What Alberta’s agriculture industry needs to know about ESG
Alberta’s agribusinesses are at a turning point: they have the opportunity to attract greater capital by adopting ESG practices and communicating their efforts openly. It is critical for this sector to align its interests with those of investors, as agriculture is increasingly being seen as a great investment opportunity.
In Alberta, agriculture is one of the largest industries. The province's agriculture industry provides investors with a wide array of opportunities, from production and processing facilities to financial services and transportation infrastructure. Alberta is one of the leading producers of canola, wheat, dry peas, barley, and cattle. Global connectivity and business-friendly policies open tremendous opportunities for agriculture processing facilities to establish Alberta as their North American hub.
Given this dynamic growth in the sector, it is essential that businesses remain aware of their environmental impact while also working towards reducing it through innovation or new technology.
Here’s what you need to know:
Environmental Sustainability relates to how businesses will positively impact the environment and adapt to a changing climate. How does what I produce impact air quality? Water quality? Mitigate greenhouse gas emissions?
Social Sustainability relates to how businesses will manage relationships with employees and local communities. How do my workers feel about their jobs? Are they paid fairly? Do they have opportunities for advancement? Do they have reliable access to health care?
Economic Sustainability relates to how businesses will exercise their power responsibly and comply with government regulations. Is my farm profitable enough that I can stay in business without taking on debt or government subsidies?
The Canadian agriculture industry is at a crossroads. Investors are increasingly interested in the industry, but they’re concerned about environmental, social, and governance (ESG) issues. The good news is that addressing these concerns will not only help attract investors but also improve operations by increasing efficiency and sustainability. Agribusinesses must be careful to communicate their ESG practices clearly so that investors can easily understand how they manage their ESG risks and opportunities.
Ready to apply this to your business? Connect with our ESG Consultant, Pamila Fonseka.