4 Strategic Questions: Balancing Climate & Economics in Asia-Pacific Agri-Food Systems

As Asia-Pacific’s agri-food sector navigates the intersecting demands of climate adaptation, food security, and profitability, leaders in business, finance, and policy are being called to reconsider the foundations of value creation. A shift toward structured collaboration is opening pathways to new models of economic growth, strengthening resilience to systemic risk, and positioning enterprises as central actors in the region’s sustainability transition.

We asked thought-leaders from across the value chain, Asian Development Bank, Bayer Crop Science, Grow Asia, Harbest, Lever VC, FinDev Canada, and The Nature Conservancy to examine four critical questions at the nexus of climate ambition and economic performance, offering insights into how the region’s agri-food systems can navigate complexity while advancing sustainable growth.

Balancing the dual pressures of delivering on sustainability targets and meeting economic objectives

The traditional view that sustainability adds cost is increasingly obsolete. Today’s most effective strategies are those that integrate environmental and economic objectives - enhancing resilience, reducing risk, and unlocking new revenue.

Martin Lemoine of Asian Development Bank underscores the role of patient capital: “Investments driving sustainability typically have a longer payback period, whether in renewable energy, regenerative replanting, capacity building, or cold chain. Patient capital from development finance institutions, impact funds, or sovereign wealth funds can help companies take a long-term view.” He cites ADB’s mobilisation of USD 150 million to finance Thai Union’s work with shrimp farmers, aiming for 100% sustainability-certified shrimp in Thailand by 2030 – up from the current 11%. “While long-term and aspirational, this also makes business sense as clients and consumers need to manage their own environmental footprints.”

At Bayer Crop Science, Malu Nachreiner points to the Direct Acres programme in India and the Philippines as a model. The programme combines dry Direct Seeded Rice with climate-smart seeds, digital agronomy, and mechanisation. It has delivered up to 40% water savings, 45% emissions reductions, and 50% less labour, while improving farmer livelihoods and marketable yield. "Science helps farmers grow more with fewer resources - this is a systems solution, not a trade-off," she notes.

Grow Asia’s Beverley Postma adds that regenerative agriculture, focused on restoring soil health and biodiversity, has the potential to unlock USD 150 billion in annual value by 2030. When embedded in core business models, these practices deliver cost efficiencies, open premium markets, and improve long-term productivity.

Jessie Greene of FinDev Canada sees blended finance and local partnerships as critical levers to scaling such solutions: “Nature-based interventions may carry early-stage risk, but when aligned with climate action, gender equity, and market development goals, they become viable investment vehicles.”

Looking further downstream through a venture capital lens, Nick Cooney of Lever VC emphasises profit-aligned sustainability. Technologies like Melt&Marble’s fermentation-derived fats and Mission Barns’ cultivated fat platforms are helping APAC food manufacturers enhance product quality while meeting ESG goals. “Sustainability and margin growth are converging,” Cooney argues. “This is becoming a core competitive strategy.”

Navigating changing reporting requirements and steps to improve traceability and emissions reduction

As Scope 3 disclosures and emissions transparency move from being optional to necessity across Asia-Pacific markets, agri-food companies must evolve their approach to traceability and ESG reporting. Compliance alone is not enough as reporting needs to serve as a tool for risk management, operational efficiency, and brand trust.

Beverley Postma highlights the urgency: “One-third of all food is lost or wasted. Investing in digital traceability and AI isn’t just about regulation—it’s about reducing loss, increasing market access, and enhancing supply chain trust.” The global food traceability market is projected to double in size by 2033, with Southeast Asia poised as a key growth region.

Tommy Sekiguchi of Mitsui & Co. recommends a smart, scalable approach: “Full traceability to every individual farmer is often unrealistic. Companies should integrate area-based models like supply-shed or landscape sourcing, supported by AI and remote sensing.” He also stresses the importance of materiality-driven disclosures and aligning reporting with local frameworks.

Nick Cooney echoes this sentiment with examples like HerdDogg, which provides IoT-based livestock monitoring across APAC cattle supply chains, offering real-time, auditable data on animal welfare and carbon intensity. Similarly, Boston Bioprocess enables process-level emissions tracking for alternative protein and ingredient brands.

