Climate change is causing higher temperatures and more extreme weather events, such as greater frequency and intensity of rainfall and droughts, which are affecting our agribusiness operations. These constitute a significant physical risk to our business, potentially lowering our crop yields, making our agricultural management more complicated and costly, and causing disruptions to the global supply of agribusiness commodities.
Corporations are increasingly expected by governments, investors, and customers to adhere to carbon regulations, provide disclosure on climate-related issues, and offer low carbon products. We recognize that these pressures create transitional risks and opportunities related to the shifting of our strategies, policies, business model, or investments to reduce our carbon footprint and impact on the climate.
Each risk and opportunity profile are assessed annually during our strategic review and is reflected in the integration of ESG into our business strategy with the aim to achieve our ESG ambitions and targets. The mitigation of physical and transitional risks is under the responsibility of the Board of Directors, led by our Chief Operating Officer.
To participate in global efforts to mitigate climate change effects and to ensure sustainability of our own operations, we have done the following: