5 key shifts shaping 21st-Century food and agriculture goals
ESG is amongst the most vital aspects in ensuring the availability of healthy food choices globally, study shows.
21st-century food and agriculture goals are driven by five recent shifts, according to a survey conducted by McKinsey & Company amongst executives of leading food and agriculture companies, venture capital firms, and start-ups.
Half the respondents believe that within the next two years, these shifts will have an undeniable impact on the industry. Another 20% believe that this impact can be felt today.
These shifts are building land value beyond crops, fueling the bio revolution, eating sustainably, taking out the waste, and observing transparency and accountability in ESG. Of these five shifts, 58% believe that ESG transparency and accountability—together with eating sustainably—will result in the greatest material impact.
ESG transparency and accountability
Climate change has posed significant risks to agriculture, specifically on farms. To give farmers easier access to capital whilst lessening systematic chances, there is a pressing need for support on land acquisition, farm finance, and thorough quantification of risk factors when making decisions.
Companies who want to build climate resilience can also learn from the Environmental Protection Agency’s monitoring, reporting, and verification (MRV) plan since this details approved methods for reporting the amount of sequestered CO2.
For new businesses, digital solutions are vital throughout the season. Field-level crop insights can help optimise irrigation and nutrient application with the minimal use of water and fertiliser. Incentives for climate-smart practice adoption in the form of lower-risk premiums can also be provided.
Whilst there is still uncertainty in the future of food evolution, one thing stays the same: the pressing need to ensure the availability of healthy food choices globally. Both existing and new businesses should quickly adapt, as the efforts they will kickstart are expected to provide impact in the next three to five years. They should also develop a healthy understanding of sustainability regarding affordable and nutritious food. Efforts should be holistic, from trends, and players, all the way to technologies involved in agriculture.
