Rewarding Farmers for Regenerative Agriculture Is ‘Critical for Decarbonising the Food Sector’

The food sector is one of the biggest contributors to the climate and nature crises. The way we grow, distribute, consume and dispose of food is responsible for one third of total greenhouse gas emissions annually. Food systems are the biggest contributor to galloping biodiversity loss, opens new tab, and account for 70% of freshwater withdrawals.

With half of food system emissions , opens new tab down to agricultural production and land-use change in corporate value chains, food brands have an outsized role in food system transformation.

Institutional investors such as Federated Hermes are pushing companies in the land and agriculture sector to adopt more regenerative agricultural practices as part of their net zero commitments, guided by the Science Based Targets initiative, which last year issued its guidance, opens new tab for companies in the sector.

While lacking in scientific definition, regenerative agriculture is an approach that reduces the use of water and chemicals, prevents land degradation and deforestation, and restores and enhances soil, water, biodiversity and carbon on and around farms.