We are pleased to share the Management Report for Fama LatAm Climate Turnaround FIA IS for the second quarter of 2025.

This quarter marks a significant milestone in the fund’s decarbonization strategy, with an expanded scope of action beyond direct emissions from the agriculture and land use sectors. The entry into the sanitation sector, through the investment in SABESP, signals a new stage for the CTF—targeting historically overlooked sectors with high potential for greenhouse gas mitigation and climate justice promotion. SABESP’s case illustrates how the universalization of sanitation can generate measurable positive impacts, from methane and CO₂ reduction to enhanced urban climate resilience.

During the period, we also observed consistent signs of operational recovery among the fund’s portfolio companies, reflecting greater resilience amid sectoral and macroeconomic challenges. We continue to closely monitor the progress on climate commitments made by investees, promoting active and strategic engagements focused on the adoption of regenerative practices, supply chain traceability, circular economy, and low-carbon solutions.

With the consolidation of the fund’s climate thesis and the insights gained throughout its first year of operations, the CTF reaffirms its role as a catalyst for a just, ambitious, and transparent transition within the Brazilian economy.

We wish you an excellent read!