Institutional investors from a number of international pension funds have launched the principles for responsible investment (PRI) to improve the sustainability, transparency, and accountability of investments in farmland.
Known as the "farmland principles", the practice guidelines include the promotion of environmental sustainability, and the respect of human rights and existing land and resource rights, according to the announcement made by the United Nations (UN) PRI Initiative.
The other two principles aim to ensure that high business and ethical standards are upheld, and reporting of the implementation of the principles is undertaken by all institutions involved.
The farmland principles were developed, and are backed by, other signatories to the UN-backed PRI, including AP2 in Sweden, BT Pension Scheme in the UK, and TIAA-CREF in the United States. According to the announcement, the investors involved in the implementation of the principles represent US$1.3 trillion in assets.
Other institutional investors are invited to endorse the guidelines, and use them as a framework for developing their own responsible farmland investment practices.
The institutions that made the announcement also form part of the PRI investor working group, which aims to further advance responsible investment in farmland, the announcement stated.
"As the world faces the challenge of feeding 9 billion people, it is critical that new investments into agriculture are made with sensitivity to their environmental and social impact," said TIAA-CREF head of natural resources and infrastructure investments, José M Minaya.
"The farmland principles express a strong commitment by long-term orientated investors to practice responsible investment as we seek to create value for our clients."
