Business strategies towards climate‐smart agriculture in Europe: A literature review

Abstract In response to increasing demands for sustainability, the entire agri‐food sector is in transition towards climate‐smart agriculture (CSA). The academic discourse on CSA has substantially expanded, including a large number of empirical studies, quite often case studies. There is a strong need to take stock of research, both from an academic and from a managerial point of view. This article integrates the dispersed insights in the literature and maps the implications for business strategies. Analysing 142 peer‐reviewed articles published in Scopus and Web of Science databases (2000–2022), we find that business strategies for CSA rely on formal institutions as well as on informal relationships characterised by trust and social interactions. The importance of a multi‐stakeholder network approach stems from the complexity of the CSA, the market failing to monetise environmental and social values and the substantial investments in new CSA technology that farmers cannot undertake independently. A successful interplay among stakeholders, however, requires alignment of value creation, distribution and capture at every individual actor and at the entire stakeholder group level.