Home » Resource Database Case Study How soil degradation amplifies the financial vulnerability of listed companies in the agricultural value chain Authoring Organisation Robeco and University of Cambridge Institute for Sustainability Leadership (CISL) Publish Date 2022 Geography Brazil Download Case Study (How soil degradation amplifies the financial vulnerability of listed companies in the agricultural value chain)(This link will take you to an external website) About this Case StudyThis case study explores how exposure to degraded land can impact the value of listed companies in the food supply chain. Key outcomesThere is a significant risk of asset value deterioration for companies in the chain exposed to land degradation. As such, investors must incorporate land degradation, as a long-term material risk, within their investment decision-making processes and actively engage with companies in the agribusiness sector to mitigate them. Within the agricultural value chain, companies linked to degrading land are more at risk of negative financial impacts following extreme weather events. Other risks to the entire value chain include fluctuating balance sheets, a decline in global crop volumes, working capital implications and increased inflation levels impacting food producer profits and increasing consumer costs. Educating and incentivising farmers to invest in soil health is in the interest of all value chain actors. Download Case Study (How soil degradation amplifies the financial vulnerability of listed companies in the agricultural value chain)(This link will take you to an external website) Related resources Assessing ecologically sensitive locations in a food retailer and distributor’s palm oil supply chain: Reflections from piloting TNFD’s LEAP approach Nature-based Insights, Tesco and Global Canopy | 2023Location: Indonesia, United KingdomLEAP Use Case Tesco’s LEAP use case outlines the methods and process for mapping its palm oil supply chain in Indonesia and identifying sensitive locations for further analysis. It illustrates volumetric analysis to estimate procurement volumes and biodiversity footprint of sourcing districts. Assessing nature-related issues of key value chain clients as a Brazilian Asset Manager Frontierra, JGP Gestão de Crédito Ltda and Global Canopy | 2023Location: BrazilLEAP Use Case JGP participated in a TNFD pilot to enhance their understanding of nature-related risks, with a particular focus on deforestation within Brazil’s agriculture sector. The pilot involved using the LEAP approach to assess the nature impact of two agricultural companies in their ESG Credit fund. Banking Beyond Deforestation University of Cambridge Institute for Sustainability Leadership (January 2021) A report explaining how the banking sector can contribute to halting and reversing deforestation. Slow Brews Caffeine High from Regenerative Coffee Farms BloombergNEF | October 2024Location: Denmark, Indonesia, Lao People's Democratic Republic (the), Viet NamCase Study This case study explores the agroforestry model of Slow to growing coffee, which demonstrates an integrated approach to nature stewardship and commercial success. Bringing It Down To Earth: Nature Risk & Agriculture WWF (June 2021) A new WWF report, ‘Bringing It Down To Earth: Nature Risk & Agriculture’, highlights how unsustainable production practices present systemic risks across our food and financial systems, and how shifting to more sustainable practices can unlock... Regenerative Agriculture Landscape Analysis (Textile Exchange, January 2022) A report exploring why regenerative agriculture matters for the fashion and textile industry, how it links to indigenous farming traditions, the science behind it, and how it can be taken into wider supply chains beyond just the farm. Read it... Related publications Additional sector guidance – Food and agriculture Related webinars TNFD reporting in action – Insights from the Asset Management Industry May 28, 2024 (Updated: January 14, 2025) In this webinar, organisations that have recently published a TNFD report shared unique TNFD reporting insights. Whereas climate has become an established part of organisations’ sustainability reporting, nature reports... Additional guidance for financial institutions March 7, 2024 (Updated: January 29, 2025) Published alongside the TNFD Recommendations in September 2023, this Forum member webinar explored the draft additional guidance for financial institutions open for consultation until 29 March. This session provides an...