Having consistent and comparable metrics that companies report on is important to allow investors to understand which companies are performing better, and which companies represent the greatest risks.
Investors should consider ongoing and prospective investments in meat and dairy production and consumption in the context of a transition to increasingly plant rich diets and the need to halve levels of meat and dairy consumption by 2030. Risks linked to climate change, including production volatility will become increasingly important considerations.
Risk evaluation should include:
- Building increased investor awareness of the risks and opportunities that exist for meat and dairy companies.
- Full disclosure of investments and assets in meat and dairy by asset owners, such as banks, pension funds and insurers.
- Development of metrics to ensure consistent and comparable reporting by food companies to track their transition to ‘less and better’ meat and dairy. These should extend to the entire animal protein value chain, including animal feed producers, meat producers, retailers, caterers and restaurants. Measure progress on sustainability targets developed for their sector.
- Consider existing or prospective investments within companies engaged in meat and dairy at risk. In particular for those with the worst records for environmental, animal welfare and human health impacts.