Climate
Climate Overview
The impact of intensive animal agriculture is underrepresented in existing climate change engagement efforts despite its critical role in the global transition to Net Zero by 2050. The risks from livestock production range from greenhouse gas emissions contributing to climate change, air pollution from ammonia emissions, and nature and biodiversity-related risks from deforestation and land conversion to livestock pasture and animal feed. Most of the deforestation and land conversion happens in high-value ecosystems such as deforested lands in the Amazon and the Cerrado where over half of the region has been converted to livestock pasture and animal feed crops such as soybeans.
Although risks remain high, opportunities are emerging from improved farm management practises, supply chain innovation, new technologies, and blended finance mechanisms that allow companies to mitigate and adapt to climate change and other environmental risks in their global animal value chains.
FAIRR’s work on climate encompasses the Protein Producer Index, which assesses 60 of the largest listed global meat, dairy and aquaculture companies while our Climate Risk Tool quantifies the financial impact of climate change. These tools and resources enable investors to make informed decisions on minimising climate and environmental risks across their investment portfolios.
FAIRR's recent Investor Statement, which called on the UN FAO to deliver a climate transition roadmap, was supported by investors representing $18 trillion in combined assets. Our efforts led to confirmation by the UN FAO that a roadmap for the Agriculture, Forestry and Other Land Use (AFOLU) sector, aligning with 1.5C by 2050, will be produced. FAIRR is working closely with the UN FAO to support the production of this roadmap.
Latest Activity
New Report: Tackling the Climate-Nature Nexus
Livestock production is a significant contributor to the world crossing the safe operating space for the planetary boundaries. This report uses the planetary boundaries framework to illustrate climate and nature-related risks and the financial materiality of exceeding the planetary boundaries from livestock production. It also details the relationship and interdependencies between climate and nature and provides a list of climate and nature-based solutions, highlighting the synergies and trade-offs between different solutions. Understanding these solutions can help investors better engage with their portfolio companies to adopt solutions and allocate necessary capital to scale up promising solutions to reduce financial risk and drive the transition towards a net-zero and nature-positive future.
New Asia Trends Report Coller FAIRR Protein Producer Index 2022/23
The Index assesses 60 of the largest listed global meat, dairy and aquaculture companies on 10 ESG factors. Asia is home to 27 of these companies, including 12 in the People’s Republic of China. This report demonstrates how some Asian companies have progressed considerably in addressing the ESG risks associated with food production. Compared to 2021, there has been improvement almost across the board – most notably with regard to food safety, antibiotics and alternative proteins.
NEW & improved Coller FAIRR Climate Risk Tool has now launched
Introducing the Coller FAIRR Climate Risk Tool - the only climate risk analysis tool that quantifies the materiality of risks and opportunities of the largest livestock producers. Working with three distinct climate scenarios based on IPCC and NGFS - High Climate Impact, Business as Usual, and Net Zero Aligned – the Tool illustrates how each scenario could impact the cost and profitability of each of the 40 meat and dairy companies. The underlying model focuses on three material climate-related costs - carbon tax, feed costs and heat stress – and provides investors with a critical lens to assess how these costs may affect them in future. By leveraging the tool, investors can make informed decisions to better identify climate-related risks and opportunities in their investment portfolios.
Latest Release: Coller FAIRR Protein Producer Index 2023/24
The Coller FAIRR Protein Producer Index, FAIRR’s foundational piece of research, helps to identify the most material ESG risks currently affecting the animal agriculture industry. The Index assesses 60 of the largest global meat, dairy and aquaculture companies on 9 ESG risk factors and one opportunity factor.
New Report: Tackling the Climate-Nature Nexus
Livestock production is a significant contributor to the world crossing the safe operating space for the planetary boundaries. This report uses the planetary boundaries framework to illustrate climate and nature-related risks and the financial materiality of exceeding the planetary boundaries from livestock production. It also details the relationship and interdependencies between climate and nature and provides a list of climate and nature-based solutions, highlighting the synergies and trade-offs between different solutions. Understanding these solutions can help investors better engage with their portfolio companies to adopt solutions and allocate necessary capital to scale up promising solutions to reduce financial risk and drive the transition towards a net-zero and nature-positive future.
New Asia Trends Report Coller FAIRR Protein Producer Index 2022/23
The Index assesses 60 of the largest listed global meat, dairy and aquaculture companies on 10 ESG factors. Asia is home to 27 of these companies, including 12 in the People’s Republic of China. This report demonstrates how some Asian companies have progressed considerably in addressing the ESG risks associated with food production. Compared to 2021, there has been improvement almost across the board – most notably with regard to food safety, antibiotics and alternative proteins.
NEW & improved Coller FAIRR Climate Risk Tool has now launched
Introducing the Coller FAIRR Climate Risk Tool - the only climate risk analysis tool that quantifies the materiality of risks and opportunities of the largest livestock producers. Working with three distinct climate scenarios based on IPCC and NGFS - High Climate Impact, Business as Usual, and Net Zero Aligned – the Tool illustrates how each scenario could impact the cost and profitability of each of the 40 meat and dairy companies. The underlying model focuses on three material climate-related costs - carbon tax, feed costs and heat stress – and provides investors with a critical lens to assess how these costs may affect them in future. By leveraging the tool, investors can make informed decisions to better identify climate-related risks and opportunities in their investment portfolios.
Latest Release: Coller FAIRR Protein Producer Index 2023/24
The Coller FAIRR Protein Producer Index, FAIRR’s foundational piece of research, helps to identify the most material ESG risks currently affecting the animal agriculture industry. The Index assesses 60 of the largest global meat, dairy and aquaculture companies on 9 ESG risk factors and one opportunity factor.