气候阿尔法：食品与农业：气候韧性和粮食安全的关键

Issuer of report:HSBC Bank Middle East Ltd,DIFCView HSBC Global Research at:https://www.research.hsbc.comListen to our insightsFind out moreHSBC Global Research PodcastsAmit Shrivastava*Director, Sustainability; European Equity StrategyHSBC Bank Middle East Ltd, DIFCamit1.shrivastava@hsbc.com+971 450 93349Zoe KnightGlobal Head, Sustainability Research & IntegrationHSBC Bank Middle East Ltd, DIFCzoe.knight@hsbc.com+971 508951407James RydgeHead of Sustainability Research, EMEAHSBC Bank plcjames.rydge@hsbc.com+44 20 7 9923182VinayaKumariAssociateBangalore* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and isnot registered/ qualified pursuant to FINRAregulationsEquity Strategy&SustainabilityGlobal 05010015020025030020222030USD bn ◆◆◆ How we define theFood & AgricultureclimatethemeTheHSBCClimate Solutions Frameworkdefines companies in theFood & Agriculturetheme as thosewhichare involved in providing high-quality seeds such as high-yielding, pest-resistant, and drought-resistant seeds (GM/hybrid seeds); slow-release nitrogen fertiliser andnon-nitrogen-based fertilisers such as potash and phosphate; crop protection chemicals, as wellas low-tilling equipment and irrigation-related machinery. It also includes companies which areinvolved in sustainable agriculture-related businesses, livestock management and aquaculture,whichapply various techniques and offer solutions that enable reduction of GHG emissions.Companies under theFood & Agriculturetheme in our framework, therefore,can broadly becategorisedas those that offer products and services in the following areas:AgriculturalInputs–Companies offeringbetter-quality seedswhich arehigh-yielding,pestand drought-resistant seeds(GM/hybrid seeds); slow-release nitrogenfertilisersand non-nitrogen-based fertilisers such as potash and phosphate; cropprotectionchemicals and irrigation-related equipment. It also includes products andservices related to organic farming and related inputs.Livestock Management–Companies adopting specific feeding practices andselective breeding which are proven to reduce GHG emissions or if the companyquantifies the reduction in methane from their practices.Land Use Management–Companiesoffering techniques to reduce GHGemissionsthrough better agronomy practices such as no or low tillage, agro-forestry, residue management, precision agriculture and cover crops.Aquaculture–Companiesthat are involved in farming, breeding and trading ofmarinespecies in regulated aquatic surroundings such as oceans, lakes, rivers,ponds andstreams. It also includes sustainable farming products and services asplant set-up, organicfeeds, etc.Other Agricultural Solutions–Companiesprovidingsustainable and otheragricultural techniques which uses less resources to produce more crops such asVertical & Controlled Farming, Organic farming, other techniques.HSBC Climate Solutions DatabaseThe HSBC Climate Solutions Database is our proprietary database comprising auniverse ofmore than 3,400global companies, which identifies investment opportunities within the climatechange space. The database is updated annually and includes companies with exposure toTo download and access reports, including analyst videos, go to the HSBC Global Researchwebsite:www.research.hsbc.com,or contact the authors of this report. Also, please refer toHSBC Climate Solutions Database: Generating Climate alpha, for further details. (seeappendix).21 climate themes. 2Definition of F&A as per ourframework AgricultureandclimatedynamicsAgricultureis one of the critical sectors that not only contributes totheglobal warming, but isalso adversely impacted by it.As per the World Resources Institute (WRI), after Energy,Agriculture is the second highest greenhouse gas emittingeconomicsector, accountingforc12% of global emissions in 20211.If production, transport, processing, retailing and loss(waste) along the entire valuechainaretaken into account, Agriculture accounts foralmostone-third(34%)of global emissions2.Moreover, the sector’semissions are gradually growing–in2022,these weremore than10% higher than the levels recorded over the last two decades3.34%Agriculturesectorentirevalue-chainshare in global emissionsThe sector is a prime exampleofthe need to adapt to the challenges posed by climate change,while also mitigating its own role in global warming.Damage and losses to the sector due toextreme weather events such as droughts, floods and high temperatures, impactthenearly halfofthe world’s populationthatis dependent on agrifood systems foritslivelihood4. Consequently, thesector’s critical role in employment and sustaining global food securitymakes addressing risksarising from climate change a global priority.Italso emphasises the need forthenew investmentrequired to develop less GHG-intensive agricultural practices and food production methods.3.Global GHG emissions from agrifoodsystems (2023: 16.0 Gt CO2 eq.)Source:World Bank analysis based on data fromFAOSTAT 2023Sub-sectoremissions:Emissions a