Financial Markets and the Road to a More Sustainable Future

As the child of parents who grew up on farms in the Midwest, I am an Iowa girl at heart. My father has devoted his 55-year career to working with major corporations and startups alike to design farm equipment that makes possible the essential work our food producers do every day. I have witnessed first-hand how the technology and business side of producing food and managing land has evolved over the years, and how the risks the agricultural community faces have evolved with it. 

This was the key focus at the 6th Annual National Congress of Women in Agribusiness in Brazil last month, where I had the opportunity to join other financial leaders for a roundtable discussion on the bioeconomy and what role financial markets will play in the energy transition. This is a topic that is important to me, not only stemming from my personal connections to agribusiness, but in my role as Chief Commercial Officer here at CME Group. 

CME Group has a track record of nearly two centuries helping producers and users of essential goods and other commodities manage risk in markets related to food, energy and other natural resources. We offer products that allow our customers to manage risk of all types, including in some of the areas most impacted by climate change.

A large part of my job is to listen hard to our clients and understand the risks that they are facing, and how they want to be able to manage those risks. One thing that has really stood out to me is how much these conversations have changed over the last two years. Today, there is an ever-more urgent focus on investing in renewable and clean energy sources across nearly industry, government body and community.  

While it remains to be seen how the move towards more sustainable business practices will evolve over time, we know that the transition poses serious financial risks, from policy changes to technological advancements – and even changing consumer preferences – and that effective risk management and price discovery will continue to play a vital role. Financial products, services and technologies can help global market participants manage emerging climate risks, while also helping to channel more resources that are essential for the transition.

I invite you to read more about our roundtable discussion in this article, as well some of the other recaps from this insightful event. These topics are especially timely as a major climate conference – the COP-26 – has just kicked off in in Glasgow in the U.K. This is an extremely significant discussion and we at CME Group, like all of you, will be watching these developments carefully.