IFACC 2023 Market Report

2023 is the first year that IFACC is reporting impact results, based on a set of core KPIs for each financial product reported on annually by IFACC signatories, following the framework outlined in IFACC Impact Indicator Guidelines . IFACC’s theory of change calls for accelerating lending and investment in agricultural models that can increase production and farmer incomes without further habitat loss. The target production models include soy and agriculture expansion over already-cleared pastureland, sustainable intensification of cattle production, protection and restoration of native vegetation, and agroforestry. The IFACC “core” KPIs track the hectares of implementation in each of these categories, by biome, as presented in the infographic on page 9. 98% of the IFACC-aligned financial solutions to date were implemented in Brazil’s Cerrado, largely for soy and complementary commodities such as corn. The greatest area of impact has been the expansion of soy over already-cleared pasturelands, but there has also been significant activity in yield improvement and protection of native vegetation. The IFACC Impact Indicator Guidelines also include a set of “advanced impact indicators” with recommendations on how to measure these. The advanced indicators include avoided deforestation, carbon benefits from avoided deforestation and sequestration, yield improvements, beneficiaries, and smallholder participation. IFACC signatories are encouraged to collect this data to generate more intelligence over the affective impact geenration from their financial innovations. IFACC IMPACT RESULTS FINANCIAL PRODUCTS THAT REACH PRODUCERS DIRECTLY: Area of already cleared pasture converted into soy production: 91,783 hectares Area of sustainably intensified agricultural crop production: 77,811 hectares Area of sustainably intensified beef cattle production: 4,215hectares Area of natural ecosystem protected (legal compliance): 116,156 hectares Area of natural ecosystem protected (beyond legal compliance): 19,087 hectares Area under ecological restoration: 739 hectaresOVERALL IMPACT DATA OF IFACC-ALIGNED PRODUCTS FOR 2022 – 2023 DISBURSEMENTS (USD 239.9 MILLION) AMAZON USD 5,4 M CERRADO USD 234.5 M2% 98% CROP FARM-LEVEL CATTLE CROP CORPORATE 84% 1% 13% 3,5 30 FINANCIAL PRODUCTS FOR CORPORATES: Area of natural ecosystem protected (legal compliance): 751,292 hectares Area of natural ecosystem protected (beyond legal compliance): 28,000 hectaresUSD USD USD M M200,5 M© TNC IMPACT RESULTSDisbursement for soy and cattle financing: USD 234.5 M Disbursement for Agroforestry and NTFP: USD 5.4M 9 IFACC 2023 MARKET REPORT