Understand the whole agrifood footprint
FAO estimates that agrifood systems emitted 16.5 Gt CO₂e in 2023, around 32% of human-caused emissions. The boundary includes farm production, land-use change and supply-chain activity.
An agricultural lender needs to understand a borrower’s location, operations and supply chain. A credit for a processing facility can involve energy demand, water, waste, transport and land impacts. The review should follow the actual activity and its material risks.
INDEPENDENT RESEARCH · 2023 · FAO release 2025
Where agrifood emissions arise
Global agrifood system emissions: farm gate, land-use change and pre/post-production.
| Measure | Gt CO₂e |
|---|---|
| Farm gate | 8.1 |
| Pre/post-production | 5.2 |
| Land-use change | 3.2 |
World. Rounded components total 16.5 Gt CO₂e. Agrifood systems are broader than farming alone. This chart is sector context, not a WAB footprint.
FAO · Agrifood emissions 2001–2023Water efficiency and water availability
FAO states that agriculture accounts for about 72% of global freshwater withdrawals. Its reference page does not assign that headline to a single observation year. Withdrawals are different from net consumption or rainfall.
An efficient pump can still add pressure to an overdrawn aquifer. Review the source, abstraction rights, basin conditions, measured use and seasonal availability. Equipment efficiency and the sustainability of total use are separate questions.
A review scaled to the activity
A seasonal input facility, an irrigation project and a new processing plant require different evidence. The common purpose is to identify material effects, assess mitigation and assign responsibility.
| Area | Relevant review | Evidence to retain |
|---|---|---|
| Climate | Flood, drought, heat and disruption | Location, hazard assessment and continuity plan |
| Land and biodiversity | Land-use history, rights and habitat effects | Maps, permits, community process and site review |
| Water and energy | Availability, legal use, resource intensity | Meter records, source permissions and operating assumptions |
| Waste and chemicals | Storage, disposal and exposure | Handling procedures, training and incident records |
| Community | Land access, livelihoods and grievance routes | Consultation, agreements and unresolved concerns |
Make responsibility visible
Environmental and social review needs an accountable owner and an escalation path alongside credit approval. Related-party activity, conflicts of interest, customer data, fraud and operational incidents also belong within the governance record.
IFC Performance Standards provide a useful external reference for risk management and stakeholder engagement. Reference to that framework does not establish adoption, certification or independent assurance for WAB.
An outcome needs a baseline
A metric should identify its unit, period, boundary, evidence source and review status. Water or energy per tonne can describe intensity, while total usage describes the scale of the operation. Both can matter.
The tool below demonstrates how a reported change is calculated. A before-and-after difference alone cannot establish that financing caused the result.
The evidence behind a result
Use the same measurement method, site boundary and production unit at both dates. Record the meter or weighing evidence, season, crop, production volume and who checked it.
A reduction in intensity can occur while total resource use rises. A before-and-after difference alone does not establish that financing caused the change.
Absolute change = follow-up − baseline
Relative change = (follow-up − baseline) ÷ baseline × 100
ILLUSTRATIVE SCENARIO
Default values are fictional. The tool calculates a difference; it does not rate a borrower, certify sustainability, estimate avoided emissions or report WAB impact. Relative change is undefined when the baseline is zero.
Activity, performance and outcome
Loans disbursed describe activity. Arrears describe credit performance. A change in farmer income or measured loss rate describes an outcome only when the collection method and comparison are credible.
| Reporting lens | Useful measures | Reading discipline |
|---|---|---|
| Access | Unique users, approvals and active use | Disaggregate where appropriate; do not equate applications with service |
| Credit | Repayments, arrears and restructurings | Report concentration and adverse outcomes |
| Environment | Water, energy, loss and land-use review | State unit, boundary, baseline and assurance scope |
| Customer protection | Complete costs, complaints and resolutions | Measure experience and control over money |
| Governance | Incidents, exceptions and corrective actions | Show unresolved issues as well as progress |
Connect to goals through specific evidence
Agricultural finance can be relevant to SDG 2 on food security, SDG 5 on gender equality, SDG 6 on water, SDG 8 on decent work, SDG 12 on responsible production and SDG 13 on climate. The goals are a shared framework, rather than a product certification.
WAB’s ESG operating framework is in development. Published performance will need verified operating data. The shareholder room explains how these priorities can be embedded in the banking business plan.
READ THE SOURCE
Access, dignity and informed choice
Serving agricultural communities includes women, young people, workers and people with limited digital access. Product research should examine affordability, control over funds, language, travel and customer understanding. A high application count alone does not establish inclusion.
Employment review should cover safe conditions, fair treatment, hazardous work and the implications for children’s schooling. Contracts and collections need to be understandable and fair. Complaints require a practical route and a recorded response.