Apr 29, 2021
In this year of increased focus on climate action leading up to COP 26 UN Climate Conference in Glasgow, investors may be overlooking a sector ready to be harvested for its unique ability to fight the climate crisis - agriculture. In fact, some $972 billion flowing annually into the agriculture value chain could be channeled into transformative investment that would accelerate the adoption of climate-smart agriculture, according to a new report.
An untapped market
Agriculture is typically not a part of the $2 trillion invested and re-invested annually in ESG portfolios, the report showed; for example, in the third quarter of 2020 alone, there were $10 billion in corporate support for green bond issuance, but agriculture was not included. The reality, however, is that innovative financial mechanisms like green bonds and community finance could help farmers and ranchers tap into that capital.