KPMG International Study highlights: Climate, Capital, and Collaboration Will Define Food System Survival

KPMG International has released a landmark report, titled – Reimagining Global Food System Resilience, urging global leaders and industries far beyond agriculture to recognize their critical role in transforming food systems. The report lays out a bold, cross-sector blueprint for addressing one of the 21st century’s most urgent challenges.

From Climate Shocks to Capital Flows: A Wake-Up Call for Business and Policy Leaders
The global food system — already responsible for 6 billion tons of CO₂ emissions annually — could reach 9 billion tons by 2050. Simultaneously, 820 million people face food insecurity, while 1.3 billion tons of food are wasted each year.

The report highlights  that continued inaction could result in systemic failures, worsening inequality, and further biodiversity loss. It identifies ten 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. It features perspectives from over 200 global leaders across energy, finance, health, infrastructure, and food, all aligning on the shared imperative for immediate, coordinated action.

Key Findings:

  • Food insecurity is rising: Over 820 million people go hungry while 30% of all food produced is wasted. This is equivalent to 1.3 billion tonnes annually
  • Climate pressures are converging: Agriculture accounts for 80% of deforestation, 70% of freshwater withdrawals, and a one -third of global emissions.
  • Water risk is intensifying50% of the global population faces chronic or seasonal water shortages.
  • Capital flows shape food futures: Sustainable investment is projected to hit US$53 trillion by 2025, yet most capital remains geographically concentrated and inaccessible to smallholders
  • More than 70% of respondents ranked climate resilience and adaption as critical to the future of the food system

10 Strategic Levers for Food System Resilience
The report introduces a cross-sector roadmap spanning climate adaptation, regenerative agriculture, AI-driven supply chains, financial innovation, and more. It also features examples of ongoing global transformation, from low-carbon fertilizers and circular food models to sustainability-linked loans and biodiversity credits.

Call to Action
KPMG International urges governments, corporates, and investors regardless of whether they operate within agriculture to rethink their relationship with food systems. With the convergence of climate risk, health burdens, and geopolitical volatility, food system resilience must now be treated as a strategic business imperative.

“The line between food and energy systems are 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,” said Anish De, Global Head of Energy, Natural Resources and Chemicals, (ENRC) KPMG International.

Apurba Mitra, Partner, ESG and Climate Change Lead, KPMG in India added, “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 highlights examples of transformative change underway, from controlled-environment agriculture and precision nutrition to regenerative farming and financial innovations like biodiversity credits and sustainability-linked loans. It urges business leaders to reassess how their organizations intersect with food systems, and to identify new roles in shaping their evolution.

 

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