The Coller FAIRR Protein Producer Index was established in 2018 to address the knowledge gap in the environmental, social and governance (ESG) risks associated with the food sector. Recognition of its value has increasingly grown, as has its impact in driving engagement with leading protein producers and supporting investors in the sector. The Index assesses 60 of the largest listed global meat, dairy and aquaculture companies on ten ESG factors. This report focuses on four topics that are increasingly attracting the most significant interest from stakeholders of all types, including companies, investors and policymakers:
SBTi FLAG: more accountability for land-intensive companies
Circularity: going further than footprints
Antibiotics and animal welfare: a vital link
Human capital risks: mounting pressure to demonstrate transparency and equitability
Some 50% of companies provided feedback to their assessments this year, demonstrating an encouraging level of engagement as companies actively try to understand their assessments. There has been a year-on-year decrease in Index companies rated High Risk – from 55% in 2022 to 45% in 2023 – despite methodology changes that have raised expectations of what constitutes best practice. There are not yet companies achieving a Best Practice score across all risk factors, but more are securing a ‘Low Risk’ rank.
We have seen companies hiring ESG professionals to address the risks identified in their assessments, while others are using the Index to prioritise their sustainability strategies. In tandem, FAIRR’s reach as an investor network has grown substantially – from 125 members representing $US14 trillion in 2019 to more than 390 members representing US$71.5 trillion in 2023. FAIRR’s latest investor survey found 79% of responding members use FAIRR research, including the Index, to inform direct company engagement and 85% use it as part of their sectoral and thematic analyses.
Amid these improvements, this report shows some companies have progressed considerably in addressing the ESG risks associated with the food sector. However, they remain in the minority. Many companies are still failing to manage specific risks even at a basic level and the gap between the best- and worst-performing companies is still growing.
This report can help investors:
To understand the Coller FAIRR Protein Producer Index Methodology
To understand the ESG risks facing the animal agriculture sector
To understand what current best practice looks like for each risk factor
To know how companies’ ESG performance are relative to their peers
To understand the latest policy developments impacting the sector
To understand FAIRR’s analysis of the most pressing issues
To understand why these issues matter
Breakdown of the company universe
Factor specific materiality analysis
Industry trend analysis
Regulatory analysis and policy timelines
Best practice examples and case studies
Overall trends and conclusions
Database of 60 companies
FAIRR’s assessment methodology