Approach: the fundamentals behind our investments
Sustainable Agriculture Group (SAG) has identified several core mega trends that are transforming the way food is produced and consumed. These mega trends are creating profound tailwinds for the agriculture industry and a significant opportunity for investors.
Resource Scarcity
With the Agriculture industry responsible for approximately 70% of global freshwater withdrawals, and 60% of irrigated croplands facing high or very high water stress - SAG places a developments geography and precipitation characteristics at the very top of our due diligence framework.
Climate Change
Climate change is altering temperature, rainfall, and weather patterns worldwide, making agriculture more unpredictable and vulnerable. Since farming depends heavily on stable environmental conditions, even small climate shifts can significantly affect food production, farmer incomes, and global food security.
Food Security
Sustainable agriculture has a pivotal role to play in achieving global food security and provides a solution to challenges such as land degradation, food shortages, and the environmental pressures caused by unsustainable farming practices today. With crops and livestock forming the foundation of the world’s food supply, sustainable agriculture is key to feeding a global population expected to reach ten billion people — if resources are managed responsibly and efficiently.
Growing Middle Class
With rapid population growth and rising incomes in many developing countries, global demand for agricultural products and higher-quality food continues to increase significantly each year. Between 1990 and 2023, global food consumption rose dramatically as populations expanded and diets became more resource-intensive. As the world’s population continues to grow toward an estimated 10 billion people, the need for sustainable agriculture is becoming increasingly essential to ensuring long-term food security, stable food supplies, and environmental sustainability.
Health and Nutrition
Healthy living remains a priority for global consumers and fish & seafood products are the typical source of protein for many humans’ daily diets today. Their rich in nutrients, including vitamins, minerals, and anti-inflammatory omega-3 fatty acids.
Investment Themes
Our industry-specific investment themes are designed to maximise value creation in a sustainable way, by establishing facilities or adding value to underperforming operations that bridge the gap between supply and demand in their given localities.
Resource Efficiency
Focusing on underinvested industry segments, and increasing productivity through integrating business
platforms that drive a high-performance culture.
Operational Improvements
Implementation of industry best practises and knowledge transfer between sectors to maximise sustainable production outcomes and achieve long-term revenue and cost synergies.
Technology & Innovation
Promote the introduction of new technologies and innovations that support sustainable growth, improved productivity, product development and the ability to monitor and measure performance outcomes.