Responsible Commodities Facility (RCF)

Waitrose has contributed $1 million to an innovative scheme supporting responsible soya farming and protecting forests in the Brazilian Cerrado.
Growing demand for soya throughout the world continues to result in deforestation and other negative impacts, such as greenhouse gas emissions, biodiversity loss and destruction of natural habitats. However, it is recognised that expansion of agricultural production can take place without the need for further clearing of natural vegetation. For this to happen, incentives for farmers are required. 
 

To help achieve this, Waitrose, in collaboration with Tesco and Sainsbury’s, is supporting and funding an innovative initiative called the Responsible Commodities Facility (RCF), designed to promote the production and trade of deforestation and conversion-free soya in the Brazilian Cerrado region – one of the world’s most biodiverse and at-risk savannah ecosystems. 
 

Launched in August 2022, the RCF provides financial incentives for farmers in the Cerrado through low-interest loans to fund the purchase of agricultural inputs, such as fertiliser and seeds, for the soya planting season. To be eligible for the RCF programme, farmers must meet certain criteria focused on the protection of native vegetation in addition to legal requirements, with the results monitored by satellite.
 

The initiative has been designed to demonstrate the ability to produce soya whilst helping to protect vast tracts of native vegetation and promote zero-deforestation supply chains.

An Environmental Committee, with participants including NGOs such as WWF, The Nature Conservancy and the UN Environment Programme, have been instrumental in creating and supporting the fund. They will also sit on the RCF’s Environment Committee overseeing the fund that will monitor the compliance of the programme, as well as reviewing progress and providing input into the environmental management of the facility.

The potential to scale up the RCF’s model means that it could one day help to protect large areas of the Cerrado in a way that is financially sustainable in the long term.
 

By supporting the RCF, Waitrose hopes to pioneer this new model of conservation alongside agricultural production. The market for green finance is significant, and by establishing and demonstrating the success of the RCF’s financing model for both investors and for nature, we hope to inspire others to lend their support and to direct a much larger flow of green investment towards supporting sustainable agriculture, which rewards responsible farmers.

Waitrose has contributed in excess of $1 million to the initiative, consisting of a $55,000 grant to help set up the programme and a further $945,000 investment in the fund. This will directly support conservation of around 1,000 hectares of native vegetation and the production of 27,000 hectares of deforestation and conversion-free soya. Overall, this will mean that over 180,000 tonnes of CO2e will remain stored in the Cerrado’s native plants and soils.