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New Report: Climate Risk Disclosure and Sustainability Create Competitive Advantage in Agricultural Sector

BOSTON, January 15, 2025— A new report released today by the Freedom to Invest initiative shows how embracing sustainable and resilient agriculture practices, paired with climate risk disclosure, can mitigate risks and create opportunities across the U.S. agricultural sector – from farmers and food companies to banks, insurers and investors.  

The report, "Navigating Climate Risks in Agriculture: Unlocking Financial Benefits through Enhanced Farm Resilience and Sector Transparency," finds that climate risk disclosure is evolving from a compliance exercise into a strategic advantage that can help farmers and companies identify where operational changes are necessary, attract investment and create new economic opportunities throughout the food supply chain and that addressing climate risks and embracing sustainable agricultural practices in advance helps farmers and food companies ensure their long-term productivity and profitability. 

“More erratic weather patterns fueled by climate change are already disrupting our food system and creating financial risks for business operations and supply chains. Climate risk disclosure serves as a diagnostic tool that can benefit the entire food and agriculture sector," said Meryl Richards, Program Director, Food and Forests at Ceres. "When companies and financial institutions understand their climate-related financial risks, they can create plans to mitigate those risks as well as capitalize on targeted investments that help farmers build resilience while opening new market opportunities." 

The American Farm Bureau Federation estimates that natural disasters caused $21.5 billion in agricultural losses in 2024, and crop insurance payouts have increased over 500% in the last two decades, accompanied by a significant increase in total liabilities. 

The Freedom to Invest report outlines how leading agriculture companies are already using climate risk disclosure to: 

  • Identify strategic opportunities for investment 

  • Create innovative financial incentives for responsible farming practices 

  • Develop new market opportunities 

  • Build more resilient supply chains 

  • Attract investment capital 

It goes on to describe that while transitioning to sustainable agricultural practices requires upfront investment, the long-term benefits significantly outweigh the costs. Companies with robust climate disclosure may enjoy enhanced access to capital, lower costs, higher market value, and better credit ratings.  

The report was developed by Ceres for the Freedom to Invest initiative. The co-authors were Meryl Richards, program director for food and forests, and Eunyoung Lee, senior associate for the Ceres Accelerator for Sustainable Capital Markets. Download the full report here.

About Freedom to Invest  

Freedom to Invest supports investors and businesses in protecting their long-standing rights to invest and operate responsibly, ensuring long-term value and a more stable, resilient economy. The initiative is at the forefront of defeating state and federal legislation that seeks to ban responsible business practices, where investors and companies consider all financial risks and opportunities in decision-making. Visit www.freedomtoinvest.org to learn more. 

Media Contact: Diane May [email protected]