Sustainable food systems and agribusiness are key sectors with ample opportunities for investment, offering both financial and impact returns
Investor Solutions
Major barriers for private investors, such as risk, lack of knowledge, and political exposure can be overcome through various measures and structures. There are concrete opportunities available for sustainable investment in (semi-) proven markets and value chain stages.
By making portfolios more climate-resilient and diversified, investors can reduce climate and nature-related risks while increasing returns on investment.
About
We work with private and institutional investors, impact investors, commercial banks, among others, to identify investment opportunities for multi-stakeholder collaboration in food-system investments, either in the form of direct investment, impact finance, blue, green or climate bonds, or through an experienced impact asset manager. The scope of these opportunities are cross-geography, across various focuses and stages of investments. GFFN aims to unlock private investment in sustainable food systems through:
- Connecting investors and food systems actors, providing access to catalytic capital that can take on different types of risk;
- Developing solutions for any mismatch in investment appetite and demand (risk profile, ticket size, return expectations); and
- Linking the climate and food investment agendas, highlighting business models that show attractive investment cases & bankable projects.
Initiatives
The Good Food Finance Facility
The Good Food Finance Facility works to unblock finance flows through the convening of finance actors, aiming to mobilize USD 1.1 billion in its first two years. To accomplish this goal, the Facility includes four work areas:
- Facilitate co-investments, supported through the Innovative Collaborative Funding Model
- Bridge funds
- Develop new financial products through instrumentation of the Good Food Finance Facility
- Leverage standards for mutual accountability through a Good Food Investing Framework
The High Ambition Group
Members of the High Ambition Group (HAG) include public and private financial institutions, such as Rabobank, FIRA, Nuveen NC, Signature Agri Investments, Yara, Green Climate Fund, Global Environment Facility, and Phatisa. The HAG is working to drive action and show how financial institutions can practically:
- Improve the assessment and management of risks;
- Reduce material environmental and social impacts;
- Increase financial flows to more sustainable food systems
Integrated Data Systems Initiative
Current financial data systems are focused on providing information about financial returns, but are not effectively integrating earth systems data; including risk and resilience across climate, food, health, and sustainable development. GFFN’s Integrated Data Systems Initiative aims to provide financial decision-makers with tools to assess the landscape of risk and opportunity, and has an interim goal of mobilizing $10 million over 5 years (2023-2027).
This capital is in addition to the mobilization of at least $10 billion in catalytic finance and wider pools of investment—from public, private, multilateral, and philanthropic sources—through the Good Food Finance Facility over that same period. In 2023, the Integrated Data Systems Initiative is devleoping a Blueprint for Good Food Finance Data Systems Integration
“Food systems sit at the intersection of environmental challenges, and financial institutions need to be partners in action. The financial sector underpins a strong economic recovery, climate action, nature protection – playing a role in food systems is critical. Banks, investors, insurers, agribusinesses can help influence clients and suppliers to improve policies and drive financial flows to more sustainable food systems.”
Eric Usher, Head of UN Environment Programme – Finance Initiative and GFFN Principal
Resources for Private Investors
REPORT
State of finance for nature 2022 – time to act: doubling investment by 2025 and eliminating nature-negative finance flows
REPORT
Investing in sustainable food systems: a methodology and lessons learned from africa
The Role of Metrics in Food Systems Investments
GFFN aims to contribute to the improved measurement of progress towards sustainable food systems by financial institutions by (a) increasing understanding of the challenges in measuring progress towards sustainable food systems and its importance, (b) identifying the need and opportunities for developing new metrics, (c) increasing opportunities for cross-sectoral collaboration on sustainable food systems metrics.
These three briefs explore how financial institutions can use metrics to navigate physical, transition and systemic risks when financing agriculture, and more. Click to read.
Interested in engaging with GFFN on Private Finance & Investing?
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Good Food Finance Network 