The Coller FAIRR Protein Producer Index has grown in both recognition and impact since its launch in 2018. Established to address the knowledge gap in the environmental, social and governance (ESG) risks associated with the food sector, it is increasingly meeting its fundamental aims of engaging with leading protein producers and influencing investors.
The Index assesses 60 of the largest listed global meat, dairy and aquaculture companies on ten ESG factors. While just 27% of these companies initially recognised the Index through input, 52% provided feedback to their assessments in 2022 – underlining that the Index has become a standard benchmark for the sector.
The percentage of companies rated ‘High Risk’ has fallen significantly over time – from 70% in 2019 to 55% in 2022 – despite methodology changes that have raised expectations of what constitutes best practice. There are not yet companies achieving a Best Practice score across all risk factors, but more are securing a ‘Low Risk’ ‘rank. We have seen companies hiring ESG professionals to address the risks identified in their assessments, while others are using the Index to prioritise their sustainability strategies.
Concurrently, FAIRR’s investor reach has grown substantially – from 125 investors (representing $US14 trillion) in 2019 to more than 360 (representing US$70 trillion) in 2022. Our latest investor survey found 77% of responding members use FAIRR research, including the Index, for company dialogue; 83% use it as part of their sectoral and thematic analyses.
Amid these improvements, this report shows some companies have progressed considerably in addressing the ESG risks associated with the food sector. However, they remain in the minority. Many companies are still failing to manage specific risks, such as water scarcity and waste pollution, at even a basic level.