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Climate risk threatens to wipe billions off food and agriculture businesses

Christian Fernsby |
Individual firms at the centre of the global food supply system could lose up to 26% of their value by 2030, with a sector average hit of over 7%. This is equivalent to USD$150bn in losses to investors.

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In a “groundbreaking” report, the UN-backed campaign highlights the land transition as a “major blind spot” for investors and business.

The report modelled the financial impact of realistic nature and climate transition risks for 40 systemically significant food, land and agriculture companies worth $2trn.

Published during New York Climate Week (19-25 September), it warns that markets are “failing” to adequately price in the financial impact of an “inevitable and accelerating” transition in land use as profound for key investee companies as the energy transition.

As part of New York Climate Week, banks and investors have been called on to end deforestation and nature loss to protect shareholder value and deliver on their net-zero commitments.

COP26 President Alok Sharma and UN Climate Change High-Level Champions Nigel Topping and Dr. Mahmoud Mohieldin together urged all financial institutions to use best efforts to eliminate commodity-driven deforestation from their portfolios. They also insisted institutions must report on credible progress by 2025, as well as increasing investment in nature-based solutions for climate change.


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