Achieving holistic sustainability through food systems

If there is one thing that recent years have made evident, from COVID-19 to climate change, it is that people and the environment are interconnected and constantly impacting one another, writes Azis Armand.

There are many ways that we can choose to restore the health of our planet, and although phasing out fossil fuels should undoubtedly be a principal mechanism, it is only one of the many strategies that must be employed. Another vital and direct impact we can have in strengthening our ecosystem is through resilient and sustainable food systems.

Food systems are both a major cause of climate change—accounting for a third of all greenhouse gas (GHG) emissions— and extremely fragile in the face of natural disasters. Therefore, climate mitigation and decarbonization strategies in this sector will be critical to reaching the Paris Agreement’s overarching goal of limiting temperature increases to ‘well below 2 degrees Celsius’. 

As a country particularly vulnerable to climate change effects like floods, droughts, sea level rise, and rising temperatures, we in Indonesia understand the risks posed by drastic climate shifts to not only our country’s food system but the entire global supply chain. 30 percent of our land area is reserved for agriculture, and we are one of the world’s largest producers and exporters of agricultural products, supplying important commodities such as palm oil, natural rubber, cocoa, coffee, rice, and spices to the rest of the world. Indonesia’s agricultural sector also represents around 2.4 percent of global agricultural GHG emissions.

According to the Climate Scoreboard, in 2021, the agricultural industry contributed to approximately 13.28 percent of Indonesia’s GDP, the second biggest share after manufacturing. However, as El Niño strengthens, Indonesia is experiencing its most severe dry season in four years, fueling wildfires and threatening production of the country’s palm oil, coffee, and rice. This has forced the Ministry of Trade to ramp up imports such as rice from India, as domestic crop yields are expected to be insufficient from soil moisture levels reaching their lowest in 20 years. 

Whether it be the COVID-19 pandemic or Russia’s invasion of Ukraine, severe supply chain disruptions have clearly demonstrated their global inflationary consequences. And higher prices hit both pockets and stomachs. According to the IMF, the average global cost of living has risen more in the 18 months since the start of 2021 than it did during the preceding five years combined. And both food and energy prove to be the main drivers. In fact, the average contributions from food alone exceed the overall average rate of inflation during 2016-2020.

Therefore, our interconnected and complex food systems have significant global repercussions which must be considered carefully in climate-related policy discussions. Farming plays an indispensable role for the health and economy of countries like Indonesia, but without proper attention and robust efforts to employ sustainable methods, food insecurity poses looming detrimental risks.

There are the immediate impacts on crop yields and farmer revenues, and then the indirect implications, from increasing global food prices and supply chain disruptions, to higher rates of malnourishment. Most notably, without pre-existing social security programs in place, these effects will continue to be disproportionately felt by the most vulnerable members of society.

In the face of increased climate extremities, the issue will require government policy support as well as the dynamic innovation that is best mobilized by the private sector.

One such example is Indonesia’s Indika Nature, part of the diversified Indika Energy Group, which has recently decided to foster more resilient and equitable food systems by joining forces with the world's leading reforestation-focused search engine, Ecosia, together investing in the newly formed Slow Forest Coffee-Krakakoa organization.  Slow Forest Coffee and Krakakoa have proven to be two distinguished companies dedicated to sustainable and environmentally responsible practices within the realms of coffee and chocolate. This investment facilitating the companies’ consolidation will yield significant results in their agroforestry operations across Indonesia, Laos, and Vietnam.

Global warming is currently projected to further increase food prices between 0.6 and 3.2 percentage points by 2060, according to a 2023 report by researchers at the European Central Bank and the Potsdam Institute for Climate Impact Research. While much of the focus at COP-28 remains on energy, as the global population is on track to reach 8.5 billion people in 2030, public and private actors will need to urgently address food insecurity from both an economic and environmental perspective. The only way to achieve true net-zero is through a holistic sustainability approach, both to energy and our agricultural and food production systems.

Azis Armand is the Vice President Director and Group CEO of PT Indika Energy.

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