TCGA, TCGA II and TEFF are managed by Nuveen, whose company Westchester is responsible for the operative management of farmland.
TCGA is working continually to increase transparency, among other things, for where the farmland is located geographically. More information at www.tiaa.org/public/assetmanagement/ strategies/alternatives/agriculture
Sustainability audits of farmland in Brazil
TIAA-CREF Global Agriculture (TCGA) leases out farmland in Brazil to Brazilian lessees and operators. In 2015, BSD Consulting, a global sustainability consultant, reviewed all TCGA’s agricultural activities in Brazil with a focus on the activities’ regulatory compliance regarding working conditions, health and safety at work, the environment and integrity. TCGA’s ESG committee, in which AP2 is included, worked together with TCGA’s manager in the implementation of the audits. The purpose of the audits was to assess compliance with laws and regulations in Brazil, with PRI’s guidelines for responsible investment in farmland and/or commitment in relation to sustainability certification. The auditors showed that a majority of TCGA’s lessees have a good management system, but in all farmlands there were non-compliances and/or observations. In order to support the lessees, TCGA’s manager has changed the visiting process so that it includes a more comprehensive review of the lessee’s activities as well as a visit to their head offices, which is made even if it is not on land owned by TCGA. The manager has also created a detailed code of conduct for the lessees, which is shared and discussed in person with each lessee. A steering and supervisory review process in order to comply with the code of conduct is under development. TCGA’s manager has also used what came to light during reviews to improve the control procedures for new acquisitions. As part of the ongoing audit, the manager intends to carry out the next third party audit in 2018 for selected farmland activities in TCGA and for all agricultural activities in TCGA II. For more information, see AP2’s 2016 Sustainability Report and www.tiaa.org/public/assetmanagement/strategies/ alternatives/agriculture