Treat food system resilience as a strategic business imperative, says KPMG International

BL Mangaluru Bureau Updated - June 19, 2025 at 12:24 PM.

The convergence of climate risk, health burdens, and geopolitical volatility has made this imperative

The report stated that agriculture accounts for 80% of deforestation, 70% of freshwater withdrawals, and a one-third of global emissions. | Photo Credit: K K Mustafah

KPMG International has urged governments, corporates, and investors regardless of whether they operate within agriculture to rethink their relationship with food systems.

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In a report titled ‘Reimagining Global Food System Resilience’, KPMG International said the convergence of climate risk, health burdens, and geopolitical volatility has made food system resilience a strategic business imperative. Continued inaction could result in systemic failures, worsening inequality, and further biodiversity loss, it said.

Referring to food insecurity worldwide, it states that over 820 million people go hungry, while 30 per cent of all food produced is wasted. This is equivalent to 1.3 billion tonnes annually.

Mentioning that climate pressures are converging, the report said agriculture accounts for 80 per cent of deforestation, 70 per cent of freshwater withdrawals, and a one-third of global emissions. It said 50 per cent of the global population faces chronic or seasonal water shortages.

Perspectives featured

Though sustainable investment is projected to hit $53 trillion by 2025, yet most capital remains geographically concentrated and inaccessible to smallholders, the report said.

The report featured perspectives from over 200 global leaders across energy, finance, health, infrastructure, and food, all aligning on the shared imperative for immediate, coordinated action. More than 70 per cent of respondents ranked climate resilience and adaptation as critical to the future of the food system.

Anish De, Global Head of Energy, Natural Resources and Chemicals, (ENRC) KPMG International, said the line between food and energy systems is blurring fast. As countries try to decarbonise and secure energy supply, it’s clear these decisions directly affect food availability, affordability and sustainability. The need of the hour is joint planning and not isolated strategies, De said in the report.

10 strategic levers

Apurba Mitra, Partner, ESG and Climate Change Lead, KPMG in India, said: “Conversations around sustainable food systems often fail to address the needs of the most vulnerable. Food equity must be at the heart of ESG strategy – integrated with emissions and efficiency. True resilience comes from systems designed to support everyone, especially those at greatest risk.”

The report identified 10 strategic levers — from agricultural land use and water scarcity to capital flows and AI adoption — essential to building a food system that is resilient, inclusive, and sustainable.

The report introduced a cross-sector roadmap spanning climate adaptation, regenerative agriculture, AI-driven supply chains, financial innovation, among others. It also featured examples of ongoing global transformation, from low-carbon fertilizers and circular food models to sustainability-linked loans and biodiversity credits.

It urged business leaders to reassess how their organizations intersect with food systems, and to identify new roles in shaping their evolution.

Published on June 19, 2025 06:54

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