As 2025 draws to a close, sustainability remains firmly on the investor agenda, with climate, nature, and social risks converging to create complex challenges – and opportunities – across global food systems.
From landmark policy developments to escalating physical risks and shifting consumer trends, this year has underscored the need for integrated strategies that address multiple planetary boundaries, and this need will only grow as 2026 approaches.
Investors increasingly recognise this need – despite geopolitical headwinds, FAIRR’s network grew by 24 members, representing US$1.7 trillion in assets, in 2025, bringing the total to 400+ members and US$90 trillion in assets.
Sustainable funds also outperformed traditional funds in H1 2025, generating a median return of 12.5% compared to 9.2% for broader strategies, with assets under management reaching US$3.9 trillion, up 11.5% from December 2024, according to Morgan Stanley. The investment bank also found that four out of five institutional investors expect to increase their sustainable investments next year.
Food is clearly rising on global agendas and asset managers and owners are expected to deepen engagement on these critical issues, particularly as physical climate risks become more evident.
This Insight piece explores some of the key developments that have characterised the last 12 months and the leading research and engagements that FAIRR has delivered for its members.
Climate and nature risks intersect with operational disruptions
From flooding and droughts to deforestation and antimicrobial resistance (AMR), the systemic issues facing governments, businesses, and society are deeply connected, and their impacts cannot be viewed in isolation.
These issues are embedded in complex global systems of production and consumption, and recent events underscore how these risks intersect with operational and supply chain disruptions.
In October, for example, severe weather damaged a fish farm operated by Mowi in Scotland, releasing almost 75,000 farmed salmon into open waters and threatening local wild salmon species.
FAIRR’s Sustainable Aquaculture Engagement, which concluded in May, has highlighted the material operational, regulatory, and reputational risks for salmon producers and their investors linked to relying on wild-caught fish for feed, alongside broader issues associated with aquaculture, such as fish escapes.
Marine protection gains global momentum
The importance of protecting marine life gained global recognition this year with the ratification of the High Seas Treaty by Morocco on 19 September. Next year’s inaugural Conference of Parties (BBNJ-COP) will define implementation details, including marine protected areas, environmental impact assessments, and benefit-sharing mechanisms for marine genetic resources.
Shared ocean governance will have implications for companies and investors. Reflecting these developments, FAIRR will expand its oceans work in 2026 with the launch of the Coller FAIRR Seafood Index and the continuation of the Seafood Traceability Engagement.
Integrated solutions: Tackling systemic challenges
Just as climate and nature risks are deeply intertwined, the solutions to address these issues must also be integrated.
Consider manure use as fertiliser. Properly treated manure supports soil health and circularity for livestock producers. However, manure from industrial farms often contains undigested antibiotics and antibiotic-resistant bacteria, contributing to AMR – a global threat causing an estimated 1.14 million deaths annually.
While manure treatment reduces bacteria, antibiotic residues remain, creating a barrier to widespread nutrient circularity.
FAIRR explored these challenges in The Cost of Contamination: Addressing Water Pollution Risks in Intensive Animal Agriculture, while its groundbreaking research on climate and nature-based interventions in livestock highlights the need to increase private and public investment towards holistic nature-based solutions.
At COP30, the COP Presidencies of the three Rio Conventions issued a statement recognising the interconnected nature of biodiversity loss, climate change, and land degradation and drought, and affirming the importance of implementing goals and targets through complementary approaches.
This sends a positive signal for future cooperation, particularly next year, when all three COPs will take place.
Social inclusion moves up the agenda
This year reinforced that people – especially marginalised and Indigenous groups – must be central to sustainability discussions. COP30 in Belém, Brazil, saw Indigenous participation triple to 900 attendees. Yet a protest by the Munduruku people against extractive projects highlighted ongoing gaps in inclusive decision-making.
FAIRR advanced its work on social issues by hosting a PRI in Person side event on connecting climate and nature action with inclusive development, while also considering how just transition principles can be applied to animal agriculture.
Social issues will remain a priority in 2026, with the beta release of the Taskforce on Inequalities and Social-related Financial Disclosures (TISFD) framework slated for spring, with FAIRR providing subject-matter expertise through its Alliance participation.
Water scarcity: A growing financial risk
Global water scarcity is intensifying. The UN FAO warned in December that renewable water availability per person declined 7% over the past decade, while freshwater withdrawals continue to rise. Agriculture accounts for 72% of global withdrawals, exposing protein producers – and their investors – to underreported and underpriced risks, as FAIRR’s research briefing explores.
Several events next year will provide key opportunities for governments, policymakers and stakeholders across science, finance and civil society to find solutions that address water quality and scarcity, including:
the Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification (UNCCD), which will be hosted by Mongolia from 17 to 28 August 2026; and
the United Nations Water Conference, co-hosted by the United Arab Emirates and Senegal, and convened in the UAE from 2 to 4 December 2026.
Protein diversification: Navigating complexity and opportunity
Extreme weather, food security concerns, and health trends made 2025 pivotal for protein diversification. Avian influenza disrupted supply chains and drove egg prices higher, creating opportunities for plant-based protein producers, as FAIRR’s March Insight explored.
Retailers and manufacturers continue to expand plant-based portfolios, yet only 20% of companies in FAIRR’s engagement set plant-based sales targets within their climate transition plans.
The latest EAT-Lancet Commission report, published in October, reinforced the benefits of plant-rich diets for climate, nature, and health, and aligned closely with the outcomes and objectives of FAIRR’s Protein Diversification Engagement.
Looking ahead, the UK’s mandatory healthy sales reporting – part of its 10-Year Health Plan – will take effect in 2026, creating opportunities for retailers and manufacturers to accelerate protein diversification.
Animal welfare and AMR: Interconnected risks and imperatives
Poor animal welfare practices continued to pose material risks. In May, UK pork producer Cranswick saw its share price fall nearly 9% after evidence of cruelty and banned killing methods led retailers to suspend supplies. Similarly, an Animal Equality investigation revealed serious breaches at a Red Tractor-certified farm supplying Tesco.
Beyond ethics, poor welfare creates regulatory, reputational, and operational risks. Conversely, improving welfare standards – such as reducing stocking density and transport distances – can mitigate disease outbreaks like bird flu and help address AMR.
While progress on AMR was made in 2025, including the European Commission’s €253 million (US$297.5 million) commitment to AMR research, significant challenges remain. Key milestones for 2026:
The Independent Panel for Evidence for Action against AMR (IPEA) will start its work to provide policymakers with robust independent scientific evidence to inform policy decisions. The IPEA’s creation fulfils one of the seven asks of the IAAMR public investor statement, which FAIRR co-led.
The 5th Global High-Level Ministerial Conference on Antimicrobial Resistance will meet in Nigeria from 28 to 30 June, with a focus on translating global ambitions into tangible national and subnational outcomes, combining action, equity, innovation, and environmental sustainability.
Phase 2 of FAIRR’s Restaurant Antibiotic Engagement will close, with limited progress achieved among North American quick-service restaurants, underscoring the need for continued investor engagement to address AMR risks.
2026: A pivotal year for sustainable food systems
2026 will be a defining year for sustainable food systems, with critical milestones on ocean governance, water security, AMR, and protein diversification.
FAIRR will continue raising awareness of the issues driving risk and opportunity in the global food system, and supporting its investor members to engage with companies, support innovation, and align capital toward resilient and inclusive solutions.
Together, we can help drive a transition that delivers long-term value while safeguarding planetary and human health.
FAIRR insights are written by FAIRR team members and occasionally co-authored with guest contributors. The authors write in their individual capacity and do not necessarily represent the FAIRR view.
