Cutting meat consumption is by far and away the most important dietary change we can all make to help combat climate change. It will also have a positive knock-on effect for biodiversity.
As part of our long-term collaboration with the FAIRR (Farm Animal Investment Risk & Return) global investor initiative, we led an investor call with Tesco to better understand its progress on plant-based protein, as part of a wider programme to encourage the industry to set long-term ambitions to expand product offerings and improve supply chain sustainability.
"It is paramount that different players work together in the fight against climate change and in the achievement of sustainable global food systems. Aviva Investors, FAIRR and Tesco all support the need for a dietary transition. We believe that developments such as Tesco's increasing customer offering and sustainability targets will generate more sustainable outcomes for everyone - company, investors, consumers and the environment," says Andrea Perales Padron, ESG research analyst at Aviva Investors.
Tesco recently announced a new commitment to increase the sales of plant-based meat alternatives by 300 per cent by 2025. It also plans to improve the availability of sustainable foods and is committed to publishing the sales participation of plant proteins. Tesco is currently ranked first on FAIRR's Sustainable Protein Hub1.
Figure 1: Leading food companies using protein diversification
Source: FAIRR Sustainable Protein Rating, 2020
"We fully recognise the importance of further expanding our plant-based ranges as part of our healthy, sustainable diets strategy. We welcome Aviva Investors' engagement, and always value the investor voice in raising the profile of such key sustainability issues," says Jenny Carney, head of ESG, investor engagement at Tesco.
Jo Raven, Senior Manager, research and engagements at FAIRR, agrees, "For investors, an expanding alternative protein portfolio is a lever for growth. More importantly, it is a fundamental and necessary component to manage a company's exposure to the most material ESG risk facing the food sector."
Reducing greenhouse gas emissions by transitioning away from meat-reliant diets will be a gradual process. People will also have differing personal views, tastes and values. However, there are ways to accelerate change - and increasing the quality of options available to consumers represents a significant step in the right direction.
Note: Company names shown are for informational purposes only. This is not an offer to sell, nor a solicitation to buy, securities.
ESG and Climate related engagement, goals and exclusions can vary at the investment strategy and portfolio level depending upon country, jurisdiction and individual client needs.
References
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Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (AIGSL). Unless stated otherwise any views and opinions are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. Information contained herein has been obtained from sources believed to be reliable but has not been independently verified by Aviva Investors and is not guaranteed to be accurate. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Nothing in this material, including any references to specific securities, assets classes and financial markets is intended to or should be construed as advice or recommendations of any nature. This material is not a recommendation to sell or purchase any investment.
In Europe this document is issued by Aviva Investors Luxembourg S.A. Registered Office: 2 rue du Fort Bourbon, 1st Floor, 1249 Luxembourg. Supervised by Commission de Surveillance du Secteur Financier. An Aviva company. In the UK Issued by Aviva Investors Global Services Limited. Registered in England No. 1151805. Registered Office: St Helens, 1 Undershaft, London EC3P 3DQ. Authorised
229694 - 30/09/2022
