Sustainable protein supply chains
The increase in demand for animal protein over the last 50 years has been associated with various social and environmental problems. Livestock production now accounts for 14.5% of GHG emissions, with research by Chatham House and others indicating that it will not be possible to limit temperature rises to below 2°C (as per the Paris Agreement) if meat and dairy consumption is not reduced.
At the same time, market trends show that consumers are shifting their dietary preferences to reduce their intake of meat for a variety of reasons. This creates an opportunity for food companies to profit from this trend.
Supermarkets, food retailers and multinational food companies are central to the food system and are well-positioned to respond to this challenge, thereby protecting against risk and seizing opportunity.
The FAIRR initiative is coordinating a collaborative engagement calling on companies to think strategically about building sustainable protein supply chains, diversifying their protein ranges and mitigating the various risks associated with future supply chain disruption.
This is not a call to promote abstinence from meat and dairy, but rather a request for companies to think more creatively about the development of healthy, sustainable, and affordable protein supply chains. The attached briefing offers an overview of the investment case behind this initiative.
The first round of engagement, supported by over 40 institutional investors, with a combined assets under management of over USD $2 trillion, was sent to the companies in September 2016. We are now taking forward the second phase and are opening the engagement to new investors.
We are currently engaging with 16 large food companies, all with a global reach and expansive supply chains. With substantial market shares and corporate influence, progress made by these companies could effect change across the sector and through to distributors and suppliers.
Kraft Heinz Company
Costco Wholesale Corporation
Marks & Spencer
Whole Foods Market