Farming in Australia has always required resilience to survive an at-times hostile climate.
However, new challenges and risks need new strategies to maintain that resilience.
One of the biggest risks facing agribusiness right now is sustainability. That risk isn’t limited to the effects of climate change; lucrative contracts are at stake.
At RSM we manage risk for public and private companies across a variety of industries. Being slow to move on sustainability is a significant risk for any business right now. A rising tide of workers, consumers, and investors want to see real action on climate change. The combined pressure of that tide is changing business partnerships.
For agribusiness, in particular, supply chain management is emerging as a key risk factor. Governments and large businesses are vetting the ‘green’ credentials of their supply chains.
The pressure will likely intensify as governments work towards achieving net zero targets by 2050. Expect increased investment and regulatory measures, and more countries mandating sustainability reporting.
It’s not all bad news, though. Some people think there can be a focus only on the ‘doom and gloom’ and telling people about the risks that could ruin their business.
However, we work with businesses to help them build resilience to those risks – and also help them take advantage of the many opportunities that arise.
We help businesses create a sustainability roadmap to showcase their environmental, social, and governance (ESG) goals and progress.
This provides a competitive edge in a few areas, including:
- Maintain existing contracts
- Tender for new contracts
- Attract increasingly eco-conscious employees (a distinct advantage in agriculture)
- Be ahead of the impending regulatory curve
- Increased efficiency and cost savings
The smart business move is to start now. That could be a few small changes or revolutionising your entire business. Think of it as future-proofing your business operations over the longer term.
Of course, managing change can be challenging – you want to ‘go green’ without sliding into the red. You need a clear understanding of the sustainability opportunities and corresponding risks involved.
You don’t have to go through the sustainability journey alone. RSM Australia has a wide range of professionals in different fields linked to sustainability and ESG.
You can leverage our expertise to help you manage impending government changes. We can smooth your sustainable transition by easing access to funding incentives that support businesses in achieving their sustainability goals.
In fact, RSM has worked with a number of businesses within agricultural spaces that have achieved great success integrating sustainability into their business operations.
You can read about their experiences in RSM’s recent thinkBIG report on sustainability and ESG here: thinkBIG: Sustainability.
For more information
If you have any queries on how you can benefit from integrating sustainability in your agribusiness, contact your local RSM adviser.