Overview
Pollution is one of the biggest crises facing the planet, driving biodiversity loss and climate change, threatening the health of people, the economic prosperity of companies and the long-term sustainability of the world’s food system.
Agriculture is one of the main sources of pollution, particularly to water, largely due to the improper or excessive application of synthetic and organic fertilisers, wastewater from processing facilities, and the treatment and disposal of animal manure, more broadly.
Amid heightened government scrutiny and a growing number of lawsuits, companies increasingly face calls to address the waste and pollution associated with their activities, and those of their suppliers, and exposing them and their investors to significant, financially material risks.
This report discusses the outcomes and insights from the first three-year cycle of FAIRR’s Waste and Pollution Engagement with 10 of the largest pork and poultry producers in the world and two fertiliser companies, supported by 71 investors with US$16.6 trillion in combined assets.
FAIRR’s engagement shows that while there has been an increase in the number of companies conducting water quality risk assessments for their own operations and livestock supply chains, those efforts still fall short of fully addressing the material risks of pollution from animal waste and fertiliser use.
The findings of this report can help investors:
understand the multiple regulatory and reputational risks meat producers are exposed to from pollution;
encourage their portfolio companies to include all livestock suppliers in their water-quality risk assessments, and prioritise formalising strategies and targets for areas identified as being exposed to medium and high water-quality risks;
drive a broader transition in agriculture by encouraging companies to prioritise pollution-reducing interventions that support the transition toward sustainable farming; and
encourage their portfolio companies to prioritise research and investment in fertiliser products that have fewer environmental impacts.
Key highlights
Key findings from this report:
The majority of companies have assessed the water-quality risks of their own operations, but they are not transparent about the results.
Seven livestock producers now include livestock supply chains to some extent in their risk assessments, but only a few include all animal suppliers.
Despite more companies conducting risk assessments, they have not used the results to implement mitigation strategies.
Fertiliser producers have made no progress in evaluating the risks associated with fertiliser products, and are focused on collaborative initiatives.
Most companies have not explored or scaled circularity due to a lack of financial incentives.
