Fama Climate Turnaround FIA IS – Management Report Q1 2025

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

In this report, we expand on our perspective regarding the urgency of placing climate adaptation at the core of financial strategies, highlighting the limitations of traditional models that still overlook environmental risks. Throughout the document, we also assess the fund’s performance — which outperformed the IBOVESPA during the period — and report on key advances by our investee companies, such as SLC Agrícola’s expansion of regenerative agriculture, Marfrig’s progress in traceability and sustainability, and Banco do Brasil’s new social and environmental policies.

The text connects trends in climate, geopolitics, and financial markets, exploring how global fragmentation and protectionism hinder climate cooperation and reinforce the importance of resilience-focused strategies. With an eye on preparations for COP 30, we discuss the strategic value of investments that promote adaptation in the face of a reality marked by deep uncertainties and risks not captured by conventional models.

By reflecting on structural pricing flaws and short-term incentives that constrain investor action, we emphasize that mitigation and adaptation are strategic imperatives for companies and capital allocators. Addressing the climate crisis will require not only new metrics and models, but also the courage to act beyond prevailing standards.

We wish you an excellent read.