EcoBusiness Fund: Florverde
Start & End Date: 2014-Ongoing
Country/Countries: Colombia
Multilateral Institution(s) Involved: Agence Française de Développement, KfW Development Bank, Campaign for Nature, Frankfurt Zoological Society, International Union for Conservation of Nature, World Wide Fund for Nature, United Nations Educational, Scientific and Cultural Organization
Colombia has the perfect climate for floriculture. With its diverse micro-climates and optimal conditions of sunlight, temperature, humidity, and fertility, it could even be regarded as the land of eternal spring. It is unsurprising then that Colombia is the second leading country of flower cultivation and the second largest exporter in the world. That’s why in 1973, the Colombian Association of Flower Exporters “Asocolflores” was created to develop floriculture and consolidate a more robust position in the global market.
By supporting end borrowers that comply with international environmental sustainability standards, like Florverde, the eco.business Fund is able to promote business and consumption practices that contribute to biodiversity conservation, to the sustainable use of natural resources and mitigation of climate change and adaption to its impacts. In this way, the fund is promoting Colombia’s unique and diverse agricultural activities by working with three financial institutions that finance producers certified by Florverde. Specifically, the fund works with GNB Sudameris, which provides financial education to its clients through a specialized finance academy, Banco Itaú, which was included in the 2019/2020 edition of the Dow Jones Sustainability World Index (DJSI World) for the 20th consecutive time, and Banco Davivienda, which has a robust environmental management system and has also been included in the DJSI World. Florverde is also part of the Floriculture Sustainability Initiative (FSI) which is a market-driven initiative that brings together members of the international floriculture supply-chain and is equivalent to Rainforest Alliance. Working with existing robust, ambitious sustainability standards constitutes a cost-effective approach for ensuring the financing of sustainable production, as the monitoring and verification of the businesses leverage certified and independent bodies. Not only does the eco.business Fund draw upon the standards’ work on impact measurement, it also enables the fund to deliver a deeper analysis of the benefits of its investments.
By following a defined set of socio-environmental indicators for floriculture, Florverde ensures sustainability practices are adopted at every step in the production of flowers. Each month, the farms must register their consumption of water, energy, and active ingredients so that we can monitor and control the efficient management of these resources. Floreverde also aims to continue preserving the environment. For example, Florverde encourages the reduced use of chemical pesticides and promotes efficient water management through the use of rainwater. Currently, 54% of total water used in certified farms is from captured rainfall. By 2019 Colombia had certified 53% of all exported flowers, equivalent to 2.2 billion stems and 112,000 tons of fresh flowers. The floriculture sector is the largest formal employer of women in the rural areas of Colombia. Over 60% of hired employees are women who are heads of their households. Florverde certification has high standards of social responsibility. It not only complies with women’s labor rights; it also promotes the well-being and health of all workers. More than 38,000 workers benefit from the good social and environmental practices the program follows. Companies certified by Florverde have to ensure that certified growers meet basic labor conditions as set by the International Labour Organization and national laws. In addition, 100% of Florverde certified farms guarantee social security coverage for workers.