Agriculture

The Australian agriculture sector is a cornerstone of the economy, with a gross revenue of over $358bn, it’s performance and risk profile fluctuates with local and regional seasonal conditions and the whims of global markets. It employs over a quarter of a million people, who are involved in producing a wide array of commodities, including high-quality grains, premium livestock, a diverse range of fruits and vegetables, as well as speciality products for both domestic consumption and export.

Key ESG issues

The sector faces significant water scarcity and land management challenges, exacerbated by the increasing frequency, intensity and even unpredictability of droughts and floods due to climate change. National and international efforts (e.g., EU Carbon Border Adjustment Mechanism) to reduce emissions pose transition risks to key livestock commodities. These challenges exist alongside broader issues including consolidation of assets by large agribusinesses and the reduced uptake of traditional family-owned enterprises by younger generations.