Boutique environmental finance firm Sustainable Investment Management (SIM) plans to issue $1bn in green bonds over the next four years related to the sustainable production of soy and corn.

The Responsible Commodities Facility launched on 4 July and supported by the Government and UN is claimed as the first issuance of green bonds to finances farmers and traders in Brazil who commit to using degraded land instead of expanding into existing grasslands.

The aim will be to reduce conversion of Cerrado habitats, emissions and biodiversity loss while allowing for the sustainable growth of the Brazilian soy sector. Farmers participating in the Responsible Commodities Facility will produce deforestation and conversion-free (DCF) soy. The Facility will use an independent registry to record all volumes and ownership of this soy, allowing for its traceability along the supply chain, and buyers and traders interested in DCF soy will be able to acquire it in a dedicated online DCF-soy exchange.

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