FINANCE PROTECTS NATURE
Private Credit as a Driver of Biodiversity-Positive Food Systems Protecting biodiversity is not only an environmental priority, but also a financial necessity. Strategic financing is essential, and private credit plays a critical role in emerging markets where food systems overlap with vital ecosystems. SAIL Investments (SAIL) shows how innovative financing in the agriculture, forestry, and other land use (AFOLU) sectors can unlock biodiversity outcomes at scale. By embedding legally binding sustainability targets into loan covenants, it aligns strong, risk-adjusted returns with forest protection, emissions reduction, and resilient rural livelihoods. This demonstrates that strategic finance can be a pivotal driver of food systems transformation and biodiversity conservation, making such investments both practical and profitable.
SAIL’s Integrated Approach to Financing Food Systems
The Biodiversity–Food Systems Challenge Global food production is the single largest driver of biodiversity loss. Since 1990, an estimated 420 million hectares of forest have been lost due to conversion to other land uses.1 Agricultural expansion has driven deforestation, forest degradation, and the decline of forest biodiversity. Agriculture alone threatens more than 85% of the 28,000 species at risk of extinction.2 Yet the same food systems that drive biodiversity loss also rely on healthy ecosystem services. Soil fertility, pollination, water regulation, and climate stability are the foundation of agricultural productivity and resilience. The AFOLU sectors intersect directly with tropical forests, which shelter 80% of documented species.3
1 FAO, 2020 2 UNEP, 2025 3 WWF, n.d.
SAIL is a global private credit manager dedicated to accelerating sustainability transitions in industries that depend on natural capital. Its investment philosophy is built on the conviction that protecting and restoring nature is fundamental to long-term economic value. Sustainability is not treated as an overlay but understood as a way to generate better returns while managing risk. SAIL provides senior secured, long-term loans to mid-market companies in global food and natural resource supply chains – firms often overlooked by traditional finance. Its focus is on the AFOLU sectors in emerging markets across Latin America, Africa and Asia, where food systems intersect most directly with tropical forests and biodiversity hotspots. Target industries include beef production, palm oil, soy, and forestry (including rubber) – sectors often associated with deforestation and ecological degradation. By directing capital toward deforestation-free sourcing, regenerative farming, and full supply-chain traceability, SAIL turns natural-capital risks such as deforestation and soil degradation into clear value for institutional investors.
“You can’t solve one of these crises without at least acknowledging that the other ones exist, including the inequalities and the social aspect to climate and nature as well”. - Michael Schlup, Chief Sustainability Officer, SAIL Investments
KEY TERMS Nature-positive finance: Financial flows that actively contribute to halting and reversing biodiversity loss, rather than simply avoiding harm. Sustainable Value Creation Plan (SVCP): A legally binding roadmap embedded in each loan that links financial performance to measurable biodiversity, climate, and social milestones.
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NDPE (No Deforestation, No Peat, No Exploitation): standards that borrowers must meet to ensure supply chains are free from forest destruction, peatland conversion, and social exploitation. Agriculture, Forestry, and Other Land Use (AFOLU) sectors: Industries that are central to global food systems but are major drivers of
deforestation and biodiversity loss, especially in tropical forests, making them critical targets for nature-positive finance. Senior secured loans: Loans that are backed by company assets (secured) and give lenders the first claim to repayment if the borrower defaults (senior), making them lower risk compared to other forms of debt.