Re-imagining ESG to unlock opportunity in agriculture
“From improving productivity, giving clarity on leverage points in business, accessing biodiversity and carbon markets or securing ESG aligned finance, there are countless opportunities,”
One of Australian agriculture’s leading thinkers has provided the industry with a bold new way of harness ESG (Environmental, Social and Governance) – as a practical business tool, rather than a burdensome compliance exercise.
In her Nuffield report, Enabling Smart growth (ESG): Opportunities for Australian Farmers, Marriott explores how ESG is reshaping global trade, investment and supply chains, with implications for Australian agriculture.
Her research took her to 13 countries including Brazil, Canada, Japan and the UK to understand how ESG is being embedded in policy and markets, and what this means for Australian farmers.
“Global markets are changing,” Ms Marriott said. “ESG is now a proxy for risk and resilience.
“Rather than seeing ESG as a tick-box exercise, can we reframe it as Enabling Smart Growth? It’s a lens to unlock productivity, manage risk and build value while demonstrating the sustainability outcomes many farmers are already delivering.”
The report highlights global inconsistencies in ESG definitions, metrics and methodologies, and brings to the fore complexities around things like food insecurity in our major markets. ESG enforcement isn’t here yet, but there are policies and investments being made that signal what’s to come.
“Farmers already do a lot that aligns with ESG, improving soil health, protecting biodiversity, looking after their people, but too often that value isn’t being captured or communicated.”
The report identifies clear opportunities for producers.
“From improving productivity, giving clarity on leverage points in business, accessing biodiversity and carbon markets or securing ESG aligned finance, there are countless opportunities,” Ms Marriott said.
The report also warns of top-down regulation without farmer input.
“Too many decisions are being made about farmers, without farmers. If we want practical, enduring ESG frameworks, farmers must be at the table from the start.”
Supported by AgriFutures and Nuffield Australia, the report calls on policy makers, industry and commercial entities to partner with producers, co-designing systems that are practical, profitable and fair.
“This is a structural shift in how global markets assess value,” Marriott said.
“Australia can lead in this space, but only if we engage proactively, design sensibly and back our farmers with the tools they need to deliver.”
Ms Marriott will present her report in detail at Nuffield Australia’s Annual Conference in Adelaide from September 8 to 10. Registrations are now open.
