Climate Change and the Cow in the Room
- The global food system is one of the major drivers of climate change, biodiversity loss and depletion of freshwater resources, and these environmental impacts seem likely to increase as the world's population grows.
- Shifting from animal-based proteins to traditional plant-based and alternative proteins could offer one way to ensure an adequate food supply while mitigating the industry's environmental impact.
- Our model shows that decarbonization of the global food industry's value-chain climate-transition risk could help avoid USD 295 billion in potential market-cap losses under a scenario that would keep temperature rise to 1.5 degrees C.
Weighted average Scope 3 Climate VaR 1.5 degrees C scenario (AIM CGE) [%] as of Nov. 30, 2021 | Weighted average Scope 3 Climate VaR 1.5 degrees C scenario (AIM CGE) [%] as of Nov. 30, 2021 | Difference [%] |
Sample set of 6 Companies | All 485 Companies | None |
-0.25 | -5.41 | 95.34% |
Source: "The Protein Transformation: A Critical Driver for Net-Zero Economy." MSCI and Blue Horizon, 2022.
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.