- Title
- Implementing natural capital credit risk assessment in agricultural lending
- Creator
- Ascui, Francisco; Cojoianu, Theodor
- Date
- 2019
- Type
- Text; Journal article
- Identifier
- http://researchonline.federation.edu.au/vital/access/HandleResolver/1959.17/187152
- Identifier
- vital:16989
- Identifier
-
https://doi.org/10.1002/bse.2313
- Identifier
- ISBN:0964-4733 (ISSN)
- Abstract
- Agriculture has critical impacts and dependencies on natural capital, and agricultural lenders are therefore exposed to natural capital credit risk through their loans to farmers. Currently, however, lenders lack any detailed guidance for assessing natural capital credit risk in agriculture and are challenged by the fact that the relevant material risks vary considerably by agricultural sector and geography. This paper develops a natural capital credit risk assessment framework based on a bottom-up review of the material risks associated with natural capital impacts and dependencies for Australian beef production. It demonstrates that implementing natural capital credit risk assessment is feasible in agricultural lending, using a combination of quantitative and qualitative inputs. Implementation challenges include the complexity and interconnectedness of natural capital processes, data availability and cost, spatial data analytical capacity, and the need for transformational change, both within lending organisations and across the banking sector. © 2019 John Wiley & Sons, Ltd and ERP Environment
- Publisher
- John Wiley and Sons Ltd
- Relation
- Business Strategy and the Environment Vol. 28, no. 6 (2019), p. 1234-1249
- Rights
- All metadata describing materials held in, or linked to, the repository is freely available under a CC0 licence
- Rights
- Copyright © 2019 John Wiley & Sons, Ltd
- Rights
- Open Access
- Subject
- 3501 Accounting, auditing and accountability; 3502 Banking, finance and investment; 3507 Strategy, management and organisational behaviour; Agricultural lending; Australia; Beef production; Credit risk assessment; Environmental credit risk; Natural capital
- Full Text
- Reviewed
- Funder
- This work was supported by the Australian Commonwealth Department of Infrastructure and Rural Development under the Sense-T ‘Sensing Natural Capital’ project.
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