Social Governance

Survey: Agrifood Companies' Efforts to Become Carbon Neutral are Inconsistent

Published on: 29 June 2022 05:12 PM
by KnowESG

According to a report by the European Bank for Reconstruction and Development and the Food and Agriculture Organisation of the United Nations, attempts by agrifood companies to attain carbon neutrality have been inconsistent.

According to the report, several agrifood companies have discovered a distinct competitive advantage and are utilising it to become pioneers in reaching carbon neutrality and for marketing and promotional objectives.

However, carbon neutrality poses obstacles for both farmers and agribusinesses. According to the report, they include land property rights, infrastructure and access to technology, adoption costs and access to financing.

The report noticed customers' reluctance to pay a premium for carbon-neutral items is an additional obstacle to carbon-neutral activities.

In addition to technical and methodological issues, the absence of a defined governance structure prevents agrifood enterprises from taking more decisive action and fails investors and consumers.

The private sector has much to gain by decarbonising agrifood systems, including cost savings, risk mitigation, brand protection, long-term supply chain viability, and competitive advantages.

The report identified a critical need for improved, more standardised tools and procedures for collecting data and measuring, reporting, and verifying emissions, as well as for effective governance structures to guide low-carbon investment and private sector compliance.

In particular, improved legislation and institutional solutions can contribute to the expansion of carbon markets and the expansion of green finance prospects.

The report, Investing in carbon neutrality: utopia or the new green wave? Challenges and opportunities for agrifood systems was released on June 22, 2022.

Source: Down To Earth

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