Public Equity Investing in Sustainable Food and Agriculture

by Paul Hilton, Trillium Asset Management

Trillium’s Sustainable Opportunities thematic suite of public equity strategies aims to address global sustainability challenges in three core areas: climate solutions, economic inclusion, and healthy living. Since 2008, Sustainable Opportunities has looked to identify companies benefiting from the shift to a more sustainable economy. As an intersecting theme, sustainable food and agriculture cuts across these issues, and yet it is a difficult theme to play in public equities.

The three general categories of sustainable food and agriculture investments in public markets include: 

• Agricultural and irrigation equipment,  
• Food production and distribution,  
• Food retailers, food service, and restaurants.

The planet needs more food, and more equitable food distribution, to meet the needs of a growing global population. A 2021 FAO study found that 690 million people globally are hungry, 9% of the world population. And yet we are faced with a scarcity of resources made more insecure based on the growing threats related to climate change, including extreme weather events, invasive pest spread, and plant migration. Agriculture and food production are a big part of the climate change problem, representing 19-29% of total greenhouse gas emissions.

Unfortunately, many large companies focused on agriculture in the public markets have been involved in factory farming, deforestation, prevalent use of pesticides, and excessive water consumption. Some have also been implicated in land grabs that have helped to push smaller farmers out of business.

Trillium began engaging companies on food more than 20 years ago, when it became the first investment firm to file a shareholder proposal on the issue of animal welfare. In 2002, Trillium also became the first sustainable investment firm to file a shareholder proposal on the issue of GMO labeling at Whole Foods Markets. More recently, we have engaged on issues including food waste, packaging, and climate targets.

Read Paul's full article here - https://greenmoney.com/public-equity-investing-in-sustainable-food-and-agriculture

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