The transition of regenerative agriculture will be accelerated thanks to the new impact fund from AXA, Unilever and Tikehau Capital
PARIS & LONDON–(BUSINESS WIRE)–Regulatory news:
Today, global insurance and asset management company AXA, global consumer goods company Unilever and global alternative asset management group Tikehau Capital (Paris:TKO), announced that they have signed a memorandum emphasizing their ambition to create an impact fund dedicated to accelerating and scaling the transition to regenerative agriculture.
Together, agriculture, land use and deforestation represent the second largest source of greenhouse gas emissions worldwide and the main driver of biodiversity loss. Regenerative farming practices can reverse this trend and play a crucial role in addressing climate change and environmental challenges. Healthy soils can sequester carbon, support biodiversity, preserve water and improve the resilience of agricultural yields, providing healthy food while ensuring a sustainable source of income for millions of people.
The objective of the fund, which will be managed by Tikehau Capital, will be to promote regenerative farming practices by focusing on three main areas:
– Protect soil health to improve biodiversity, preserve water resources and contribute to the fight against climate change
– Contribute to the future supply of regenerative ingredients to meet the needs of a growing global population and consumer demand for increasingly sustainable products
– Contribute to unlocking technological solutions aimed at accelerating the transition to regenerative agriculture
We believe that the necessary transition in agricultural practices will only be made possible by a new, more systemic form of collaboration between stakeholders in the value chain, including farmers, producers, manufacturers, retailers, suppliers of technology and financial investors this fund will seek to bring to life.
Relying on the international network of AXA, Unilever and Tikehau Capital, the fund should be global. The objectives and the measurement of the impact will be at the heart of its operation and fully integrated into its investment strategy.
Pascal Christory, Chief Investment Officer of AXA Group, and Antoine Denoix, CEO of AXA Climate, added: “Regenerative agriculture is a major ESG theme. This fund is therefore perfectly in line with our strategy of decarbonizing the real economy through impact investments. At AXA, we are targeting €26 billion invested in green assets by 2023, and €1.5 billion to be invested in forests and natural capital projects, which will soon include sustainable agriculture projects. To convince investors, we must reinvent the way we manage agricultural risk and measure the impact locally, throughout the duration of the projects we finance. We hope that this initiative with Tikehau Capital and Unilever will be the first of a long series!
Eric Soubeiran, VP Climate & Nature Fund, Unilever, said: “We know that one of the main ways to fight climate change is through nature, and agriculture is part of that solution. That’s why, in 2020, Unilever has committed to investing €1 billion in climate and nature-related projects, connecting value chain transformation to our business and brands, enabling Unilever take targeted and meaningful action to fight climate change and grow responsibly. Ultimately, we would expect projects to include accelerating the transition to regenerative surfactants, scaling up low-carbon dairy, and plant-based acceleration. We look forward to working with partners on this new regenerative agriculture funding mechanism.
Pierre Abadie, Group Climate Director of Tikehau Capital, said: “We believe that reducing the impact of agriculture on the environment is essential to combat climate change and ensure a healthy and sustainable food supply chain for all. This impact reduction must be a collective effort that takes place on a large scale. Through the launch of this fund, our objective is to pool resources, skills and expertise to support the technological innovations and changes in practices necessary to improve soil and human health. The fund will help us implement our climate plan, through which we aim to have €5 billion in assets under management by 2025 dedicated to responding to the climate emergency.
As a pioneer in the field of climate and environmental adaptation, AXA Climate will play a key role in the launch and deployment of the fund. This subsidiary of AXA will bring its expertise in the management of climatic, environmental and agricultural risks, and in the monitoring of impacts (in particular via satellite technology), supported by its granular knowledge of the agricultural sector.
Unilever has been leading the industry through sustainable sourcing practices for over a decade, engaging hundreds of thousands of farmers around the world. Its regenerative agriculture principles build on these years of progressive policy design and practical work, and this, together with Unilever’s extensive experience in the global supply chain and local market, will provide guidance for future projects.
Tikehau Capital will bring its experience and expertise in climate-related investments. After launching the first fund dedicated to energy transition and the decarbonisation of the economy in 2018, Tikehau Capital now has nearly €2 billion in assets under management dedicated to climate action through its different asset classes.
