Financial markets to play ‘vital role in addressing food security’

Addressing food security risks will require significant financial commitments from investors and governments, according to global investment firm Franklin Templeton. In a report, the firm’s strategists argue that investing in climate mitigation and adaption is key to solving the food security challenge: “Government finances and private sector contributions can build crucial climate-resilient infrastructure to protect crop production, avoid food wastage and provide accessibility to necessities.” The research links climate change to rising prices and supply shocks in key agricultural supply chains such as wheat, corn and rice. These links arguably expand the role net-zero investors could play in the agricultural industry. Chief market strategist Stephen Dover said: “Financial markets will play an increasingly important role in addressing food-related challenges, including the need to improve food security and develop more research and agricultural technologies.”