Global Methane Pledge unachievable without action from agri-food giants
Four years on from the Global Methane Pledge, Danone is the only major agri-food company with a methane reduction target
New research from Planet Tracker urges investors to address rising agri-food methane emissions, warning that the Global Methane Pledge is unachievable without a step change in action from the sector.
The think-tank’s latest report reveals that 52 of the largest meat, dairy and rice companies have annual methane emissions of approximately 22 million tonnes. Combined, they would be the world’s fifth largest emitter in CO2 equivalent terms, almost equal to the annual emissions of Russia.
At COP26, 150 countries signed the Global Methane Pledge, committing to reduce methane emissions by at least 30% by 2030. Accounting for 40% of anthropogenic methane emissions and a third of total greenhouse gas emissions, agriculture is a crucial lever to curtail methane emissions, a powerful greenhouse gas.
Yet Planet Tracker analysis of companies’ disclosures and targets shows that only seven out of the 52 companies provide methane emissions disclosure, and just one company – Danone – has a specific target to reduce its methane emissions.
“If a giant like Danone can convincingly commit to cutting methane emissions, why can’t other companies?” asked report author Ailish Layden.
The meat and rice sectors perform worse, compared to dairy. Brazilian meat producer JBS has the largest emissions, over three times more than the second-largest emitter, Marfrig. Neither company currently reports methane emissions disclosures nor has a methane-specific reduction target.
Rice companies in turn have been largely overlooked in relation to methane emissions yet perform badly in terms of targets and disclosure. Still, multiple solutions to reduce emissions exist. For instance, irrigation-based solutions could reduce methane by between 37% and 77% in the rice sector.
Investor support for these methane reduction solutions could reduce their costs and would protect long-term value by reducing climate, transition, reputational and regulatory risks in global food and agriculture supply chains, Planet Tracker argued.
With a sizeable contingent from the agri-food sector in attendance at COP30, an opportunity exists for companies to make meaningful commitments to reduce methane emissions. Last year the meat and dairy sector sent 52 delegates to the summit, including 20 travelling with Brazil’s government, of which three delegates were from JBS. This year, JBS will play an even more pivotal role as a close partner of the presidency.
“Without stronger action on methane from these agri-food giants, the Global Methane Pledge is unachievable”, said report author Emma Amadi. “Investors have a key role in pushing companies to disclose and set explicit targets to reduce their methane emissions, as well as in financing high-impact solutions to bring down emissions.”
Notes to editors
For more information and to arrange interviews please contact:
Conor Quinn conor.quinn@greenhouse.agency +44 7444 696 214
About Planet Tracker
Planet Tracker is an award-winning non-profit financial think tank aligning capital markets with planetary boundaries. Created with the vision of a financial system that is fully aligned with a net-zero, resilient, nature positive and just economy well before 2050, Planet Tracker generates break-through analytics that reveal both the role of capital markets in the degradation of our ecosystem and show the opportunities of transitioning to a zero-carbon, nature positive economy.
