INSIGHT by FAIRR
〉3.28% rise in year-on-year emissions disclosed by 20 of the largest listed meat and dairy producers – including suppliers to household names such as McDonald’s and Walmart.
〉Investors praise improving levels of disclosure however, with 40% of the 20 largest meat and dairy firms now disclosing ‘Scope 3’ emissions.
〉Full findings from the Coller FAIRR Protein Producer Index are available here.
〉“The failure of leading meat and dairy companies to reduce emissions underlines the urgent need for more policy focus on the food and agriculture sector”, says Jeremy Coller, Chair and Founder of the $70 trillion-backed FAIRR network.
As global leaders prepare to gather for COP28 in Dubai, new analysis of emissions data from 20 of the largest listed meat and dairy firms shows that disclosed emissions are still rising year-on-year. Livestock is estimated to be responsible for around 14.5% of global greenhouse gas emissions.
The analysis from the $70 trillion-backed FAIRR investor network shows absolute emissions disclosed by 20 of the world’s largest (by value) meat and dairy producers rose 3.28% between 2022 and 2023. This group includes firms like Hormel Foods (US) and New Hope Liuhe (China), suppliers to household names such as Walmart and McDonald’s respectively.
Some of the 20 firms saw disclosed emissions fall this year, including Tyson Foods (US) and Danone (FR), but progress was negated by rises from other meat and dairy giants.
The analysis of the 20 firms shows varying levels of climate commitments and disclosure. In total 4 of the 20 firms have set net zero targets approved by the Science-Based Targets initiative (SBTi).
On disclosure, 40% of the 20 companies (8 firms) now publicly report Scope 3 emissions, (i.e. emissions from the supply chain such as those from animal feed production), with US-operating Tyson Foods and WH Group (owners of Smithfield Foods) disclosing all scopes for the first time this year.
The data comes from the release of the sixth annual Coller FAIRR Protein Producer Index (the Index) which assesses a total of 60 publicly-listed animal protein producers worth a combined $364 billion (as of March 1st 2023) against ten environmental, social and governance (ESG)-related factors. It is a tool used extensively by FAIRR investor members who manage over $70 trillion of assets.
“The failure of leading meat and dairy companies to reduce emissions underlines the urgent need for more policy focus on the food and agriculture sector. Food system emissions deserve a place at the top of the table, alongside energy and transport, as they represent an estimated third of greenhouse gas emissions and 40% of methane. Investors hope the first-ever publication of a food and agriculture roadmap at COP28 this month will catalyse the transition to 1.5 degrees and a more sustainable food system.”
“What you can measure, you can manage, so investors will welcome the increased disclosure of Scope 3 emissions by the meat and dairy sector. The FAIRR Protein Producer Index highlights the ESG risks and opportunities in the global food system, enabling investors to engage their portfolio companies in more meaningful conversations, underpinned by data.”
-Jeremy Coller, Chair and Founder of the $70 trillion-backed FAIRR network
The Index also highlights examples of good practice in the sector. For example, Danone is among the first companies to set FLAG (Forest, Land and Agriculture) targets aligned with SBTi, and has committed to a 30% reduction in its methane emissions from fresh milk by 2030. This aligns its efforts with the Global Methane Pledge. The company has also developed several cutting-edge initiatives, including projects in herd management, feed fundamentals and manure management.
The full findings of the annual index are published in detail in a separate report available here.
| about
The FAIRR Initiative is a collaborative investor network, founded by Jeremy Coller, with a membership of $70 trillion in collective assets of support. FAIRR works with institutional investors to define the material ESG issues linked to intensive livestock and fish farming systems and provide them with the tools necessary to integrate this information into their asset stewardship and investment decisions. This includes the Coller FAIRR Protein Producer Index, the world’s first comprehensive assessment of the largest global animal protein companies on environmental, social and governance issues. Visit www.fairr.org and follow @FAIRRInitiative.
| All opinions expressed are those of the author and/or quoted sources. investESG.eu is an independent and neutral platform dedicated to generating debate around ESG investing topics.
