Agriculture

Sector Importance for Sustainable Finance:

Agriculture represents approximately 25% of global GHG emissions.  Humans still need to eat and as the population expands pressure on agriculture will continue to grow.

Agriculture in general is under represented in sustainable finance, both in use of proceeds and linked instruments. Issues with land use change, soil health, deforestation, water use, and many other issues continue to occur.

Agriculture is also unique as it forms a big part of the global GHG emissions problem, however, it can also form part of the global decarbonization solution

Talking Points:

• Agriculture is a problem and also can be part of the solution?
• Which part is social and which part is green?
• Some parts of agriculture has very high emissions such as cows, so how to we change our diets?
• Agriculture and the link to biodiversity is also very important to consider

Useful Links:

https://www.climatebonds.net/standard/agriculture

https://www.mckinsey.com/industries/agriculture/our-insights/reducing-agriculture-emissions-through-improved-farming-practices

https://www.mckinsey.com/business-functions/sustainability/our-insights/curbing-methane-emissions-how-five-industries-can-counter-a-major-climate-threat

https://www.nature.org/en-us/what-we-do/our-insights/perspectives/foodscapes-regenerative-food-systems-nature-people/?en_txn1=s_p.gc.x.x.stake

https://resources.unsdsn.org/pathways-to-sustainable-land-use-food-systems

Previous Transactions:

• Marfig: Transition Bond
• Olam, Wilmar and Synlait: ESG Risk Rating Sustainability Linked Loans
• Empressa and Stora Enso: (Forestry)
• JBS: Sustainability Linked Bond
• Arla: Foods Green Bond