THE BUSINESS CASE FOR INVESTING IN SOIL HEALTH The Business Case for Investing in Soil Health 2 Contents
Foreword | 4
Executive summary | 5
Introduction | 6
1 Securing and enhancing crops and supply chains | 9
2 Water resources and risks | 12
3 Climate change mitigation | 16
4 Biodiversity and conservation | 20
5 Supporting livelihoods with soil health | 24
6 Enabling environment - policy, finance and partnerships | 27
Conclusions | 30
Next steps for investing in soil health | 31
The Business Case for Investing in Soil Health 3 Foreword
As the Chair of WBCSD, I am honored 2. Now is the time to step up to 4. Understand why it’s worth to present this landmark publication shape the global agenda investing, despite this being a from the Climate Smart Agriculture The world is finally waking up to long-term investment project, born out of the dedicated the need to mobilize nature-based Regenerative practices in support of collaboration of over 30 renowned solutions to address the imminent soil health are critical for maximizing researchers, practitioners and experts challenges of climate change. Global both agricultural production, resilience around the world, representing widely soils contain two to three times more and climate change mitigation. respected organizations. This report carbon than the atmosphere. If we The carbon accumulation in soils is another key piece in our effort to work with nature, we can reduce our would continue 20 to 30 years after catalyze action from the business greenhouse gas emissions, maximize the implementation of good practices community to ensure the world will be carbon sequestration and adapt to if they are maintained, so making the able to sustainably feed a population the effects of a changing climate. case for committing to such long-term of 9.5 billion people in 2050. The multitude of sessions focusing investment is critical. The examples This report is a must-read for anyone on land and agriculture at the 2018 exposed in this report allow actors in involved in the food and agriculture Global Climate Action Summit strongly the agriculture and land use sector to sector for a number of reasons: demonstrated that the world will be understand and adopt approaches to counting on land-based solutions. take action.
1. Soil health is a pressing global issue, needing immediate attention 3. Understand the business case 5. Leverage new finance options and action - whatever your role is in the food Increasingly, the long-term The science is clear and the and agriculture sector investments needed to make changes economic case strong: soil health is Case studies from 10 companies to key areas, such as irrigation, the foundation of our food system, across the agricultural value-chain replanting, forestand ecosystem it boosts the resilience of farms on five continents demonstrate protection and soil health can be and supply chains to the effects of a compelling business case for leveraged through innovative new increased climate variability; and investing in soil health, with the finance streams. The report presents increasingly we are realizing that ambition to secure broad engagement examples of emerging solutions healthy soils have a critical role to play of the global business community to bridging the gap between the needs as a natural carbon sink if we want to take action on this issue at scale. of farmers and the limitations of meet the Paris Climate Agreement banks such as the Agri3 Fund born targets. The global potential for the out of the collaboration between UN cumulative increase in carbon stocks Environment, Rabobank, IDH and the over 20–50 years could offset about Dutch Development Bank. one-quarter of the annual increase in global CO2 emissions.
As part of our commitment to re-imagine global agriculture, I envisage this defining work becoming the reference and basis for companies to mainstream large scale investment in soil health preservation and regeneration practices through understanding the environmental, social and business benefits.
Sunny Verghese, Co-Founder and Group CEO, Olam, WBCSD Chair.
The Business Case for Investing in Soil Health 4 Executive summary Increasingly, global companies are The business case for investing in Four key next steps are identified: realizing that soils present a number soils is diverse and abundant. of profound risks, but also timely It can include maintaining or increasing 1. Lower the hurdles to practices opportunities. revenues, reducing or avoiding costs, that promote soil health: enhancing reputation, or opening up for example, by exploring Investing to improve soil health is not finance opportunities. value-capture systems that suports only an opportunity to increase crop the grower in offsetting the initial productivity, secure supply chains Whilst an investment may be cost of implementing sustainable and meet the growing food needs of primarily focused on one outcome agricultural practices that promote soil our global population, but it is also an (e.g. for enhancing crop productivity health. opportunity to protect and improve or livelihoods, climate mitigation, our precious water and biodiversity improving water resources, or 2. Take advantage of the national resources and enhance the livelihoods protecting biodiversity), the chapters context and act locally: of the one in three people worldwide demonstrate that an investment in alignment with national soil health who work in agriculture. soils for any one of these outcomes policies and the United Nations delivers multiple benefits. The Convention to Combat Desertification Soil health also forms a key part of strongest business case is likely to be (UNCCD) commitments such as the our action on climate change. Healthy built on both multiple arguments and Land Degradation Neutrality baselines soils can help us withstand the consider the range of co-benefits. could open up financial options and effects of climate change that we are technical support you can get for your locked into, whilst avoiding soil and projects in-country. Successful investments in soil land degradation and increasing soil health are frequently supported by carbon stores could help us deliver our whether across strong partnerships: 3. Build partnerships for soil health: commitments to reduce emissions value chains, landscapes or sectors. explore supply chain cooperation, and limit global warming to 2 ⁰C. An investment in soil health delivers public-private partnerships and both private and public benefits, landscape alliances that spread costs, This publication originates from a but adapting action to local social, promote innovation and knowledge series of conversations on soil health environmental and economic contexts exchange and ensure place between business practitioners, is key. Sharing costs and risks and appropriate solutions. researchers and experts, supported mobilizing local knowledge, expertise the basis is there for and facilitated by the WBCSD’s and capacity helps ensure success. 4. Start now: Climate Smart Agriculture project. piloting science-based solutions The momentum and urgency of this for integrating soils in reporting, Investing in soils is a long-term dialogue has driven the development An investment in soils is accounting and supply chain endeavor. of this publication and collaboration unlikely to yield immediate returns as assurance. For example, start by between more than 30 authors, soils can take decades to recover. incorporating soil carbon into current representing leading organizations carbon accounting and setting up Yet, short-term investments can from around the world. Farmers cost-effective soil health monitoring deliver long term returns. and land managers can face barriers early on for clear demonstration of The purpose of this publication is to: to changing practice, such as results. perceived risk or initial costs. Short- • highlight the multiple dimensions of term investments that share risks and the business case for investing in costs, or providing innovative finance soil health; options help overcome those barriers • demonstrate how businesses and lead to longer-term returns. across continents and sectors have already begun to invest; and,
• identify the key opportunities and next steps for scaling up action and investment in soil health.
The Business Case for Investing in Soil Health 5 Introduction Rising temperatures and frequency and ecosystems, the long-term nature Businesses are of extreme drought and rainfall events of soil degradation and the global under climate change potentially effects of its contribution to climate built on soil. threaten soils. Deforestation, change and biodiversity loss mean Soils underpin value chains by urbanization or poor agricultural that future generations and the wider supporting crop productivity, management drive soil erosion, loss public also pay. biodiversity and livelihoods and of soil organic carbon, compaction, they play a crucial role in two of the salinization, desertification and Businesses too will be paying top business risks: water crises and contamination. the price of soil degradation and climate change (1) (Figure 1). If we increasing land use pressures and are to have sustainable businesses, climate change will enhance business economies and societies, they will be Businesses, societies risk. Soil and land degradation built on healthy soils.1 can cause agricultural commodity and ecosystems: we price volatility leading the business community to either bear the all pay the price of soil cost and reduce margins, or pass Globally, soils are degradation. costs onto consumers. Fertility under threat. Soil degradation destroys loss, loss of livelihoods and water We face an urgent situation where a ecosystems and the services they stress from soil degradation means third of soils globally is moderately or provide to societies and economies. moving operations and adapting highly degraded (2). This degradation Whilst the effects of crop failure, loss supply chains. At a global level, is set to accelerate as land use of livelihoods, water pollution and soil degradation means increased pressures increase in line with ecosystem collapse will be felt by exposure to climate change risks in demands for food, fibers and biofuels. local farmers, foresters, communities business.
