$18 trillion invested by major food companies in plant-based protein production

Despite clear progress, the $18 trillion investor rush warns that big food companies need to do more to make a sustainable transition to protein to combat climate risks in the food supply. 

The number of companies that have adopted formal protein diversification targets has risen to seven in three years, with Unilever, Conagra, Nestle and UK retailers Tesco and Sainsbury's among the top performing firms.

Amazon (Whole Foods), Costco and Kraft Heinz are the worst performers, with the majority of food corporations (72%) still unable to set any quantifiable protein transition targets, despite growth in dollar-denominated sales of plant foods by 43% in two years.

2021 has been declared the "Year of Farmed Meat" as private investment in technology reached $506 million in the first half of the year, with investment and interest from major food companies on the rise.

Investor interest in animal protein alternatives is growing as support for FAIRR's sustainable engagement with leading food companies has grown by 1,300% since its launch in 2016.

However, the majority (72%) of food companies have yet to adopt protein diversification targets as part of the decarbonization of production. This is despite rising consumer demand for MEAT and dairy alternatives and recent IPCC warnings that atmospheric methane is at its highest in 800,000 years and a "sustainable reduction" in methane emissions (32% of which is currently from livestock) is urgently needed. if we want to achieve the goals of the Paris Agreement.

Signs of progress noted by investors include:

7 out of 25 (28%) global food retailers and manufacturers now have targets to expand their portfolio of alternative proteins, up from zero in 2018. For example, Unilever has committed to reaching $1.2 billion in sales of meat and dairy alternatives between 2025 and 27. Five firms (Unilever, Tesco, Nestle, Sainsbury's, Conagra) have been praised for being pioneers in sustainable protein research and innovation. 48% of companies currently track and publicly disclose their livestock emissions, up from 21% in 2019.

British retailers Tesco and Sainsbury's demonstrate global leadership in protein diversification and innovation, unlike their American and European counterparts. Tesco has committed to increase sales of meat alternatives by 300% by 2025 and has pledged to halve its environmental footprint in the UK. Sainsbury's has publicly endorsed the need for dietary changes to reduce emissions and plans to increase sales of plant-based protein and dairy products - following a staggering 40% increase in plant-based diets in the UK in 2020.