Food and Agriculture SDG 2030
Source: FAO, 2017
The global food system is comprised of a complex set of issues, most of which can be classified under the categories below:
ESG IMPACT
Primocane Capital fully embraces the guiding principles outlined by the United Nations Sustainable Development Goals (SDGs), aligning our work to directly support the vast majority of these 17 global objectives. Our investment approach takes into account the multifaceted opportunities and potential risks presented by ESG (Environment, Social, and Governance) factors.
Drawing upon the exceptional expertise of our founding members and strategic partnerships, we ensure judicious impact investing through sustainable agricultural practices and commercial viability.
Our goal is to bridge the gap between capital markets and SDGs by seamlessly integrating financial objectives with social responsibility, environmental stewardship, and corporate governance principles. By doing so, we consistently deliver excellence in food production, empower local communities, provide sustainable solutions, drive economic growth, and effectively mitigate the risks associated with biodiversity loss and climate change.
To facilitate these endeavors, we have developed an intricate and comprehensive ESG reporting framework, which allows us to offer investors and our corporate partners detailed reports, data, and information pertaining to the attainment of ESG objectives. This framework is both measurable and sophisticated, enabling us to provide transparent and tangible insights into our progress and impact.
Primocane Capital embraces a systematic approach that integrates various factors in a holistic manner while selecting strategies to address the targets outlined in the 2030 Sustainable Development Goals. Our process encompasses both qualitative and quantitative measures that consider environmental, social, and governance considerations. Through this approach, we evaluate the ESG performance of existing food production processes, identifying areas that require improvement. This includes measuring and monitoring energy consumption, water usage, and waste generation. Moreover, we consider social aspects such as labor policies and human rights. To ensure ongoing progress and measure success, we establish a robust monitoring and evaluation system. By adopting this comprehensive methodology, we actively contribute to promoting sustainability in agriculture while aligning with the objectives of the Sustainable Development Goals.
- Unhealthy diets: One of the most significant challenges facing the contemporary world is the need to address the escalating prevalence of lifestyle-related diseases. These diseases are primarily driven by significant changes in food consumption and lifestyle patterns that have occurred over several decades. Nutritional alterations resulting from factors such as food availability, food choices, food processing methods, and farming techniques have contributed to the depletion of essential micronutrients, including vitamins, minerals, and phytonutrients, in the food we consume. Consequently, there has been a surge in the incidence of lifestyle diseases.
There is now a pressing global imperative to identify sustainable sources of nutrition that not only provide adequate nourishment for everyday bodily functions but also possess the capacity to ameliorate the diseases arising from nutrient deficiencies caused by modern diets. These diets frequently fail to meet our physiological requirements, necessitating a search for nutritional solutions that can not only support bodily sustenance but also promote healing from the ailments stemming from inadequate nutrient intake. - Food Waste: Current estimates suggest that approximately one-third of agricultural output is lost due to post-harvest losses occurring within the value chain as well as consumer wastage.
- Unsustainable food production: The production of food exhibits environmental unsustainability, as it contributes to various adverse environmental impacts, including greenhouse gas emissions, land degradation, biodiversity loss, chemical pollution arising from the use of fertilizers and pesticides, the introduction of invasive species, depletion of freshwater resources, soil erosion, and other forms of environmental degradation.
- Poverty & Unemployment: A substantial segment of the communities residing in the vicinity of our portfolio company operations experiences profound levels of poverty and unemployment.
- Vulnerability of food systems to the Volatile, Uncertain, Complex and Ambiguous (V.U.C.A) world. The food production sector is becoming increasingly susceptible to the impacts of anthropogenic climate change and its diverse array of consequences, including heatwaves, storms, floods, droughts, and pest infestations. However, there is a simultaneous need to significantly increase the production of specific food items, notably fruits, vegetables, nuts, fish, and other key commodities, in order to meet global demand.
OUR THEORY OF CHANGE
Our theory of change model centers around the concept of the triple bottom line, which emphasises the interconnectedness of economic, environmental, and social aspects of sustainable development. By incorporating this framework into our corporate and investment strategy, we aim to create positive impacts across these three dimensions.
- Economic Impact: Primocane Capital recognises that a thriving agricultural and food production sector is fundamental to South Africa’s economic well-being. Through its portfolio companies and targeted investments, the company endeavours to stimulate local economic growth by supporting sustainable farming practices, fostering value chains, and promoting agricultural innovation. By leveraging its shareholders’ expertise, Primocane Capital targets investment opportunities that enhance productivity, improve market access for smallholders, and contribute to job creation and income generation.
- Environmental Impact: Environmental sustainability is a core focus of Primocane Capital’s theory of change model. The company acknowledges the importance of safeguarding natural resources, mitigating climate change, and promoting sustainable land and water management practices. Through responsible investing, Primocane Capital seeks to support initiatives that reduce carbon emissions, enhance biodiversity conservation, promote regenerative agriculture, and ensure the responsible use of water resources. By integrating environmental considerations into its investment decisions, Primocane Capital aims to contribute to a more resilient and ecologically balanced agricultural sector.
- Social Impact: Primocane Capital recognizes the significant potential of the agricultural sector to address social challenges and promote inclusive development. The company is committed to supporting initiatives that empower women and youth in the sector, foster skills development, and enhance employment opportunities. By investing in projects that promote equitable access to resources, provide training and education, and enable smallholder farmers to participate in value chains, Primocane Capital aims to contribute to poverty alleviation, food security, and the creation of sustainable communities.
Conceptual Model:
