Launched in 2022, ADM Capital Climate seeks to help finance the vast shifts underway in the power, food and land use sectors in Asia. Drawing on the firm’s experience in Asia Pacific lending and ESG leadership, ADM Capital Climate works with leading development finance institutions, internationally recognised impact investors and NGOs to deliver investment vehicles built on partnerships, community and conservation.
Trillions of Dollars Needed Annually
Climate change is an urgent threat to economic progress, global food security, our natural systems, and livelihoods. Many communities are already experiencing increased climate impacts: wildfires from extreme heat and moisture loss; devastating floods from extreme rain events and typhoons.
The World Economic Forum’s 2025 Global Risks Report continues to rank environmental threats—such as extreme weather, biodiversity loss, and critical changes to Earth systems—among the most severe global risks over the next decade. In 2023, the Intergovernmental Panel on Climate Change (“IPCC”) concluded its Sixth Assessment Cycle with the release of its Synthesis Report, reinforcing the urgent call to action. Atmospheric CO₂ levels remain higher than at any time in at least 2 million years, and it is now unequivocal that human activity has warmed the atmosphere, ocean, and land. Without immediate and sustained action, the world is on track to exceed the 2°C climate threshold set by the Paris Agreement. The IPCC warns that every fraction of a degree matters, and the window to secure a livable future is rapidly closing. Trillions of dollars annually and coordinated global efforts are essential to achieve the transition to net zero by 2050.
Climate Change: Both Risk and Opportunity
Major shifts in consumption patterns, technologies and regulation will be needed to drive the substantial and sustained reductions in GHG emissions required. We will also need to adapt to our changing climates. This represents both risk and opportunity for our portfolio companies. As risk managers we must manage the risk climate change represents to our investments, while as asset allocators we can play a role in supporting transition to a low carbon and climate resilient economy.
Since 2006, ADM Capital Foundation (ADMCF) has supported research, education and targeted action on climate and its related components such as land use, air pollution and water scarcity. Among the initiatives ADMCF has helped create relevant to climate change are: Tropical Landscapes Finance Facility, China Water Risk, Clean Air Network and HK2050IsNow. Each of these have involved wide engagement and formed a base of knowledge and research for ADM Capital.
Climate Thematic Fund
Asia Climate-Smart Landscape Fund ("ACLF")
The Asia Climate-Smart Landscape Fund (“ACLF”) builds on two-decades of ADM Capital private lending, the integrated E&S risk management processes and practices honed over years of investing as well as ADMCF research and support.
ACLF seeks to fill the gap in the market for medium to longer-term lending in the smaller ticket sizes (USD 5-20 million) where capital markets unit economics and even DFI investment is not cost effective. ACLF incorporates blended finance instruments, including a 50% US Government Development finance Corporation guaranty across the fund at the Asset Level. The Fund provides credit to SMEs engaged in sustainable agriculture, agroforestry, aquaculture and forestry in return for commitments to transition to better practice. Therefore, ACLF finances SMEs that achieve both financial and sustainability returns.
The Fund fills a structural credit gap in the Indonesian market. SMEs are critical to the economy yet struggle to access finance given perceived risk, smaller amounts and longer tenor needed. ACLF will help build new sustainable business models should serve as proof of concept for banks and other potential lenders.
ACLF additionally acts as a demonstration fund in Asia where there are very few Asia-based, Asia-focused investment managers lending into agriculture despite the importance from an economic, social and environmental perspective.
ACLF manages to four impact targets: improved land use management, reduced emissions, better livelihoods and a gender target associated with the 2X Challenge. 50% of ACLF carried interest is placed in a Conditional Carry Pool and subject to earn back by the GP through certification by the Impact Advisory Committee and third party of achievement of impact outcomes. An annual third-party audit certifies impact achievement.
Climate Thematic Fund
The Tropical Landscapes Finance Facility ("TLFF")
TLFF I was a multi-tranche, long-dated USD 95 m sustainability bond arranged in 2018 by BNP Paribas and issued by TLFF I Pte Ltd for RLU, a Sustainable Natural Rubber JV between Indonesia’s Barito Pacific Group and France’s Michelin Group. The bond repaid at par in August 2022, when Michelin bought out Barito fully to manage the 90,000 ha of rubber concessions across landscapes in Sumatra and East Kalimantan itself.
