Investors warned on ‘factory farming’ by the Farm Animal Investment Risk and Return network
An investor advisory group, FAIRR says factory farming faces at least 28 distinct environmental, social and governance risks, many of which are misunderstood or hidden from investors.
The report compares agri-food investor risks with car emissions test cheating, oil spills and bribery fines.
Risks include food safety scandals and environmental fines, which could impact the financial performance of companies across the food value chain, including large agri-business, food retailers and restaurants.
“The magnitude of risks generated by animal factory farming is set to increase through rising capital costs, the shifting gravity of production to developing countries with less robust regulation, the impacts of climate change and increasing social concerns over animal welfare and sustainability,” the report said.
