EBRD backs Scandagra’s sustainable farming strategy with InvestEU-supported loan in Estonia, Latvia and Lithuania

EBRD backs Scandagra’s sustainable farming strategy with InvestEU-supported loan in Estonia, Latvia and Lithuania

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) has extended a €30 million sustainability-linked loan to Scandagra Group, backed by an InvestEU guarantee, to support the agribusiness company’s operations in Estonia, Latvia and Lithuania. The financing will fund the introduction of precision-farming tools such as Dataväxt and a green activity monitoring system across 150,000 hectares of farmland. These technologies will improve nutrient efficiency, reduce fertiliser and pesticide use, and cut annual greenhouse gas emissions by nearly 14,000 tonnes of CO₂ equivalent. This marks Scandagra’s first sustainability-linked loan, with incentives tied to ambitious green targets. The project reflects the EBRD’s wider efforts to scale up climate-smart agriculture and strengthen sustainable food systems in the Baltic states.

(PRESS RELEASE) LONDON, 30-Sep-2025 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) has approved a €30 million sustainability-linked loan to Scandagra Group, one of the leading agribusiness suppliers in Estonia, Latvia and Lithuania. Backed by an InvestEU guarantee, the financing will cover the company’s working capital needs while supporting the rollout of innovative technologies designed to cut agricultural emissions and improve resource efficiency.

Scandagra plans to deploy precision-agriculture solutions across 150,000 hectares of farmland in the Baltic states. Among these are Dataväxt, a digital platform that helps farmers optimise field management, and a new system for monitoring, reporting and verifying green activities. Together, these tools will enable more efficient use of fertilisers and pesticides, significantly improving nutrient-use efficiency. The initiative is expected to cut greenhouse gas emissions by almost 14,000 tonnes of CO₂ equivalent every year.

This is the first time Scandagra has secured a sustainability-linked loan, with performance-based incentives tied to ambitious environmental targets. The involvement of InvestEU made it possible to establish robust green key performance indicators, ensuring the loan contributes directly to Europe’s sustainability objectives.

Agriculture is responsible for around one-third of global greenhouse gas emissions and remains a leading cause of biodiversity loss. By enabling more precise application of agricultural inputs, the project will help reduce the sector’s climate impact while limiting water pollution and other ecological pressures.

Scandagra, headquartered in Sweden, is jointly owned by the agricultural cooperatives Lantmännen (Sweden) and Dansk Landbrugs Grovvareselskab (DLG, Denmark). The company supplies inputs and services to more than 6,000 farmers across the Baltic region.

The EBRD remains a major investor in the Baltics, with cumulative investments of €1.31 billion in Estonia, €1.19 billion in Latvia and €1.93 billion in Lithuania. Its support for Scandagra reinforces the Bank’s commitment to sustainable food systems, green innovation, and resilience in European agriculture.

Media Contact:

Nigina Mirbabaeva
Email: media@ebrd.com 

SOURCE: EBRD