14 INDUSTRY CAN HAVEpositive and negative impacts on the environment and society. Accounting for these impacts and companies' actions to demonstrate progress is of increasing interest among investors and financial institutions. For many involved in Canadian agriculture production, sustainable finance has been a background driver of some programs supporting sustainable practices but has yet to appear in the limelight. However, this may change with emerging standards and guidance for companies reporting on their value chain's sustainability impacts and an increasing number of sustainable finance products, services, and programs available to Canadian farmers and agri-food businesses. WHAT IS SUSTAINABLE FINANCE? Sustainable finance refers to financial activities that consider environmental, social, and governance (ESG) indicators to promote sustainable economic growth and the longterm stability of the financial system. For example, when considering sustainability in financial and investment decisions, economic indicators such as monetary value and projected growth are, of course, essential and primary factors, but an investment firm, company, or even an individual may also base their decisions on the climate impacts of a company's operation or how a company treats their workforce. According to PwC, RBC, and others, key indicators in sustainability reporting include but are not limited to: Environment: carbon emissions, water consumption, land use, energy consumption, waste disposal. Social: health and safety, gender and diversity, community, data privacy and security. Governance: board structure, executive compensation, shareholder rights, partnerships, transparency and reporting. Sustainable finance on the farm INVESTMENT DECISIONS USING ESG PRINCIPLES Lisa Ashton A SELECTION OF INDICATORS USED IN CORPORATE SUSTAINABILITY REPORTING, ACCORDING TO PWC, RBC, AND OTHERS. Companies, financial institutions, and other organizations use sustainability reporting standards, including those developed by the Global Reporting Initiative. Sustainability reporting standards and frameworks allow for consistency and comparability among companies' sustainability rankings and ratings, which are important tools to inform sustainable investment and lending decisions. According to a 2022 report by KPMG, 91 per cent of Canada's top 200 revenue-generating companies report on their ESG performance. WHY DOES SUSTAINABLE FINANCE MATTER TO THE AGRICULTURE SECTOR? Sustainable finance includes a diverse range of important indicators; however, there is currently a strong focus on measuring, reporting, and verifying a company's performance in reducing greenhouse gas emissions from their operations, energy use, and value chains. Market Development
RkJQdWJsaXNoZXIy MTQzODE4