(Bloomberg) — Coffee and pepper producer Phuc Sinh Corp. will receive a loan of as much as $25 million from SAIL Investments’ Netherlands-based &Green Fund.
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The Ho Chi Minh City-based company, which also exports chilies, cashew nuts, cassia and other products, is the first Vietnamese company to get direct support from the environmentally focused foundation, Phuc Sinh said in an emailed statement. It will use the funds to ensure deforestation-free coffee supply chains, the company said.
“We are committed not only to improving product quality but also to ensuring that Phuc Sinh’s production process contributes to environmental protection and community support,” the company said.
Founded in 2017, SAIL’s &Green invests in agricultural enterprises that meet ESG standards to promote green economic development, environmental protection, and climate change mitigation, according to its website. Vietnam is one of ten jurisdictions the fund is investing in.
Vietnamese businesses have been under growing pressure to implement ESG practices as global investors push for both profits and sustainability. The Southeast Asian nation has said it aims to reach the goal of net-zero carbon emissions by 2050.
NOTE: Vietnam Needs $473B Funding to Reach Net-Zero Emissions by 2050
Phuc Sinh exports products to markets including the US, Europe and Australia, and says it’s the Southeast Asian nation’s top pepper exporter.
&Green invested $20 million in Netherlands-based Mercon B.V. in late 2022 to promote a sustainable Vietnam coffee supply chain.
(Company corrects to note it will get ‘up to’ $25 million.)
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