Figure 1: Soils support a wide range of services that underpin our societies, businesses and value chains.
Climate change
Crop productivity Water availability & nutrition & quality SOIL
Biodiversity Livelihoods & conservation
1 Here we use the term ‘soil health’ in its broadest sense. Whilst soil health can have multiple definitions and metrics in varying contexts, like human health, soil health can be recognised not only by a lack of negative symptoms but also by a wide range of positive outcomes.
The Business Case for Investing in Soil Health 6 Soils are also explicitly mentioned in Soils belong in the Global frameworks four of the Sustainable Development Goal (SDG) targets (Figure 2). Targets boardroom and on set the scene for soil 2.4 and 12.4 focus on reducing the balance sheet - health. contaminants to soils to reduce harm Soils sit at the intersection of the to human health, but the more relevant they present risks three UN conventions on climate targets for this report are Targets 3.9 and returns for every change (UNFCCC), biodiversity (CBD) and 15.3. These relate to combating and desertification (UNCCD) and are land degradation to support business. increasingly seen as a focal point sustainable food production and The multifunctionality of soils for advancing and integrating these terrestrial ecosystems respectively: presents numerous risks, but programs (Figure 2). acknowledging that soil degradation conversely investment in soil health forms a substantial threat to these. offers numerous returns. Investing In 2017, the Land Degradation Investments in soil that reduce land in soils can mitigate climate change Neutrality Fund was launched by the degradation deliver directly to SDG 3 and its associated risks, increase UNCCD to leverage USD $300 million and SDG 15. resilience to climate and water stress, to support private sector projects that promote biodiversity, and enhance combat land degradation, sequester However, soils play an integral role in livelihoods. These deliver benefits carbon and improve livelihoods. delivering to many more SDGs, with across the business, from maintaining Also in 2017, following the Koronivia some arguing that they deliver to 13 or enhancing revenues and decision on agriculture at COP23, of the 17 (3) (Figure 2).For example, reputation, reducing costs, increasing soils are due to become part of the integrating soils into the nationally resilience, or opening up new finance Nationally Determined Contributions determined contributions will be and investment opportunities. (NDCs) and a key part of the global central to target 13.2 if we are to response to climate change. This mitigate and adapt to climate change Some businesses are already builds on the momentum of the in a manner that doesn’t threaten investing. However, there is an 4 per 1,000 initiative to increase food production as stated in indicator urgent need to increase and scale soil carbon storage. A voluntary 13.2.1. up internalization of soil externalities initiative launched by France during through valuation to account for the COP21, 4 per 1,000 has gained risks and benefits and further build commitments from more than 250 the business case needed to drive civil society, public and private sector investment. organizations to engage in a transition towards agriculture where soil carbon is increasing for climate mitigation and resilience benefits.
The Business Case for Investing in Soil Health 7 Figure 2: Soils sit at the center of the UN conventions on desertification, climate change and biodiversity and delivers the key to solutions to many of the SDGs, with four specific relevant targets.
2.4 Sustainable food production systems
15.3 Land degradation neutrality
3.9 Reduce deaths and illnesses from hazardous chemicals and air water and soil pollution and contamination
SOIL
12.4 Environmentally sound management of chemicals and waste
investment in crop productivity and the key components for building the Making the business quality, water, climate mitigation business case around revenues, costs, and adaptation, biodiversity and resilience, finance and investment as case for investing in livelihoods. Investing in soils may be well as reputation while highlighting soil health. primarily motivated by any of these examples where the business case Business commitment to soils is key return areas, but we believe the is already being made with business to achieving sustainability. Globally, strongest case will capture all or a case studies. These are followed businesses have a major influence combination of the co-benefits. by a chapter on the supportive on land management, either directly environments and partnerships It’s important to note that investing through operations (including owned, needed to scale up investment, in soils is a long-term endeavor. An leased or managed land) or indirectly recognizing new regulatory and investment in soils is unlikely to yield through value chains, markets and market-based mechanisms and ways immediate returns, but a short-term finance. of working are needed to transform investment in supporting practice the way we manage our soil resources This report sets out the key building change can lead to longer term returns. for multiple benefits. We conclude by blocks of the business case for bringing the multiple dimensions of the In the chapters that follow, we investing in soil health. We recognize soil business case together with our highlight the multiple dimensions of that any business case for investing key recommendations for mobilizing the business case for investing in in soil health is multi-dimensional: investment in soil health soils in turn. Each chapter identifies an investment in soils means an and a sustainable future.
The Business Case for Investing in Soil Health 8 1 Securing and enhancing crops and supply chains Framing the issue Healthy soils are central to crop production of nutritious crops at A farmer’s soil must have good productivity. They are the medium acceptable yields. Some factors physical characteristics to allow crop for supplying the essential nutrients, are beyond the farmer’s control, roots to access water and nutrients. water, oxygen and root support but maintaining the soil in a healthy The soil’s surface should be protected that plants need. Loss of soils or condition only results from deliberate from crusting and erosion to maximize degradation of soil quality threatens management decisions - decisions water infiltration, and the soil below crop productivity. With a third of that are critical for sustaining the the surface should be free from our global soil resource thought to abundant and income-generating compacted layers that pose a barrier be moderately or highly degraded, harvest of healthy crops. to root growth and water movement. protecting and enhancing soil quality The soil should be a proper habitat for is key to securing future crops and Plants require the proper proportions a diversity of soil organisms beneficial supply chains (2). of at least 14 essential plant nutrients to crop growth. Farm practices that from the soil, all of which must be provide balanced plant nutrition, Every harvested crop removes available from the right source, applied encourage soil to remain unplowed valuable nutrients from the field, at the right rate, present at the right when possible, leave crop residues in leading to a gradual loss of soil time, and located in the right place the field, and keep soils protected with fertility. If soils are to remain fertile, (4R Nutrient Stewardship,2 IPNI, 2012). cover crops all contribute to improving these nutrients must be replaced However, even when optimal nutrient soil properties. These practices by recycled farm products (e.g. management practices are used, poor promote conditions where either livestock manure or crop residues) soil physical and biological conditions inorganic or organic fertilizer can be or commercial fertilizers. Poor farm can prevent crops from reaching their most effectively used for crop growth. management leads to neglected potential and fertilizer from being and degraded soils that prevent effectively used.
2 https://www.nutrientstewardship.com/
The Business Case for Investing in Soil Health 9 Investment in action overcoming degraded soils in Zimbabwe Nutrien: Widespread soil degradation in intervention. With appropriate fertilizer to 3.5 tons/ha. When both manure sub-Saharan Africa is largely a result application, maize yields initially and fertilizer were consistently used of prolonged crop cultivation without increased to 2 tons/ha. Crops growing together over a ten-year period, maize adequate return of organic matter or on degraded soils clearly benefit yields further increased to 5.5 tons/ha plant nutrients to replenish the soil. from fertilizer additions, but the soil (10). These degraded soils are typically properties are so poor that nutrient inherently infertile, sandy, and highly additions alone cannot overcome the Although cattle are the main livestock susceptible to erosion and nutrient constraints of the degraded condition in the area, fewer than 40% of the loss, thus requiring care (8). (9). farmers own cows. The scarcity of manure makes it especially important The average farm size in Zimbabwe is When cattle manure supplements to use this resource carefully along 2 hectares (ha), with maize the the applied fertilizer, the manure with proper fertilization to build healthy dominant crop. Maize yields remain slowly begins to improve soil physical, soils. Larger plants with increased very low (less than 1 ton maize/ha) chemical, and biological conditions. yields produce more leaves, stems, in these fragile and highly degraded This improvement allows plants to and roots that are returned to the soil, soils and yields gradually decrease more fully take advantage of the added resulting in a cycle of more organic over time when left without human fertilizer and maize yields were boosted matter and enhanced root growth.
