The green agenda momentum has been losing some pace of late across the private markets, but the agri asset class appears to be surviving any ESG backlash with manager and investor commitment to the sector’s sustainable transition remaining strong.
INSIDE THE REPORT
Key takeaways that define the agri sustainable investing landscape
Natural capital strategies are gradually gaining visibility on more LPs’ radars as the urgency of this shift becomes clearer.
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Food and agriculture are now the next largest and fastest growing sustainable investment themes after the energy transition. But as farmers’ protests around the world and cases of targeted anti-ESG pushback have shown, the sustainable agriculture movement has new, highly politicized challenges to navigate. Here’s what it all means for investors.
The food crisis is one of our own making
Hunger and food insecurity are on the rise worldwide, fueled by conflict and inefficient practices. But will the push for greater sustainability in agriculture end up taking the rap?
Discontent among farmers continues to grow
Farmers’ protests and political backtracking are not exactly conducive to the kind of large-scale backing required for sustainable agriculture to thrive. Even so, the movement will take some stopping.
Roc Partners: The next wave of carbon investing
LPs are increasingly expecting their sustainable agriculture plays – including carbon sequestration – to generate attractive returns, say Roc Partners’ Brad Mytton, Frank Barillaro and Sam Bayes.
QIC: Rolling out the PE model for natural capital
Skills learned in other parts of the private equity universe can now be applied to the sustainable agriculture sector, says Andrew Champion, head of natural capital at QIC.
Manulife: Optimizing outputs in regenerative agriculture
Regenerative agriculture is attracting rising investor interest as a way to meet present needs without compromising future productivity, explain Manulife Investment Management’s Brent McGowan, Oliver Williams and Julie Koeninger.
With agriculture, forestry and land use contributing to approximately 17 percent of all greenhouse gas emissions globally, investors are under increasing pressure to prioritize sustainable investing. From vertical farming to voluntary carbon markets, we look at how agriculture investors are engaging with existing methodologies and developing new approaches to adapt to an ever environmentally conscious world.
The great indoors beckons for agri investors
Vertical farming offers major environmental benefits.
Renewable energy experience draws investors towards ag
PGIM’s Shehriyar Antia says investors and policymakers see the food system as ‘where the ESG puck is going’ and will draw on recent experience in energy in developing their approach.
Feed market & climate risk: A worrying landscape for investors
Climate change is causing financial issues for the agriculture sector, particularly when it comes to feed prices, says the FAIRR Initiative’s climate economist.
Manulife: Adding value through sustainable improvements
Sustainable agriculture can promote healthier and more diverse farmland ecosystems alongside enhanced efficiency and profitability, write Manulife Investment Management’s Brent McGowan, Holly Evers and Oliver Williams.
Roc Partners: Integrating sustainability at every stage
More than simply a way of reducing risk, prioritizing sustainability can be a vehicle for value creation, say Roc Partners’ Michael Lukin, Brad Mytton, Frank Barillaro and Sam Bayes.
Seeing the forest for the trees
The voluntary carbon credits market is all the rage, but is a multitude of methodologies making it hard for investors to find the right direction? Joel Kranc reports.
Capital, culture and compliance
Although the value of natural capital is being recognized, tighter regulation, greater financial incentives and a cultural shift will all be required in agri to safeguard returns and the environment.
Click here to see Agri Investor stories on how farming is responding to the challenge of reducing emissions.
