Project scope & situational analysis:
Sathguru Catalysers, investment manager of the Innovation in Food & Agriculture Fund (IFA), conducted a comprehensive assessment of a leading ag-biotech company’s product portfolio. The analysis evaluated the potential environmental, economic, and social impacts on farms and farmers by 2030, aligning with the UN Sustainable Development Goals (SDGs).
We employed a multi-pronged approach to assess the impact of the sustainable innovation of an ag-biological enterprise. The downstream scope 3 value chain was evaluated to quantify the impact at the farmer level. The Life Cycle Assessment (LCA) was used to assess the company’s water consumption and greenhouse gas emissions during product development, marketing, and product use to understand its environmental footprint. Farm-level economic models were developed to assess the projected impact on farmer profitability. Social impact assessments explored factors like improved livelihoods, access to training, and reduced exposure to harmful chemicals.
Impact:
The project quantified the potential environmental benefits of the Ag-Biotech enterprise’s products, demonstrating a projected reduction in environmental footprint. Economic modelling indicated potential profitability improvements for farmers adopting the company’s products, leading to increased income and potentially improved livelihoods and food security. Social impact assessments showed positive perceptions from farmers, with potential benefits from avoided exposure to agrochemicals. The key findings of the assessment were:
- Reduced Environmental Footprint: The Life Cycle Assessment results demonstrated the company’s products have the potential to significantly reduce water consumption and greenhouse gas emissions by 30 – 50% throughout their lifecycle. This aligns with the Innovation in Food and Agriculture fund’s focus on fostering sustainable agricultural practices and contributes to achieving SDG 12: Responsible Consumption and Production, and SDG 13: Climate Action.
- Improved Farmer Profits: Farm-level economic models projected potential improvements in profitability for farmers adopting the company’s products. The practice can increase farmers’ income by 15 – 20%. Increased income for farmers translates to improved livelihoods and food security for farm families, contributing to achieving SDG 1: No Poverty, and SDG 2: Zero Hunger
- Enhanced Social Impact: Social impact assessments revealed positive perceptions from farmers regarding the company’s products. Potential benefits included reduced exposure to harmful chemicals associated with traditional agricultural practices by 57 percent. This contributes to SDG 3: Good Health and Well-being and empowers farmers by fostering safer working environments.
The findings helped assess the company’s alignment with the Innovation in Food and Agriculture fund’s focus on sustainable development goals (SDGs) and determine whether it is a suitable investment for the fund’s portfolio. By quantitatively measuring the environmental benefits, economic gains for farmers, and positive social impacts, this assessment provides strong evidence for the Ag-Biotech company’s role in promoting sustainable agricultural practices. These findings support the company’s suitability for investment by the IFA, potentially paving the way for further development and adoption of their innovative solutions for a more sustainable food system.