Farm and food investors lost $150 bln on climate change

Top agricultural and food companies risk losing up to a quarter of their value by 2030 if they don’t adjust to new regulations and consumer trends brought on by climate change, according to a recent analysis from campaigners connected to the United Nations.

Research that will be presented on Tuesday examined how 40 large companies, including food retailers and agricultural producers, might fare under scenarios dubbed “key to reducing emissions,” such as if consumers cut back on their consumption of meat or if governments institute carbon emission prices.

According to the report, if the companies did not adopt new procedures, their value would decrease by an average of 7% by 2030, which would result in investor losses of almost $150 billion.

The research notes that at the same time, industries like plant-based meat and forest restoration present the same corporations with significant new prospects.

According to a campaign official, the study does not name specific companies and should not be interpreted as investment advice.

It is being released by Race to Zero, an initiative supported by the U.N. to combat climate change. Data from Vivid Economics, a division of the consulting firm McKinsey & Co., was used by researchers. The study will be released during Climate Week, a series of activities connected to the gathering of world leaders in New York.

Supporters claimed that the results support earlier demands for firms and investors to stop buying commodities linked to deforestation-causing goods including soy, palm oil, and livestock. Last year, more than 100 world leaders made a commitment to stop and reverse land degradation and deforestation by the end of the decade.

According to Peter Harrison, chief executive of Schroders Plc, in a statement provided by a Race to Zero spokesman, “the reality is stark: Nature risk is quickly becoming an important contributor to investment risk.

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