PUBLIC ANNUAL REPORT 2019-ENG

ACCELERATING
LIVING LANDSCAPES
ACROSS
MESOAMERICA
ANNUAL REPORT 2019
May, 2020
CHANGE THAT MATTERS

INTRODUCTION
Solidaridad Central America signed multiple agreements with
government, private sector, and civil society organizations
in 2019, and led the development of numerous high-impact
landscape programmes such as the Zero Deforestation
Declaration in Honduras. As in previous years, we facilitated
the implementation of good economic, environmental,
and social practices in supply chains. We promoted climate
change adaptation and mitigation, and the conservation and
improvement of natural resources and biodiversity. MESA,
our integrated landscape management strategy, leveraged
our commodity programmes and facilitated the development
of business models for landscape transformation.

DEVE
LOP
MENTS
High levels of drug and gang violence, corruption, and
social and economic instability continued across Central
America, Mexico and the Caribbean in 2019. There were
public health and drought emergencies. The United States
imposed a strict policy on Central American migration
north, essentially moving “the Wall” from the Mexican-US
border to the Mexican-Guatemalan border.
Other external developments that impacted our work in
2019 included:
• Historically low commodity prices for palm oil,
sugar, and coffee
• Extreme drought that led to widespread water
access crises and crop failure
• Decreased global donor interest in the region,
in particular from Europe.
STRENGTHENING GOVERNMENT
RELATIONSHIPS
In response to these regional developments, Solidaridad
Central America undertook multiple actions. We
strengthened relationships with government actors,
in particular in Honduras and Guatemala, which will be
beneficiary countries for Mexican investment related to
its regional migration policy.
We also worked diligently to position ourselves as a go-to
partner in the design phase of large-scale initiatives which
build on our regional commodity platforms and integrated
landscape management approach.
FACILITATING DIALOGUE
In addition, we continually facilitated dialogue spaces to
strengthen trust-based relationships and transparency,
and engaged partners in the co-design of interventions
to create a sense of ownership and amplify benefits for
multi-stakeholders.
We also articulated our MESA - Accelerating Living Landscapes
across Mesoamerica strategy. The strategy is resonating
strongly with Central American and Mexican government
authorities as a pathway to driving implementation and
investment strategies linked to the “Wall of Prosperity”
opportunities being developed across the region.
Solidaridad – ANNUAL REPORT 2019 3

ACHIEVE
MENTS
MANAGING POWER DYNAMICS
The socio-political climate in the region continued to be one
of continual challenges. Implementation required agility,
trust-based relationships, and excellent communication
and facilitations skills. We sought to balance interests and
manage complex power dynamics.
The multi-stakeholder Zero Deforestation Declaration led by
the palm oil sector was facilitated by Solidaridad in Honduras.
The declaration rapidly moved into an unprecedented validation
process, reaching new levels of transparency, dialogue, and
policy development. Guatemala and Nicaragua began
advancing on similar zero deforestation commitments.
Number of farmers, miners and workers trained to adopt good practices
Number of hectares under better management practices
Number of producers with improved economic performance
as a direct result of our projects
VALIDATING DIGITAL TOOLS &
BUSINESS MODELS
Farm Diary and other digital tools for landscape performance
measurement of factors such as biodiversity monitoring
and weather forecasting were validated in the field. Multiple
private sector companies and government stakeholders
expressed their interest in adopting the tools through a
fee-for-service model.
PanameriCaña’s fee-for-service model became the accepted
norm for technical assistance provision to private sector
actors. This model has great promise for adaptation to
other sectors and areas of specialization, such as the
development of gender-inclusive committees, policies, and
development strategies with our private sector partners.
FACILITATING REGENERATIVE
ECONOMIES
Thanks to MESA, Solidaridad Central America was increasingly
the partner of choice for governments, private sector and
corporate actors, multilateral organizations and local civil
society organizations. This was particularly true for the
articulation, co-design and implementation of our visionary,
enduring, multi-beneficiary approaches to the transition to
a circular and regenerative economy.
Number of farmers and miners that obtain services from
strengthened service providers
Number of CSOs that are trained or supported in
decision making and dialogue
Number of policy recommendations submitted to
public and private decision makers
Number of local platforms, networks or producer
groups established and strengthened
Number of platforms, networks or
dialogues convened or participated in
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Solidaridad – ANNUAL REPORT 2019

REGIONAL
COMMODITY
PROGRAMMES
1.
PALM OIL
The Mesoamerican Palm Oil Alliance (MAPA)
facilitated significant sustainability achievements.
This increased the commitment of stakeholders to
improve productivity, reduce greenhouse gases,
protect biodiversity, and stop deforestation. Led
by the sector, the Zero Deforestation Declaration
in Honduras had an amplifying effect across the
region and commodities. MAPA was instrumental
in the creation of RSPO national interpretation
documents for the region. We harnessed RSPO
remediation and compensation payments by palm
oil companies in Guatemala with the expectation of
leveraging other funds.
Solidaridad – ANNUAL REPORT 2019 5