The strategic takeaway: embed traceability into operations, not just as a compliance function, but as an infrastructure for growth and risk reduction.

Science and technology supporting companies’ sustainability ambitions

Innovation in biotech, digital platforms, and data analytics is rapidly transforming sustainability from a boardroom vision to field-level execution.

Grow Asia’s Beverley Postma highlights the role of farmer-centric tech design. Through GrowVentures, the organisation is investing in tools that combine local knowledge and AI, enabling smallholders to adopt climate-smart practices while offering businesses the ability to track and verify sustainability outcomes.

For Bayer, the integration of digital farming tools with “seed technology and mechanisation” is at the heart of their DirectAcres approach. “These solutions deliver measurable climate impact, increase resource-use efficiency, and reduce costs - making sustainability operational and scalable.”

Tommy Sekiguchi sees remote sensing, satellite imagery, and AI-enhanced supply chain analytics as transformative. “These tools allow businesses to visualise emissions, human rights risks, and biodiversity impacts in near real-time, enabling more responsive management.”

From the Philippines, Julius Barcelona of HARBEST points to the promise of circular economies: “Conversion of agricultural and food waste into fertiliser for crops and feed for animals is a cost-effective, resource-light way to handle waste. Meanwhile, diagnostic tools can help identify correct fertiliser application rates, reducing dependency while increasing yields.”

On the investor side, Nick Cooney identifies biological and manufacturing innovation as major levers. For instance:

NuCicer is using non-GMO breeding to create chickpeas with 75% higher protein, reducing land, water, and fertiliser use. Boston Bioprocess offers low-CapEx biomanufacturing options for sustainable ingredients, enabling APAC brands to access next-gen fermentation without building costly infrastructure.”

The key for leadership is to invest in tools that bridge ambition and execution and to ensure innovation is scalable, measurable, and embedded into core business functions.

Shifting mindsets, investment, and collaboration to scale the impact of sustainability programmes in the region

Strategic transformation won’t come from incremental change, it requires a fundamental shift in how agri-food systems are financed and governed.

Beverley Postma argues for a blended finance model that enables co-investment across the public and private sectors. “We need inclusive innovation — solutions co-designed with farmers, off-takers, and investors, supported by capital that shares the risk of early adoption.” This ensures that sustainability is not only scalable but also farmer-owned and market-aligned.

Lemoine reinforces this with a financial lens: “Patient capital enables long-term strategies. Without it, companies may be forced to choose short-term profit over sustainability. Aligning financing with long-term sustainability outcomes is key to systemic change.”

Su-E Yap of The Nature Conservancy emphasises localisation: “The challenges may be global, but solutions must be rooted in local biophysical and policy contexts. Global blueprints won’t work unless adapted to regional realities.”

Sekiguchi offers a strategic progression for executives: “Start with multi-stakeholder collaboration across business, finance, and government. Shift consumer mindsets toward ethical consumption to build demand. Scale sustainable investment, enabled by regulatory alignment and international cooperation.”

Cooney adds that real scale will only happen when we move beyond consumer products to infrastructure-layer innovation. “Technologies like Flox AI for animal monitoring and Bond Pet Foods for alternative proteins in pet food need early alignment with regulators, contract manufacturers, and local buyers.”

Barcelona calls for breaking down ideological silos: “We tend to think in absolutes — ‘organic’ versus ‘conventional’ farming. I use principles from across the board where they make sense. Sustainability isn’t a finish line, it’s a feature you actively maintain. Ideological purity doesn’t give us the space to have the conversations and take the actions needed.”

Ultimately, the mindset shift for decisionmakers is that sustainability is not a trend, it's a business model. Scaling its impact requires aligning innovation, policy, and investment toward systemic transformation, not siloed solutions.

To achieve climate ambitions and economic growth goals, collaboration is essential. The Asia-Pacific Agri-Food Innovation Summit provides a critical platform for leaders across the value chain to come together, share actionable insights, and forge partnerships that will drive sustainable transformation in the region’s agri-food systems. Join us to be part of shaping a resilient, climate-smart, and economically resilient sector.

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