FAO Private Sector Advisory Group (PSAG) - Summary Report (2024)

1.    Introduction

Between May and September 2024, the Food and Agriculture Organization of the United Nations (FAO) held three meetings with private sector partners under its Private Sector Advisory Group (PSAG). These meetings focused on aligning private sector engagement, climate action, and innovation in the transformation of agrifood systems.

The sessions reflected FAO’s strategic shift toward a proactive, agile, and inclusive model of collaboration with non-state actors to advance progress toward the Sustainable Development Goals (SDGs), especially SDG 2 (Zero Hunger), while maintaining coherence with the 1.5°C climate threshold.

2.     PSAG Dialogues during 2024

First Session: Achieving SDG 2 without breaching the 1.5 C threshold. (31 May 2024)

This session focused on achieving SDG 2 (Zero Hunger) without exceeding the 1.5°C threshold, emphasizing the crucial role of the private sector in integrating climate action within agrifood systems. Technology knowledge, innovation, climate finance, region-specific data, gender-sensitive approaches, and enabling investment conditions to attract private capital emerged as key enablers.

Second Session: Private sector role in closing investment gaps in the agrifood systems. (28 June 2024)

The second meeting focused on strategies to close investment gaps in agrifood systems, highlighting mechanisms such as blended finance and public-private models of collaboration. Key challenges identified included the need to produce more while consuming less, reduce inequalities, expand access to digital tools and technologies across the value chain, promote healthier diets, and alleviate poverty.

Third Session: Science, Innovation, and Digital Transformation. (26 Sept. 2024)

This session focused on the importance of innovation, technology and sustainable practices in addressing the urgent challenges facing global food security. Members highlighted the need for digital tools, science-based communication, and regulatory alignment. Public-private partnerships and sustainable finance were seen as key to scaling impact.

3.    Key Meeting Themes and Private Sector Insights

3.1. Achieving SDG 2 without breaching the 1.5 C threshold.

This session focused on engaging the private sector to achieve Sustainable Development Goal 2 (zero hunger) without exceeding the 1.5°C global warming threshold by mainstreaming climate actions in agrifood systems. It highlighted the critical role of private sector innovation, investment, and collaboration within a global roadmap launched at COP 28, aiming for sustainable agrifood transformation aligned with climate goals.

• Global roadmap for SDG 2 and climate: FAO developed a Global Roadmap integrating eight sectors and two crosscutting domains to achieve zero hunger without breaching 1.5°C, emphasizing sustainable agrifood system transformation and aligning with climate negotiations.
• Private sector’s essential role: The private sector is vital for embedding climate action through innovation, finance, technology transfer, and partnerships, contributing to efficient and equitable agrifood systems transformation.
• Challenges and urgency: Current trends predict 590 million chronically undernourished people by 2030, worsened by COVID-19 and conflicts, with six planetary boundaries crossed, causing extreme weather and resource scarcity threatening agrifood stability.
• Technology and innovation as accelerators: Technology, innovation, and data literacy are central to achieving the roadmap’s 120 actions, including climate-resilient crops, efficient water use, and livestock management, with a focus on inclusive access and gender integration.
• Private sector commitments: Initiatives include sustainable dairy development models, net-zero emission targets by 2050, reducing food loss and waste through processing innovations, and training programs empowering women in digital and data science roles.
• Need for reliable investment conditions: Stability, predictability, and supportive frameworks are critical to attract climate financing and private investments essential for scaling sustainable agrifood practices.
• Inclusive and context-specific approaches: Strategies must consider regional differences, smallholder inclusion, indigenous peoples, and gender equality to ensure equitable and effective agrifood system transformation.
• Cross-sector collaboration and governance: Effective communication among ministries and stakeholders, coordinated action on ten domains, and integration of climate and food security discussions are necessary for systemic change.
• Monitoring and milestones: The roadmap includes 20 pre-agreed milestones to track progress, with phased implementation from global vision (COP 28) to regional and country-level actions by COP 30 in 2025.

3.2. Private sector role in closing investment gaps in the agrifood systems

The Private Sector Advisory Group (PSAG) held its second virtual meeting on 28 June 2024 to discuss enhancing collaboration between the FAO and the private sector to address global food security and sustainable agricultural development challenges.

