HIP Sustainability Bond Ratings for Farmland LP

farm bond

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!