3What it takes to invest: key considerations for scaling capital The transformation of food systems offers a significant opportunity for commercial capital to unlock new markets, generate additional revenue streams and enhance the resilience of investment portfolios. However, achieving scale and delivering commercially sustainable impact often requires a tailored approach, underpinned by clear targets, new capabilities and a willingness to embrace bold, strategic decisions. There is no universal blueprint-investment focus in terms of market, model and scale depends heavily on an institution’s core strengths, the composition of its current portfolio, sustainability ambitions, risk- return appetite and openness to innovation. Implementing transformation at scale will require building strategic partnerships across the value chain – co-investing with catalytic capital providers, forming long-term partnerships with farmers and agrifood companies, and participating in capital coordination structures that enable the effective deployment of commercial capital. Investment risks can be reduced through mobilizing greater demand signals for more sustainable agricultural products and the associated ecosystem outcomes (a primary focus for the First Movers Coalition for Food). Such demand signals could take the form of specific buying agreements or off-take guarantees, changes to procurement specifications (e.g., sustainability outcomes or pricing), or commitments or signals of intent to other system actors. Combining such demand signals with financing innovation can deliver breakthrough solutions at scale. In addition, carbon and biodiversity credits hold strong potential for derisking, with carbon markets being most advanced, though access remains a challenge for smallholder farmers due to large entry costs and technical complexity. Biodiversity and natural capital credits are still in early stages, with limited regulatory clarity and MRV infrastructure. Institutions may also need to rethink credit risk assessment. Traditionally, financial institutions have relied on up to 10 years of historical data. To avoid that time lag, financial players must now work with emerging datasets and adapt their modelling, underwriting, and risk management to be more forward-looking. Given the current challenges around data scarcity and inconsistency, it is essential for financiers to develop or partner for robust climate impact data capabilities. For example, collaboration with corporates on shared data governance and impact metrics can increase replicability of financial deals. Overall, increased data capabilities will ensure more informed decision-making, support tracking of project progress and impact and allow for the continuous refinement of financial and risk models. In parallel, the limitations of standardized metrics and the diversity of stakeholder expectations make it critical to establish clear reporting criteria and methodologies from the outset to ensure transparency, accountability and comparability across investments. Ultimately, transforming food systems presents a unique chance for financial institutions to drive sustainable impact while unlocking long-term value. Five recommendations to get to scale BOX 1 1. Set clear targets on food systems transformation investments and challenge teams to identify scalable, profitable models tailored to your portfolio and capabilities 2. Build strategic partnerships across the food value chain (including catalytic capital providers, agrifood companies and/or farmers) to ensure shareholder returns and accelerate delivery at scale3. Design and adopt innovative financing mechanisms, supported by derisking mechanisms (including demand signals) 4. Manage credit risk effectively to work with emerging datasets and strengthen climate impact data capabilities 5. Secure active and sustained senior leadership support Putting Food on the Balance Sheet 17

Putting Food on the Balance Sheet 2025