INDUSTRY: Agriculture, Forestry and Fishing

Energy management and greenhouse gas (GHG) emissions

Management of energy efficiency and intensity, energy mix, and grid reliance are all pertinent considerations, particularly for the agricultural sector, which generates significant Scopes 1 and 2 GHG emissions from both livestock production and energy-intensive production processes. The environmental impacts associated with energy consumption should be considered by businesses in this sector, including fuel sources used in forestry and fishing operations. Emissions regulations may increase the cost of capital and operational costs in the future, affecting the operational efficiencies of businesses without strategies to manage their emissions.

Water management

Farming and forestry hold important relationships with water. Agricultural activity can severely damage water health, requiring efficient irrigation systems and effective agri-waste management solutions to be in place. Poor forest management can increase flood risk and pollute water stocks, in turn damaging forest health. For forestry firms, ensuring assessment of how land and woodland requirements will change with the climate is also key. All firms within the agricultural, forestry and fishing sectors require high-quality conservation of waterways and bodies. Focusing on water conservation strategies can help mitigate the environmental impact of these activities.

Biodiversity loss and climate change adaptation

With agricultural, forestry and fishing industries heavily dependent on the level and prosperity of biodiversity in their respective environments, ensuring its maintenance is essential. An ecological balance must be struck, ensuring flora and fauna can flourish alongside sustainable business models. If ignored, biodiversity loss will cause irreversible damage to the ecosystems firms rely upon. To succeed in sustainability, firms in this sector should focus on regenerative practices that support nature’s resilience and invest in technologies that promote less harmful practices.

Employee health and safety

Risks of occupational hazards in the agricultural, forestry and fishing industries are high. By prioritising employee safety and well-being through training and robust health and safety measures, organisations can foster a more engaged and productive workforce, reduce absenteeism and turnover, and minimise the financial burden associated with workplace injuries and illnesses. A commitment to employee safety also promotes a positive brand image and strengthens community relations, contributing to long-term sustainability.

Supply chain management

Environmental, social and governance risks within a company’s supply chain include issues such as environmental stewardship, scope 3 emissions, human rights and modern slavery risks, labour practices, ethics and corruption. Management of such risks may involve auditing suppliers. Find out more about our supply chain audit tool, FutureConnect.

Climate change adaptation

It is not only vital that businesses act swiftly to lessen or mitigate their greenhouse gas emissions, it is also imperative for organisations to put policies in place that set out how they plan to adapt to any physical, financial or regulatory risks associated with climate change that may affect them in the future. For businesses in the agriculture, forestry and fishing sectors, adaptation to climate change may include addressing issues such as changes in crop resilience, shifting weather patterns, water scarcity, sea level rise and soil degradation.

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