• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » After Taking on Coal and Oil, Climate Investors Target Meat Next

After Taking on Coal and Oil, Climate Investors Target Meat Next

After Taking on Coal and Oil, Climate Investors Target Meat Next
January 2, 2020
Bloomberg

Investors are starting to give meat suppliers a warning that has already sent ripples through the coal industry: make better progress in tackling climate change or risk being shunned.

The threat of divestments in the livestock sector — one of the top contributors to global emissions — is rising as asset managers increase scrutiny on the sustainability and carbon footprint of their holdings. Investors including Legal & General Investment Management have already started to divest from some food companies and said they may offload others that don’t meet certain environmental requirements.

“It’s possible that we’ll see this type of banning or investors deciding not to invest in livestock companies or meat processors,” said Stephane Soussan, a portfolio manager at Amundi Group’s CPR Asset Management, which manages more than $55 billion. “If you are invested in livestock companies, your CO2 footprint will be too high.”

Agriculture-related industries are second only to energy in terms of emissions. Raising animals accounts for about 15% of the global total as cows belch out methane, while grazing and growing soy for animal feed contributes to deforestation. Investors say major issues like animal welfare, the popularity of vegan diets and less meat consumption in the U.S. and Europe will reshape the food industry for years to come. And it's an opportunity to make money from betting on the winners and losers.

The climate movement has already caused big changes in energy. Mining giant Rio Tinto Group has sold its coal operations and BHP Group is in the process of exiting the fuel, while Nordic money managers are dumping billions in fossil fuel stocks.

Asset managers are already taking action against food companies. Legal & General this year said its Future World Fund would divest from Spam meat maker Hormel Foods Corp. and retailer Kroger Co. because they aren’t doing enough to address risks associated with climate change.

Storebrand Asset Management AS plans to sell shares and bonds in companies by 2025 unless they make progress in mapping out how their supply chains affect deforestation. It has already placed agribusiness giant Cargill Inc. and 12 other companies on its exclusion list because of unsustainable palm oil activities and deforestation risks.

The food sector “hasn’t been at the forefront of the climate debate, but is one that we expect to become much more prominent,” said Catherine Ogden, manager for sustainability and responsible investment at Legal & General, which has more than $1 trillion in assets. “If this sector doesn’t move and if land use and agricultural practices don’t change, then we’re not going to reach the climate goals. Something has to change.”

For now, investors are focused on pushing companies to disclose more information. About three-quarters of the meat and dairy industry reveal little or nothing about emissions coming from their operations and supply chain, a study by investor network FAIRR showed.

Investor action in the meat sector won’t be as straightforward as in coal, which has been losing ground to natural gas and renewables. An expanding global population will consume more protein, and substitutes such as faux meat account for just a fraction of the food market.

“We have to have a different perspective when it comes to protein than we have on other issues such as coal,” said Jan Erik Saugestad, chief executive officer of Storebrand, which manages about 750 billion kroner ($83 billion). “It’s a complex issue. We need protein now, we need protein in the future.”

RELATED CONTENT

RELATED VIDEOS

  • Related Articles

    Biden Pressed to Slash Big-Rig Pollution as Next Climate Target

    Walmart Starts E-Commerce Site to Target Small Businesses, Taking On Amazon

    Chinese Investors Bet on Latin America for Next Tech Gold Rush

Bloomberg

Global Oil Trade Shakes Up After Fires at U.S. Fuelmakers

More from this author

Wake up to live
“Supply Chains in Crisis”
updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • INTERIOR OF A CHICKEN FARM, WITH WHITE CHICKENS AS FAR AS THE EYE CAN SEE

    Worst Avian Flu in U.S. History Is Hitting Poultry

    Food & Beverage
  • TWO FINGERS MANIPULATE WOODEN LETTER BLOCKS TO TURN FROM SHOWING THE WORD RECOVERY TO RESILIENCE

    Five Challenges to Supply Chain Resilience in 2023

    Supply Chain Visibility
  • A PERSON HOLDS UP A TABLET COMPUTER IN A WAREHOUSE, SUPER-IMPOSED BY A GRAPHIC SHOWING A COMPLEX WEB OF SUPPLY CHAIN ELEMENTS

    Three Post-Pandemic Actions for Repairing Global Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MAN IN A SUIT SHAKES HANDS WITH A WOMAN IN A HARD HAT, NEXT TO A STACK OF CONTAINERS

    Three Procurement Technology Evolutions for 2023

    Sourcing/Procurement/SRM
  • The blank stare of a child's eye who is standing behind what appears to be a wooden frame

    The Alarming Continued Rise of Modern Slavery in Supply Chains: How Procurement Can Help Reverse the Trend

    Sourcing/Procurement/SRM

Digital Edition

Scb nov 2022 sm

2022 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing