Livelihoods Fund
What is so special about Livelihoods?
Livelihoods is a unique carbon investment fund. Its fundamental goal is to create social value for rural communities and contribute to their food security through the restoration of their ecosystems.
The impact of all programs supported by Livelihoods will be assessed on 3 criteria: social impact, environmental impact, carbon sequestration.
How does it work?
Livelihoods mobilizes companies, financial institutions, large foundations which invest their money in a mutual fund. The Fund uses this money to finance the programs in the field. In return, the investors will get carbon credits to offset their own C02 emissions or sell the credits if they are not interested in carbon offsets.
All Livelihoods programs are registered under existing CDM or VCS carbon methodologies. Livelihoods aims at the best quality social and environmental standards such as the Gold Standard or CCBA. A rigorous process is followed to measure the carbon sequestration and register the projects at United Nations Framework Convention on Climate Change (UNFCCC).
How is the fund organized?
Is a 30-50 million Euros mutual fund. Its legal frame is a SICAV-SIF under the Luxemburg regulation where many carbon funds are located. Investors in the Fund invest for at least 10 years. 70% of the Fund is invested in the 5 first years of the Fund (2011-2016). Investors get return through carbon credit deliveries from year 3 to year 20.
Investment decisions are made by the Board of the Fund and its Investment Committee. The projects are preselected and proposed by Livelihoods Venture (liens) after a due diligence process.
The Board of Livelihoods Fund is composed with 6 representatives of the investors + the chairman of Livelihoods Venture + one independent expert.
Corporate partners of the Fund
These four companies, each leader in its field of action, are among the first group, which announced its participation and formal contribution to the Fund Livelihoods in July 2011.
As announced when it was created July 4, 2011, the Fund remains open to investment and discussions are also underway with other companies.
- Danone
One of the fastest-growing food companies in the world, Danone is present in over 120 countries on five continents. Its mission is to bring health through food to as many people as possible. In 2010 Danone had more than 160 production plants and around 100,000 employees, generating sales of €17 billion, of which half were in emerging markets. The group holds top positions in healthy food through four businesses: it ranks no. 1 worldwide in Fresh Dairy Products and no. 2 in Bottled Water and Baby Nutrition, and is Europe’s no. 1 Medical Nutrition company. Listed on Euronext Paris, Danone is a component stock of leading social responsibility indexes including the Dow Jones Sustainability Indexes DJSI Stoxx and DJSI World, ASPI Eurozone and the Ethibel Sustainability Index.
Danone’s food business is closely linked to nature’s cycles. Protecting natural springs and producing milk in sustainable conditions have been key concerns of our business units for years. When we opted to put nature at the heart of our strategy, we adopted an ambitious target: reducing our carbon footprint by 30% from 2008 to 2012. Livelihoods is a new step forward, with carbon offset projects that associate restoration of natural resources and food security — two concerns at the heart of Danone’s corporate mission.
Franck Riboud Chairman and CEO of Danone par Livelihoods
As a global specialist in energy management with operations in more than 100 countries, Schneider Electric offers integrated solutions across multiple market segments, including leadership positions in energy and infrastructure, industrial processes, building automation, and data centres/networks, as well as a broad presence in residential applications. Focused on making energy safe, reliable, and efficient, the company's 110,000 plus employees achieved sales of 20 billion euros in 2010, through an active commitment to help ndividuals and organizations make the most of their energy.
Reducing carbon emissions and fighting poverty are major challenges that Schneider Electric tries to tackle by providing energy management solutions and developping access to energy, highlights Gilles Vermot Desroches, sustainable development Senior VP of Schneider Electric. "Joining Livelihood is a logical commitment to contribute to our mission and will be a fantastic source of innovation and creation of economic and social opportunites at the Base of the Pyramid whilst respecting the environment."
Jean-Pascal Tricoire par Livelihoods
CDC Climat is a subsidiary of Caisse des Dépôts created in 2010 to fight against climate change as an investor in the long term. It invests in high quality carbon credits, directly or through carbon funds, with priority to areas where few projects have emerged: the Mediterranean region and Sub-Saharan Africa. CDC Climate develops services for carbon markets and invests in innovative companies that contribute to the transition to a "low carbon". The research team conducts independent analysis of the economics of climate change.
CDC Climate, carbon finance specialist, is an early partner in the carbon funds Livelihoods among industrial enterprises. We recognize Livelihoods in an original, based on the principles of sustainable development: social and environmental commitments are demanding the doctrine investment group Caisse des Dépôts. www.cdcclimat.com / contact@cdcclimat.com
Pierre Ducret, Chairman and CEO of CDC Climat... par Livelihoods
The Crédit Agricole Group is market leader in full-service retail banking in France and one of the largest
banks in Europe.
With operations in 70 countries, the Crédit Agricole Group is a leading partner in supporting clients with their projects in all areas of retail banking and associated specialised business lines: day-to-day banking, savings, home and consumer loans, insurance, private banking, asset management, leasing and factoring, and corporate and investment banking.
"Livelihoods responds to Crédit Agricole's aim of being both an effective and a responsible group. In our Group project and our Commitment 2014 strategic development plan, we have made clear our aim of becoming a key player in the environmental economy worldwide. For the last three years, the Crédit Agricole Group has offset its carbon dioxide emissions in the Paris region. With Livelihoods, we are going even further in this area while also supporting the fight for food safety worldwide" Jean-Paul Chifflet, Executive Officer of Crédit Agricole S.A.