Prolade, a Mexican producer of sustainable palm oil, certified under the highest standards of the Roundtable on Sustainable Palm Oil (RSPO), has celebrated the successful closure of a landmark US$15 million debt financing deal, marking IDB Invest’s inaugural investment in the sustainable palm oil sector.
Part of the US-headed Inter-American Development Bank Group (IDB), IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector.
Committed to RSPO standards and stewardship
As an RSPO Member, Prolade is dedicated to producing sustainable palm oil that meets the highest environmental and social standards.
The funding will allow the company to expand its operations by an additional 2,000 hectares, implement advanced irrigation systems, and strengthen its commitment to local communities and environmental sustainability.
This partnership reflects Prolade’s mission to lead responsible practices within the agricultural sector, helping to reduce 1.23 million tonnes of carbon dioxide (CO2) over 25 years, prevent deforestation, and create opportunities in rural communities in Mexico.
An example of community involvement
On its path toward sustainable development, Prolade has encountered various challenges that have transformed into opportunities. One such opportunity has been building strong, trusting relationships with local communities.
When we began implementing our projects, we spoke directly with community members to explain our intentions and the positive impact we hoped to achieve. I understood that it was crucial to be present and listen to their concerns. This open dialogue was essential, explained Marco Lucas, COO of Prolade.
This approach has fostered trust and led to tangible improvements in the community.
Through communication and transparency, we have built a stronger, more collaborative relationship. The community is more willing to engage because they’ve seen the results of our work. This experience has taught us that trust is built gradually and is vital for project success, Marco Lucas added.
As a result, significant changes have taken place, with new services and businesses emerging in the area.
Today, we have several owned vehicles making daily trips to our extraction plant. The community has grown, with new taxi and van services, family home renovations, and even new restaurants and shops along the route, Marco Lucas said.
Fostering development and sustainability involvement
Prolade’s commitment to social responsibility is underscored by the project’s potential to benefit rural employees and suppliers.
The company is focused on converting previously deforested lands into productive perennial palm plantations, which will yield high-quality, RSPO-certified sustainable palm oil for the Mexican market.
Under IDB Invest’s technical guidance, Prolade has developed a comprehensive Environmental and Social Action Plan (ESAP) that aligns with RSPO principles.
This plan includes biodiversity assessments, land acquisition procedures, community relations management, and pollution control improvements.
Furthermore, the project features an innovative program utilizing biochar to enhance soil quality, alongside a Corporate Governance Action Plan to formalize decision-making processes and improve risk management.
Significant palm oil potential in Mexico
As the second-largest economy in Latin America, Mexico holds significant potential for sustainable palm oil cultivation.
Despite the challenges faced by the sector, initiatives like Prolade’s, backed by RSPO Certification, pave the way for a more sustainable future.
By utilizing degraded lands for palm oil production, Prolade exemplifies how agricultural practices can align with environmental sustainability and responsible consumption.
As the partnership progresses, Prolade and IDB Invest are poised to drive impactful change, fostering sustainable growth for both the region and its communities, with the RSPO playing a critical role in supporting their efforts.
