There is a new precedent being set in Australia where the National Bank, the country’s biggest agribusiness lender, is changing policies to encourage more farmers to adopt sustainable practices. It’s not only private and public companies that face pressure to go green; banks now face greater pressures to include sustainability as part of their lending policies.
Farmers that participate in the natural capital model will likely score higher credit ratings in the future, one banker in the new report stated.
Climate change is creating huge uncertainties in the ag tech and farming business. Sustainable lending and recognition of those working for the planet will have a knock on effect to mitigating risks.
Just as we saw in the unsustainable real estate market several years ago in Dubai, the UAE and even in the US, unsustainable lending weakens an economy to the point of collapse. The economy is just a small part of our global planetary ecosystem. We are happy that banks now recognize this.
For those that want to see how the crisis happened follow the infographic below.
Infographic via: Tampa Foreclosure Defense Lawyers