Report: Large Food Companies Face Big Losses Due to Climate Change

Report: Large Food Companies Face Big Losses Due to Climate Change

Researchers say top food businesses could lose 25 percent of their value by 2030 if they do not meet world climate goals. The study was presented recently at Climate Week New York, an event linked to the gathering¹ of world leaders for the United Nations General Assembly.

The research comes from Race to Zero, a United Nations-backed campaign. It examined data on 40 big companies to estimate how they would be affected² under different situations. For example, what would happen if governments ordered payments for carbon emissions³; or if people reduce the amount of meat they buy on a usual basis.

The study found the companies' values could decrease by an average of around seven percent by 2030. That percentage would equal around $150 billion in investor⁴ losses.

At the same time, business areas like plant-based meat substitutes and forest restoration offer the same companies big new opportunities, the report says.

The report does not name the companies so it is not taken as investment advice, a Race to Zero spokesperson said.

Researchers used data from Vivid Economics, a division of McKinsey & Co, for the report.

Supporters said the findings show the importance of past demands for investors⁵ and companies to stop deforestation linked to products like cattle, palm oil and soy.

More than 100 world leaders last year promised to stop deforestation and land degradation⁶ and make repairs where needed by 2030.

Peter Harrison, chief executive of Schroders Plc, in a statement sent by a Race to Zero representative, said, "Nature risk is fast becoming" an important part of "investment risk."

Words in This Story

restore – v. to return (something) to an earlier or original condition by repairing it, cleaning it, etc.

degrade – v. to make the quality of (something) worse; to cause (something complex) to break down into simple substances or parts

1 gathering   

n.集会，聚会，聚集

参考例句：

• He called on Mr. White to speak at the gathering.他请怀特先生在集会上讲话。
• He is on the wing gathering material for his novels.他正忙于为他的小说收集资料。

2 affected   

adj.不自然的，假装的

参考例句：

• She showed an affected interest in our subject.她假装对我们的课题感到兴趣。
• His manners are affected.他的态度不自然。

3 emissions   

排放物( emission的名词复数 )； 散发物（尤指气体）

参考例句：

• Most scientists accept that climate change is linked to carbon emissions. 大多数科学家都相信气候变化与排放的含碳气体有关。
• Dangerous emissions radiate from plutonium. 危险的辐射物从钚放散出来。

4 investor   

n.投资者，投资人

参考例句：

• My nephew is a cautious investor.我侄子是个小心谨慎的投资者。
• The investor believes that his investment will pay off handsomely soon.这个投资者相信他的投资不久会有相当大的收益。

5 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

6 degradation   

n.降级；低落；退化；陵削；降解；衰变

参考例句：

• There are serious problems of land degradation in some arid zones.在一些干旱地带存在严重的土地退化问题。
• Gambling is always coupled with degradation.赌博总是与堕落相联系。