ASX: JZRO

Can we feed the planet and still hit net zero?

ASX: JZRO

Can we feed the planet and still hit net zero?

Introduction

In an urgent bid to address the agriculture sector’s carbon footprint, while balancing the needs of feeding the global population, a wave of innovative solutions and technologies are quickly emerging.

Two billion more people to feed between now and 2050

With population growth showing no signs of abating, the race is on to meet the demand for food without adding to the already significant emissions footprint of the global Agricultural sector.

Decarbonising global food systems

The chart below depicts the number of kilograms of carbon dioxide equivalent (CO2e) needed to produce a single kilogram of food by category. While beef is incredibly emissions-intensive, this issue and others like it are being tackled by agricultural innovation and changing practices. Meanwhile, increased production of alternative proteins, greater availability of fresh produce and changing diets to reduce meat consumption are helping to address the total emissions related to food production.

Chart 1: GHG intensity of various foods, (kg of CO2e per kg of protein)

Reimagining agricultural practices

Reducing food system emissions will require change on various fronts. When it comes to agriculture specifically, optimising the animal feed mix, crop rotation strategies, and improving fertilising practices are just a few ways that can help.

Additionally, an explosion of new ‘agtech’ innovations are already making a material difference, including:

  • Better plant genetics to increase crop resilience.
  • Using big data, IoT and AI technology to monitor soil moisture and nutrient composition.
  • The use of drones to deliver precision fertiliser or pesticide programs.
  • Robotics to aid crop harvesting.

Invest in the transition to net zero

Our new active ETF, the Janus Henderson Net Zero Transition Resources Active ETF (Managed Fund) (ASX:JZRO) offers access to this multi-trillion dollar investment thematic. It can invest in companies worldwide that are enabling the transition to a net zero carbon emission future, including those within the sustainable agriculture sector.

Learn more 1. Farming for the Future, PWC. March 2022.
2. Agriculture and Climate Change, McKinsey.
3. The future of food and agriculture – FAO, United Nations.
4. Agtech market review – Global Banking and Finance Review.