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In January of 2021, Farmland LP issued a bond to support their ongoing investments in the conversion of agricultural land from conventional to regenerative farming practices which received the highest HIP Rating to date.

Farmland’s rating was buoyed by its exceptionally strong performance in four of the seven pillars: Earth, Health, Trust Products & Services, all of which were 90.0 or above. Its Management Practices rating was in alignment with the overall, and it lagged on Equality.

Farmland’s performance is benchmarked to sector peers and across the broader universe of HIP ratings to create relative ratings. In this case, the Management Practices, Health, and even the Equality metrics greatly exceed the sector averages.

The report goes into more detail as to the specific metrics evaluated, which can be partially seen in the two sample pages below.

The Official Rating documentation offers metric specific ratings and an in-depth description of performance for all 7 HIP Pillars. The example below shows Farmland LP’s performance on the 5 major components of the HIP Health Pillar Rating  with a more in-depth explanation in the report narrative: Health Benefits, Worker Safety, Employee Retention, Employee Satisfaction, and Customer Satisfaction scores.

The second page shows the degree to which the issuance is aligned with the UN SDG’s. The colors may range from Red to Green, but in FLP’s case, they are contributing to all the goals, truly an unusual and remarkable achievement!

HIP Investor is pleased to announce that it has joined the list of signatories for the Principles for Responsible Investment. As a signatory, HIP Investor is committed to the following principles and statement:

As institutional investors, we have a duty to act in the best long-term interests of our beneficiaries. In this fiduciary role, we believe that environmental, social, and corporate governance (ESG) issues can affect the performance of investment portfolios (to varying degrees across companies, sectors, regions, asset classes and through time).

We also recognise that applying these Principles may better align investors with broader objectives of society. Therefore, where consistent with our fiduciary responsibilities, we commit to the following:

• Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
• Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
• Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
• Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
• Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
• Principle 6: We will each report on our activities and progress towards implementing the Principles.

The Principles for Responsible Investment were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.

In signing the Principles, we as investors publicly commit to adopt and implement them, where consistent with our fiduciary responsibilities. We also commit to evaluate the effectiveness and improve the content of the Principles over time. We believe this will improve our ability to meet commitments to beneficiaries as well as better align our investment activities with the broader interests of society.

We encourage other investors to adopt the Principles.

Visit the website of the Principles for Responsible Investment>>