Institutional investors consciously choose sustainable farmlands, says Kempen
Following the launch of the Kempen SDG Farmland Fund, in collaboration with Stichting Pensioenfonds PostNL (PostNL Pension Fund Foundation), two leading insurance companies, Coöperatie DELA and De Goudse, have joined to invest in efforts to make farmland more sustainable.
A total of EUR150 million was secured during this investment round, helping the fund to achieve a volume of approximately EUR350 million since its foundation exactly six months ago.
The Kempen SDG Farmland Fund invests in farmlands across the globe that both offer an attractive return and contribute towards sustainable food production. For this purpose, we have identified concrete and measurable indicators (KPIs) in the field of climate, soil health, biodiversity, water quality, and the use of resources. Examples of crops include avocados, olives, and almonds in Australia, Portugal, New Zealand, and the United States, as well as annual crops such as grains, beans and vegetables in Denmark, the United States, and Australia.
With this fund, institutional investors have an opportunity to contribute directly towards their sustainability goals. Kempen expects the demand for this type of investments to continue to increase.
Frank Eizinga, Chief Investment Officer of Coöperatie DELA, says: “We are further diversifying our portfolio while at the same time contributing towards the achievement of our sustainability goals. What attracts us the most in the Kempen SDG Farmland Fund is that a sustainability plan is drawn up for each investment, making the sustainable goals concrete as well as creating accountability for the achievement of the goals.”
Pieter de Frel, Chief Financial Risk Officer of De Goudse Verzekeringen, adds: “As a family business, we attach great value to sustainable business practices. This investment, which is fully grafted onto sustainability and entrepreneurship, will enable us to contribute to a healthy climate and biodiversity. In addition, we consider farmland an attractive diversifier in our portfolio.”
Richard Jacobs and Edzard Potgieser, portfolio managers of the fund, adds: “Besides the returns and the ecological aspects of this fund, we feel that the social factor is very important as well. By investing in this fund, we enable young farmers to use new capital to achieve their long-term sustainability goals. We are very pleased to be able to welcome Coöperatie DELA and De Goudse as investors, after they have thoroughly investigated our philosophy, processes and procedures, and our approach. We look forward to engaging in a dialogue with these clients in order to discuss how we can proceed together and take further steps in the field of sustainability.”