Asset stranding could open new pathways to food systems transformation

Abstract

As the necessity of transitioning to food systems that are healthy and environmentally sustainable grows increasingly urgent, food systems seem to be locked into delivering negative outcomes. One driver of this lock-in is that some of the changes from transitioning food systems would result in asset stranding for firms and financial institutions. In this Perspective we provide examples of where asset stranding can occur in food systems and offer solutions for navigating the political economy of these stranded assets. By proactively attending to the stranded assets problem, it may be possible to break out of financial lock-in in food systems. Food systems transformation may lead to asset stranding, which often creates resistance to change. This Perspective presents concrete examples of where that may occur and offers solutions for navigating the problem.