Fama LatAm Climate Turnaround Fund – 4th Quarter 2024 Management Report

In this report, we discuss the responsibility of companies regarding their value chains. For banks, loans extended to institutions financing deforestation activities not only contribute to the climate crisis but also expose their portfolios to regulatory and market risks. Thus, the financial sector plays a critical role as a catalyst for systemic change by directing capital toward regenerative sectors such as sustainable agriculture and green infrastructure.

In this context, and as part of the ongoing construction of our portfolio, we have invested in Banco do Brasil, the largest financier of agribusiness in Brazil. We believe the bank has a significant opportunity to incorporate climate factors into its lending practices, enhancing the resilience of its balance sheets while maximizing risk-adjusted returns for its shareholders. Additionally, it can explore opportunities related to environmental assets and the innovative and responsible appreciation of natural capital within its financing chain.

Looking ahead to 2025, we are optimistic about our portfolio’s performance. We are confident that there is substantial value yet to be realized from our invested companies and that we will successfully complete the remaining portfolio investments. Thanks to the success of the engagement strategies initiated in 2024, the synergies with our investees SLC and Marfrig are progressing rapidly. This year, with COP30 taking place in Brazil, we expect to deepen these relationships and achieve meaningful results, sharing the success stories of our investees in the context of this pivotal international forum.

We wish you an excellent read and remain at your disposal for any further clarifications or in-depth discussions.