RTRS certification makes financial products attractive to producers.

For some financial institutions, certification of soybeans from the Global Roundtable on Responsible Soy (RTRS) is a guarantee that producers adopt responsible agricultural practices. Thus, for many of these institutions, certification is a tool for producers to access more favorable credit conditions and other financial products.

The recognition of RTRS certification by financial institutions is due to the fact that they consider the RTRS Standard for Responsible Soy Production as a reliable tool that can demonstrate that producers, in addition to implementing sustainable and environmentally responsible agricultural practices, also comply with current legal regulations. Therefore, RTRS-certified producers are seen as lower-risk clients, facilitating the granting of credit and other financial products.

Financial institutions, in addition to promoting sustainability and supporting producers who produce responsibly, also need to meet their own sustainability goals. In this context, supporting producers with RTRS certification helps these entities achieve their objectives, aligning finance with environmental protection and responsible practices.

In short, the financial benefits developed and offered by these institutions encourage the continued adoption of responsible agricultural practices; and financial support has a multiplier effect, stimulating other producers to seek certification and motivating the expansion of sustainable agriculture.

Similarly, the recognition by financial institutions of the work of certified producers reinforces the importance of the RTRS label as a competitive differentiator in markets committed to responsible supply chains.

Financial solutions for certified producers in Brazil

• Itaú BBA – Economic advantages for certified producers

Beatriz Domeniconi , an expert in Environmental, Social, and Governance (ESG) Agriculture at Itaú BBA , says that the bank's strategy to support the transition to low-carbon agriculture is based on offering credits that encourage the adoption of good production practices – "Green"/ESG Agriculture Products.

Itaú BBA has a specific ESG line of credit that promotes and recognizes two certifications: RTRS for soy and Rainforest Alliance for coffee, citrus, and fruits. This line of credit finances agribusiness annually for large farmers with a minimum annual revenue of five million reais.

"Encouraging certified production is one of the practices we consider in our portfolio of ESG products for agriculture," he states.

In the case of soybeans, "we understand that certifications like RTRS, with a broad protocol and good governance, have a significant impact on maintaining good practices already adopted by producers, guiding continuous improvement and transparency for other links in the value chain, as well as potentially adding value, given that the consumer market is increasingly interested in knowing the origin and production processes of what they consume," adds the expert.

She emphasizes that the line of credit is not intended to finance the costs associated with obtaining/maintaining certification, but rather to direct resources to those who already adopt this practice and seek commercial advantages for their businesses.

• AGCO Finance: financing for agricultural equipment

AGCO Finance , a joint venture formed by AGCO, Rabobank and DLL Bank, is the financial arm of the AGCO group supporting the purchase of agricultural machinery and equipment from the Fendt, Valtra, Massey Ferguson, Challenger and Trimble Agriculture Solutions brands.

The group has a fund dedicated solely to financing clients classified as "Green." This includes Brazilian clients with certifications such as RTRS, Pro Carbono, and Sou de Algodão, among others.

“Since 2022 it has been a member of RTRS and in 2023 we worked with the association granting rates up to 10% lower for RTRS certified clients,” says Pablo Ruanoba , representative of AGCO Finance.

According to DLL 's regional sales coordinator , Ivan Carlos Metz , the idea is for the market to understand that environmentally conscious customers have numerous benefits, one of which is reduced interest rates when taking out loans. "We know that these customers are aligned with a better environment," he adds.

• Rabobank: financial incentives that use RTRS certification as a sustainability indicator.

At Rabobank , a member of RTRS since 2007, the head of sustainability in South America, Taciano Custódio , explains that RTRS certification is an important indicator of best practices adopted by rural producers and assists in the credit process. “In the case of sustainability-linked loans , which are credit lines that include sustainability targets, farmers need to monitor the key performance indicators defined jointly with Rabobank,” he indicates.

RTRS-certified farms, for example, already have experience in managing environmental and social indicators, enabling a smoother process for loan approvals. The funds can be used according to the client's project, whether for crop financing or general investments, in Brazil and Argentina, with more competitive terms and deadlines that suit the needs of Rabobank clients.

• UBS and Banco do Brasil promote RTRS Certification as the "gold standard".

The partnership between the Swiss bank UBS and Banco do Brasil (BB) requires large corporate clients to adopt best practices and, therefore, consider RTRS as a "gold standard," a risk mitigation tool in their operations.

The RTRS certification highlights the value of a multi-sectoral approach and reinforces the importance of aligning commitments with sustainability, recognizing that this is a shared responsibility.

Given the high global demand for sustainable and regenerative production, it is necessary for producers to have access to incentives and to be recognized. Sustainability is everyone's responsibility, and each stakeholder plays an essential role in making it possible.

RTRS celebrates the existence of these incentives, which set an example for financial institutions, and hopes for their expansion to more and more soybean-producing countries.

Source: RTRS Press Office

Photo: Confederation of Agriculture and Livestock of Brazil - CNA