08 Sep 2022 — FAIRR and Good Food Institute (GFI) have launched a reporting framework for alternative meat, seafood, eggs, and dairy companies to reveal their climate, biodiversity, nutrition, and other Environmental, Social, and Governance (ESG) impacts. The framework aims to gather and interpret ESG data and help companies and brands communicate the positive ways alt-proteins impact the planet.
The companies say that many plant-based meat products have a fifth to less than a tenth of the environmental impact of meat-based equivalents.
Yet until today, there have been no comprehensive standards for companies manufacturing and selling alternative proteins to assess and disclose the kind of rich ESG data that investors, companies, and consumers need to make informed decisions.
The frameworks were designed by the US$68 trillion-backed FAIRR Initiative investor network. The GFI is also backed by investors and industry players.
FAIRR and GFI co-developed the frameworks with input from a network of investors, companies, and NGOs, including Unilever, EAT Just Inc., Newton Investment Management, PIMCO, Blue Horizon, and the WWF-UK as well as ESG and life cycle assessment (LCA) experts.
Spotlight on alt-proteins
Following the launch, authors of the frameworks will work with alternative protein brands that want to use the frameworks to report on carbon emissions, land, water, and nutrition impacts.
Alternative proteins, including plant-based, fermentation-enabled, cultivated meat, seafood, eggs, and dairy, are expected to provide a pathway to decarbonize food production while meeting the global demand for protein.
Over the past few years, investment in alternative proteins has increased by an average five-year growth rate of 91% through 2021, according to GFI analysis of PitchBook data. Sales are estimated to rise by up to US$1.1 trillion by 2040.
FAIRR and GFI’s open source Alternative Proteins ESG Reporting Framework for Specialized Companies (the Specialized Framework) and the Alternative Proteins ESG Reporting Framework for Diversified Companies (the Diversified Framework) provide investors, governments, and consumers with a route to receiving information from each alternative protein business.
“We produced a reporting tool that will allow alternative protein companies to showcase the many ESG advantages of their current business models. Alternative proteins offer meaningfully lower greenhouse gas emissions compared to conventional animal protein and considerable food safety and nutritional advantages,” says Sharyn Murray, GFI’s investor engagement manager.
“As the alternative protein industry continues to partner with the private sector to build responsible and sustainable businesses of the future, these frameworks will enable companies to claim their natural leadership role on ESG.”
She also says its will guide all alternative protein companies toward best practices and use one common language to reveal the industry’s huge planetary rewards.
The Specialized Framework is designed for manufacturers and ingredient suppliers whose core focus is alternative proteins, such as meat, dairy or whey protein, or gelatin.
A boost for the industry
In response to the launch of the Specialized Framework, Lisa Wetstone, senior director, marketing, innovation, and growth strategy for mushroom-focused company MycoTechnology, Inc, says this framework will “empower companies to measure and communicate positive impact in ways that make sense and matter.”
“From small start-ups to growth-stage start-ups like MycoTechology to established industry players, there are many ways to gather and interpret ESG data. This is especially true given the nuances of our industry. We lack a common language. Laying the groundwork to standardize this information can be a guide for us all.”
The new Diversified Framework is designed for incumbent food companies, retailers, manufacturers, and animal protein producers with product portfolios that include conventional and alternative proteins.
The Diversified Framework guides reporting on ESG data related to the alternative proteins portion of companies’ businesses, for example, lobbying, water management, circularity and affordability, that complements data they are likely already reporting via other frameworks.
The new frameworks are also expected to catalyze investment by equipping financial institutions with a toolkit of disclosures and metrics to gain transparent and actionable insights into a company’s activities.
More than 50 companies, investors, NGOs, and ESG standard-setters provided input and expertise during the research and development process of both the Specialized and Diversified Frameworks.
