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South-east Asian food companies risk loss of investments, higher capital costs amid rising ESG demands

Uma Devi
Published Wed, Aug 17, 2022 · 05:50 AM

FOOD producers in South-east Asia are facing greater pressure from markets and regulators amid rising concerns about environmental, social and governance (ESG) factors, market watchers say.

Those that fail to address those concerns could lose potential investors and face higher costs of capital.

“Food really is the next oil, and that’s something that is coming across from very different stakeholders,” said Alvaro Vivanco, head of emerging markets and ESG strategy at NatWest Markets.

A study last year published in the journal Nature Food estimated that global food systems were responsible for 34 per cent of greenhouse gas emissions in 2015.

Yet, some studies suggest that many food producers have…

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