Action needed to strengthen commodities market

EARTH SECURITY GROUP is calling for international governments and businesses to work together to guard against ‘far-reaching instability’ in developing countries.

 

Foodservice Footprint P5 Action needed to strengthen commodities market Foodservice News and Information Grocery sector news updates Out of Home sector news  The 2015 Earth Security Index Earth Security Group Alejandro Litovsky

 

 

 

 

 

 

 

 

The group has published a report that argues that competition for key resources, and increased sustainability pressures in the global commodities market could derail investment and development goals, if action is not taken.

 

The organisation claims that a series of cross-border sustainability issues are converging, that will undermine the pace of growth in emerging economies. To deal with these greater levels of business diplomacy and a step-change in innovation is needed, the organisation argues.

 

The 2015 Earth Security Index analyses seven commodity markets, including oil, gas, rice and coca, and identifies actions that the largest companies in Asian, African, South American and Middle Eastern markets can take to strengthen resilience.

 

Alejandro Litovsky, CEO of the Earth Security Group and author of the report, said, “Beyond a common appreciation of commodity ‘super cycles’, analysts and investors should be aware that future disruptions in the global supply of resources will be linked to slow-burning sustainability pressures. Governments and businesses must anticipate these risks and cooperate across national borders to promote strategic investments in sustainability and resilience.”

 

The findings suggest there are “significant public private investment opportunities” that exist in building resilience, including sustainable technologies and infrastructure. Such investments will help multinational companies manage their exposure to resource risk whilst underpinning development goals.

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