Graph 1: Maize yields increased over ten years by application of both fertilizer and manure to restore degradated soils.
5
4
3
2 Traditional practice (no fertilizer or manure)
Maize yield (tons/ha) yield Maize 1 Fertilizer alone 0 Fertilizer and manure 2002 2011
The Business Case for Investing in Soil Health 10 Main takeaways
1 2 3 Supporting crop Businesses need to Helping farmers overcome productivity is not only promote and enable soil barriers to changing about managing plant management practices in practice can be key. Whilst nutrition: wider soil health is holdings, operations and farmers financially benefit important to allow crops to supply chains that improve from practice changes that access water and nutrients soil physical, chemical boost crop productivity and and increases climate and biological properties resilience in a longer-term, resilience. to maintain and improve initial costs and perceived fertility. risks in changing practice may need to be overcome.
Building the business case
RELEVANT Agribusinesses and businesses with soil underpinning supply chains BUSINESS (e.g. food, fibers, biofuels, fashion industries). SECTORS
Poor soil conditions limit crop yields and financial returns for farmers and agri-businesses. REVENUES Healthy soils can improve crop quality and value in supply chains.
Failure to implement sustainable soil management practices, including climate smart agriculture, may lead companies to incur higher production costs in the COSTS long term. Soil health can improve the efficiency of fertilizers reducing costs.
Healthy soils promote crop productivity and resilience, in turn boosting farmer and RESILIENCE supply chain resilience.
Soil conditions that limit water and nutrient storage, as well as poor agricultural practices, can lead to unacceptable increase the losses of nutrients to the REPUTATION environment (66) and damage costs and reputational loss.
Practices that increase the soil’s capacity to support crops also can increase carbon CO-BENEFITS storage (sequestration) in soil, helping meet climate commitments (11).
The Business Case for Investing in Soil Health 11 2 Water resources and risks Framing the issue Water stored in soils supports 90% Compacted soil is also more likely of water in soils, contributing to crop of the world’s agricultural production to flood and the negative effects of and natural vegetation growth and (12). The health of our soil is a water shortages are amplified by poor biodiversity and support groundwater critically important component in the soil health, reducing infiltration of recharge. Sustainably managing land production of food and the promotion water into the ground and deeper into can also reduce surface erosion of of water and food security. Organic aquifers. soil into reservoirs, energy generating matter in soil increases its ability to systems such as hydropower dams, store water and is directly related Decline in soil health and decreased public water supply, and industrial to the biodiversity in the soil (soil water quality and availability uses. This helps to reduce operation biodiversity is discussed in more detail affect companies’ operations and and maintenance costs and improves in Chapter 4). production. As a result, companies the longevity of investments. are increasingly taking action locally When soil biodiversity decreases to improve soil health and water Water-intensive industries are so does its capacity to infiltrate and quality. Through improved and beginning to take action in the thus capture and store water (Bossio sustainable management of land and catchments that they operate in, et al 2010). Eroded and compacted water resources, infiltration of water cooperating with local populations soil holds less water, and therefore into soil can be improved, helping to maintain irrigation channels and less nutrients. This affects the ability reduce standing surface water and reforestation, and increasingly of crops to grow to their full yield the potential for flooding. Sustainable provide support to protect local soils potential and increases the need farming practices can increase soil by working with local farmers and for irrigation and nutrient inputs - health and biodiversity, including landowners to promote conservation increasing the risks of water scarcity organic carbon content. This can agriculture and other sustainable land and nutrient pollution in waterways. contribute to increasing the storage management practices.
The Business Case for Investing in Soil Health 12 Investment in action managing water scarcity by Mahindra:managing soils In India, Mahindra, a global federation installation of sediment traps and In the project area, which covered of companies with an operational ponds, are first implemented high in 32 villages and 20,000 people, only presence in over 100 countries, has the watershed near the “ridge”, and 24% of the farmed land was irrigated been acting on soils to improve water progressively rolled out measures to and water was only available seven availability in its operational regions the “valley” bottom. Crucially, the local months per year prior to the project. and local communities. community is engaged throughout As a result of the initiative, 4,071 the approach, as local knowledge and farmers benefited from a two-meter Through a recent soil and water commitment is essential to effectively rise in average groundwater levels, conservation project in Madhya locate and implement measures. whilst allowing a doubling of land under Pradesh in India, nearly 10,000 ha irrigation and as a result, a doubling of of farmed land was treated with a This form of management can help per capita income. “Ridge to Valley” approach, where slow the flow of water, reducing soil conservation efforts, such as the erosion and resultant silting of water infrastructures downstream. improving water quality with soil and Fonterra:nutrient management
In New Zealand, the world’s largest The more than doubling of dairy Fonterra suppliers have fenced grazing processor and exporter of dairy production in the last 20 years in cattle out of 98% of their waterways products, Fonterra, is working with New Zealand has increased pressure and annual farm inspections result in their shareholder farmers and local on land and water. As a result of this continued improvements in effluent, communities to show leadership in pressure and community concerns, soil and nutrient management. Recent sustainable management of soil and Fonterra is working with partners on the water quality trend analysis has water resources. Sustainable Dairy: Water Accord and shown improving trends for several has committed to deliver environment indicators in New Zealand and this plans to all suppliers by 2025. has been attributed to improving land management (13).
The Business Case for Investing in Soil Health 13 Main takeaways
1 2 3 4 Healthy soils can Reduction in soil Maintaining soil health Further building the infiltrate and store losses and increasing for water benefits scientific evidence more water resulting nutrient retention in requires partnership base around the link in reduced flood and soils benefits water with local communities between soil health, drought risks and quality and downstream and land managers who and water would help improved water quality water infrastructure, have invaluable local build awareness and downstream. users and ecosystems. knowledge and skills. capacity for investing in soil management for water.
Building the business case
Agribusinesses, businesses with soil underpinning the supply chain RELEVANT (e.g. food, fibers, biofuels, fashion industries), water utility companies, water-intensive BUSINESS industries (e.g. energy generators, mining and manufacturing) and businesses SECTORS exposed to flood risks.
Reducing water scarcity through soil management can improve crop productivity, increasing revenues for agri-businesses. REVENUES Healthy soils can improve crop quality and value in supply chains.
Cost savings on irrigation can be made through soil management for water scarcity. Reducing erosion in catchments increased longevity and reduced maintenance costs COSTS of energy and water infrastructure. Improving soil health and reducing water quality issues reduces costs of water treatment.
Investing to improve water retention in the landscape can alleviate wider water RESILIENCE scarcity risks and flood risks.
Poor soil management can lead to sediment and nutrient loss and damage to waterways and biodiversity, increasing the risk of damage costs, reputational loss, and loss of license to operate for businesses. REPUTATION Acting to improve soil health in watershed partnerships improves stakeholder relations and enhances license to operate.
Increasing soil health and reducing soil erosion for water quality and availability benefits also supports crop productivity and can lead to soil carbon gains and CO-BENEFITS enhanced biodiversity. There are considerable gains for civic amenity, recreation and tourism from improved waterways management.
