Engagement Overview
The food system is both a driver of climate change and biodiversity loss, and deeply vulnerable to the impacts, with animal agriculture responsible for up to 19.6% of global greenhouse gas emissions and beef production accounting for 41% of global deforestation. Dietary choices are key determinants of environmental sustainability and human health, with overconsumption of red and processed meat strongly associated with non-communicable diseases.
Companies in the engagement attribute, on average, 26% of Scope 3 emissions to animal protein supply chains. Their combined market influence can improve sourcing practices and drive healthier and more sustainable consumption habits. While companies have made progress in offering alternative protein sources, they are failing to align this with their climate and health strategies. 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. Companies could also leverage a clear, evidence-based marketing strategies to drive demand for diverse protein sources in support of a shift to healthier, more sustainable diets.
The Protein Diversification engagement asks companies to:
Support the transition to healthy, sustainable diets through the integration of protein diversification within their climate transition strategies
Allocate resources to diversify their protein portfolio and improve nutritional and sustainability attributes
Engage consumers to promote the uptake of nutritious and sustainable alternative protein sources
Selected Companies
Focusing on Western markets, this engagement will target 20 of the world’s largest food manufacturers and retailers, who have a key role to play in shifting diets.
Material Risks
Companies exposed to animal protein supply chains are deeply vulnerable to climate, nature and health risks. Coupled with the projected 14% growth in animal protein production by 2030, reliance on the animal agriculture industry poses a material risk to companies when striving to reduce emissions as part of climate transition planning.
FAIRR’s Climate Risk Tool finds that impacts related to climate change, such as increased heat stress of livestock, water scarcity and yield decline in animal feed, are projected to result in cumulative losses of US $1.3 trillion by 2030 for 40 of the largest livestock companies.
Companies can derisk their product portfolios and build resilience through a dual-approach, inclusive of demand-side interventions that encourage more diverse, healthier and sustainable diets. As consumption patterns continue to evolve, protein diversification offers a key market opportunity, with novel alternative protein sources forecast to account for at least US $296 billion by 2035.
Investors Signed On
The Phase 2 of the engagement is now closed.
Phase 1 of the engagement was supported by 66 investors, representing more than US $10.8 trillion in combined assets.