How are corporates Providing financial, technology and capacity building support Tuesday 24 th May 2016, SB44 Bonn
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1 How are corporates supporting climateresilient agriculture? Providing financial, technology and capacity building support Tuesday 24 th, SB44 Bonn
2 How important is the corporate sector? $35bn climate finance pledged $4 trillion in global food retail sales Sources: USDA Economic Research Service Global Food Industry; Climate Funds Update Website 2
3 Resilience in the value chain Inputs & Farming Storage & Transport Processing Purchasing & Trading Access to finance & collateral Information technology Production technology Direct/partnership training Insurance and much more. Transport provision Storage technology e.g. low cost refrigeration Logistics support Infrastructure investments Investments in machinery Reductions in food waste Improving energy access Higher quality processing Longer term contracts with better conditions Fair pricing Support mechanisms in case of production failure Consumer awareness 3
4 An example: The Olam Livelihood Charter Purpose: Build resilient smallholder supply chains improving the livelihoods of farmers, their communities and their environment 197,948 hectares All information courtesy of Olam 4
5 Olam Livelihood Charter how does this support climate resilience? Element Finance ICT Training Market Access Support for climate resilience Helps farmers make longer- term investments in their farms Overcomes constraints provided by low working capital Supports farmers to rebuild and restore when affected by climate events Over time can help farmers build size of business and diversify ICT approaches improve traceability and mapping Olam Farmer Information System (OFIS) More efficient application of inputs, helping increase profit margins Introduction to more productive climate-smart agricultural techniques Increased revenue and profit margins Makes it easier to access credit and other financial services More predictable market allows for longer term farm planning Improves resilience of broader community and longer term development Community Investments 5
6 But corporates can t do it alone. Example challenges where we need the public sector: Increasing land tenure security for suppliers Addressing poor weather information Investment in local and crop- specific scientific research Improvements in transport infrastructure More collaboration on extension services 6
7 What are we doing about it? AA1: BUILDING SMALLHOLDER RESILIENCE 7
8 Thank you This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Pricewaterhouse Coopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it Pricewaterhouse Coopers LLP. All rights reserved. In this document, refers to Pricewaterhouse Coopers LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
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