LDN Fund and LDN TAF Case Study
Country:
Brazil
Sector:
Forestry
Business model
SLB Brazil, part of SLB Group, is a sustainable forestry plantation and wood products manufacturing company based in Brazil. Through its Aloe Agroflorestal program, the company establishes commercial forestry plantations on land that has been degraded by intensive farming, deforestation, and intensive grazing in the state of Paraná.
SLB’s business model combines economic returns with environmental sustainability through the establishment of small and well spread, low-density plantations with long growth cycles that reduce pressure on ecosystems and increase biodiversity. SLB’s plantations are FSC certified, and part of the land is dedicated to the conservation and regeneration of native habitats.
In addition, using their patented organic biochar-based fertilizer Terra Fertilis, SLB reduces the use of agrochemicals while supporting tree growth, soil health and soil organic carbon levels. Most of SLB’s wood production is dedicated to sustainable use (furniture, construction) rather than paper and cellulose production.
Investment
Purpose: The LDN Fund investment of USD 12.6 million finances the acquisition of 3 farms (greenfield and brownfield investments) supporting SLB’s expansion objectives.
Duration: 10 years.
Technical assistance
- Engaging experts in the field of gender equality to understand gender dynamics within SLB and develop an ambitious gender equality strategy, especially in connection with third party engagement.
- Impact assessment of SLB’s business model on biodiversity in planted and native forests.
- Support an extensive soil impact analysis of SLB’s forestry management model to influence decision making and learn from.
- Scope additional income opportunities on SLB’s plantations for the local community.
- Develop a comprehensive ESMS framework and provide capacity building to SLB to implement their growth plan efficiently and with maximum E&S impact.
