Beef Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Beef Industry

In the current scenario, implementation of Environmental, social and governance on investment platforms as well as strategy building, or decision-making process contributes to responsible investing. Growing awareness of ESG among various stakeholders from consumers to investors have been prevailing since 2013.

The beef industry has been gaining attention in recent times as consumers prefer dairy products as a substitute for meat, since it provides necessary protein enrichment. Moreover, beef is nutritious; it contains protein, calcium, iron, vitamin B6, vitamin A, zinc, potassium, and phosphorus.

The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

Beef has a positive health impactas it increases and regulates hemoglobin level and reduces risks of anemia. In relation to the UN SDGs, companies in the market help achieve SDG 3- Good Health and Wellbeing. In terms of the environmental aspect, companies are focusing on circularityin terms of packaging and reducing plastic use to help achieve the UN SDG 12: Responsible consumption and Production.In addition to this companies focus on minimizing food waste via innovative technology through close collaboration with consumers and suppliers. Responsible market labelingis another element that companies in this market should be concerned of, which can be categorized under the social pillar of ESG. This ensures that products marketed are regulated by a regulatory body with no compromise on product quality, thereby promoting good health and wellbeing (SDG 3). In terms of emissions, the beef industry is a significant contributor to high methane emissions which is a concern for climate change (SDG 13: Climate Action).

ESG Trends

This segment has both social and environmental impact in the society as it has a positive impact on good health and wellbeing.

Consuming beef can reduce risks to cardiovascular disease and diabetes and aid in improving bone and gut health. Beef is an excellent source of protein and has a high amount of good cholesterol which can prevent malnutrition among children and can promote the progress towards SDG 2: Zero Hunger. Most of the athletes and bodybuilders prefer beef products for muscle building, strengthening, and tissue repairing as it possesses high amounts of zinc and creatine.

Companies operating in the industry promote responsible labeling practices as and are closely monitored by government guidelines like FSSAI and Animal products dairy Regulation (2005). They additionally contribute to the decrease in environmental waste by promoting circular or sustainable packaging to promote responsible consumption and production, thereby helping achieve UN SDG 12. One such example is the ban on single use plastic and the reduction of food waste by one of the leading companies in this space in efforts to promote circular packaging. 

ESG Challenges

The main challenges for the beef market are with emissions, as it is the highest emitter for methane emissions among others in the meat industry.  Studies show that cows emit high levels of methane which is a major source of greenhouse gas emission and hinders progress towards UN SDG 13: Climate Action. Animal welfareisa critical area of assessment for the beef segment since high product demand affects the ability to produce quality meat. Meanwhile, sourcing of beef highly depends on food and nutrition intake of cows and the psychology of cows. These factors directly affect the achievement of UN SDG 3: Good Health and Wellbeing. Another major environmental issue that the beef industry contributes to is packaging waste; while some beef producers in India have backed out on using single-use plastics, most of them have delayed this ban or are unaware of the environmental impacts of plastic packaging waste. Since the industry is one of the largest industries in the world, it is a challenge for the industry to immediately shift to reusable or degradable materials.

As a solution to the environmental impacts of the beef industry, recent studies show various possibilities of getting green meat from proteins extracted from legumes and lentils which can be made in a lab. Market space for such substitutes with a minimum greenhouse gas emission or carbon footprint has been a growing area of interest for many environmentally and socially responsible consumers.

Growth of the Beef Market

The beef market has grown rapidly since it is a substitute for meat products. Moreover, it provides ample nutrition like calcium, riboflavin, necessary vitamins etc. in comparison with other products. Even though there are a lot of challenges in this market there is growing demand for vegan or green meat and this segment has been one of the leading market revenue generators. The beef market is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.8% from 2020 to 2027 and it has been valued at 467.7 billion USD in 2021.

Key Companies in this theme

    • Tyson Foods, Inc.

    • Danish Crown

    • Cargill Incorporated

    • Marfrig Global Foods S.A.

    • NH Foods Ltd.

    • Minerva Foods

    • St. Helen’s Meat Packers

    • Hormel Foods Corporation

    • JBS USA

    • National Beef Packing Company; LLC

    • Vion Food Group

    • Australian Agricultural Company Limited.

Scope of the Beef Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Beef Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the industry, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the beef market

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector