The Impact of Climate Change on Investment Risks of Agricultural Enterprises

Abstract

In the current context of accelerated global warming, frequent and increasingly severe extreme weather events, agricultural comprehensive enterprises are mired in unprecedented investment uncertainty. This article focuses on the transmission mechanism of climate change impacts and conducts in-depth research using a dual “physical transformation” framework. In the research process, a comprehensive literature review was used to sort out the theoretical basis, path analysis was used to clarify the impact path, and cross case comparisons were used to obtain diverse experiences, in order to track how the impact of farm level disasters spreads and spreads through the supply chain to asset and credit channels. Using Inner Mongolia Yili Industrial Group Limited by Share Ltd (Yili) and Archer Daniels Midland (ADM), two leading companies in the industry, as empirical samples, accurately quantify the impact of extreme weather conditions such as droughts and floods, as well as carbon regulations on feed costs, raw material price fluctuations, and corporate valuations. The results show that climate risks vary by scenario and spread widely along the value chain. The company’s own attributes and geographical layout lead to differences in risk exposure. Diversified procurement, technological upgrades, and policy coordination are key measures to effectively mitigate losses, providing replicable analysis templates and decision-making toolkits for agricultural investors.