Climate

This report presents a first-of-its-kind integrated climate-nature assessment framework to help investors identify and assess the mitigation potential and business case of 22 on-farm livestock interventions. It also maps public and private capital flows to the interventions to show how current financial investments fall short of supporting sustainable livestock production practices.

The Coller FAIRR Protein Producer Index is the world’s only comprehensive assessment of the biggest producers of animal protein. The most material ESG risks facing investors of 60 companies are identified across nine risks and one opportunity factor.

This report outlines key learnings from Phase 1 of the Protein Diversification engagement, showcasing industry best practices, and provides updates on the market and regulatory landscape for novel protein sources. 

Through the assessment of 20 major manufacturers and retailers, findings allow investors to assess the climate, nature, and public health risks linked to animal protein exposure, and explore how protein diversification can mitigate these risks while offering financial opportunities.

The report includes in-depth company analyses, leading examples of protein diversification strategies across business functions, identifies industry trends, and provides a policy update on alternative proteins. It also features an interview with a novel dairy company, discussing challenges and future outlooks. 

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.    

FAIRR’s thematic report on regenerative agriculture and the role of investors examines the increasing number of regenerative agriculture commitments made by 79 publicly listed agri-food companies. The goal is to evaluate whether these commitments are substantial enough to meet climate and nature targets. Regenerative agriculture has gained significant momentum in the agri-food sector as a solution to mitigate the environmental and social damage caused by conventional farming practices. While there is no universally accepted definition, regenerative agriculture practices are centred on achieving positive environmental and social outcomes.

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.

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.

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.