The Business Case for Investing in Soil Health 14 The Business Case for Investing in Soil Health 15 3 Climate change mitigation Framing the issue The upper meter of the world’s Avoiding emissions associated with Measuring and verifying changes in soils contains about three times agriculture is key as agriculture is soil carbon stocks currently presents as much carbon as the world’s responsible for up to 25% of GHG challenges, but business solutions vegetation and almost twice as emissions, which includes indirect are being developed and trialed much as the atmosphere (14). emissions due to land conversion (see Investment in action). The rates Even proportionally small changes (17). Investing in soil health to of changes in soil organic carbon in the amount of soil carbon could maintain agricultural productivity are slow, 10-20 years, and stocks are have large effects on the carbon (see Chapter 1) may reduce further spatially variable so that detection land conversion into agriculture of changes in carbon stocks following dioxide (CO 2) concentration in the atmosphere with resultant impacts and associated losses of GHG (18). modified management practices on the rate of climate change (15). 3 Emissions can also be avoided requires measurements to be The importance of maintaining in field by reducing tillage, cover made over many years. Further, soil carbon stocks for mitigating cropping, agroforestry and nutrient the capacity of soils to store greenhouse gas emissions, management. Careful management carbon, at least of stabilized carbon, adapting to climate change and in forestry activities can also help is not infinite and the scale of contributing to food security is maintain and build stocks of soil opportunity varies with soil type recognized in the SDGs and in the carbon, avoiding unnecessary and management practices (20). Paris Climate Agreement (16). losses during harvest and potentially It’s essential to consider the impacts increasing the rate of forest regrowth of management practices on all Soil health can contribute to and carbon sequestration (19). greenhouse gases. That includes climate mitigation by helping avoid methane emissions, predominantly greenhouse gas (GHG) emissions Increasing global soil carbon stocks from animals, rice and peat wetland and/or by increasing the total amount to help mitigate climate change systems, and nitrous oxide emissions of carbon in soils, removing CO 2 from is gaining global attention, as from the soil after additions of the atmosphere. demonstrated by the 4 per 1000 organic and inorganic fertilizers. initiative launched as the COP21 in Paris in 2015. As mentioned Maintaining or increasing soil above, global soils contain two to organic carbon as part of climate three times more carbo than the action provides many other benefits, atmosphere. If this carbon level was such as increasing the resilience increased by 0.4%, or 4‰ per year, in and sustainability of agricultural the top 30-40 cm of soils, the annual production, stabilizing crop yields,
increase in CO 2 in the atmosphere and providing other associated would be stopped. ecosystem services (21).
3 Soil carbon stocks depend on the balance of carbon inputs - principally from photosynthesis as plant inputs but also from manure – and
carbon losses - from erosion, dissolved carbon in water flows and CO2 released from soil respiration. Climate and management can alter the size and relative contributions of these inputs and outputs and thereby change soil carbon stocks.
The Business Case for Investing in Soil Health 16 Investment in action environmental and climate compatible agriculture (ECCAg): Yara:example of smallholder maize production in Tanzania
Maintaining the productivity of maintaining soil quality and reducing farmer practice, however, lead to existing cropland is important for GHG emissions in smallholder maize continuous expansion of cropping sustainable farm businesses and farms in the south-western highlands area in order to keep up with the value chains, but is also key for of Tanzania. Initial soil analyses increasing demand. If the additional climate. Keeping soils productive confirmed deficiency of multiple yield obtained in the ECCAg helps avoid cropland expansion and nutrients including phosphorus, treatment need to be produced with land use change and associated sulphur, boron and zinc. The ECCAg current low-yielding farmer practice, negative consequences, including project applied a tailored fertilizer more cropland is required and the GHG emissions. This issue is program for maize at five smallholder GHG emissions caused by the land particularly important in sub-Saharan farms during four growing seasons use change outweigh the fertilizer Africa, where soil nutrient depletion (2011-2014) in comparison with emissions by far (4-12 times). Also in due to long-term cropping without common farmer practice. economic terms the investment in appropriate replacement of nutrients soil fertility through balanced fertilizer removed from soil by harvested crops The improved program increased use pays off. The ECCAg treatments has caused severe soil degradation, maize yields on average by 83% with were on average about two times soil acidification and carbon loss. a mean grain yield of 5.9 tons/ha in more profitable for the farmer than Numerous studies and soil analyses the ECCAg treatment compared to current farm practice. confirm the severity of soil nutrient 3.2 tons/ha with farmer practice, depletion. which is already two times more than Meeting the food demands of the national average yield of Tanzania’s projected 2050 population These soils can be returned to a 1.6 tons/ha. The balanced mineral of 130 million people will either healthy soil status through a balanced fertilizer application improved require 9 million ha of additional fertilization of all plant nutrients plant growth and produced more maize land, or increasing crop yields required by the crop in combination plant residues available for nutrient on existing land to 5-6 tons/ha. with best agronomic practices such recycling and soil organic matter This study confirms that a strategy as liming and the addition of organic improvement. GHG emissions were to improve balanced fertilization material when available. A public- calculated including the production has substantial benefits for GHG private partnership “Environment and supply of farm inputs e.g. emissions above a low-intensity and Climate Compatible Agriculture” fertilizer. GHG emissions per field agricultural farm management (ECCAg) was set up to demonstrate increased with higher fertilizer use. approach. the importance of balanced Low yields with current fertilization for restoring and
The Business Case for Investing in Soil Health 17 Soilkee soil carbon solutions Corporatefor mitigating Carbon: climate change in Australia
Soil organic carbon is directly related Reduction Fund provides up to 10 root biomass from planted annuals to agricultural productivity – year offtake contracts for carbon improve soil organic matter and assist the higher the soil carbon levels, credits from projects such as soil with water retention nitrogen fixation the greater the productivity. This is carbon, effectively de-risking the from planted legumes increases a function of soil carbon improving market side of a business value nitrogen availability for plants. water holding capacity and nutrient proposition. availability for soils, in addition The advantage of Soilkee is that it to improving conditions for soil We have invested into pasture provides a programmable ‘treatment’ biological activity. There are a number cropping projects in Victoria Australia program for farmers to follow with of active management practices that using a new invention call the measurable results. Furthermore, can build soil organic carbon levels Soilkee Renovator. Soilkee provides growing additional feed has benefits and deliver soil carbon credits. a combined cultivation, aeration for any farming systems operating and multi-species seeding solution under a certification program such Australia currently holds a unique to improving grazing systems. It as organic or biodynamic in that M-M-M global position with regards works through activating a number it removes the risk of requiring to soils in that it has the measurement of virtuous cycles: partial cultivation additional off-farm inputs that also platform, mechanisms and market of 17 % of the treated area down to need to be certified. to make soil carbon commercially 75mm creates an initial mechanical viable. The Measurement of Soil intervention to improve water The first project using the Soilkee Carbon Sequestration in Agricultural infiltration partial green manuring system has gone through an audit Systems method establishes a soil effect provides soil microbiology under the grazing method of the carbon sampling and measurement with an additional food source and Australian Emissions Reduction basis for projects across all areas of improves activity mixed species Fund and showed a measured sequestration increase of 11.2 tCO e agriculture, including grazing, dryland planting of winter growing plants 2 cropping, horticulture and viticulture. provides additional forage for per hectare over a 12-month period. There are also an ever-increasing livestock the ‘salad bowl’ created The intention is to take this result and number of soil innovators by the mixed species plantings also replicate it with another 200 projects demonstrating mechanisms to improves animal nutrition by providing to be registered over the next 24 build soil carbon. Furthermore, the a greater range of feed options months, and then to continue scale Australian Government’s Emissions for livestock to select additional up in other countries.
