FAIRR Conversations Podcast

FAIRR Conversations: Introducing the Coller FAIRR Protein Producer Index

The Coller FAIRR Protein Producer Index is the world’s only assessment of meat, dairy and farmed fish producers on the material environmental, social and governance (ESG) risks. Intensive production methods have become routine practice in the fish and livestock farming industries. The poultry farming sector, for example, produces 70% of all birds on the planet, while 60% of all mammals are raised as livestock, namely cattle and swine.

This trend is increasing with a large number of Asian countries, including China, consolidating farming operations to reduce fragmentation and increase production efficiencies. This growing trend, combined with a burgeoning global middle class demanding more animal protein, positions meat, dairy and aquaculture companies favourably for capital investment. However, research also suggests that the dramatic expansion of this industry is exacerbating climate change impacts, water scarcity, food insecurity, biodiversity loss and drug resistance. In 2016, FAIRR’s flagship report for investors, Factory Farming: Assessing Investment Risks, identified 28 environmental, social and governance (ESG) risks linked to the livestock sector. The Coller FAIRR Protein Producer Index builds on this work by analysing major protein producers on their management and disclosure of nine of the most critical risk factors facing the industry. As some of the largest publicly listed meat, dairy and aquaculture producers, most institutional investors are exposed to these companies through their equity and fixed income portfolios. The aim of this pilot Index is to provide the investment community with a tool that enables them to better understand the ESG risks facing these global listed assets, and to more easily integrate these into their investment decision making process and active shareholder engagement. In this special podcast, Aarti Ramachandran, Head of Research & Engagements for the FAIRR Initiative, discusses who the index is designed for and how investors can use it. See acast.com/privacy for privacy and opt-out information.