How Plantations International is Combating Climate Change with Sustainable Agricultural Practices

How Plantations International’s Sustainable Agricultural Practices Benefit the Environment: We recognize that climate change is a serious issue that demands attention and action from the business community. Plantations International has set performance targets, and will continue to take actions to reduce greenhouse gas emissions from both direct and indirect business operations. We are committed to conducting our operations in accordance with applicable laws and regulations, and to engaging with industry and public stakeholders to develop responsible standards and voluntary initiatives that support this policy.

​There will be 9.6 billion people in the world by 2050, that will require more than 70% more crops than we have today. This combined with a reduction in arable land and the effects of climate change will result in sector over-performance. Agriculture has outperformed most asset classes throughout history, particularly on a risk basis when considering volatility. The NCREIF Index which is the world’s agriculture benchmark has yielded an annual return of 13.69% since 2000 with a standard deviation of only 7.58%. This far outperforms equities, real estate, bond and other asset classes. Performance is expected to improve further over the next decade due to strong demand supply fundamentals.

Food security is traditionally defined as food availability and one’s access to it. Over the years however the definition of food security has developed into more descriptive terms as its importance has risen. The Food & Agriculture Organization of the United Nations (FAO), the United States Department of Agriculture (USDA) and dozens of others today have their own interpretation of food security. Food security ought to be a priority for all countries, whether developing or developed. Although low levels of food security are commonly associated with poverty stricken countries they are also found in affluent developed countries as well. Food security rankings despite providing a decent gauge of performance are not without limitations. For example, some of wealthiest countries logically fare well in overall rankings as they have the capability and infrastructure to provide accessible, healthy food to their populations. Yet these high rankings dangerously mask their poor natural resources and resilience rank which measures food import dependency to a small degree. This raises the question, how can a country be food secure when they can be highly dependent on others for their food supply?

With offices, plantations, and representatives across Asia, Europe, and Africa, Plantations International is a multinational plantation and farm management company that specializes in providing sustainable agricultural and forestry or “agroforestry” management services for its clients. Plantations International has clients ranging from private individuals to large landholders and corporate investors. We put teamwork, innovation, and our passion for creating “Ethical & Sustainable Capital” at the heart of everything we do.

Caloric Requirements: Not only is world population growing, but its diet is changing too. As people become more affluent they start eating more food, thereby increasing the necessity for more supply. Food consumption, in terms of kcal/person per day has consistently risen throughout the world. It has increased from an average of 2,360 kcal/person per day in the mid-1960s to 2,900 currently. This growth has been accompanied by significant structural change. Diets have shifted towards more livestock products (meat and dairy), cereals (coarse grains, wheat and rice) and away from staples such as roots and tubers. Tubers include potatoes, sweet potatoes and yams. Roots include carrots and turnips. 1.4 billion hectares of land the equivalent of 28% percent of the world’s agricultural area is used annually to produce food that is lost or wasted. The total volume of water used each year to produce food that is lost or wasted (250km3) is equivalent to three times the volume of Lake Geneva.

Sea levels are expected to rise between 7 and 23 inches (18 and 59 centimeters) by the end of the century, and continued melting at the poles could add between 4 and 8 inches (10 to 20 centimeters). Hurricanes and other storms are likely to become stronger. Species that depend on one another may become out of sync. For example, plants could bloom earlier than their pollinating insects become active. Floods and droughts will become more common. Rainfall in Ethiopia, where droughts are already common, could decline by 10 percent over the next 50 years. Less fresh water will be available. If the Quelccaya ice cap in Peru continues to melt at its current rate, it will be gone by 2100, leaving thousands of people who rely on it for drinking water and electricity without a source of either. Plantations International is already seeing some of these changes occurring more quickly than they had expected. According to the Intergovernmental Panel on Climate Change, eleven of the twelve hottest years since thermometer readings became available occurred between 1995 and 2006.