The Crucial Role of International Sustainability and Climate Standards and Their Relationship with Agribusiness Finance

Abstract

International Financial Reporting Standards (IFRS) S1 and S2, issued by the IASB, are increasingly important in the integration of sustainability in agribusiness accounting and finance, focused on the disclosure of financial information related to the aspects environmental, social and governance. In the context of agribusiness, it is crucial to apply these standards to adequately reflect the impact of agricultural operations on the environment, local communities, and corporate governance. Agribusinesses face unique challenges related to water management, agrochemical use, biodiversity, greenhouse gas emissions and labor practices. The effective application of these standards allows a more complete view of the company's environmental and social performance, which affects investment, financing and consumption decisions. With its integration into agribusiness, it improves transparency and responsibility, facilitating the comparability of information between different organizations. Being crucial in a business and investment context increasingly focused on sustainability, since it is important for the agribusiness sector, allowing agricultural companies to transparently communicate their practices and performance related to environmental, social and governance aspects. By adopting these standards, you can better evaluate, manage and communicate the environmental and social impacts of your operations. In addition, they standardize the disclosure of sustainability information, promoting comparability between companies and facilitating the evaluation of performance in terms of sustainability, promoting transparency, responsibility and sustainability in the agribusiness sector.