Climate change worries meat and dairy investors but not enough to affect financial decisions
Climate change worries meat and dairy investors but not enough to affect financial decisions – reveals Changing Markets Foundation’s report “Stranded in a vicious cycle”.
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More than four out of five meat and dairy sector capital investors are worried about climate change and how it will affect their investments
The production of meat and dairy is a significant source of carbon and methane emissions, but at the same time also uniquely dependant on stable climate conditions. Industry estimates that the production of red meat and dairy will grow by more than 50% by 2050. However, this is at odds with climate science, which predicts significant disruptions to the sector, estimating 7-10% decline already at 2 degree temperature increase. The alarming effects of climate change caused disruptions are already felt by the farmers around the world. With the world currently on the trajectory of 3 degree warming, this is set to get much worse.
In this briefing, we present a survey of over 200 respondents from the investor community which showed that over 80% are concerned that climate change represents a material risk to meat and dairy industry-related investments, and over 80% said that a lack of mitigation of climate change could lead to stranded assets in this industry. At the same time, more than half of respondents (55%) think that investors are not sufficiently addressing these risks.
The survey also shows that investors say more emphasis should be put on mitigation of methane emissions with 94% saying that reducing methane emissions alongside carbon emissions is important. 83% said that investors should encourage companies to reduce their methane emissions. The report ends with recommendations for investors to engage with the meat and dairy industry and ensure that it begins its transformation by radically reducing its carbon and methane emissions.
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