Impact of climate change on financial sustainability in agricultural industries T Adiatma(a*), O Irianto (a), J R Kuntag (a), D Hyronimus (a)
a) Faculty of Economy and Business, Universitas Musamus, Merauke, Indonesia
* tiniadiatma[at]unmus.ac.id
Abstract
Climate change nowadays became the most problematic matter including in agricultural industries. Agriculture area productivity affected national food security and also the economic development of a county. As an agricultural county, Indonesia must be ready to adapt and prepare for the worst impact of climate change. This paper aims to explore the impact of climate change on financial sustainability in agricultural industries. Financial sustainability became a success factor of a business that related to ability to maintain financial capacity over the time, fulfill the needs now and in the future. This research uses a systematic literature review method related to financial sustainability, climate change impact, and agriculture industries. The result shows that financial sustainability in agricultural industries must be impacted by climate change. Climate change caused environmental uncertainty that affects agricultural productivity. To reduce the impact of climate change on financial sustainability in agricultural industries, there must be a design of mitigation must be prepared and realized so agricultural industries more prepared and ready to face climate change impact.
