Banks play a vital role in the food ecosystem: they provide the capital to finance input acquisition and working capital for farms. But they also have a responsibility in that their lending decisions can sustain operations that are more or less environmentally sustainable.
ESG concerns are becoming increasingly important in the financial sector, but ratings for such dimensions are hard to determine for farms.
Through its data sharing capabilities and its products, Varda hopes to support financial institutions in the identification of the underlying drivers that will help them reward nature-positive farming and extend more capital to such operations.
Insurance Companies also play a vital role in the food system in that they help farmers manage climate and other sources of risk. According to research, when farmers are insured, they tend to experiment more with new technologies that may have a beneficial impact.
A lot of the information that farmers generate for their fields can help better select pools of risk and develop new customized products for specific farmer segments, spurring innovation.
Varda believes that its tools and data sharing capabilities can help accelerate the development of new insurance products and innovation in the food system.