Pollination, a leading global climate and nature investment and advisory firm, has today published a new report exploring what food industry leaders and companies can do to bridge the capability gap and find solutions for meeting the cost of transforming global food systems.
In Resilient Farms and Food Supply: Who Foots the Bill?, Pollination shares its extensive experience working across the global food industry to deliver innovative financial solutions as part of practical roadmaps for change.
Ahead of Climate Week NYC 2024 - which features a significant programme dedicated to the interplay between climate change and food systems - the report is designed for those who have recognised the need to work towards regenerative agriculture practices but are struggling to bring together the holistic strategy and new approaches to financing that are required to make it happen.
Bridging the capability gap
Global interest in regenerative agriculture, a set of farming principles that holistically work with natural systems, is gaining traction. Recent analysis of 79 global food and retail giants, worth more than $3 trillion, shows that nearly two-thirds of companies mention regenerative agriculture initiatives in their disclosures.
Despite this, fewer than 10% of these corporates have allocated financial budgets to support transition finance needs and incentivise uptake of regenerative practices among producers in their supply chain.
Dave Haynes, Managing Director at Pollination, commented: Forward-thinking industry leaders are realising they need to act fast. Food companies are feeling heightened scrutiny from shareholders, regulators and consumers to better manage carbon emissions, soil damage, pollinator loss and water pollution. Financing the shift to regenerative agriculture is a complex challenge, yet also a massive opportunity. Those that harness novel financing will benefit from first-mover advantages and be well on their way to transform business models to a far more sustainable footing.”
Building collaborations and interventions
The paper builds on Pollination’s work with The Rockefeller Foundation and Transformational Investing In Food Systems earlier this year, which saw the organisations collectively publish a foundational guide for mobilising and scaling capital for the regenerative transition. It found recognition of the importance of regenerative agriculture was growing but had outpaced actual understanding of the topic by key potential finance actors in the food and agriculture value chain.
Haynes, added: “It's crystal clear that one company alone cannot spearhead the monumental shift needed towards a regenerative evolution for global agriculture. Yet, the bold decision of individual leaders can spark a cascading effect. Through strategic supply chain engagement and partnerships with peers, competitors, and financers, each company can wield the influence necessary to secure a sustainable future for global food production."
Pollination has synthesised the best practice approaches being taken by global leaders in a seven-stage process to help drive, finance, and deliver successful transition. Based on thousands of hours of work with leading global brands seeking to act early and strategically, this process enables companies to systematically tackle the challenges and benefit from opportunities generated by the transition.
Read the report in full on Pollination.com: https://pollinationgroup.com/how-global-food-leaders-can-finance-the-green-transition/