Protecting water and soil in Mexico | Nature-based solutions to climate change

In today’s video, I’m taking you to Mexico – a country I have been closely monitoring as an investor for over five years. In the first half of 2020, we made a strategic investment in the Mexican company Toroto through our investment fund, Purple Ventures. Toroto operates in the field of nature-based climate solutions, focusing on the protection and restoration of rainforests, CO₂ offset projects, water retention in the landscape, and soil health. The company targets both environmental sustainability and long-term climate resilience. Mexico represents a vast and strategically vital market. It is the 13th largest country in the world by land area, the 10th most populous (with over 130 million people), and ranks among the top 15 economies globally. Over the past decade, Mexico has achieved above-average economic growth, driven by favorable demographics, a robust industrial base, and its close proximity to the US market. Although the country faces structural challenges, with 36% of the population living below the poverty line, its potential remains immense. While the official unemployment rate remains low (around 3%), this figure often masks low productivity and underemployment rather than reflecting true labor market strength. From an investment perspective, Mexico offers significant long-term growth potential. However, investors must take into account social inequality, the regulatory environment, and local market specificities. Our confidence in this investment is rooted primarily in the strength of the Toroto project and the alignment between positive environmental impact and the creation of long-term economic value.