Thematic Insights
Coller FAIRR Protein Producer Index 2024/25
Explore the latest iteration of the Coller FAIRR Protein Producer Index, the world’s only comprehensive assessment of the largest animal protein producers on critical ESG issues.
Explore the IndexThemes Overview
Addressing Key Themes Impacting our Global Food System
While the environmental challenges facing society are complex, evidence has shown that even if fossil fuel emissions were eliminated, food system emissions alone would make it impossible to reach the Paris Climate Goal of 1.5°C.
Food systems account for around a third of global greenhouse gas emissions, and agriculture is the main threat to 86% of species at risk of extinction. Additionally, around three-quarters of the deforestation in the Amazon between 1978-2020 was caused by cattle ranching.
By addressing as many elements of the global food system as possible, FAIRR hopes to achieve its goal of building a more transparent, resilient, and sustainable global food system.
Why these themes are important to investors
The food industry's heavy reliance on intensive animal agriculture presents environmental, social, and financial risks for investors. Concerns related to climate change, deforestation, water pollution, and animal welfare, among others, can result in regulatory changes, reputational damage, and market shifts, affecting investment portfolios.
While some risks have a more visible impact due to short-term events, the financial performance of companies in this sector depends on its longer-term ability to anticipate and navigate these risks. Additionally, changing consumer preferences alongside innovative new technologies such as plant-based and cellular agriculture present challenges and opportunities for food producers.
Investors who understand these risks and opportunities can make better informed decisions.
