EQ: What do you see as some of the biggest barriers when moving towards a sustainable economy?
FAIRR: Consumers play a significant role in driving systemic change in the food sector. However, navigating the issue of food security in the current economic environment is a challenge. The SBTi has included diet shifts and reduction of food loss and waste in their guidance as part of the demand-side mitigation efforts to reduce associated emissions. Alignment with this guidance will require a wide-scale public education effort to identify what food items are nutritious yet have a lighter impact on climate and nature, as well as concerted actions to make them more widely accessible and affordable.
As part of shifting the market, policymakers play a significant role as market enablers. For instance, agricultural subsidies, which directly impact food prices, should be mindful of incentivising the over-production and over-consumption of several high-carbon agricultural products that also cause damage to nature.
Investors are increasingly asking policymakers for action, as this is essential to their long-term investment horizon. Among our member base, a group of investors representing $7.3 trillion of AUM signed a statement calling on G20 finance ministers to align agricultural support with climate and nature goals by 2030, citing material financial risks to portfolios if the goals are not achieved. If subsidies are not aligned with government, multilateral, and private sector commitments and efforts to transition to reach net zero and protect and restore nature, change is not likely to happen at scale.
If you would like to know more about the FAIRR initiative, please visit their website.
Additionally, there are member case studies showcasing collaborative engagements through FAIRR which can be viewed here.