From rankings to risk reports, transition pathways to tracking controversies, there are multiple ESG tools on the market to help investors understand their exposure to sustainability risks - especially in carbon-intensive sectors such as energy, transport or chemicals.
In the case of the protein sector however, the toolbox remains sparse.
There are several reasons for this, including historically poor ESG disclosure by food companies, complex and often opaque supply chains and regressive legislation in major producing countries such as the US, which exempts livestock farmers from having to estimate and report manure emissions to the federal government.
Despite these challenges, it is vital that responsible investors fully understand the risks and opportunities posed by food stocks in their portfolio. As reported in this journal, the environmental and public health concerns around the animal agriculture industry are mounting and the indu…