2.
SUGARCANE
PanameriCaña is the region’s leading programme for
sugar sustainability. Regionally, we began working with
the largest holding groups in 2019, implemented the first
gender and youth inclusive sugarcane productivity pilot,
and convened an international conference on renewable
energy. In Mexico alone, we achieved the first Bonsucro
certification, began implementing the first smallholder
productivity programme, and positioned Solidaridad as
lead advisor to the main union as it modernizes its role.
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Solidaridad – ANNUAL REPORT 2019

3.
COCOA
In Nicaragua, Solidaridad worked with BICU
University to develop the first agroforestry
cocoa diploma, giving priority participation
to women and youth. We investigated
cocoa varieties adapted to the area, and
advanced capacity-building efforts around
empowerment issues such as participation,
leadership and gender. In Honduras, members
of the national network of women in cocoa
and chocolate learned to process and market
cocoa products, leading to the launch of
several women-led enterprises.
4.
LIVESTOCK
In Nicaragua, farmer field schools used a familyinclusive
model to increase women’s participation
in livestock production and farm management.
Digital solutions integrated into Nicaragua’s
projects provided access to real-time, tailored
information to facilitate decision making and
planning. Solidaridad’s integrated landscape
management workshops in the country’s autonomous
RACCS region resulted in the formation of a
multi-stakeholder platform for deforestation-free
livestock. Our Mesoamerican Palm Oil Alliance
partners are also participating in this initiative.
Solidaridad – ANNUAL REPORT 2019 7

5.
COFFEE
We achieved a key alliance with the Honduran
government to develop and implement a national
gender policy, including financial inclusion workshops
for women. We also signed an agroforestry
management agreement with the Honduran Forest
Conservation Institute for the Lake Yojoa landscape.
In Mexico, this was the fourth year of our Climate
Smart Coffee Lab, with an increase from five to 24
quintals per hectare of fair trade coffee grown on
renovated plots by an organic cooperative.
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Solidaridad – ANNUAL REPORT 2019

PARTNERSHIPS
BUILDING NEW RELATIONSHIPS
In 2019, Solidaridad Central America continued to build
relationships with private and public sector partners,
including Coca Cola, Barry Callebaut, Cargill, Louis Dreyfus,
Syngenta, Olam, and ECOM. These are in addition to our
long-term relationships with the Dutch Ministry of Foreign
Affairs, Henkel, and Bayer.
Several impact investors, including Althelia, FMO - the
Netherlands Development Finance Company, and Finance
in Motion, signaled strong interest in the landscape
investment portfolio we are developing.
ONGOING FUNDING FROM GLOBAL
ENVIRONMENT FACILITY
We pursued and received verbal confirmation of funding from
the Global Environment Facility in Honduras for two different
projects under its GEF-6 mechanism. These are to be launched in
mid-2020. Solidaridad is already a key partner for GEF-7 strategy
development and implementation, with opportunities for even
more significant funding over the next few years.
Other funding successes include an extension of support
from vegetable oils producer AAK for smallholder support
in the palm oil sector in Mexico. We also won a tender
in partnership with GFA Consulting for a project led by
the German Agency for International Cooperation (GIZ)
project and funded by the International Climate Initiative
(IKI) in new markets (pineapple and banana in Dominican
Republic and Costa Rica).
We are successfully implementing a fee-for-service model
among sugar mills in Mexico, as well as facilitating and
executing remediation and compensation funds with
palm companies in Guatemala.
MESA – OUR FLAGSHIP
LANDSCAPE STRATEGY
Significant resources were invested in the development of
MESA - Accelerating Living Landscapes across Mesoamerica.
This regional sustainable landscape strategy aims to support
the transition to a regenerative and circular economy across the
region. MESA has already led to new opportunities in multiple
high-priority landscapes, including:
• the Forest Corridor and Lago Yojoa in Honduras
• the mining triangle of Nicaragua
• the southern coast and southern Peten regions of
Guatemala
• the Montes Azules area of Mexico
• the banana and pineapple supply chains in Costa Rica
and the Dominican Republic
INNOVATIVE WAYS OF
SUPPORTING THE SDGS
Solidaridad Central America is well-positioned in Honduras,
Nicaragua and Guatemala as a preferred partner. We are
known for our highly innovative approach to implementing
actions in support of the UN Sustainable Development Goals
and Nationally Determined Contributions, to strengthening
supply chain resilience, and supporting civil society action.
In Honduras, Solidaridad has successfully built strategic
partnerships with various ministries, signing memorandums
of understanding with the Ministry of Environment, the
President’s Office for Climate Change, and the Institute for
Forest Conservation and Biodiversity.
Solidaridad – ANNUAL REPORT 2019 9

