Phase 2 Outcomes
During Phase 2, 95% of companies acknowledged investor engagement letters, 65% of companies held dialogues with investors, and 85% of companies acknowledged and/or provided feedback on their assessment.
For the individual Protein Diversification engagement company assessments, please visit our Company Universe.
Phase 2 Key Findings
Companies are unaware of how protein diversification can support their climate goals
The proportion of companies setting 1.5°C-aligned Scope 3 emission reduction targets that include FLAG emissions has increased, from 35% in 2024 to 55% in 2025. However, it is unclear how most companies will meet these targets, as only 25% have developed clear roadmaps quantifying the emissions mitigation potential of their decarbonisation interventions. These same companies recognise protein diversification as a lever to achieve their Scope 3 reduction targets, suggesting that undertaking such analysis can support companies in understanding its potential, aligning with the latest scientific evidence from organisations such as the IPCC.
88%
of global dietary guidelines are encouraging greater intake of plant-based foods to reduce diet-related disease risk. 56% have linked diet with sustainability.Estimated 10 – 20% increase
in the market share of alternative proteins by 2035 (excluding plant-based whole foods).25%
of companies have developed clear roadmaps quantifying the emissions mitigation potential of their decarbonisation interventions.90%
of companies continue to launch and promote new plant-based products.60%
of companies continue to pursue mainstream consumers, but less than half are working to make their alternative protein portfolio more accessible.65%
of companies lack a specific marketing commitment for their alternative protein ranges.Companies see protein diversification as a business opportunity.
While 90% of companies continue to launch and promote new plant-based products, 77% noted in dialogues that concerns over product performance, price, or nutritional value are constraining consumer uptake.
Company governance does not support the execution of sustainability and health strategies.
Although there has been an increase in companies setting SBTi targets, only 27% of these link Scope 3 emissions reductions to board remuneration, making it unclear how most companies will incentivise progress. However, it is positive to see that 85% of companies have sustainability experience at the board level.
Expertise in health and nutrition is still underrepresented, with only 30% of companies displaying this at the board level. This highlights a gap in board-level expertise despite 70% of companies identifying health and wellness as one of the most material issues to their businesses.
More innovation investment is needed to address product performance and affordability challenges.
While most companies are capturing consumer health and wellness trends by focusing on plant-based, whole-food protein sources, 75% neglect the potential of ingredient-level substitutions for nutrition and sustainability.
Companies are slow to adopt just transition strategies and limit supplier support to regenerative agriculture.
Only two companies have just transition strategies, and only 20% have committed to its principles. Despite these small numbers, 80% of companies are supporting their animal protein suppliers to adopt more sustainable practices. However, these support efforts are focused on reducing on-farm emissions through practices such as regenerative agriculture and do not support diversification in protein production. This means the transition risk of diet shift is overlooked, despite 40% of companies recognising this in their TCFD analysis.
