At a Glance
Location: Castanhal, Para
Impact Areas: Labor Inclusion, Environment
Joined NESsT Portfolio:
The Amazon rainforest offers many ways to generate a livelihood without destroying it, yet many people looking to earn money turn to illegal deforestation. In the Brazilian state of Para, communities cultivate açai for eight months/year and then turn to wood and palm heart logging during the offseason to sustain themselves. These practices, unfortunately, are quickly destroying the Amazon, which has already lost terrain as large as France.
Encauchados is a social enterprise that processes and commercializes the rubber bought from an indigenous cooperative of 128 people. The rubber is produced into home and fashion products, such as trivets and footwear, made of rubber compost mixed with acai fiber. Both the rubber and the açai are biodiverse products that thrive only when the plants around them are also sustained. Since the producers walk for many hours a day to cover their production area, they also monitor the prevalence of illegal logging.
Results & Impact
producers receiving income
increase in annual income
people trained in sustainable rubber tapping and product manufacturing
Encauchados has the opportunity to transition from a non-profit entity to a full scaling business. Throughout the due diligence process, we identified an opportunity for the company to grow their revenues and impact by becoming a B2B provider in a new market.
NESsT is working to strengthen the business skills of the leadership team and invested growth capital in order to expand the cooperative and (1) to develop its commercial activities to increase sales (2) to fund working capital necessary to increase production and suppliers of rubber, and (3) to hire a Manager to oversee operations, employee development, and sales.
Additionally, NESsT is supporting Encauchados to implement an impact measurement system and a long-term workplan through its Performance Management Tool (PMT). With the right type of financial and business development support, NESsT expects Encauchados to incorporate 400 individuals into its supply chain in the next three years.
This investment was completed in partnership with the Plataforma Parceiros pela Amazônia (PPA) and IDESAM.