The food system is a key driver of climate change and biodiversity loss, with animal agriculture responsible for up to 19.6% of all anthropogenic greenhouse gas emissions and cattle ranching accounting for 72% of Brazil’s deforestation. Additionally, the routine use of antibiotics in livestock for growth promotion and prophylaxis is strongly linked to the rise of antimicrobial resistance (AMR), leading to over one million deaths annually. The overconsumption of red and processed meat, particularly in Western high-income countries, is associated with non-communicable diseases, posing a risk to public health. 

Food retailers and manufacturers operating in Western countries are highly exposed to animal protein supply chains with over a third of their emissions stemming from animal agriculture. According to FAIRR’s Climate Risk Tool, the cost increase in 2030, due to the impact of feed prices under a business-as-usual scenario, will range from 1-15% across all animal protein sources, while the cost increase due to the impact of a carbon tax may be as high as 19%, impacting profit margins throughout the value chain. 

Dietary choices are key determinants of environmental sustainability and human health. The International Panel on Climate Change (IPCC) emphasises the need for more balanced and diversified eating habits, with a greater focus on plant-based foods. Similarly, The Eat-Lancet’s ‘planetary health diet’ includes sourcing proteins from primarily plant-based sources with a reduction in proteins sourced from animals in Western countries. 

To mitigate these risks, companies need to shift their protein portfolios. The number of companies offering alternative protein sources has increased, with many setting sales growth targets for these products. However, few have quantified the mitigation potential associated with diverse protein portfolios and set timebound goals to support a clear pathway for action. 

Companies are also lacking a clear consumer education strategy to support a diet shift in favour of alternative protein sources. As food manufacturers and retailers play a key role in shaping consumer diets, there is a need to strengthen consumer engagement strategies to support behaviour change and drive demand for these products. By doing so, companies can capture the financial opportunity presented by protein diversification while mitigating the climate and public health risks posed by high exposure to animal protein. 

Engagement companies: 

• Ahold Delhaize 
• Amazon 
• Carrefour 
• Coles 
• Conagra Brands
• Costco 
• Danone 
• General Mills 
• Kraft Heinz 
• Loblaw Companies 
• Mondelez 
• Nestle 
• Sainsbury's 
• Target 
• Tesco 
• The Hershey Company
• The Kroger Company
• Unilever 
• Walmart 
• Woolworths 

For more information on this engagement, please contact [email protected]  

Engagement page: https://www.fairr.org/engagements/protein-diversification#overview 

This engagement is open for FAIRR members to join. Joining our network is free for asset owners and asset managers. If you need additional information on the FAIRR network, please contact [email protected]