Farms with strong natural capital baselines are more resilient to climate and market shocks.

Rikki Stancich, Partner, Climate & Sustainability at Deloitte says a study of 113 Australian farms, led by Meat & Livestock Australia, shows natural capital is positively correlated with production efficiency, gross margin and EBIT.

“Natural capital, when it’s in a healthy state, can provide quite profound financial benefits at no or very little cost to businesses or farmers,” she says.

Banks and insurers interviewed for the Deloitte and BNZ report view them as better risk managers, she says.

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