For many fast-food companies, supply chain risks present growing challenges to supply security, sustainability ambitions, brand reputation, and financial growth. The fast-food sector plays a dominant role in feeding our global population, with around 84.8 million adults in the US (nearly one-third of the population) consuming fast food on any given day. This sector continues to expand rapidly in developed and emerging markets, with a significant portion of items sold being wholly or partially made from meat and dairy products.
Animal proteins have a significant environmental footprint across three key areas: greenhouse gas (GHG) emissions, water and land use. In August 2019, the IPCC published a special report on climate change and land, arguing that the global food system not only contributes to global GHG emissions but is also vulnerable to the impacts of climate change. Such exposure can create material, operational, reputational, and market risks for the companies buying animal protein products. Agriculture and land use make up 24% of global GHG emissions and are among the biggest drivers of tropical deforestation. Rising temperatures will also impact the productivity of these companies.
Main contact: Cristina Figaredo, Research & Engagements Manager
The FAIRR Initiative and Ceres have developed company-level analysis, which is exclusively available to our Investor Members. The latest update was published in April 2021.
While five of the six companies have shown progress by setting GHG targets, they have been much slower to address water scarcity and pollution risks among their meat suppliers.
In Phase 3, investors can request that companies commit to key interim objectives identified during Phase 2. While these objectives may differ for each company, we will broadly focus on plans to set targets related to water use and the quality of their meat and dairy supply chains. Additionally, investors will ask companies to implement a strategy to meet their emissions reduction targets and disclose a climate scenario analysis aligned with TCFD recommendations.
See our briefing on these issues to understand how climate and water risks affect quick-service restaurants, and why investors should engage on this issue.
The Global Investor Engagement on Meat Sourcing, initiated in 2019, consists of dialogues between six of the largest quick-service restaurant (QSR) brands and institutional…
Growing global demand for meat and dairy products continues to place unsustainable burdens on our planet’s limited resources. Animal agriculture is linked to nearly…
One of the greatest challenges facing the world today is to ensure that the growing population has access to adequate, sustainable and nutritious food.…