Home » Resource Database Case Study Land degradation, UK farmers and indicative financial risk Authoring Organisation University of Cambridge Institute for Sustainability Leadership (CISL) and NatWest Group Publish Date 2022 Geography United Kingdom Download Case Study (Land degradation, UK farmers and indicative financial risk)(This link will take you to an external website) About this Case StudyThis case study explores the potential financial risks posed by land degradation to arable farming producers in the United Kingdom. Key outcomesThis case study analysed the impact on UK cereal farmers on degrading land of extreme weather events and fertiliser price hikes, finding that degrading land poses a material risk to the profitability of those who farm it and, by extension, to those who lend to these farmers. For extreme weather events, financial losses for farmers begin once crop yield declines reach and exceed 27% for two consecutive years. Whilst a 27% or greater crop yield decline is very unlikely for those farming healthier, more resilient soils, research indicates it is possible for those on degrading land. Those farming degrading land are likely to be crop price takers as they are in the minority. As a result, these farmers are also unlikely to be adequately compensated by any crop price increase that follows extreme weather.Download Case Study (Land degradation, UK farmers and indicative financial risk)(This link will take you to an external website) Related resources Assessing the Materiality of Nature-Related Financial Risks for the UK Green Finance Insitute | April 2024 This report presents the first quantitative evidence of the economic risk posed by nature degradation and the erosion of ecosystem services, both domestically and internationally, to the UK economy. Publicly available Bank of England data was used... Bernard Matthews’ Balance Sheet and Reputation Struck by Bird Flu BloombergNEF | 2024Location: United KingdomCase Study The case study explores the physical risks associated with disease outbreaks in the poultry industry. It details the avian influenza outbreak at Bernard Matthews' facilities, the company's response and the subsequent financial and reputational damage. The EU Farm to Fork Strategy and fertiliser companies University of Cambridge Institute for Sustainability Leadership (CISL) and Deutsche Bank and Union Bancaire Privée (UBP) | 2022Case Study This case study explores the nature-related transition risks of the EU Farm to Fork Strategy to financiers as the funders of fertiliser companies. Red Gold: Spanish Strawberries and German Supermarkets TNFD | December 2024Location: Germany, Spain, SwitzerlandCase Study This case study examines the nature-related dependencies and impacts of Spanish strawberry production, the impact of consumer boycotts on this commodity and how supermarkets have responded to reputational and financial risks. Forest IQ: A Gateway to TNFD Adoption Frontierra, Zoological Society of London | November 2024Location: GlobalLEAP Use Case This use case provides insights from financial institutions, including Schroders, Robeco, Federated Hermes and Storebrand, demonstrating how they applied Forest IQ data to manage deforestation and nature-related risk. Related publications Additional sector guidance – Food and agriculture Discussion paper on nature transition plans Discussion paper on conducting advanced scenario analysis Related webinars Nature-related risk in practice: what are the key considerations for financial institutions? April 27, 2023 (Updated: September 18, 2023) This webinar discusses the practical aspects of understanding and evaluating nature-related risks for financial institutions. It covers the importance of considering the climate-nature nexus and deep dives into then-recent case studies... Charting a sustainable path: Nature-climate scenarios in financial decision-making March 25, 2024 (Updated: March 25, 2024) The TNFD and NatureFinance co-hosted this public webinar on integrating nature-climate scenarios for sustainable financial decision-making. The session focused on integrating nature-climate scenarios. Ahead of the...