The Business Case for Investing in Soil Health 18 Main takeaways
1 2 3 Soil health can help Increasing the soil Prioritizing the development mitigate against climate organic matter content and implementation of change by providing of agricultural soils for approaches to measuring avoided emissions and mitigating climate change and verifying changes negative emissions. is a win-win option for in soil carbon stocks farmers and value chains: opens up opportunities building soil organic matter for insetting or offsetting increases productivity corporate carbon and resilience to climate emissions. change.
Building the business case
RELEVANT Agribusinesses and businesses with soil underpinning supply chains BUSINESS (e.g. food, fibers, biofuels, fashion industries). SECTORS
Any business can invest in soil carbon sequestration. Climate change is a major REVENUES global threat to businesses, economies, ecosystems and society.
Climate change is a major risk to businesses and society. Negative emission technologies are vital to meeting the Paris Agreement and keeping global RESILIENCE temperature increases to below 1.5°C and soils are a nature-based opportunity for helping achieve this.
Managing carbon in soils is an important component of corporate
responsibilities on climate. Unsustainable soil management results in CO2 losses from soils, whilst investing in soil health can sequester carbon, mitigating climate REPUTATION change. Current carbon accounting.
Improving soil organic matter can create a range of other benefits including CO-BENEFITS increased soil fertility and crop yields, improved water retention and quality, and biodiversity.
The Business Case for Investing in Soil Health 19 4 Biodiversity and conservation Framing the issue More than a third of the earth’s total Nutrient and sediment runoff from Soil biodiversity can also directly land area is used for agriculture agriculture and, to a lesser extent, benefit agriculture and forestry. and grazing, with agricultural land forestry threaten aquatic life in Healthier, more biodiverse soils conversion and intensification water bodies worldwide. Agriculture support mycorrhizal networks crucial constituting a grave threat to is responsible for more than 50% to plant health and host beneficial biodiversity (22). Unsustainable of the nitrogen and phosphorus organisms that can suppress forestry activities can also pose a delivered from land to ocean globally soil-borne diseases and pests (31-33). threat to biodiversity (23). (26), contributing to hundreds of This can reduce yield losses while At the same time, biodiversity - or “dead zones” affecting more than also enabling reduced use of at least certain species groups - 200,000 km2 of the planet’s seas pesticides. The connections between play a critical role in agriculture and (27). Investing in soil health can soil management, soil biodiversity, forestry, providing pollination, pest increase infiltration capacity, improve and disease and pest suppression and disease suppression, nutrient soil structure, and enhance the merit additional research to better cycling and other services integral ability of soils to retain nutrients, understand the mechanisms and to sustainable production (24). delivering crop and water benefits conditions whereby soil biodiversity Investing in soil health can help (28) (see chapters 1 and 2) and can deliver beneficial ecosystem reduce the environmental impact of reducing pollution pressures on services (34-36). Finally, biodiverse agriculture and forestry, sustain and aquatic ecosystems. In agricultural soils act as a repository of genetic even increase productivity and in landscapes, investments to mitigate diversity, sustaining forms of life that turn reduce pressure on the planet’s soil erosion, nutrient loss and in addition to their own intrinsic value biodiversity (25). maintain soil health (e.g. planted may prove beneficial to society in the buffers, grassed waterways or future as a source of medicine, crop shelterbelts) can simultaneously protection, or other uses. support biodiversity by increasing landscape heterogeneity (29). Field Climate change is a major threat to margins and buffers also provide biodiversity and mitigating climate habitat for pollinators and pest change with soils potentially reduce predators that benefit agricultural biodiversity loss (see Chapter 3). production (30). While there is considerable potential to improve soil health and contribute to the sustainable intensification of agriculture and forestry, the implications for biodiversity remain uncertain. Increasing yields and efficiency do not guarantee that intact forests and savannahs will be spared from land conversion – intensification must be paired with policies and programs for conservation (18). This is especially the case because many of the environmental benefits of soil health are not reflected in the price paid for products (i.e. they are externalities, such as carbon sequestration, nutrient management) and do not directly deliver an economic return to producers (25).
The Business Case for Investing in Soil Health 20 Investment in action working with farmers to reduce erosion, Syngenta:protect soil, and improve biodiversity in olive orchards
With the launch of the Good Growth Additionally, vegetative covers can This success resulted from a multi- Plan in 2013, Syngenta committed to benefit biodiversity by providing food stakeholder initiative that included improving the fertility of 10 million ha and shelter to soil micro- and macro- work on demonstration farms as of degraded farmland by 2020. 4 The fauna. The reduced soil temperature well as field days showcasing the company has subsequently worked can help some pest-predating insects advantages of vegetative covers in with partners to develop and promote and parasitoids flourish in the soil. 8 real conditions. Local environmental local solutions farmers could easily Finally, cover cropping helps increase subsidies linked to the region’s adopt. One early success was in soil carbon sequestration. rural development plans were also Andalusia in Spain, where the company leveraged.9 Partly due to the success supported olive farmers in adopting Building on this success, Syngenta of this project, there are now vegetative cover in their orchards. started the “Multifunctional Covers” 838,000 ha of cover crops in Spanish (MFC) campaign. MFCs, which olive orchards, representing nearly a Olives for oil production are one integrate flowers into cover vegetation, third of the crop in Spain. of Spain’s most important crops, also provide nectar sources for accounting for 45% of global pollinating insects. More than a production. Andalusia has hundred farmers are participating in 1.6 million ha under olive cultivation, the initiative, supporting agricultural producing nearly a third of the world’s biodiversity enhancement. olive oil.
Approximately 40% of Spanish olives (> 10%) are grown on steep slopes, traditionally with bare soil, resulting in high rates of soil erosion that can approach 100 tons ha/year.5
Syngenta partnered with Asaja Sevilla (a farmer association), the Andalusian environmental authorities and a group of producers to introduce vegetative ground covers. The practice helped producers reduce erosion by up to 70% by replacing bare ground with vegetation and improving soil water-holding capacity.6, 7
4 Four years into the soil commitment, we have implemented 157 projects in 41 countries, benefiting a total of 7.5 million hectares: Rescue more farmland commitment of The Good Growth Plan. 5 Traditionally olives were planted in the least productive plots, while the more productive fields in the valleys and plains were dedicated to extensive crops like cereals or sunflower. 6 Vegetal covers can reduce the loss of soil in the Andalusia region by up to 70% and erosion up to 95%, depending on the extent of cover adoption and site conditions. 7 In general, cover cropping protects the soil from erosion and direct sunlight, reduces soil-based water evaporation and field run-off of sediments and chemicals that can contaminate local water bodies. 8 For example Chrysoperla, a very efficient predator of Prays oleae (one of the most devastating olive pests) is found under vegetal cover. 9 The Regional Government of Andalusia through their rural development plan, offers a subsidy “sustainable systems in olives” to promote cover cropping.
