Farm mechanisation and automated farming equipment

Robots wielding water knives

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Farm mechanisation and automated farming equipment
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Invest in automated machinery, which are developed to replace human labor forces in plowing, seedlings, planting, transplanting, irrigation, fertilization, harvesting, drying, and transporting on the farm. Equipment can be purchased or leased through a shared economy (Pei Yeing Ong, Shiyu Impact).

Automation can be enabled by two modes - one is facilitated through the installation/plug-in of navigation and devices on traditional agricultural machinery; the other being fully innovative farming robots (an investment professional in agriculture).

Expected Impact

Improve agricultural yield and thereby strengthening China’s food security, attracting younger and higher-educated people.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
With input from 7 experts, the IRR is estimated to be around 20%.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Clean water and sanitation (SDG 6) Decent Work and Economic Growth (SDG 8)
Sector Sources
IOA Sources
  • 21) Ministry of Foreign Affairs,2019 "22) Ministry of Human Resources and Social Security,2020." "23) UNDP.2019" "24) National Bureau of Statistics" "25) CGTN,2020"