Our food system is responsible for one third of global greenhouse gases

Food systems – from production to consumption – are responsible for a third of global greenhouse gas emissions. 40% of ice-free land surfaces are used for agricultural purposes. In addition, the food industry consumes the most freshwater, with a large percentage of that being attributable to livestock farming and meat consumption. Deforestation and the loss of biodiversity are the logical consequences of this seemingly endless demand for food.

In order to counteract these very harmful developments, innovative concepts need to be developed by politicians, scientists, and industry. And this is already happening: Cultured meat, aquaponics, and the use of insects as a source of protein are only some of the solutions on the table. The food industry intends to implement these to react to ever increasing demands from consumers for products that are (more) sustainable. Yet this is only a drop in the ocean. What is needed is far greater communication between the various stakeholders, the producers, the scientific community, industry, and the political sector; to all get involved in a coordinated global manner.

For investors like us, the food industry is also a highly interesting market that encompasses both conventional and alternative products as well as the area of smart farming. In the search for good investment opportunities that increase in value, innovative product ideas in an environment characterised by strong growth offer solid prospects. We do, however, pay very close attention to ensuring that the investments are in line with our integrative sustainability strategy and comply with ESG criteria. If that is not the case, then investing in that particular company is out of the question. We also state this quite clearly in our comprehensive dialogues with companies. The slogan “Only what gets measured gets done” best describes our efforts in this regard: We have been recording our discussions with companies in our engagement database for many years now and can therefore easily assess the fruits of our endeavours. The more investors ask for change, the more successful these shareholder engagement processes are. And we need to keep at it, because in the end, we shall all benefit from more sustainable food systems.

Mag. (FH) Dieter Aigner,
Managing Director of Raiffeisen KAG,
responsible for fund management and sustainability