Opportunities for agricultural businesses in the movement towards a green economy

It is not secret that the earth is warming. Whether consciously or unconsciously, businesses and individuals throughout Australia and the world are demanding change. In particular through rapidly increasing investment in impact funds, green focused funds, and direct investment into companies with high ESG ratings. The reality is that investment into green positive companies drives change but is not without commercial returns. This is evidenced with the MSCI publishing findings that high ESG-rated companies were more competitive, generating abnormal returns often leading to higher profitability and dividend payments, especially when compared to low ESG-rated companies.

While your business may not have developed an ESG framework, we foresee that there will be a trickledown effect in the economy whereby smaller companies will eventually follow the big end of town.  Movements towards a more sustainable business is in line with the emission reduction targets of 2030 and 2050, and there is significant commercial upside for your business.

Opportunities for Australian agriculture businesses

Australian agricultural businesses have a significant role to play in the turbulent forthcomings, but this role will not be without commercial upside. We have released a series of 5 blogs explaining and highlighting opportunities we see in the green space which are included below:

• Carbon farming an overview
• Carbon farming eligible projects
• The CEFC
• Energy audits
• Solar panel funding options

If you have any questions or would like to discuss these opportunities further, please contact your usual Forvis Mazars advisor or our specialists John Kotzur and Matthew Beasley for a confidential discussion via the form below or on:

Published: 03/06/2022

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