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Gandhi, Vikram;Mehta, Sarah
Financial Services;Private equity firms
In January 2020, sustainable investment firm Generation Investment Management (Generation), was debating whether to terminate coverage of John Deere, one of its 47 portfolio companies. Generation believed that the type of mechanized agriculture enabled by John Deere''s products was a vital tool for improving crop yield and farm productivity, and for feeding the world''s growing population at scale. As time had passed, however, Generation''s partners and analysts had grown increasingly concerned about the broader impacts of agriculture, which accounted for up to 90% of freshwater consumption and generated about 24% of greenhouse gas emissions worldwide. These concerns, coupled with emerging consumer trends that might reduce long-term demand for John Deere''s products, had led Generation to consider removing the company from its focus list of potential portfolio companies.
Climate change;Corporate governance;Corporate social responsibility;Environmental sustainability;Finance;Financial markets;General management;Investment portfolio management;Investments;Private equity;Return on investment;Strategy