An international forestry fund identified a brownfield investment opportunity in Paraguay. The investment involves the purchase of 5,700 hectares of eucalypt plantations currently belonging to a large agro-industrial company. Plantations are distributed in eight different private landholdings under lease in eastern Paraguay. UNIQUE was commissioned by the fund to support the environmental and social due diligence of the proposed investment. These assessments were aligned to the fund’s procedures and standards, following the performance standards of the International Finance Corporation (IFC), and principles and criteria of the Forest Stewardship Council (FSC®). Based on the environmental and social risks identified, recommendations were developed to support the decision making process of the fund.

• Interviews with stakeholders to identify environmental and social risks for the potential investment.
• GIS-based analysis of historical deforestation on the property.
• Mapping of local and indigenous communities and protected areas near the project area.
• Review of the main applicable land use laws and possible liabilities for future owners.
• Development of recommendations for decision-making on the investment and future risk management.