Originally published on Climate & Capital Media.
Threats to agriculture — ranging from water scarcity to soil degradation, biodiversity loss, and climate extremes – are becoming increasingly material and measurable. While proactive measures to help the sector adapt to these threats often rely on philanthropic and public funding, the right approaches can enable private capital to unlock value in investable solutions.
Globally, 87% of agricultural lenders anticipate climate change as a material risk to business (EDF and Deloitte). A great example in recent news is climate impacts on chocolate production. Rising temperatures and shifting rainfall patterns are significantly disrupting cacao crops, particularly in West Africa, affecting both the quantity and quality of beans. As a result, cocoa prices have surged, posing substantial risks to supply chains and profitability for businesses reliant on cocoa products.
There’s an urgent need for agricultural adaptation solutions that aim to enhance the resilience and reliability of food systems by addressing climate-related risks. Such strategies include both on-farm actions (such as climate-resilient seeds, water management, and crop diversification) and off-farm actions (such as technical assistance, insurance, and market access improvements). When done right, they can reduce risks, boost productivity, and stabilize returns, making them attractive long-term investments.
The gap between what’s possible and what’s practiced isn’t just a flaw in the system; it’s a signal for those bold enough to act.
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Presenters:
- Alyssa Go, Managing Director, Sustainability and Impact·RRG Capital Management
- Inga Jacobs-Mata, Director, Water, Growth and Inclusion·International Water Management Institute (IWMI)
- Jacob Davis, Senior Director, Financial Advisory·NatureVest
- Jenny Frankel-Reed, Senior Office, Climate Adaptation·Gates Foundation
- John Mundy, Director of Global Partnerships·One Acre Fund
- Kari Vigerstol, Director of Water Security Science & Innovation·The Nature Conservancy