An investor coalition worth $1.25tn is set to persuade 16 multinational companies to identify risks associated with industrial animal production and device strategies to roll out plant-based sources of protein.
The coalition urges the companies to identify their plans to respond to the risks
Formed by Farm Animal Investment Risk & Return (FAIRR) in partnership with investment organization ShareAction, the coalition has 40 investors.
It includes Swedish state pension funds, Boston Common, Aviva Investors, Folksam, Coller Capital, Robeco and Nordea.
Kraft Heinz, General Mills, Nestle, Tesco, Unilever and Walmart are some of the targeted companies in the engagement campaign.
ShareAction campaigns manager Clare Richards said: "The trend for 'less but better meat' is creating new opportunities on plates and in portfolios. Evidence suggests that plant-based protein sources are better for your health, your wallet, and the planet.
“Consumers increasingly recognize these benefits; and now this coalition of forward-thinking investors are doing the same. As a result of this engagement we hope more companies will embrace the opportunities presented by this growing consumer trend."
The investors also warn of the risks arising out of increased global protein demand and the subsequent overreliance on the unsustainable factory faming of livestock to meet it.
The coalition supports their case with a new briefing titled as 'The future of food - the investment case for a protein shake up'.
The briefing highlights the environmental, social and public health risks related to industrial animal production that is not being currently reasonably valued by financial markets.
The briefing also highlights Denmark’s red meat tax introduction and China’s plan of bring down meat consumption by 50% as part of the regulatory trends that drive corporate action.
Recently, FAIIR had formed a coalition of 77 stakeholders to urge the private food sector to implement stricter policies to tackle the problem of antibiotic resistance in livestock.
