CPG financing for sustainable agriculture: How food and beverage consumer packaged goods companies are funding the shift across their value chains

This discussion brief highlights how top food and beverage consumer packaged goods (CPG) companies are deploying capital to help scale sustainable agriculture practices across the U.S. It synthesizes research conducted by Environmental Defense Fund on current financing models, emerging innovations and practical strategies to overcome barriers. 

Key findings 

• CPGs are increasingly funding sustainable agriculture through internal capital. 
  More than 80% of CPG sustainability funding from 2020 to 2024 came from internal sources like retained earnings, corporate bonds and operating budgets. Government grants and co-investment currently make up a much smaller share but are gaining traction. 

• Capital deployment is evolving from cost-share programs to strategic investment models. 
  While many CPGs still rely on voluntary cost-share programs or pay-for-practice incentives, new models are emerging. These include innovative partnerships with banks, corporate treasury investments and de-risked financing structures designed to unlock external capital. 

• Eight financing archetypes are shaping the field. 
  The brief breaks down eight financing approaches CPGs are using to support sustainable agriculture, spanning established methods and newer, innovative models.  

• Internal alignment and cross-functional literacy are essential. 
  Success depends on embedding sustainability into core business processes instead of treating it as a separate program. When procurement, finance and sustainability teams share a common understanding of value, companies can more effectively expand investment, measure progress and build resilience across their supply chains. 

• CPG capital is a catalyst, but broader systems change is needed. 
  To achieve large-scale transformation across agricultural landscapes, CPG investments must be paired with supportive government policies, financial innovation and collaboration across the value chain.