The Business Case for Investing in Soil Health 21 investing in soil health and biodiversity Mondi:to create sustainable forestry landscapes
More recently, the collaboration has In South Africa, Mondi manages While this research is ongoing, early started to investigate the role of soil large plantations interwoven with findings suggest: conservation corridors and nodes health in plantation landscapes. The of natural habitat. The management aim is to understand how different 1. that soil fauna recover rapidly after of this mosaic – what Mondi calls harvesting and silvicultural practices restoration of soils, impact soil biodiversity, on the premise “ecological networks” – is central 2. that control of alien, invasive that soil biota are essential for soil to protecting biodiversity and the bramble (Rubus spp.) is critical to health and long-term production. ecosystem services that sustain long- protect soil fauna and pollinator term productivity. This work tests two assumptions: habitat (47) and Mondi has cooperated with 1. that high levels of biodiversity in 3. that small and large corridors of Stellenbosch University for more native habitat are important for than 10 years to understand how native habitat can benefit soil health in adjacent plantation areas, and sustaining beneficial species, such biodiversity can be conserved in as dung beetles, butterflies and ants ecological networks (37). 2. that careful management of logging (42). This research has revealed how residue can minimize forestry maintaining areas of biodiverse native impacts on soil health. Ongoing research also aims to assess habitat, as well as appropriate grazing the impact of plantation management and fire management practices, can One of the most important measures on soil fauna recovery, arthropod conserve biodiversity and ecological to ensure sustained productivity is the diversity, leaf litter detritivores, function, while supporting the conservation of organic matter. Fine water stress and soil formation. This ecosystem services necessary for biomass residue is an essential organic innovative partnership between a long-term plantation productivity matter input. However, fine biomass is public research university and a private (38-46). The findings informed Mondi’s also fuel. If managed carelessly, it will multinational will hopefully shed light Working Forest Concept, launched in burn in a wildfire and cause significant on how plantation forests can integrate 2016. damage to the stand and to the natural native habitat and new management environment through impacts on practices to build soil health and species habitat, oxidation of organic protect biodiversity into the future. matter and increased erosion and sedimentation.
The Business Case for Investing in Soil Health 22 Main takeaways
1 2 3 4 Soil degradation has Maintaining and improving Healthy, biodiverse soils The science of soil consequences for soil health and reduce can reduce costs by biodiversity is rapidly biodiversity as it drives land conversion, pollution limiting the need for soil evolving. Proactive land degradation and and biodiversity loss amendments. attempts to maintain conversion, pollutes can benefit farmers, and improve soil waterways, contributes agribusiness, and biodiversity can limit to climate change, farm communities by unpleasant surprises to and decreases soil maintaining agriculture’s farmers, agribusiness, biodiversity. social license to operate. and society.
Building the business case
RELEVANT Any sector can invest in soils to maintain and enhance biodiversity. BUSINESS Global biodiversity loss is a threat that affects us all. SECTORS
Proactive efforts to manage for biodiversity can help producers and agribusiness REVENUES maintain their social license to operate thus maintaining revenues.
Pressure to protect biodiversity (including soil biodiversity) in working landscapes may impose new costs. COSTS Management practices that sustain and enhance soil health and biodiversity may allow for greater cost efficiency by limiting inputs needed to maintain yields.
Development and promotion of management practices designed to protect soil biodiversity may help avoid unnecessary and unanticipated impacts to a complex, RESILIENCE poorly-understood system.
Conservation of ecosystems and biodiversity is of reputational value and driving REPUTATION losses forms a significant reputational risk.
Management practices that sustain and enhance soil biodiversity may contribute to higher and/or more stable yields, as well as co-benefit neighboring communities and CO-BENEFITS the general public in the form of carbon sequestration, water purification, and flood attenuation.
The Business Case for Investing in Soil Health 23 5 Supporting livelihoods with soil health Framing the issue Negative impacts of declining Soil degradation is not only an To create synergies between soil soil health on livelihoods are issue for smallholder livelihoods, health and livelihood benefits it’s also most prominently felt by millions however. Inadequate care for soils in crucial that technology choice and of smallholder farmers in the intensive agriculture has long been service support are tailored to the developing world who depend on masked by using significant inputs social and cultural context. What works low-input agriculture due to resource of commercial fertilizers, pesticides well in one context may not in another. constraints. Here, poverty can be and fossil fuels, and awareness is Some options for increasing soil seen as both a cause and effect of growing that soil health is declining health can offer double wins in terms environmental degradation (48). along with ecosystem services that of farm productivity and resilience and Declining soil health and productivity depend on it. With stricter regulation economic resilience. For example, due to degradation of smallholder on the use of agrochemicals in recent management technologies that farmland is a major threat to food and years (e.g. in the European Union) integrate crops, trees and livestock income security. It also makes rural farmers increasingly emphasize that can improve resilience to production people more vulnerable to impacts of investments in soils are needed to and market risks through product climate change (49). sustain what they perceive as the diversification (52). “foundation of their livelihoods”. Farmers and business investors Factors that determine whether need to be prepared to choose, improved soil management practices learn and adapt in participatory result in livelihood benefits are ways, in order to adapt management diverse and context specific (50) practices to their production systems (48). Availability of land or labor, land and socioecological context (51). tenure and market access affect Adequate technical support and farmers’ motivation and capacity to follow up is critical and coordinated invest in soil health, as well as the efforts among farmers and other local level of awareness of long-term soil- actors may be needed to maximize productivity relationships or access positive impacts across spatial scales to technical support and extension e.g. on soil and water conservation services. Moreover, investments (53). That way, positive impacts on in soil health do not always lead to soil resources and livelihoods can be immediate economic returns but achieved simultaneously, in the short may take several years to show and longer term. measurable effects (51).
The Business Case for Investing in Soil Health 24 Investment in action improving livelihoods and Olam:sustainable business
Agricultural production and sourcing Unilever Foundation, Solidaridad and Olam increasingly adopts digital tools operations are at the core of Olam’s New Holland. In its first phase to track and tailor farmer practices global agri-business. Promoting (2013-16), the program reached and progress across numerous crops. sustainable agriculture is key to 21,500 smallholders cultivating Data generated reveals that the improving livelihoods and business 20,500 ha of sugarcane. The second bottom 50% of the farmer community success, and customers are phase (2017-20) is reaching 26,500 supplies less than 15-20% of the trade increasingly demanding sustainable growers managing 27,000 ha. Farmers volume, mainly due to farm size. produce. Olam therefore aims to are trained on practices to improve lead the shift towards optimized soil health including the use of organic Unfortunately, many farmers in this fertilizer use and away from resource inputs and fertilizers. Whereas soil bottom group have very limited extraction and aim for net positive health is considered the foundation resources, ambitions or time to invest impact at scale, based on the creation for productivity improvement, in soil health. Their small plots and low and restoration of natural and social farmers also get exposed to improved yields make cash credits risky. Olam’s capital within living landscapes. crop varieties, novel row spacing, farm support tools (OFIS) focuses on companion cropping technologies, stepwise improvements within farmer Investing in soil quality is key to and improved irrigation and water limitations, but (public) partnerships simultaneously improve water use conservation technologies (e.g. crop are often required to support this efficiency, improve crop productivity, mulching). Through the program, use bottom segment to generate farmer income, livelihood, trade of organic inputs more than doubled additional income outside the farm. volume and quality. An example and crop yields increased by more is Olam’s Sustainable Sugarcane than a third. Total crush volume of the Programme in Madhya Pradesh & sugarcane went up by 25% during the Maharashtra, India, running since 2013 first three years. with support from IFC, Hindustan
The Business Case for Investing in Soil Health 25 Main takeaways
1 2 3 4 Successful strategies Carefully design Careful scoping, Multi-stakeholder for improving livelihoods interventions to ensure diagnosis and approaches may be through soil health need short-term impacts and participatory design needed to achieve local adaptation and economic returns while may help to minimize synergies and sustainable experimentation that building soil health over risks of poor solutions across the enables farmers to make the longer term. technology uptake. landscape. stepwise progress as function of their objectives and resources.
Building the business case
RELEVANT Agricultural and soil supply chain companies (e.g. food, fibers, biofuels, fashion BUSINESS industries), particularly those reliant on smallholder farmers. SECTORS
Soil degradation leads to progressively lower yields or increased risk of crop failure with detrimental impact on livelihoods, food and income security, and REVENUES business relationships with buyers.