About the AXA Group
The AXA Group is a world leader in insurance and asset management, with 149,000 employees serving 95 million customers in 50 countries. In 2021, IFRS revenues amounted to €99.9 billion and operating profit to €6.8 billion. AXA managed €1,051 billion in assets as of December 31, 2021. AXA ordinary shares are listed on Compartment A of Euronext Paris under the symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA ). AXA’s American Depository Share is also listed on the OTC QX platform under the symbol AXAHY. The AXA Group is part of the main international SRI indices, such as the Dow Jones Sustainability Index (DJSI) and the FTSE4GOOD. It is a founding member of the United Nations Environment Program (UNEP FI) Principles for Sustainable Insurance and a signatory to the United Nations Principles for Responsible Investment. This press release and the regulated information made public by AXA pursuant to Article L. 451-1-2 of the Monetary and Financial Code and Articles 222-1 et seq. of the general regulations of the Autorité des marchés financiers are available on the AXA Group website (axa.com).
Unilever is one of the world’s leading suppliers of beauty and personal care, home care and food and refreshment products, with sales in more than 190 countries and products used by 3.4 billion people each day. We have 148,000 employees and generated revenue of €52.4 billion in 2021. More than half of our footprint is in developing and emerging markets. We have around 400 brands in homes around the world, including iconic global brands like Dove, Lifebuoy, Knorr, Magnum, OMO and Surf; and other brands such as Love Beauty & Planet, Hourglass, Seventh Generation and The Vegetarian Butcher.
Our vision is to be the global leader in sustainable business and to demonstrate how our future-oriented, forward-looking business model drives superior performance. We have a long tradition of progressive and responsible business. It dates back to the days of our founder William Lever, who launched the world’s first useful brand, Sunlight Soap, over 100 years ago, and it’s at the heart of how we run our business today. .
Unilever Compass, our sustainable business strategy, is designed to help us deliver superior performance and drive sustainable and responsible growth, while:
– improve the health of the planet;
– improve people’s health, confidence and well-being; and
– contribute to a fairer and more socially inclusive world.
While much remains to be done, over the past year we are proud to have achieved sector leadership in S&P’s Dow Jones Sustainability Index, “Triple A” status in the CDP’s Climate, Water and Forests benchmark and being named as the top-ranked company. in the GlobeScan/SustainAbility Sustainability Leaders survey, for the eleventh consecutive year.
For more information about Unilever and our brands, visit www.unilever.com
About Tikehau Capital
Tikehau Capital is a global alternative asset management group with €35.5 billion in assets under management (as of March 31, 2022). Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies. Tikehau Capital is a founder-led team with a distinctive business model, strong balance sheet, exclusive global deal flow and experience in supporting high quality companies and leaders. Deeply rooted in the real economy, Tikehau Capital offers tailor-made and innovative alternative financing solutions to the companies in which it invests and seeks to create long-term value for its investors, while generating positive impacts on society. The Group relies on its equity base (€3 billion in equity as of December 31, 2021) by investing its own capital alongside that of its client-investors in each of its strategies. Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 723 employees (as of March 31, 2022) across its 13 offices in Europe, Asia and America. North. Tikehau Capital is listed on compartment A of the regulated market of Euronext Paris (ISIN: FR0013230612; Ticker: TKO.FP). For more information, visit www.tikehaucapital.com.
These funds are managed by Tikehau Investment Management SAS, a portfolio management company approved by the AMF since 01/19/2007 under number GP-07000006.
This document does not constitute an offer to sell securities or to provide investment advice. This document contains general information only and is not intended to represent general or specific investment advice. Past performance is not a reliable indicator of future results and targets are not guaranteed.
Certain forward-looking statements and data are based on current expectations, current market and economic conditions, estimates, projections and opinions of Tikehau Capital and/or its affiliates. Due to various risks and uncertainties, actual results may differ materially from those reflected or contemplated in these forward-looking statements or in any case study or forecast. All references to Tikehau Capital’s advisory activities in the United States or with respect to American persons relate to Tikehau Capital North America.
This fund has not yet been launched; its terms and conditions may change.