Environmental Social Governance and SGMA in Agriculture Supply chains for sustainable farming


Most investment companies have started finding companies. That they invest in, to be SGMA compliant. They have sustainability metrics for sustainable agriculture and sustainable farming. So, what is SGMA and how does it relate to ESG? SGMA stands for Sustainable Groundwater Management Act and ESG stands for Environmental Social Governance.

Before talking about SGMA and ESG, let’s first discuss the sustainability metrics. Let’s take companies like Kellogg or Levi. they both have agricultural supply chains as they have grain and cotton respectively. With these kinds of items, if you are an investor and you want to figure out what risks are involved for you in both kinds of companies. You may typically look at the balance sheet and income statement to get a projection of where they’re going in the future.

Interest of Investors

Most investment companies have started finding companies. They invest, to be ESG and SGMA compliant, or have sustainability metrics. A lot of investors now want to understand. What risks are involved in these companies if the climate keeps on changing? Because will the agricultural supply chain be secure? Bcuease  This is exactly where we use ESG metrics measures. Therefore ESG can help you to measure exactly how sustainable is the agricultural supply chain? Because what are the water, land, and fertilizer inputs? Is the agricultural supply chain going to be able to deliver the grains to make the cereals or cotton to make the jeans?

California: Leading the world in SGMA

California is going to be the prime market for this area. It has moved into the Sustainable Groundwater Management Act (SGMA). This policy requires the groundwater to come into balance. The agricultural land and its production also have to be in balance with its groundwater. For example; A farmer is only going to be able to use the amount of groundwater allocated to him. This means if he has 10 acres of land but only 5 acres of groundwater allocated to him, he going to have to plow under 5 areas of land. The Sustainable Groundwater Management Act is required for this balance to happen over the next 20 years.

Farms, corporations, and cities are all aiming to get there much sooner so that they don’t have restrictions put down on them by the state. The state is allowing each district to manage its groundwater and come up with a plan. That policy itself is very important not only for California, but others are well. This will be California leading the drive for sustainable groundwater management which means a sustainable agricultural supply chain worldwide. UmidaAG helps agriculture in California meet those sustainability rules. If you are a large corporation and looking to secure your supply chain then the ideal place to start is California. As California has got the groundwater balance. You may also look at the farms that utilize UmidaAG’s products that helped them bring their groundwater into balance for a sustainable agriculture and sustainable farming.