IMPACT

AF is firmly committed to making responsible investments with a view to enhance returns and mitigate risks over the medium to long term.

We are dedicated to create a positive and durable impact on the environment and the local communities affected by our operations, with the goal of preserving land for future generations.

Our Approach

We abstain from investing in ventures that pose potential risks associated with payment transparency, corruption, bribery, or environmental mismanagement.

We ensure that our Environmental, Social, and Governance (ESG) practices are monitored by independent and external organizations. Besides, to promote responsible investment and protection and restoration of natural resources, we are affiliated and have active participation in industry initiatives and networks.

Land and Water management

At AF, we've devised a tree care system tailored to the various species planted across all our farms, adhering to specific criteria including thinning frequency and intensity, as well as pruning frequency and height.

This system enables us to increase carbon capture, produce logs with larger diameters, a higher proportion of knot-free timber, a reduced risk of fire and diseases and use less pesticides.

Supply chain and circular economy

We actively support the entrepreneurship, formalization, and expansion of micro, small, and medium-sized enterprises. Our primary suppliers are service companies that operate within the areas we manage, including both contractors and subcontractors.

These companies are responsible for tasks ranging from planting and silviculture to harvesting, production, and transportation. In selecting suppliers, we prioritize companies located in the nearby communities surrounding our farms.

This approach aims to promote decentralization and bolster employment opportunities in rural areas. Additionally, we have implemented a rigorous supplier evaluation and monitoring process.

In AF, we seek to significantly reduce the generation of waste through prevention, reduction, recycling and reuse activities.

Biodiversity & ecosystem conservation

At AF, we conduct annual monitoring to ensure the preservation of both fauna and flora across all our farms. This includes:

Tracking the number of species across different classes and environments,
Assessing the proportion of resident and migratory bird species,
Verifying the status of threatened species, as per the International Union for Conservation of Nature's Red List (IUCN),
Evaluating the status of priority species for conservation in Uruguay, in accordance with the National System of Protected Natural Areas (SNAP).

In Uruguay, a team of six biologists and botanists employed by AF are responsible for identification, management, and monitoring activities. Across the farms within the BDUs funds, we have recorded a total of 227 species of fauna, including 1 amphibian, 5 reptiles, 17 birds, and 8 mammals listed with conservation issues at a national and international level, and 11 endemic and unique flora species.

As a result, we foster biodiversity conservation.

Carbon footprint

Forests play a pivotal role in mitigating climate change by reducing net Greenhouse Gas (GHG) emissions through the absorption of CO2. The projects managed by AF actively contribute to the sequestration and storage of carbon.

Carbon removals encompass the carbon that is absorbed and stored in biomass carbon pools during a specific period. Various carbon certification standards exist for forestry projects, which issue carbon credits.

At AF, we employ Verra as our chosen standard. It is recognized as the global leader in the carbon offset market and a trailblazer in projects involving natural and productive ecosystems known as AFOLU (Agriculture, Forestry, and Other Land Use).

Projects undergo continuous monitoring, not only to regulate carbon levels, but also to assess other vital indicators such as biodiversity, soil preservation and restoration, and water quality.

Communities

We operate in lockstep with local communities, seeking their consent and actively involving them in our initiatives. This collaborative spirit ensures that our efforts not only serve the environment but also contribute to the prosperity and well-being of the very communities that call these forests home.

The practice of forestry and resilient development directly influence the lives of individuals residing in nearby or newly established communities stemming from such operations.

In light of this, we hold the belief that taking a proactive, inclusive, accountable, and transparent approach to participation is essential for achieving the best outcomes, benefiting both the communities and ourselves.

Our community engagement process allows us to build an integrated relationship with the communities, where participatory processes are developed including a grievance mechanism.

Additionally, it produces tangible and equitable benefits that are aligned with the communities' needs and expectations, and which in the long-term are sustainable.

We provide employment opportunities, both directly and indirectly, and support local procurement of goods and services. We make donations and develop specific projects based on the public-private articulation to support the development of the communities.

Human Capital

AF is responsible for overseeing forest management, including the execution and supervision of all necessary operations. The majority of operational forestry activities are outsourced and carried out by local service companies.

Our human capital policies are in alignment with the United Nations International Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. These policies encompass essential principles, including:

Ensuring the freedom of association and the effective recognition of the right to collective bargaining,
Eliminating all forms of forced or compulsory labor,
Effectively abolishing child labor,
Eradicating discrimination in respect of employment and occupation, and
Providing a safe and healthy working environment.

For more than 11 years, AF has been recognized as one of the best places to work in Uruguay by Great Place to Work®. In 2020, it was recognized as one of the best places to work in Latin America and in 2021 as one of the best places to work for women.

Corporate governance

AF acknowledges that effective governance contributes to improved financial and non-financial outcomes. The implementation of best practices in corporate governance includes:

Establishing a robust management system that outlines the roles and responsibilities of board members,
Enforcing a transparent Code of Ethics and Conduct,
Implementing a rigorous Impact Investment Policy and Labor Policy, and
Enacting a control system that guarantees adherence to existing laws and regulations.
Investor engagement and voting rights
Transparency of process and reporting

Impact

Our Approach

Impact Report

Forestry Management Plan | Public Monitoring Summary

Bosques Del Sarandi

AF Investment Policy

Code of Ethics and Conduct

Labor Policy

Uruguay

Montevideo

Chile

Temuco

Brazil

Três Lagoas, Mato Grosso do Sul