The EU Farm to Fork Strategy and fertiliser companies

About this Case 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.

Key outcomes

• This case study quantified the transition risk of the Farm to Fork Strategy, estimating that polices reducing fertiliser usage could lead to valuation declines of between 12 and 46 per cent for two major fertiliser producers.
• If extrapolated to listed fertilisers globally, equity value across the sector could decline by USD 25–67 billion.
• Given the materiality of the risk quantified, the wider financial sector needs to start discussing and defining transition plans with portfolio companies in recognition of the urgent need to shift to sustainable business activities in the food value chain.

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