A $70 trillion-backed investor group has referred to as for an “pressing” coverage give attention to accelerating local weather motion throughout the worldwide meals and agriculture sector on the upcoming COP28 Local weather Summit, after contemporary information underscored how greenhouse fuel emissions from the world’s largest meat and dairy producers are nonetheless on the rise.
The FAIRR community of traders analysed the emissions information disclosed by 20 of the most important listed meat and dairy companies worldwide final 12 months, collectively accounting for $295 billion in market worth. It discovered that their collective emissions rose 3.28 p.c in 2022-23.
Companies which noticed their emissions rise final 12 months embrace world producers comparable to Hormel Meals within the U.S. and New Hope Liuhe in China, each of which provide meat and dairy to world manufacturers comparable to Walmart and McDonald’s, in accordance with the FAIRR community.
And whereas among the 20 companies analyzed did see their emissions fall final 12 months — together with Danone and WH Groop in China — it defined these enhancements had been offset by rises in emissions from different dairy and meat producers.
With UN estimates suggesting livestock farming is accountable for round 14.5 p.c of worldwide emissions, FAIRR founder and chair Jeremy Coller mentioned there was an “pressing want for extra coverage give attention to the meals and agriculture sector” to drive down its local weather and environmental impacts.
Meals system emissions deserve a spot on the prime of the desk, alongside vitality and transport.
He urged world policymakers to make sure agriculture and meals are prioritized as main points on the upcoming COP28 UN Local weather Summit in Dubai, which kicks off on the finish of November.
“Meals system emissions deserve a spot on the prime of the desk, alongside vitality and transport, as they signify an estimated third of greenhouse fuel emissions and 40 p.c of methane,” mentioned Coller. “Traders hope the first-ever publication of a meals and agriculture roadmap at COP28 this month will catalyze the transition to 1.5C and a extra sustainable meals system.”
Established in 2015 by the Jeremy Coller Basis, the Farm Animal Funding Threat and Return (FAIRR) community is backed by traders managing round $70 trillion of belongings worldwide.
As we speak’s information was launched as a part of the investor group’s annual index of the world’s prime 60 publicly listed animal protein producers. The index charges the companies in opposition to 10 environmental, social and governance (ESG) metrics, and is “used extensively” by FAIRR members to evaluate the businesses they spend money on, in accordance with the community.
The general information factors to an upward pattern in emissions from the highest 20 meat and dairy producers, nevertheless it additionally highlights pockets of progress inside the sector, with rising numbers of companies increasing the scope of their emissions disclosure to traders.
It was ‘encouraging to see extra companies disclosing carbon footprints that embody their whole provide chain.’
The index reveals eight corporations, or 40 p.c of the highest 20, publicly report their Scope 3 worth chain emissions, together with greenhouse gases from their provide chain and animal feed manufacturing. Each Tyson Meals and WH Teams — which owns Smithfield Meals — disclosed emissions from throughout all scopes for the primary time this 12 months, in accordance with FAIRR.
Different good apply highlighted within the index consists of strikes from French large Danone, which final 12 months turned one of many first corporations to set Forest, Land and Agriculture (FLAG) targets aligned with the Science Primarily based Targets initiative (SBTi) and dedicated to a 30 p.c discount in its methane emissions from contemporary milk by 2030.
Nevertheless, simply 4 meat and dairy companies within the prime 20 should date set internet zero emissions objectives authorized by the SBTi, the evaluation discovered.
Thalia Vounaki, senior supervisor analysis and engagements on the FAIRR Initiative, mentioned it was “encouraging to see extra companies disclosing carbon footprints that embody their whole provide chain, as these crucial Scope 3 emissions account for the big majority of the sector’s emissions.”
Nevertheless, she pressured there remained “an extended solution to go” to each enhance disclosure and speed up bold local weather motion throughout the meat and dairy sector.
“Traders should proceed to interact with the sector with a transparent message that to handle local weather danger, they want complete disclosures which embrace provide chain emissions and full inventories that cut up which emissions come from feed and which come from animals,” she mentioned.
