholder PI9991 Number of smallholder farmers who sold to the
organisation during the reporting period
Supplier Individuals: certified
organic
* Number of certified organic farmers who sold to the
organisation during the reporting period.
Purchases from Supplier
Individuas: smallholder
PI7852 Value of payments made to smallholder farmers who sold
to the organisation during the reporting period.
* Indicators introduced by Triodos Sustainabel Trade Fund and not (yet) incorporated in the IRIS standards.
United Nations Millenium Development Goals
MDG Millennium Development Goal
MDG 1 Eradicate extreme poverty and hunger
MDG 6 Combat HIV/AIDS, malaria and other diseases
MDG 7 Ensure environmental sustainability
MDG 8 A global partnership for development
Address
Stichting Triodos Sustainable Trade Fund
Nieuweroordweg 1
PO Box 55
3700 AB Zeist
The Netherlands
Telephone +31 (0)30 693 65 00
www.triodos.com/sustainabletrade
Colophon
Triodos Sustainable Trade Fund Impact Report 2010
Published
September 2011
Text
Triodos Investment Management, Zeist,
The Netherlands
Graphic design
Michael Nash Associates, London, United Kingdom
Layout
Studio van Waert, Westbroek, The Netherlands
Photography
Siebold Freeke (African cashew nuts) and
Vivien Sansour (Palestinian olive oil)
Contact
If you have comments or questions about this report,
please contact Triodos Investment Management via
the following e-mail address:
This report can be downloaded from
www.triodos.com/sustainabletrade
TLIM