There are opportunities for business innovations (e.g. in finance, insurance, delivery FINANCE & of extension services, digital agronomy) to unlock the potential of smallholder INVESTMENT agriculture and facilitate investment in soil health and high-quality inputs that can benefit farmer livelihoods.
Building farm and landscape resilience to the impact of severe weather events RESILIENCE through soil health benefits local livelihoods and in turn business resilience.
Improving livelihoods through improving soils can lead to benefits for surrounding REPUTATION communities and improved relations with local stakeholders for businesses.
Management practices that sustain and enhance soil biodiversity may contribute to higher and/or more stable yields, as well as co-benefit neighboring communities CO-BENEFITS and the general public in the form of carbon sequestration, water purification, and flood attenuation.
The Business Case for Investing in Soil Health 26 6 Enabling environment - policy, finance and partnerships Framing the issue The 2030 Agenda for Sustainable challenging. This is in part due to high As land-use pressure continues Development through its target 15.3, risks caused by timing differences to grow with rising demands for for example, promotes achieving a between initial investments and food, the need for conservation, Land Degradation Neutral world, with cash flow generated by sustainable reduced soil degradation, and Soil Organic Carbon as one of the agriculture projects. This requires healthy soils becomes increasingly Such growing key indicators for monitoring. As of specialized financial structures that important (49) (2). demands on land require policies today, 119 countries have made the identify financial barriers and provide that balance environmental, social political commitment to translate this both tailored technical assistance and economic goals, constituting global goal into their national policy and repayment grace periods. one of the core challenges. With frameworks, set national voluntary the aim of creating more favorable targets and implement associated The promotion of public-private environments that facilitate progress measures with the support of the partnerships can play a key role in towards sustainable development, UNCCD Target Setting Programme unlocking investments for soil health. there is a range of factors that should (60). Rabobank and UN Environment be incentivized, including regulatory recently formed a public-private frameworks, access to financial Creating an atmosphere that partnership to address these unique support, and partnerships (54). attracts environmentally and socially challenges. Through a USD $1 billion responsible investment in soil health facility, the partnership finances The adoption of legally-binding is another important pillar. Private forest protection and sustainable regulatory frameworks on soil sector investment models are agriculture projects beyond what is protection have already been increasingly shifting towards more commercially viable. It identifies and implemented in some countries, sustainable production practices. minimizes barriers to sustainable including the Australia, Switzerland These trends can be further agriculture on existing degraded and the United States (55) (25). promoted by providing the right land, improving productivity and thus Encouraging regulatory frameworks economic incentives to agricultural avoiding deforestation. In 2017, the in the form of standards, labels, producers and consumers by Land Degradation Neutrality Fund and certifications have proved to means of market-based economic (LDN Fund) was launched with the reduce negative impacts on soil instruments (e.g. taxes, subsidies, support of UNCCD. The LDN Fund is (56). For example, the International permits, payments for ecosystem an impact investment fund blending Organization for Standardization services, etc.) (61) (62). Rewarding resources from the public, private developed standards for establishing innovators (including financial and philanthropic sectors in support good practices to combat land institutions and mechanisms) of achieving LDN. The LDN Fund degradation and desertification that lead the transition towards seeks to channel resources towards under ISO 14055-1 (57); whereas sustainable soil practices should land-based private sector projects Food and Agriculture organization be encouraged. contributing to addressing land of the United Nations (FAO) also degradation through sustainable land developed guidelines for Sustainable The role and aspirations of the management and land restoration Soil Management (58) and land tenure financial sector are also evolving projects (63). (59). as investors and savers demand their capital provide not only Other capital sources that could International agendas also support financial returns but also social and be further incentivized to invest stakeholders in mainstreaming soil environmental impacts. While some in soil include pension, insurance, into their decision-making processes, well-established managers of capital and sovereign wealth funds, public enabling environmental enrichment sources exist to finance land-based expenditures and foundations. at different levels. projects, attracting further capital for sustainable soil management remains
The Business Case for Investing in Soil Health 27 Investment in action
Midwestenabling soil Row health Crop through Collaborative partnership (MRCC):
The Midwest Row Crop Collaborative MRCC works to measure and deliver systems. Over 100 farms across 12 (MRCC) is a diverse coalition working improved environmental outcomes states conduct research on cover to expand agricultural solutions that at a meaningful scale throughout the cropping, nutrient management, and protect air and water quality and Upper Mississippi River Basin. The conservation tillage, and host field enhance soil health while meeting power of the MRCC collaborative lies days to share their learnings. This our global demand for food. Partners in bringing together thought leaders network leverages farmer knowledge span the food supply chain in both and investment to achieve scale. and relationships to influence change. the public and private spheres, SHP works to support farmers in including Bayer, Cargill, Environmental MRCC supports a major initiative better understanding how to be Defense Fund, General Mills, Kellogg by the National Corn Growers resilient in the face of climate change, Company, Land O’Lakes, McDonald’s, Association: the Soil Health and to potentially mitigate some of PepsiCo, The Nature Conservancy, Partnership, a farmer-led initiative the effects by promoting practices Unilever, Walmart and World Wildlife that promotes the adoption of soil that sequester carbon and reduce Fund. Working in three pilot states health practices to ensure productive nitrous oxide emissions. (Illinois, Iowa and Nebraska), the and sustainable agricultural
financial solutions for soil health Rabobank: Working directly on the farm allows As a member and co-chair of the The power of Soil Health Partnership the hurdles growers face to be WBCSD Climate Smart Agriculture supports its farmer focus through better understood. Along with working group, Rabobank has a strong science base. These two the added challenges of logistics joined the Soil Health Partnership themes function together, applying and the learning curve associated conversation as yet another important farmer knowledge, modern agriculture with the adoption of new practices partner to provide technical support tools and experience to meaningful that promote soil health, there are and explore potential financial on-farm research trials. The initiative economic barriers. Many sustainable solutions. A holistic vision of the entire also benefits from its ability to draw agriculture proposals are denied by supply chain and engagement with the from a variety of partner technical finance policies due to the longer-term Soil Health farmers is key to identifying experts and scientists. A regionally investment requirements and the and understanding the hurdles to focused, farmer-driven dialogue is perceived higher risk associated with adoption of soil health practices, crucial when it comes to developing the investment horizon. prioritizing their importance and systems-based solutions. Soil Health applying financial solutions. Partnership offers a strong case for the benefits of a regional scope when it comes to addressing global goals and challenges.
The Business Case for Investing in Soil Health 28 Main takeaways
1 2 3 Encourage public-private Support science-based Routinely incorporate partnerships that are crucial regulatory frameworks sustainable soil to support investment, that incentivize producers management into policy innovations and technology to adopt sustainable soil frameworks (considering and knowledge exchange management practices market-based economic around modern agriculture and guide consumers instruments) and create practices. to demand sustainably the appropriate institutional produced products. structures.
4 5 6 Stimulate good tenure and Elevate the significant, There are opportunities for governance that promotes long-term cost-saving business innovations (e.g. in equity and attracts long-term benefits of soil health finance, insurance, delivery sustainable soil investments. management practices, of extension services, digital Responsible governance catalyzing the opportunity agronomy) to unlock the of land tenure systems for the farm financial potential of smallholder leads to more sustainable system to collaborate with agriculture and facilitate and prosperous outcomes, farmers. investment in soil health and building stability, investor high-quality inputs that can confidence, and peace. benefit farmer livelihood.
