Climate change worries meat and dairy investors but not enough to affect financial decisions

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.

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.

Food Ingredients First

Changing Markets Foundation