Responsible production and consumption
To BIO, it is crucial that we support the shift to sustainable production practices and that we decouple economic growth from resource use. This is key to sustain the livelihoods of current and future generations.
International sustainability standards for agriculture and forestry projects encourage companies to use fewer natural resources and to produce less greenhouse gasses, pollutants and waste. Labels like Organic, Fairtrade, UTZ, Rainforest Alliance, FSC and PEFC
all contribute to sustainable consumption and production.
BIO offers technical assistance subsidies to help implement these standards. One of the direct investments in the agriculture value chain approved in 2023 is sourcing and processing products that are Organic- and/or Fairtrade-certified, most often a secondary but increasing share of its activities.
BIO also contributes to SDG12 by promoting production processes and services that respond to basic needs and bring a better quality of life. At the same time, it minimises the use of natural resources and limits the emissions of greenhouse gasses, pollutants and waste.
BIO also invests in sustainably managed forests to sequester carbon emissions and promotes the use of green loans. These are used to finance climate projects, to prevent pollution and to keep it under control, and to sustainably manage natural resources such as land, water and wastewater.
BIO has three main E&S objectives, based on IFC Performance Standard 3.
- BIO wants its clients to avoid or minimise any adverse impacts on human health and the environment by avoiding or minimising pollution.
- BIO advocates for a more sustainable use of resources, especially of energy and water.
- BIO wants to reduce project-related greenhouse gas emissions.
All of BIO’s new direct investments are assessed by E&S experts who suggest improvements in waste management, water consumption, and energy consumption.
BIO also requires companies to protect and conserve biodiversity and to maintain ecosystem services, following IFC Performance Standard 6 and the International Convention on Biological Diversity.
Sustainable cocoa
BIO is a signatory to the Beyond Chocolate partnership that promotes a sustainable Belgian chocolate industry. It unites the chocolate and retail sector, civil society, social impact investors, trade unions, and universities.
Although climate change is a global challenge, developing countries are particularly vulnerable because of their higher exposure to risks, higher sensitivity to impacts, and lower ability to adapt to the changes.
In 2024, BIO finalised an update to its climate strategy. It aligns BIO's approach with the commitments of the EDFI statement on climate and energy finance, reflects market best practices, and supports the Belgian government's climate ambitions.
BIO has defined five priorities for its climate strategy:
- Set out the ambition and methodology to ensure new investments are aligned with the goals of the Paris Agreement.
- Calculate the greenhouse gas emissions of BIO's investment portfolio (including direct and indirect emissions) in line with the Partnership for Carbon Accounting Financials (PCAF), and work towards the decarbonisation of its portfolio in line with the Paris Agreement's long-term temperature goals.
- Develop and disclose BIO's approach to climate risks and opportunities management, in line with international standards, such as the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
- Integrate a formal climate approach into BIO's investment process, addressing both mitigation and adaptation strategies. This approach should include engagement with clients and internal capacity building.
- Actively pursue collaboration with other European Development Finance Institutions, and Belgian development cooperation actors.
BIO’s ambition will be developed, implemented and tracked based on three overarching climate and ecological sustainability priorities:
- Do no significant harm to long-term climate & ecological sustainability
- Mainstream climate and ecological sustainability in BIO’s investments
- Increase climate and nature-positive finance ambitions
Omnivore
In 2023, BIO invested USD 5 M in Omnivore Agritech & Sustainability Fund III, an Indian venture capital fund specialised in agritech. It is the manager’s third fund and a direct successor to Omnivore Partners India Fund II, in which BIO has invested. This builds on BIO's prior investments that supported sustainable practices on 1 million hectares of land, reducing chemical inputs and food/water waste.
To address pressing challenges in the agricultural sector in India, Omnivore has mapped out 4 key development objectives:
- Increasing smallholder profitability
- Enhancing smallholder resilience
- Improving agricultural sustainability
- Catalysing climate action
In line with SDG12, climate resilience is marked as the key target of the fund. This entails prioritising investment in companies catalysing climate mitigation and evaluating the likely climate impact of prospective investments.
