Protein Diversification Engagement

Background

The overconsumption of animal proteins in high-income countries disproportionately contributes to climate change, degrades natural ecosystems, and is linked to increased incidences of non-communicable diseases (NCDs). These risks present growing challenges to food supply security, sustainability ambitions, brand and reputation, and financial growth of food companies that depend on the sale of products that wholly or partially involve intensively farmed animal proteins.  

With the global population expected to grow in line with the demand for animal protein production consumption patterns need to become more sustainable to prevent the impacts of intensive animal agriculture from escalating further. While integrating practices such as regenerative agriculture, increasing nutrient efficiency, and improving on-farm energy use have significant climate mitigation potential, these efforts alone are insufficient to ensure the sector's long-term viability. Shifting consumption patterns to include more alternative protein sources such as plant-based wholefood proteins must also be part of the solution.  

Companies in this engagement have exposure to animal protein supply chains. Their combined market influence can improve sustainable sourcing practices and drive healthier and more sustainable consumer habits. While companies have made progress in offering alternative protein sources¹, they are failing to align this with their climate and health strategy. Companies will benefit from quantifying the climate mitigation potential of protein diversification, setting informed protein diversification targets, and integrating these targets into their climate transition plans. They will also benefit from a clear evidence-based marketing strategy to drive demand for alternative protein products in support of a shift to a healthier and more sustainable diet.  

The Protein Diversification engagement asks companies to (i) support the transition to a planetary health diet through the integration of protein diversification into climate strategies; (ii) allocate resources to diversify their protein portfolio and improve nutrition and sustainability attributes; (iii) engage consumers to promote the uptake of nutritious and sustainable alternative protein sources.  

¹ For the purposes of the Protein Diversification engagement FAIRR defines alternative protein sources as products produced from plant-based and/or novel protein sources. Plant-based protein includes whole foods, plant-based meat and dairy alternatives, traditional fermentation products (i.e. tempeh) as well as biomass fermentation. Novel protein sources include but are not limited to precision fermentation and cultivated products.

Material Risks

The food system significantly contributes to climate change and biodiversity loss. Animal agriculture alone is responsible for nearly 20% of all anthropogenic greenhouse gas emissions, and in Brazil, cattle ranching accounts for 72% of deforestation. Moreover, the excessive consumption of animal proteins poses threats to public health. The routine use of antibiotics in livestock, for growth promotion and prophylaxis, is closely linked to the rise of antimicrobial resistance (AMR), resulting in over a million deaths annually. Additionally, the consumption of red and processed meat has been associated with non-communicable diseases such as strokes and cardiovascular disease. Compared to processed animal-based products, generally plant-based products also offer a healthier option to consumers in terms of saturated fat, cholesterol, fibre, and a range of other nutrients.   

With the global population expected to reach 8.5 billion by 2030 and incomes on the rise, animal protein production is projected to grow by 14% in the same period. Companies heavily reliant on animal proteins face multiple risks. If the current trajectory continues, the cost increase in 2030 due to the impact of feed prices could rise by up to 15% across all animal protein sources, impacting profit margins throughout the value chain. Furthermore, engagement companies, on average, derive a third of their Scope 3 emissions from animal agricultural supply chains, leaving them vulnerable to carbon taxes.  

To address these risks, companies can take action by diversifying their protein portfolios. Scientific bodies including the International Panel on Climate Change (IPCC) and the Eat-Lancet Commission describe with high confidence that a shift towards more plant-based diets presents a key opportunity for climate adaptation and mitigation, with co-benefits for human health. The UK Climate Change Committee recommends a 20% reduction in meat and dairy consumption by 2030 and a 35% reduction in meat by 2050. This shift would not only help mitigate the climate impacts of the global food system but also improve public health.