ESG Risk Management Framework for the Rabo Foundation
We strengthened the Environmental & Social risk management approach of Rabo Foundation through the development of an ESG Framework aligned with its investment activities.
Rabo Foundation (the Foundation) was established in 1974 as an independent cooperative foundation, distinct from Rabobank. Its mission is to offer people a better future by investing in resilience and promoting collaboration, with a focus on strengthening the position of people in vulnerable circumstances. This includes smallholder farmers across Africa, Asia, and Latin America, as well as individuals facing barriers to employment in the Netherlands. A closely linked entity is the Rabo Rural Fund, which complements the Foundation by financing agricultural SMEs, cooperatives, and financial service providers that have outgrown earlier-stage support. As of 2024, the Foundation supports around 470 active projects across 22 countries, and has allocated EUR 59.8 million, reaching about 1.9 million people. While the Foundation relies on Rabobank’s overarching Group Sustainability Policies and underlying corporate statements, it was seeking guidance on an ESG approach that more closely aligns with its own unique operations.
To support Rabo Foundation in further integrating Environmental & Social (E&S) considerations into its investment process, we worked closely with the team to develop a tailored E&S risk management framework and practical assessment tools. Building on leading international standards and our experience in agricultural finance, we designed a structured approach to screen, assess, and monitor E&S risks across the investment lifecycle. This included the development of concise due diligence questionnaires, risk categorisation methodologies, and guidance for identifying and prioritising mitigation actions. All tools were adapted to the Foundation’s portfolio and operational realities, as well as aligned with the complementary role of the Rabo Rural Fund.
The resulting framework and tools enable Rabo Foundation to assess E&S risks more consistently and efficiently, while maintaining flexibility for expert judgement. By embedding this ESG Framework into its investment workflow, the Foundation is now better equipped to identify risks early, support clients in improving practices, and ensure alignment with its mission to foster resilient, inclusive, and sustainable rural economies.
