Food Land Use Data V2

Food and Land use - Dashboards

Agricultural practices, particularly at an industrial scale, have taken a global toll on natural capital and planetary boundaries. Intensive agriculture has catalysed mass deforestation, upset the nitrogen/ phosphorus cycles, polluted and clogged rivers and estuaries, are using 70% of the drinkable water and, in short, are unsustainable for the future if left to continue under business-as-usual.

Whilst generally positive growth forecasts for food and agriculture sectors suggest an optimistic outlook, asset owners and managers have a fiduciary responsibility to recognise and price environmental constraints aggregating through their investments. Investors must also react to growing regulatory pressures on agricultural production, specifically around intensification and the use of pesticides and herbicides, historical land use change, waste management and emissions accounting.

Our Food and Land use dashboards highlight how investors, in public listed equities and sovereign bonds, are exposed to agriculture based economies and companies. They provide details of where companies operate along the supply chain and illustrate the extent to which investors face both supply and demand side risks via their investments along these same supply chains.

Investors, analysts, researchers can use the dashboards to better understand which companies and countries are most exposed to upstream natural capital dependencies in the supply chain. They further aim to inform which companies and countries are demonstrating meaningful environmental commitments and better stewardship.

Read the report ‘Growing for Profit’ here.

Thematic funds investing in agribusinesses, companies operating within the food and agriculture sector, will play a key role in funding sustainable agriculture transitions. The global number of public and private equity food and agriculture investment funds, AgriFunds, grew from 38 to 466 between 2005 and 2017. This is particularly relevant for consumer staples, where, upstream agriculture and food producers are especially exposed to environmental shocks such as drought, flood, deforestation and land use related degradation. This dashboard illustrates the supply chain concentration of 37 AgriFunds and their investors. It helps to inform investors and analysts which companies should be more heavily assessed against their exposures and commitments to mitigate different environmental and regulatory risk applicable along the supply chain.