Livestock methane: A primer for investors
Livestock Methane
A primer for investors
As companies adopt new tools to cut livestock methane emissions, there’s an opportunity for investors to lean in.
Introduction
For meat and dairy products sold in the US, a large portion of lifecycle GHG emissions come from methane. In the dairy sector, methane accounts for about half of emissions impacts over a 100-year timescale. This means food and livestock companies cannot reach their net zero targets without getting a handle on the potent greenhouse gas.
Fortunately, a range of tools are now available to reduce livestock methane emissions, generally addressing either enteric methane (from digestion processes) or methane from manure.
Reducing livestock emissions
Reducing methane across the highly varied global livestock industry is not easy, but there are new tools that are starting to show success. Now is the time for the financial sector to engage with food companies and their supply chains to drive action on livestock methane.
Our new report delves into the challenges and opportunities of livestock methane from an investor perspective, providing guidance for asset managers, banks, and other financial players looking to understand and address their portfolio risk.
The solution set to abate methane is expanding
Recommendations
Our investor report dives into key considerations for methane measurement and abatement technologies, summarizes the emerging policy environment for livestock methane, and suggests questions that investors can explore with portfolio companies to assess their exposure to methane risk and progress in managing it.
What investors should ask of livestock companies:
- Measure and report methane emissions
- Disclose methane emissions reduction activities
- Disclose R&D spending associated with methane measurement and abatement
- Develop incentive programs to support on-farm adoption of methane solutions
- Collaborate with banking partners on financing solutions
- Advocate for national and local policies for methane measurement and reduction
- Join the Dairy Methane Action Alliance
Additional Resources
- Methane Rising: Three questions investors in the food sector should ask their portfolio companies (2024)
- Strategic Roadmaps for SBTi Forest, Land, & Agriculture Targets (2024)
- Dairy Methane Action Alliance: What’s Coming in 2024 (2023)
- How to design effective solutions for driving down enteric emissions
- Demystifying the enteric solutions market for food and agriculture companies
Read & Share
Livestock Methane: A primer for investors
As companies adopt new tools to cut livestock methane emissions, there’s an opportunity for investors to lean in.
