News | June 26, 2018

FAIRR: New Sustainable Food Index Finds Asian Meat & Fish Companies Responding To Food Safety Challenges; But Failing On Emissions And Antibiotics

LONDON--(BUSINESS WIRE)--

The Coller FAIRR Protein Producer Index, a ground-breaking new index for investors analysing how a $300bn group of 60 global food companies are managing critical environmental, social and governance (ESG) risks, has found that the large majority of Asian meat, fish and dairy suppliers are failing to manage business risks including greenhouse gas emissions and antibiotic use.

In total, 52% of the Index (32 companies) are based in Asia including the largest by market cap: Inner Mongolia Yili.

Produced by the $6.1 trillion investor network FAIRR, the Coller FAIRR Index finds:

  • Asian livestock producers are showing leadership on food safety. Despite concerns of a new strain of H7N9 bird flu reported to be emerging in Chinese poultry, 44% of the Index companies given the top ranking on food safety are from Asia. Inner Mongolia Yili (China), Vietnam Dairy (Viet), WH Group (China) and CPF (Thailand) are among only nine companies praised for the traceability of food products and feed production. CPF was also the top-ranked Asian firm, seventh in overall rankings.
  • China failing on antibiotics: China is the world’s largest consumer of antibiotics in livestock production, yet 15 out of 16 of the meat, fish and dairy companies (93%) assessed by the Index are given the worst ‘high risk’ ranking for having little or no measures in place to reduce excessive use of antibiotics.
  • Asian animal agriculture undermining Paris agreement: The global food supply chain is estimated to be responsible for over a quarter (26%) of global GHG emissions. Yet 90% of the Asian Index companies were ranked ‘high risk’ for failing to manage or disclose their GHG emissions compared to only 50% in Europe.
  • China Mengniu Dairy and Vietnam Dairy are both highlighted for diversification into plant-based alternatives to animal protein.

Maria Lettini, Director of FAIRR said,

“As megatrends like climate change, antibiotic resistance and food technology radically reshape the way we produce and consume meat, fish and dairy, the Coller FAIRR index will help institutional capital identify both best in class companies in Asia’s food sector and those at risk of long-term value destruction for failing to manage these critical business issues.”


Copyright Business Wire 2018