With professional management, best practices and extensive experience in operating farms, FarmCompany seeks to acquire and manage a diverse portfolio of farms and farmland in Denmark.
We are loyal to FAO – Food and Agriculture Organization of the United Nations’ definition of sustainable agriculture, whereby land, water, plant and animal genetic resources are conserved, and our farming practices are environmentally non-degrading, technically appropriate, economically viable and socially acceptable.
The interconnected five Sustainable Capitals
FarmCompany acknowledges and understands the interconnectivity with and dependencies on five sustainable capitals, for its long-term business success:
- Natural capital – Defined by World Forum as “the world’s stocks of natural assets, including geology, soil, air, water, and all living things”. The natural capital makes human life possible on earth and provides for multiple ecosystem services ranging from consumable food products, drinking water, medicine, building materials etc.
- Human capital – Ensuring good and safe work environment, as well as investing in education and training, is at the heart of FarmCompany’s work ethics. By investing in human capital, its employees and stakeholders are skilled, productive and motivated.
- Social capital – Interacting and exchanging positively with the local community, businesses, schools etc.
- Physical capital – Material goods and fixed assets, such as production facilities and machinery, contribute to the production success.
- Financial capital – An important component in our economy and a reflection of our investment in the natural, human, social and manufactured capital.
With the interconnected five capitals in mind, sustainability stewardship has formed an integral part of FarmCompany’s business culture since founded in 2009.
As entrusted managers of the agricultural assets on behalf of our investors, opportunities, challenges and risks concerning sustainable farming practices are reviewed on a regular basis, as they are important components in reinforcing our commitment to good corporate governance enabling responsible actions, decisions and activities throughout FarmCompany and its stakeholders.
Moreover, we are firm believers that responsible business practices will help us yield long-term attractive returns for our investors, our employees and the environment.
ESG – Environmental, Social & Corporate Governance
FarmCompany operates and analyses the outputs and outcomes attributable to our operations. This is often termed the Environmental, Social and Corporate Governance (“ESG”) performance and is useful in identifying ESG-related risks and opportunities as well as areas to engage further on to improve our performance.
FarmCompany’s core ESG focus is to promote sound farmland management practices, help improve tenants’ efficiencies and protect the integrity of Danish farmland, which we believe are core to protecting and enhancing long-term returns.
In order to achieve it, we manage our agriculture investments in a manner that integrates the development, management, and operation of agricultural lands for useful products with a commitment to conserve soil, air, and water quality; biological diversity; wildlife habitats; and participation in vibrant, healthy communities. Through this sustainability approach, the portfolio delivers positive outputs in 4 primary areas; sustainable agriculture, food security, biodiversity and local development.
B Lab Europe
B Lab is transforming the global economy to benefit all people and the planet. Across Europe and the globe, B Lab’s international network creates standards, policies, tools, and programs for business to shift the behaviour, culture, and structure of entrepreneurship.
Business needs comprehensive, credible, comparable impact standards to support economic systems change. B Lab was founded in 2006 with the idea that a different kind of economy was not only possible, it was necessary – and that business could lead the way towards a new, stakeholder-driven model.
Certified companies—known as B Corps—are verified by B Lab to meet high standards of social and environmental performance, transparency and accountability.
During the rigorous certification process, the B Impact Assessment evaluates a company’s practices and outputs across five categories; Environment, Governance, Workers, Customers and Community.
More information: www.unpri.org
FarmCompany A/S follows the United Nations – Principles for Responsible Investment (UN PRI):
- We will incorporate ESG(*) issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will report on our activities and progress towards implementing the Principles.
(* ESG = Environmental, Sustainability & Governance)
We specifically apply the 5 guidelines set by UN PRI for responsible investment in farmland:
- Promote environmental sustainability.
- Respect labour and human rights.
- Respect existing land and resource rights.
- Uphold high business and ethical standards.
- Report on activities and progress towards implementing the Principles.
The responsible guidelines for investment in farmland are reflected in FarmCompany’s climate smart farming practices, offering impact opportunities across the food and agriculture value chain, a crucial sector for sustainable development in line with United Nations Sustainable Development Goals (“SDGs”).
Alignment with UN SDG’s – Sustainable Development Goals
More information: sdgs.un.org/goals
In 2015, member countries of United Nations developed 17 Sustainable Development Goals (“SDGs”) as part of its sustainable development agenda, which outlined a series of targets for the world’s economies to achieve by 2030. This framework provides a useful way for asset owners and managers to consider how their portfolios are aligned with a more sustainable future.
No industry is as relevant to the successful implementation of the SDGs as agriculture: almost every single SDG has some linkage to agriculture. The development of sustainable agricultural practices, the efficient use of water, the protection of biodiversity, the development of rural areas, the reduction of food loss and food waste are among key challenges and opportunities achieving this agenda.
FarmCompany’s exposure to the SDGs is linked to our farming activities, providing us with the opportunity and challenge to identify key actions towards contributing to the realization of a handful of SDGs.