The Business Case for Investing in Soil Health 29 Conclusions An investment in soils delivers to multiple priorities. This report has summarized The case studies demonstrate that benefits. For example, increasing soil the benefits that improving businesses are beginning to act. carbon sequestration for climate, However, scaling-up these initial increases soil organic matter which soil health can deliver for many investments and activities is a priority. can enhance water retention and of the priority challenges our filtration, help support biodiversity, global society faces. Acting Whilst each chapter has taken and increase crop productivity and one area of benefits as a focus, climate resilience, resulting in benefits now on soil health means and investments may be primarily for farmer livelihoods. acting on climate change, aligned with one of these areas biodiversity loss, food and (e.g. water scarcity), each chapter has also shown that an investment water security, and poverty. in soil health delivers multiple co-
The business case for soil health is built on multiple grounds. This report has demonstrated that or increasing revenues, reducing or The strongest business case will be the business case for investing in avoiding costs, enhancing reputation, built on both multiple arguments and soil health can be made on many or opening up finance opportunities. consider the range of co-benefits. arguments: on maintaining
Three strong messages that emerge from the chapters:
1 2 3 Investing in soil health is Investing in soil health is an The business case has relevant for a wide range of activity that safely provides already been made for some business sectors. Soil health positive returns. Crop companies. The range of increases resilience and productivity and resilience case studies provided by reduces key global risks such benefits were identified as businesses throughout the as climate change, water co-benefits to all investments. chapters demonstrates scarcity and biodiversity loss. Climate change is happening that investment is already It also opens up new finance and the severity of the impacts happening and returns are and innovation opportunities. remains uncertain. Land use being made. and water resource pressures are also rising. Building resilience to withstand the effects of climate change and other pressures makes good business sense.
The Business Case for Investing in Soil Health 30 Next steps for investing in soil health We recommend the below next steps for taking action in investment in soil health:
1 2 Lower the hurdles to practices Take advantage of the national that promote soil health context and act locally • Explore value-capture systems that provides • Check national soil health policies and national value to the grower, offsetting the initial cost in UNCCD commitments, for example Land implementing sustainable agricultural practices that Degradation Neutrality (LDN) baselines and plans, promote soil health. because alignment could open up financial options and technical support you can get for your projects • Develop scalable and transferable methodologies in-country. for assessing and improving soil health in smallholder agricultural settings as smallholders • Practices and frameworks should be adapted often face the hardest barriers to practice change. to geography as socio-economic pressures, local priorities and soil conditions vary regionally. • Encourage lease or concession conditions that Collaboration with scientists in developing offer a discount or rebate for improved soil health solutions is key. at the end of period.
3 4 Build partnerships for soil health Start now • Explore supply chain cooperation and spread • Innovate and pilot science-based solutions for costs and/or risks along the supply chain. integrating soils in reporting, accounting and supply chain assurance. For example, start by • Encourage public-private partnerships that support incorporating soil carbon into current carbon investment, innovations technology and knowledge accounting. exchange around sustainable agricultural practices that promote soil health. • Work to understand whether soil carbon sequestration could be a part of a corporate • Develop and engage in partnerships in local insetting strategy through pilot projects to assess landscapes with other sectors and actors when and enhance soil health on-the-ground. investing in soil health to benefit from local knowledge and ensure delivery of long-term • Set up cost-effective soil health monitoring early results with broad benefits. on for clear demonstration of results from soil health indicators that could also help unlock finance and support continual improvement.
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The Business Case for Investing in Soil Health 33 Acknowledgements services while addressing the risks Editorial committee Contributors and reviewers and challenges presented by climate Gerard Bos, IUCN Dhanush Dinesh CGIAR Climate change. Borne out of the Low Carbon Change, Agriculture, and Food Security Jessica Davies , Lancaster University Technology Partnerships initiative Research Programme (CCAFS) Deborah Bossio, The Nature (LCTPi), CSA is a value-chain project Conservancy (TNC) Mariko Thorbecke, Quantis that includes all players across the agri- food value chain, with the aim of scaling Matthijs Ewoldt Rabobank Group Alain Vidal, WBCSD , up sustainable business solutions that Louise Baker United Nations can achieve the ambition and enhance Sonja Vermeulen, WWF International , Convention to Combat Desertification the resilience of both landscapes and (UNCCD) communities. Find out more at https:// Authors Sasha Alexander, United Nations www.wbcsd.org/Programs/Food-Land- Gabriela Burian, Bayer Convention to Combat Desertification Water/Food-Land-Use/Climate-Smart- Jeffrey Seale, Bayer (UNCCD) Agriculture Matthew Reddy, WBCSD Matthew Warnken, AgriProve Mike Scarsbrook, Fonterra Co-operative Group Limited About the World Business Council for Sustainable Hayden Montgomery, Global Research Disclaimer Alliance on Agricultural Greenhouse This report is released in the name Development (WBCSD) Gases (GRA) of WBCSD. Like other WBCSD WBCSD is a global, CEO-led organization of over 200 leading Claire Chenu - AgroParisTech, INRA publications, it is the result of a collaborative effort by WBCSD businesses working together Jean-François Soussana, staff, experts, and executives from to accelerate the transition to a AgroParisTech, INRA member companies. A wide range of sustainable world. We help make our Mirjam Pulleman, Wageningen members reviewed drafts, thereby member companies more successful University & International Center for ensuring that the document broadly and sustainable by focusing on Tropical Agriculture (CIAT) represents the perspective of the the maximum positive impact for Rob Mikkelsen, International Plant WBCSD membership. It does not mean, shareholders, the environment and Nutrition Institute (IPNI) however, that every member company societies. Maria Carreno Lindelien, IUCN agrees with every word. Our member companies come from James Dalton, IUCN We wish to thank all of the individuals all business sectors and all major economies, representing a combined Claire Warmenbol, IUCN and organizations that have made valuable contributions to the revenue of more than USD $ 8.5 Amy Senter, Kellogg Company trillion and 19 million employees. Our (Kellogg’s) publication and its development. The development of this publication Global Network of almost 70 national Nipun A. Bhuyan, Mahindra & Mahindra has been led by the WBCSD Climate business councils gives our members Limited Smart Agriculture Group, Dr Jessica unparalleled reach across the globe. Denis Popov, Mondi Davies from the Lancaster University’s WBCSD is uniquely positioned to work with member companies along and Candace Laing, Nutrien Pentland Centre for Sustainability in Business overseeing the work as the across value chains to deliver impactful Piet Van Asten, Olam International lead editor (supported by the UK’s business solutions to the most Aukje Berden, Rabobank Group Engineering and Physical Science challenging sustainability issues. Hans Loth, Rabobank Group Research Council, EP/N030532/1). Together, we are the leading voice of Germán Canomanuel, Syngenta business for sustainability: united by International our vision of a world where more than nine billion people are all living well and Varun Vats, Syngenta International About the WBCSD Climate Smart within the boundaries of our planet, by Michael Wironen, The Nature Agriculture Project 2050. Conservancy (TNC) The Climate Smart Agriculture (CSA) project develops scalable low-carbon Pablo Muñoz, United Nations www.wbcsd.org Convention to Combat Desertification business solutions for food and (UNCCD) agriculture, under the ambition of Follow us on Twitter and LinkedIn. Ken Byrne, University of Limerick making 50% more food available by 2030 while producing 50% less GHG Dalma Somogyi, WBCSD emissions. Led by the World Business Credits Frank Brentrup, Yara International. Council for Sustainable Development Copyright © WBCSD November 2018 (WBCSD), CSA is designed to achieve sustainable agricultural development for food, feed, fiber, fuel, and ecosystem
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