Food systems play a central role in all societies and are fundamental to sustainable development. The environmental and social impacts of the global food system are interconnected and affect diverse impact areas ranging from climate change mitigation, adaptation, biodiversity, resource efficiency and the circular economy, as well as social dimensions including human rights, labour conditions and gender equality.
Financial institutions with significant portfolio exposure to the agrifood sector have a fundamental role to play in addressing the world’s most pressing challenges. They can influence clients and suppliers across value chains to improve their policies and practices, demand accurate quantitative monitoring and reporting from investees and drive financial flows towards more sustainable food systems.
This report aims to: 1) raise awareness of the importance and role of the agrifood sector in solving the triple planetary crisis as well as contributing to sustainable development; 2) provide an overview of the key opportunities for financial institutions to enhance financial flows to sustainable food systems (through impact management and targets, risk mitigation strategies and financial innovation); and 3) foster an enabling environment for driving capital towards sustainable food systems.
Relevant resources
Enabling policy environment to promote sustainable finance for food systems