The world’s meat industry must adapt to the challenges posed by climate change and growing demand for plant-based alternatives or face ruin, according to FAIRR, a group of investors managing $20 trillion in assets.
As a leading contributor to global carbon emissions, through deforestation and the methane produced by livestock, the meat sector faces a particularly acute risk, but has yet to act in a meaningful way, the investor group says.
In an assessment of 43 listed meat companies, only two have publicly disclosed a climate-related scenario analysis. By comparison, 23% of oil and gas, mining and utility companies have undertaken this sort of climate scenario analysis.
FAIRR is providing investors with an online model to help quantify potential downside risks and upside opportunities for meat companies in a scenario of 2°C of global warming – the upper temperature limit agreed by the international community under the Paris Climate Change Agreement. Jeremy Coller, Founder of FAIRR and Chief Investment Officer at Coller Capital, said:
«Investors can see the inescapable truth for the meat sector is that it must adapt to climate change or face ruin in the years ahead. It’s not an acceptable strategy when it comes to this level of climate risk for the food industry to bury its head in the sand.”