Food Systems – why are they essential for finance?
The Opportunity: increased returns
The asset value of the global food system is approximately $14 trillion with revenues in the region of $15-$19 trillion. This is equivalent to between 16-20% of global GDP. The transition to sustainable food systems represents a $350 billion investment opportunity and can generate $4.5 trillion in new market opportunities each year.
Reduced risks
Food systems exhibit growing risks – they are exposed to increased frequency and intensity of extreme climate events, high volatility of commodity prices, heightened macro-economic challenges and geopolitical risks. Financial actors can leverage the socio-economic opportunities of the food system transition and mitigate the increasing financial and long-term material risks they would face if the current challenges are not addressed.
Positive environmental and social impacts
Food and agriculture systems account for nearly one-third of global emissions. Increased and targeted financial flows towards healthy and resilient food systems support sustainable economies, improved nutrition security, promotion of fair and sustainable livelihoods, reduction of pollution, and an opportunity to drive emissions reductions needed to reach 2050 climate and nature goals.
Real finance barriers exist
Currently, the lack of funding opportunities and bankable projects, along with a mismatch between funds and projects, hinders the development of sustainable food systems. It is crucial to clarify the investment case for sustainable food systems and provide investors with opportunities to invest in businesses that consider financial returns alongside social and environmental impacts, including trade-offs and externalities.
About
We work with financial actors and organizations actively involved in financing food systems, including traditional financial actors as well as public sector financing organizations, supply chain financial actors, and businesses to:
- raise ambition and develop commitments from financial institutions, governments and corporates to address critical challenges to mobilizing finance for food systems transformation; and
- drive action towards the SDG deadline in 2030, by bringing together partners to identify, develop, deploy, and mainstream the optimal financial instruments, strategies, and enabling policies, that can generate food systems that sustain the health of people, nature, and whole economies.
Initiatives
High Ambition Group
GFFN offers hands on technical support through the High Ambition Group (HAG) in setting and implementing SMART targets, aligning portfolios and investments with the SDGs, climate and nature targets, and monitoring and disclosing impacts (scope 1 through 3).
Good Food Finance Facility
GFFN is launching the Good Food Finance Facility, a new co-investment fund, at COP28 to align and catalyse funding for sustainable food systems. This facility will provide opportunities to mobilise financial mechanisms and access to capital that can take on different types of risk.
Insights From our Leadership
Gunhild Stordalen
Dr. Gunhild Stordalen,
Founder and executive chair at EAT Foundation
“The Good Food Finance Network is starting to become the go-to forum for the world of finance to come together and build massive momentum behind transforming food finance. Together, we must work to create and flesh out the Good Food Finance Agenda for this decade and beyond”
Gunhild Stordalen
Ertharin Cousin, CEO and Founder at Food Systems for the Future
“Financing is the key term, because even with all the commitments, public will and policy, the transformation cannot occur without finance”to work together to accelerate change, mitigate risk and unlock opportunities.“
Gunhild Stordalen
Susan Gardner, Director, Ecosystem Division at UN Environment Programme
“The time to act is now – Financial decision-makers, from both the public and private sectors, have the opportunity to work together to accelerate change, mitigate risk and unlock opportunities.“
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