F3 Life was created due to the fact that environmental degradation is frequently driven by economic activity. Economic activity is in turn underpinned by systems of credit which are blind to natural resource overuse. In order to achieve resource sustainability, credit terms need to be adjusted to ensure investment in natural resource management as well as simple repayment of outstanding debt. This means that credit provision can be used both to (i) promote environmental restoration as an affordable condition of the terms of borrowing and (ii) finance income-generating assets that also have environmental benefits.
F3 Life’s methodology and systems form part of a new generation of financial innovations being developed around the world to address pressing global environmental and climate change challenges. F3 Life’s approach is a radical departure from the past where efforts to address environmental degradation have frequently failed, partly due to unsustainable, poorly-scalable and short-term financing. F3 Life’s model seeks to address this for both (i) environmentally-concerned investors, and (ii) rural land and natural resource users.