Summary
This report by the World Resources Institute analyzes the financial risks posed by climate change and water scarcity to the USD 40 billion food and beverage (F&B) sector in South and Southeast Asia, focusing on agricultural inputs, operating efficiency, and reputation.
Key insights
- The most significant financial impacts of climate change and water scarcity on the F&B sector are the rise in agricultural input prices and increased processing costs, which affect all examined subsectors. Input prices are driven up by decreased yields and price volatility caused by extreme weather and water temperature increases (specifically for aquaculture). Processing costs increase due to operational disruptions, the need for filtration technology to combat water pollution, and damage to infrastructure.
- Climate change and water scarcity introduce risks to food safety and corporate reputation. Scarcity of clean water increases the risk of contamination and disease, particularly for animal-based products. Additionally, competition for water resources between food processors and other stakeholders creates reputational risks.
- The report focuses on domestic publicly listed companies in the USD 40 billion F&B sector across India, Indonesia, Malaysia, Philippines, Thailand, and Vietnam. It analyzes seven subsectors: aquaculture, beverages, confectionary, dairy/poultry, edible oils, starches, and sugar. A specific case study by HSBC evaluates the financial implications for the Indian sugar company Balrampur Chini Mills.
Cite the original document
- APA
- World Resources Institute (n.d.). Weeding Risk. https://www.wri.org/research/weeding-risk
- Chicago
- World Resources Institute. Weeding Risk. n.d. https://www.wri.org/research/weeding-risk.
- Wikipedia
- {{cite report |author=World Resources Institute |title=Weeding Risk |url=https://www.wri.org/research/weeding-risk |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{worldresourcesinstitutendweeding, author = {{World Resources Institute}}, title = {{Weeding Risk}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/weeding-risk}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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