FTA addresses key challenges associated with the need to reduce deforestation, forest degradation and conversion of species-rich agricultural and forest landscapes, while meeting a growing global demand for food, feed and fiber that originates from sustainable sources and integrates smallholders.
This entails improved public and private arrangements to enhance the governance of global value chains and their adherence to sustainability standards in order to reduce negative environmental impacts. This involves supporting more intensive, climate-smart and integrated management and production systems, with a greater participation of smallholders and small- and medium-sized enterprises (SMEs) in value chains, while also emphasizing women, youth and other marginalized groups.
|FTA’s work on sustainable value chains and investments is organized around the following three areas:|
|•||Public and private institutional arrangements that create an enabling environment for enhancing the sustainability of commodity supply;|
|•||Business models that integrate smallholders to deliver positive impacts across social, economic and environmental dimensions;|
|•||Responsible finance initiatives to enable appropriate business models to scale up and encourage corporate and smallholder uptake of improved sustainability practices.|
|These areas are associated with the following overarching questions:|
|•||What are the public, private or hybrid institutional arrangements that have the most potential for enhancing the adoption of sustainability practices and social inclusivity in value chains?|
|•||What conditions and support are needed to build business models involving smallholders and SMEs that are economically viable, socially inclusive and environmentally sustainable?|
|•||What mechanisms could promote more widespread adoption of responsible finance among financial service providers that improve not only sustainability but also stimulate conditions that support smallholders’ access to finance for forest and agroforestry-based systems?|