ORGANIZATION
MAINTAINING OUR
REGIONAL PRESENCE
Solidaridad Central America has three legal entities: Guatemala
(regional head office), Honduras and Mexico. Due to the 2018
political upheaval in Nicaragua, it is unlikely that we will achieve
legal status there in the near future. However, Solidaridad
continued to implement projects effectively there in 2019 and
we maintained our offices in Managua and in El Rama, in the
autonomous RACCS region.
Solidaridad seeks distributed leadership and avoids over-reliance
on one strong personality to build and strengthen relationships.
Effective policies and procedures that have been thoroughly
communicated and integrated amongst all staff are critical to
maintaining a positive working environment and to ensure smooth
operational transitions as our organization grows and evolves.
ALIGNED WITH
GLOBAL POLICIES
Solidaridad Central America is fully aligned with Solidaridad
Network’s vision and mission, actively contributes to our
global strategy and development, and is in full compliance
with major global policies and procedures. All staff members,
consultants and interns receive and sign an acceptance
letter for the code of good conduct, and staff also receive
and sign letters for the whistleblower, anti-fraud and
grievance policies annually.
In each office, posters related to our integrity procedures
are prominently displayed, and information on the code of
conduct and contact details are included on our websites.
Procedures for handling grievances and complaints are
outlined in each overview.
ADDRESSING DATA
COLLECTION CHALLENGES
The different types of intervention and mechanisms for projects
implementation – such as direct implementation, fees for
services, confidentiality agreements – as well as the variety
of partners with whom we work in the region (smallholders,
private sector, civil society organizations, government agencies,
etc.), present challenges for data collection.
For that reason, data collection tools and methods vary with
each project. They include collecting data from secondary
sources and gathering granular data from the field through
apps developed in-house by the ICT team. Multiple studies
were conducted in 2019, including:
• A smallholder baseline and socio-economic study
for the Mesoamerican Palm Oil Alliance in Guatemala
• A sugarcane producer base line in PanameriCaña
México
• Biodiversity monitoring studies in Honduras,
Nicaragua and Guatemala
• Cocoa sector analysis in Nicaragua
• Remediation and compensation studies in Guatemala.
40
30
20
10
0
PERSONNEL
IN FULL-TIME
EQUIVALENTS
2016 2017 2018 2019
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Solidaridad – ANNUAL REPORT 2019

COMUNICATION &
CAMPAIGNING
PLATFORMS FOR OUR IDEAS
We exceeded our annual targets for speaking slots at national
and international events, and the number of stakeholder
events organized in 2019. We presented our ideas on
gender inclusion, ecosystem management and biodiversity,
collective learning, carbon credits and clean energy, climate
change, continuous improvement in productive systems
and certifications, and sustainable landscapes.
Over 4,000 men and women in six countries listened and
contributed to these ideas. They included producers, field
technicians, students and academics, as well as representatives
of private and social companies, civil society organizations,
and national and regional governments.
ANNUAL
EXPENDITURES
IN THOUSAND
EUROS
4000
3000
2000
1000
SUPPORT OUR ORGANIZATIONAL
CULTURE AND POSITIONING
To strengthen our organizational culture and support
human resource management, we organized a campaign
to promote the values ​of Solidaridad, and to translate
and disseminate all our internal policies. We developed
a handbook to support the implementation of the data
management system for regional content administration.
Content production intensified to increase ​visibility.
We worked to fine-tune key messages and fact sheets,
infographics, and facts and figures by programme, country
and region. In addition, we created videos anchored in our
theory of integrated landscape management, and new
content was developed for the Mesoamerican Palm Oil
Alliance and PanameriCaña websites.
To improve our organizational positioning, we produced
external newsletters and shared these with our partners,
along with the annual report and global articles of regional
interest. We sought to strengthen our relationship with
the press across the region.
FINANCE
Our Financial Management team continued to strengthen its
performance and professionalism on the quality and timeliness
of reporting. Highlights in 2019 included:
• the full implementation of Financial Force across
Solidaridad Central America
• the hiring of two full-time financial and administrative
managers in Honduras and Mexico.
The official audited annual accounts for Latin America can
be found below.
0
2016 2017 2018 2019
Please note: this is a combined statement for South America
and Central America, so numbers in this document are a sum
of the Central America and South America data.
Official audited annual accounts Fundacion Solidaridad
Latinoamericana
11

GLOBAL ANNUAL REPORT:
https://annualreport.solidaridadnetwork.org/2019/en
/solidaridadnetwork
/company/solidaridad
/solidaridadnetw
CHANGE THAT MATTERS