What's Happening?
A recent report by the FAIRR investor network highlights a significant gap between the promises and actions of major food companies regarding regenerative agriculture. The study assessed 78 publicly listed agri-food companies and found that while some
companies demonstrate strong governance and support for farmers, many have not set concrete targets for reducing pesticide use. The report notes that only 4% of companies have established outcome-based targets, despite over half claiming to measure regenerative agriculture outcomes. Companies like Conagra Brands, Danone, Nestlé, and Sysco are among the few measuring herbicide use in their programs. The report emphasizes the need for investors to push for more comprehensive and outcome-based reporting to realize the potential of regenerative agriculture.
Why It's Important?
The findings of the FAIRR report are significant as they highlight the challenges and inconsistencies in the implementation of regenerative agriculture practices by major food companies. Regenerative agriculture is seen as a crucial strategy for building resilience against climate and nature-related risks. However, the lack of concrete targets and reliance on herbicides undermine these efforts. This situation presents a risk to investors and stakeholders who are increasingly focused on sustainability and environmental impact. The report suggests that without clear and measurable goals, the potential benefits of regenerative agriculture may remain unrealized, affecting the credibility and trust in these companies' sustainability claims.
What's Next?
The report calls for investors to demand more transparency and accountability from food companies regarding their regenerative agriculture practices. This includes setting clear, outcome-based targets and company-wide reporting. As more companies begin to link regenerative agriculture to their strategies on Scope 3 emissions, there is potential for improved measurement and impact assessment. Companies like General Mills and PepsiCo are cited as examples of those making strides in building credibility through clear program scopes and outcome-based payment schemes for farmers. The ongoing pressure from investors and stakeholders may drive more companies to adopt similar practices.
