A $70 trillion-backed investor group has referred to as for an “pressing” coverage deal with accelerating local weather motion throughout the worldwide meals and agriculture sector on the upcoming COP28 Local weather Summit, after recent knowledge underscored how greenhouse gasoline emissions from the world’s largest meat and dairy producers are nonetheless on the rise.
The FAIRR community of buyers analysed the emissions knowledge disclosed by 20 of the most important listed meat and dairy corporations worldwide final 12 months, collectively accounting for $295 billion in market worth. It discovered that their collective emissions rose 3.28 p.c in 2022-23.
Companies which noticed their emissions rise final 12 months embody world producers reminiscent of Hormel Meals within the U.S. and New Hope Liuhe in China, each of which provide meat and dairy to world manufacturers reminiscent of Walmart and McDonald’s, in keeping with the FAIRR community.
And whereas a number of the 20 corporations analyzed did see their emissions fall final 12 months — together with Danone and WH Groop in China — it defined these enhancements had been offset by rises in emissions from different dairy and meat producers.
With UN estimates suggesting livestock farming is accountable for round 14.5 p.c of worldwide emissions, FAIRR founder and chair Jeremy Coller stated there was an “pressing want for extra coverage deal with the meals and agriculture sector” to drive down its local weather and environmental impacts.
Meals system emissions deserve a spot on the high of the desk, alongside vitality and transport.
He urged world policymakers to make sure agriculture and meals are prioritized as main points on the upcoming COP28 UN Local weather Summit in Dubai, which kicks off on the finish of November.
“Meals system emissions deserve a spot on the high of the desk, alongside vitality and transport, as they signify an estimated third of greenhouse gasoline emissions and 40 p.c of methane,” stated Coller. “Traders hope the first-ever publication of a meals and agriculture roadmap at COP28 this month will catalyze the transition to 1.5C and a extra sustainable meals system.”
Established in 2015 by the Jeremy Coller Basis, the Farm Animal Funding Threat and Return (FAIRR) community is backed by buyers managing round $70 trillion of property worldwide.
At the moment’s knowledge was launched as a part of the investor group’s annual index of the world’s high 60 publicly listed animal protein producers. The index charges the corporations towards 10 environmental, social and governance (ESG) metrics, and is “used extensively” by FAIRR members to evaluate the businesses they spend money on, in keeping with the community.
The general knowledge factors to an upward pattern in emissions from the highest 20 meat and dairy producers, however it additionally highlights pockets of progress inside the sector, with rising numbers of corporations increasing the scope of their emissions disclosure to buyers.
It was ‘encouraging to see extra corporations disclosing carbon footprints that embody their complete provide chain.’
The index reveals eight firms, or 40 p.c of the highest 20, publicly report their Scope 3 worth chain emissions, together with greenhouse gases from their provide chain and animal feed manufacturing. Each Tyson Meals and WH Teams — which owns Smithfield Meals — disclosed emissions from throughout all scopes for the primary time this 12 months, in keeping with FAIRR.
Different good observe highlighted within the index consists of strikes from French big Danone, which final 12 months grew to become one of many first firms to set Forest, Land and Agriculture (FLAG) targets aligned with the Science Primarily based Targets initiative (SBTi) and dedicated to a 30 p.c discount in its methane emissions from recent milk by 2030.
Nonetheless, simply 4 meat and dairy corporations within the high 20 must date set web zero emissions targets accredited by the SBTi, the evaluation discovered.
Thalia Vounaki, senior supervisor analysis and engagements on the FAIRR Initiative, stated it was “encouraging to see extra corporations disclosing carbon footprints that embody their complete provide chain, as these vital Scope 3 emissions account for the big majority of the sector’s emissions.”
Nonetheless, she burdened there remained “a protracted solution to go” to each enhance disclosure and speed up bold local weather motion throughout the meat and dairy sector.
“Traders should proceed to have interaction with the sector with a transparent message that to handle local weather threat, they want complete disclosures which embody provide chain emissions and full inventories that cut up which emissions come from feed and which come from animals,” she stated.
