There is an urgent necessity to transition towards sustainable agriculture to address environmental degradation, biodiversity loss, and climate change, a paper by BNP Paribas Asset Management highlights. The limited availability of cultivable land, soil, and fresh water is increasing the challenge of food production. Therefore, innovation and investment are needed to ensure long-term productivity, reliability and environmental sustainability, the paper states.
“While technological advancements such as automation, genetic improvements and AI-driven farming can offer significant efficiency gains, they cannot fully overcome fundamental challenges related to water scarcity, extreme weather and soil degradation,” says Edward Lee, co-head of Environmental Strategies Group at BNP Paribas Asset Management, and adds: “However, within these constraints lie substantial investment opportunities.”
Read the full paper here.
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