It is safe to say that a transition in food and agriculture is inevitable. And even though achieving financial returns while meeting growing food needs and preserving natural capital is not easy, it’s certainly necessary.
The sustainability of food systems and the preservation of natural capital are inextricably linked, as the Food and Agriculture Organization (FAO) points out. The FAO states that sustainable agriculture must “make more efficient use of increasingly scarce global resources, be resilient to and help mitigate climate change, and improve human well-being.”
Various frameworks underscore the interlinked social, economic, and environmental dimensions of sustainable agriculture and the urgency of transforming food and land use systems to meet the United Nations SDGs and Paris Agreement goals. Private Natural Capital investments offer a means to create value while preserving and enhancing ecosystems.
Sustainable food systems depend on healthy natural capital but can also deplete it if mismanaged. Here, food systems play a dual role: they rely on ecosystem services such as pollination, nutrient cycling, and climate regulation, yet unsustainable practices like deforestation, soil degradation, and water overextraction erode these resources. Solutions must account for local and global complexities, as no single model fits all food systems.
Mirroring global evolution of standards, and in collaboration with ABP, we as APG have refined our investment requirements. For instance, on behalf of our client we support practices in the field of regenerative agriculture that restore soil health and biodiversity. In relation to resource efficiency, we promote and implement innovations that optimize resource use, such as precision agriculture and water-efficient irrigation systems. Also, we encourage production systems and methods that reduce greenhouse gas emissions. Furthermore, we advocate for production systems that reduce overall pressure on terrestrial ecosystems, such as circular agriculture.