Cashing in on Sustainable Agriculture: How New Zealand Can Capitalise on the Emerging Sustainable Finance Trend

The market for sustainable finance is expected to continue growing in scope and scale, as financial institutions and businesses increasingly direct capital into investments that improve their sustainability performance.

Report summary

Sustainable finance opportunities for the agricultural sector are currently limited due to a number of underlying structural barriers. “Over the next decade, substantial shifts in many of these barriers are set to position agriculture as an increasingly attractive sector for sustainable financiers, resulting in sustainable finance becoming progressively more mainstream within agriculture”, according to Blake Holgate, Animal Proteins & Sustainability Analyst.

New Zealand is well-placed to capitalise on the future growth of sustainable agricultural finance. “Its robust climate change and environmental policies, as well as the sector’s own sustainability vision, create both a significant sustainable finance need, as well as a strong platform upon which to attract sustainability-linked investments”, says Holgate.

Sustainable finance has the potential to be a key enabler in helping the sector achieve its long-term sustainability aspirations, by ensuring New Zealand primary producers have continuing access to a reliable source of capital, with associated cost of capital and reputational benefits.