Meat Industry Faces Ruin if Slow to Adapt to Climate Change

«Conversely, there is also an appetising prospect of enormous upside if the world’s meat companies shift their protein mix to align with a climate-friendly path,» he added.

New Tool Maps Key Risks

The new Climate Risk Tool created by FAIRR provides 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 tool is based on scenario analysis aligned with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).

The model finds that the likely physical impacts of climate change and rapid growth of alternative proteins will put billions of dollars at risk for current food sector giants such as Tyson Foods and JBS, suppliers to household names such as McDonald’s, Walmart, Burger King and Marks & Spencer.

The model identifies 7 key risks that will impact the profitability of the meat sector in the IPCC’s scenario of a 2°C warmer world in 2050. Risks include the increased cost of electricity due to carbon pricing, higher costs of feed due to poor crop yields and increased livestock mortality due to heat stress.

In addition, by 2050 alternative proteins such as plant-based burgers are projected to account for at least 16% of the current meat market, according to FAIRR’s model forecast, rising to 62% depending on factors such as technology adoption rates, consumer trends and the potential imposition of a carbon tax on meat.

Information taken from: https://unfccc.int/news/meat-industry-faces-ruin-if-slow-to-adapt-to-climate-change

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