The future of the environment and businesses are closely interlinked. Climate change now poses the biggest and most obvious threat to the global economy over the next decade. Market and reputational risks as well as regulatory pressure on companies linked to unsustainable soft commodity production means current business practices need to change. With many already exposed to potential stranded assets. So how do we redirect private capital to avoid forest and biodiversity loss. We should improve and educate local communities and ensure that the agricultural sector thrives through profitable business models.
Combining the capabilities of banks, government agencies, and agri-businesses through blended finance instruments is key to transforming the way we finance sustainable land use. There are already some organizations that started this program and it finances many sustainable agricultural businesses. The success of this program will lure other banks, investors and agribusinesses to finance projects that combine financial performance with clear environmental and social benefits. It is impossible to achieve sustainable development if we cannot finance it. Both the private and the public sector should work together to achieve this goal.