FAIRR’s evaluation framework evaluates companies in six assessment categories: Materiality, Strategy, Product Expansion, Consumer Engagement, Tracking & Reporting, and Investor Engagement, customised for retailers and manufacturers. The categories are designed to track a company’s approach to mitigating supply chain risks in animal protein commodities. They also measure how the company drives growth and builds climate-aligned portfolios by expanding alternative proteins and plant-based foods through product development and consumer engagement.

2022 Outlook

FAIRR assessed companies on the same six assessment categories as in previous years; however, instead of quantitatively scoring, FAIRR performed a qualitative assessment and assigned a forward-looking outlook for each company. The outlook reflects a company’s progress since Phase 5 and FAIRR’s view on its expected trajectory for the next 12-18 months. It is based on public disclosure, third-party data, and information shared during the collaborative engagement dialogues.

For each company, FAIRR provides individual signals for the six assessment categories, and the overall outlook is formed by aggregating the six signals. The outlook can be neutral, positive or negative.

Definitions of outlook:

• Positive - There is evidence that the company has achieved significant progress and will continue with an upwards trajectory. Progress is enough that the baseline score of Phase 5 would significantly increase, as two or more assessment categories have positive signals. To score a positive outlook, a company requires two net positive signals (i.e., it could have one negative (-1) signal and three positive (+3) signals, resulting in two positive signals).

• Neutral - The company is on track, with no material change leading to a significant score increase or decrease against the evaluation framework.

• Negative - There has been detracting change since Phase 5 or lack of speed of necessary progress to maintain the baseline score. Evidence or lack thereof shows that the company is on a downwards trajectory which would lead to a material score decrease. Negative signals outweigh positive signals.

2021 Score

Companies are scored based on performance against each of the six assessment categories. Five of the categories are weighted at 18% each: Materiality, Strategy, Product Portfolio, Consumer Engagement, and Tracking & Reporting. Investor Engagement has a lower weighting at 10%.

Final company scores are calculated as the total sum of scores up to a maximum of 100 points. Based on their score, companies are categorised across five levels to indicate how prepared they are to undertake a protein diversification strategy: Inactive; Reactive; Active; Proactive; and Pioneer.

During this fifth phase of engagement, all companies received a detailed qualitative assessment of their performance against the evaluation framework and were given the opportunity to provide feedback. FAIRR referred to each company’s annual report, quarterly earnings calls, sustainability reports, websites, CDP responses (if publicly available) and any other publicly available source, including media reports. FAIRR also incorporated information from company responses to the investor letter and notes from company/investor meetings, where available.