Food products sector: Sustainable investors' interest

Every month, SRI-Connect reviews the sustainability issues and related research and analytical op-ed that have been of most interest to sustainable investors over the previous 90 days.

(We do this to help companies, investors and research providers understand current trends and thinking and to shape their future communications and research focus.)

The sector generating most interest in Dec, Jan & Feb was the Food Products sector - with the top pieces listed below.? (Next sectors were: [2] Energy [3] Chemicals [4] Pharma & [5] Transport.

Action points

• For investors: Review the research pieces below and connect with the analysts that wrote them
• For research providers: Review the pieces below and – through your own research – extend and challenge them by engaging yourself in the sustainable investment debate
• For listed companies (in this sector): … who are preparing their sustainable investor presentations for the months ahead … be sure to cover the issues raised and your response to them in your forthcoming communications
• (For listed companies – in other sectors), contact me directly for a FREE report on what’s occupying the minds of investors in your sector.

World Benchmarking Alliance: 2023 Nature Benchmark

The 2023 iteration of the Nature Benchmark assesses 350 companies from across the food and agriculture value chain and 30 companies from the paper and forest industry.? These food and agriculture companies account for more than half of the world’s food and agriculture revenue. ?The Benchmark shows that - although some companies are taking significant steps to transition to sustainable production - the overwhelming majority do not yet really understand how they affect and rely on nature.

Link to Buzz on SRI-C

JP Morgan: The increase in appetite for obesity drugs

J.P.?Morgan Research forecasts that the GLP-1 market will exceed $100 bn by 2030, driven equally by diabetes and obesity usage. Total GLP-1 users in the U.S. may number 30 m by 2030 — or around 9% of the overall population. The increasing appetite for obesity drugs will have myriad implications, boosting sectors such as biotech and creating headwinds for industries such as food and beverage.

Link to Buzz on SRI-C

FAIRR: Coller FAIRR Protein Producer Index 2023/24

The Index assesses 60 of the largest listed global meat, dairy and aquaculture companies on ten ESG factors. ?This report focuses on four topics that are attracting the most interest from stakeholders of all types, including companies and investors: SBTi FLAG, Circularity, Antibiotics and animal welfare, and human capital risks.

Link to Buzz on SRI-C

Anthropocene Fixed Income Institute: EU deforestation law & McDonalds footprint (two pieces)

• EU deforestation law: AFII examine how bondholders exposed to leading soy traders can assess financial risk arising from EU regulation to rmove deforestation from supply chains and consider whether the market is already pricing in such concerns. Link to Buzz on SRI-C
• McDonalds’ deforestation footprint: AFII examine McDonald’s exposure to deforestation in their supply chain, and the comprehensive disclosure of the company’s deforestation impact – seen as vital for effective investor engagement.? AFII find that McDonald’s approach to deforestation is ahead of its peers and is based on long-term commitments and sourcing products that comply with certification schemes. However, there is evidence that certification schemes can be rigged and provide little guarantee against deforestation.? AFII suggests that investors should ask McDonald's to disclose the volumes of products imported from high-risk countries for their European operations. Link to buzz on SRI-C

CSR reports from Ebro and Associated British Foods

Ebro’s Corporate Social Responsibility and Sustainability Report and Associated British Foods Responsibility Report cover key topics of their business activities including: supply chains, contributions to SDGs and efficient resource use.? The fact that these reports chart highly shows us that investors and analysts are actually interested in the sustainability reports of listed companies

Link to Buzz on SRI-C (Ebro) | Link to Buzz on SRI-C (ABF)

Asia Research and Engagement: Balancing the Bowl: Asia’s Role in a Global Protein Transition at COP28

COP28 marks a turning point, not just with its two-thirds plant-based catering announcement, but by placing sustainable food on the formal agenda for the first time. As global leaders prepare for this annual climate discussion, it is crucial to recognise the vast opportunities for a sustainable food future. Renowned for its mixed protein bowl, Asia can lead the way through blended solutions, including preserving traditional plant proteins and scaling alternative proteins, and address the intricate intersection of food security, climate change, and sustainable development.

Link to Buzz on SRI-C

One more action point

For an ongoing, comprehensive flow of research and analytical op-ed that is relevant to professionals within the sustainable investment industry, please join the SRI-Connect network via here.? (Access is free but limited to those with current professional exposure to the sustainable investment / ESG value chain).