Food Sector Making “More Promises Than Progress” on Regenerative Agriculture
FAIRR investor network conducts first-of-its-kind analysis into commitments on regenerative agriculture by 79 global food and retail giants, worth over $3 trillion and representing almost a third of the sector
Report available upon request
LONDON–(BUSINESS WIRE)–A ground-breaking study of 79 global agri-food firms has found that 50 (63%) publicly refer to the potential of regenerative agriculture as a solution to the climate and biodiversity crises. However, of these 50 companies, 64% (32/50) including Chipotle, Domino’s and Bunge have not put in place any formal quantitative company-wide targets to achieve those ambitions. The report will be discussed at a private investor-only event being held today at New York Climate Action Week.
Key findings include:
- 64% (32/50) of agri-food companies that publicly report on regenerative agriculture as an opportunity do not put in place any formal quantitative company-wide targets to achieve those ambitions
- Only 8% (4/50) of companies that publicly report on regenerative agriculture as an opportunity have financial commitments in place to support farmers in their supply chain to incentivise uptake of regenerative agriculture
- Regulatory risk: new laws in EU and UK, and new TNFD framework, put revenue, value and reputation at risk with EU-based firms facing fines of up to 4% of revenue if marketing is judged to be misleading
Only 4 of these 50 (8%) companies have set financial targets to support farmers in their supply chain to incentivise the uptake of regenerative including Nestlé, PepsiCo, and JBS. Sodexo’s Good Eating Company will dedicate 15% of its food budget to regenerative agriculture. Small donations to specific projects are excluded from these figures.
The research, undertaken by FAIRR, a network supported by investors with over $70 trillion in combined assets, found that with no internationally agreed definition of ‘regenerative agriculture’ considerable variation occurs in how companies describe its benefits. This lack of a clear definition makes regenerative agriculture claims hard to substantiate, creating significant risk in terms of incoming regulation and changing reporting frameworks.
The incoming EU Green Claims Directive, due to come into force in 2026, will put an onus on any food company marketing in the EU to substantiate claims such as those on regenerative agriculture, with the penalty for non-compliance reaching up to 4% of annual turnover. Similarly, new guidance from the UK Advertising Standards Authority (in effect this year) stipulates that any environmental claims must be fully verifiable and substantiated.
Earlier this month, some of the biodiversity risks that regenerative agriculture is designed to mitigate – including nutrient pollution, loss of pollinators and poor soil health – were named as key risks food companies should report against in the new, finalised Taskforce on Nature-related Finance Disclosures (TNFD) framework. Companies must be able to substantiate how they manage nature-related risks and opportunities, as well as their impacts on nature.
Contacts
Media
Keera Hart 905-580-1257/[email protected]