Stranded Assets in Agriculture: Protecting Value from Environment-related Risks

Monday, August 12, 2013 - 10:30

A report has been published which maps out environment-related risks in the agricultural supply chain and shows how they might affect assets over time.

The report is written by Ben Caldecott, Nicholas Howarth and Patrick McSharry from the Smith School of Enterprise and the Envionment's Stranded Assets Programme.

Download the report from the Stranded Assets Programme website here.

There are a wide range of current and emerging risks that could result in 'stranded assets', where environmentally unsustainable assets suffer from unanticipated or premature write-offs, downward revaluations or are converted to liabilities. These risks are poorly understood and are regularly mispriced, which has resulted in a significant over-exposure to environmentally unsustainable assets throughout our financial and economic systems.

The report is meant to help inform investors and businesses working in the agricultural supply chain, as well as policy makers and governments who are concerned with the stability and environmental sustainability of the agricultural sector and its contribution to the wider economy.

The report looks at a range of risks to the agricultural sector, across different timescales. Figure 1 maps out the environment-related risks explored in this report based on the speed at which the authors think given risks could materialise and over what time-horizons they might emerge:

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