More than half of meat and fish producers deemed ‘high risk’ for investors

• Samuel Fromartz

An analysis of 60 global meat and fish producers found that 36 companies worth $136 billion were a “high risk” for investors, because they failed to address a range of sustainability issues including greenhouse gas emissions, animal welfare, antibiotics use, worker conditions, and food safety, said the Farm Animal Investment Risk & Return (FAIRR) Initiative. The survey aims to improve corporate disclosure on sustainability issues and guide institutional investors on investment decisions.

“Investors need … data and transparency to make better investment decisions, yet this information is lacking in the meat, fish and dairy sector. This is the first index to help bridge that knowledge gap,” said Jeremy Coller, chief investment officer of Coller Capital and the founder of FAIRR.

Among the findings, FAIRR said:

• 77 percent of the companies fail to adequately manage or disclose antibiotic use. It said major suppliers to McDonald’s and the fast food industry, such as China’s Fujian Sunner and India’s Venky’s, are among those ranked “high risk” on antibiotics.
• One in five firms (22 percent) fail to show full traceability of their food supply chain to manage food safety.
• 72 percent of the sector (worth $175 billion) is failing to manage climate risk, though livestock is responsible for 14.5 percent of global greenhouse gas emissions.
• Only 35 percent of companies report on water use in their operations.
• Only five of the 60 companies account for the emergence and growth of the alternative, non-meat proteins sector.
• Chinese companies score poorly on sustainability metrics. Nearly 90 percent were categorized as “high risk.”
• Norwegian aquaculture companies rank as the most sustainable, and European companies score more highly than those of the United States or Asia.

The companies were assessed on greenhouse gas emissions; deforestation and biodiversity loss; water scarcity and use; waste and pollution; antibiotics; animal welfare; sustainable proteins such as meat substitutes; working conditions and food safety.