HOT MONEY 40 financial institutions are funding a climate-changing agri-methane footprint

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This report focuses on the 20 investors and 20 banks that are funding the methane-generating activities of 15 of the leading meat and dairy companies worldwide. Collectively these financial institutions fund a methane footprint that could exceed 503 Mt CO2e1 – nearly as big as the CO2 emissions of Saudi Arabia2. The policy frameworks disclosed by these financial institutions are weak or non-existent.

Not only are they at odds with the Global methane Pledge signed by their home countries, but the financial institutions also do not disclose the methane emissions that their funding supports. The aggregate agri-methane footprint attributable to the top 20 equity investors in these 15 meat and dairy companies is 68 Mt CO2e of methane – more than the CO2 emissions of Austria.

Vanguard takes first place, with BlackRock second and State Street third. The following asset managers rank outside the top 50 globally in terms of their size but feature in our top 20 equity holders: Zürcher Kantonalbank, Hohhot Investment Company Ltd., Artisan Partners Asset Management Inc., Pictet & Group SCA Cie, and First Eagle Holdings Inc.

The agri-methane footprint attributable to the top 20 banks funding these 15 meat and dairy companies is 202.5 Mt CO2e – roughly three times the investors’ footprint and nearly as large as the CO2 footprint of countries like Spain. Because of its focus on meat, Morgan Stanley takes the top slot, followed by JP Morgan and HSBC. The more conservative ‘equal responsibility’ estimation method would suggest a footprint for the banks of 434.9 Mt CO2e.

Overall, the GHG impact of the 15 meat and dairy companies is greater than that of oil majors and major countries.

Published by GFFN Secretariat

The Good Food Finance Network Secretariat is comprised of the convening core partner organizations’ dedicated team members, who share responsibility for coordinating the Network and its activities. The convening core partners are EAT, FAIRR, Food Systems for the Future, UNEP, and WBCSD.

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