• FAO’s renewed engagement approach: FAO aims to be more proactive, strategic, and agile in engaging the private sector, emphasizing acceleration and disruptiveness to support sustainable food system transformation. Simplifying procedures and tailoring engagement formats for diverse private sector entities are priorities.
• Private sector’s technological contributions: The private sector offers modern technologies and expertise in areas such as food processing, packaging, microbiotechnology, AI, and robotics, which can aid FAO’s policy-making and program development beyond direct partnerships.
• Collaboration frameworks and accreditation: Proposals include establishing sector-specific expert groups and ad hoc project groups involving private sector input, as well as formalizing engagement through accreditation to ensure consistent participation in FAO forums.
• Successful partnership examples: Initiatives like the SME Accelerator Program and the ‘Pathways to Dairy Net Zero’ demonstrate effective cooperation, with private sector support aligned to FAO’s SDG and climate goals.
• Investment gaps and governance: Identifying and closing investment gaps in agri-food systems requires predictable national frameworks, adaptable governance, and collaboration to de-risk private investments and enable blended finance solutions.
• Market linkages and specialization: A key challenge is weak market linkages between primary producers and processors; specialization is recommended to improve efficiency, food safety, and security.
• Communication and data challenges: FAO can facilitate better communication of ongoing efforts and update critical data systems, especially in sectors like livestock, to enhance transparency and stakeholder collaboration.
• Public investment and sustainable practices: Increased public funding is vital to support small-scale farmers, sustainable agriculture, and responsible public-private collaboration, with emphasis on innovation and incentives for environmentally friendly practices.
• Role of FAO as a facilitator: FAO’s leadership is crucial in defining cooperation structures, fostering dialogue between sectors, promoting education, and supporting regional and national strategies to overcome challenges like deforestation and supply chain integration.

3.3. Science, Innovation, and Digital Transformation

The third meeting of FAO’s Informal Private Sector Advisory Group focused on strengthening collaboration with the private sector to advance innovation in agri-food systems and tackle global food security challenges. The discussions centered on FAO’s Science and Innovation Strategy and explored how innovation can drive sustainable agricultural transformation.

• Meeting overview and purpose: The meeting welcomed PSAG members and emphasized ongoing engagement with the private sector to incorporate diverse perspectives in FAO’s strategies for agri-food innovation and SDG progress.
• FAO’s Science and Innovation Strategy: The strategy integrates scientific and technological advancements into food system transformation efforts, highlighting the need for innovative solutions amid rising food insecurity and global disruptions.
• Types of innovation promoted: FAO supports technological, social, financial, policy, and institutional innovations, with a focus on open innovation to foster collaboration beyond traditional boundaries.
• Engagement models: FAO presented platforms for private sector dialogue, capacity-building for entrepreneurship, and global innovation hubs, reinforcing its role as convener and knowledge partner.
• PSAG observations on the strategy: Members praised the science-based foundation and urged deeper integration of modern technologies like AI, blockchain, and climate-smart solutions, alongside stronger mechanisms for data dissemination and combating misinformation.
• Policy framework suggestions: PSAG emphasized the importance of regulatory coherence and standardized, science-based policies to facilitate innovation adoption and private sector participation.
• Private sector support: Members committed to partnerships in climate resilience, digital agriculture, and value chain development, advocating for public-private collaborations that benefit smallholder farmers.
• Investment and digital innovation: Calls were made for de-risking mechanisms to increase private funding and for enhanced digital platforms providing market data, sustainability practices, and technological trends.
• Streamlining FAO engagement: PSAG recommended simplifying administrative and due diligence processes to encourage greater private sector involvement, especially from SMEs.

4.  Cross-Cutting Insights 

• Inclusivity and Equity:
  Gender equity, smallholder inclusion, and regional adaptability were highlighted as prerequisites for a just transition. Digital and technical literacy must be expanded to ensure equal participation.
• Technology and Data:
  Modernized datasets, real-time information systems, and AI-driven analytics were seen as enablers of better policy and investment decisions.
• Finance and Investment:
  Mobilizing climate finance and catalytic capital is essential. Participants called for greater visibility of investment opportunities and outcome-based financing linked to FAO’s Roadmap milestones.
• Communication and Engagement:
  FAO was encouraged to maintain regular dialogues, thematic working groups, and regional forums - especially ahead of COP29 and COP30- to sustain momentum and showcase best practices.

5.    Conclusions and Next Steps

The Private Sector Advisory Group underscored a shared commitment between FAO and private sector partners to transform agrifood systems sustainably, equitably, and innovatively.

Looking ahead:

• The PSAG platform will expand beyond 2024, institutionalizing collaboration and providing structured input to FAO’s strategic priorities.
• FAO will strengthen its Private Sector Engagement Strategy, enhancing digital, financial, and policy ecosystems that empower private partners.
• A continued focus on inclusive technology, climate-smart investments, and evidence-based policymaking will be key to achieving SDG 2 without exceeding the 1.5°C threshold.

Together, FAO and the PSAG reaffirmed their commitment to shaping resilient, innovative, and climate-aligned food systems, where science, investment, and inclusivity drive a sustainable future for all.