2025 global farm animal welfare updates for financial institutions
In 2025, farm animal welfare continued to move from the margins toward greater relevance across financial institution policies, sustainability frameworks, public policy discussions, and risk‑related analysis associated with animal agriculture and food systems. Developments during the year reflected incremental but meaningful progress across multiple fronts, rather than a single defining regulatory or market shift.
This update highlights key 2025 developments relevant to financial institutions, including changes in financial institution policies, benchmarking and accountability initiatives, public policy and regulatory signals, and an expanding evidence base linking animal welfare to sustainability outcomes, material risk, and food‑system resilience. While animal welfare is not yet consistently embedded in financial policies, practices, procedures, signals increasingly point toward clearer expectations around production practices, confinement systems, and the management of supply chains with exposure to animal agriculture.
Together, these developments suggest a continued shift away from animal welfare being viewed solely as a reputational or ethical issue and toward its emerging treatment as a relevant consideration within ESG, sustainability, and risk governance. For financial institutions, monitoring these trends is increasingly important where agricultural and food‑system exposure intersects with evolving policy direction, market expectations, and long‑term transition dynamics.
Major FI and market framework developments (2025)
January 2025
EBRD approves Food & Agribusiness Strategy 2025
In January 2025, the European Bank for Reconstruction and Development (EBRD) approved its Food and Agribusiness Strategy 2025 (PDF), framing a pathway for sustainable transformation of agrifood systems and guiding EBRD operations in the sector.
The strategy emphasizes climate resilience, resource efficiency, and food security, while referencing animal welfare within broader sustainability considerations. However, it does not establish explicit or enforceable animal welfare requirements or exclusion criteria, reflecting a broader pattern in public finance where welfare is acknowledged at a strategic level but not yet operationalized within investment safeguards or screening processes.
March 2025
DBS Bank strengthens responsible financing guidance
The Development Bank of Singapore (DBS Bank) released an updated Responsible Financing policy, describing its responsible financing framework and sector guides (including Food & Agri-Business areas like animal husbandry and feed).
The policy sets clear expectations for existing and future clients related to cages and crates. For example, the policy states:
“For new lending relationships, we will only finance clients whose activities or projects:
Commit to cage-free operations for poultry and egg production;
Commit to stall-free housing for pigs and group housing for sows.”
This marks a significant improvement in DBS’ public-facing animal welfare commitment.
May 2025
Pella Fund Management releases animal welfare policy
In May 2025, Pella Fund Management, a values‑driven investment manager headquartered in Australia, published a formal Animal Welfare Policy outlining how animal welfare considerations are integrated into investment research, portfolio construction, engagement, and proxy voting.
The policy explicitly recognizes animal welfare as both an ethical concern and a source of material financial risk, particularly in sectors such as agriculture, pharmaceuticals, fashion, and consumer products. It establishes exclusionary criteria and engagement expectations for investee companies and frames animal welfare as inseparable from long‑term investment performance and risk management.
July 2025
ADM Capital adds animal welfare to exclusion policy
ADM Capital, a credit provider and investment manager headquartered in Hong Kong, updated its public ESG Policy Statement to explicitly include animal welfare, referencing the Five Freedoms and enumerating excluded practices such as non-enriched battery cages, sow tethering, gestation stall housing throughout pregnancy, veal calf individual pen housing beyond eight weeks, and force-feeding of geese and ducks.
The inclusion of clearly defined exclusion criteria reflects a more operational approach to managing animal welfare risks, enabling more consistent screening and alignment at the investment level.
October 2025
Mekong Capital publishes a dedicated animal welfare policy page
Mekong Capital, a private equity fund operating in Viet Nam, strengthened its public position by publishing a dedicated animal welfare policy page, stating a belief that animals should be able to express natural behaviors such as foraging, nesting, dustbathing, and social interaction within environments meeting physical, behavioral, and psychological needs.
Cibus Capital releases animal welfare policy
Cibus Capital LLP—a UK‑based sustainable investment manager focused on food, agriculture, and natural capital—adopted and published an Animal Welfare Policy applying across its funds and portfolio companies. The policy explicitly covers animal production, aquaculture, and insect farming, and applies both to direct animal production and to industries supporting animal agriculture.
Notably, the policy is grounded in internationally recognized definitions of animal welfare, referencing the World Organisation for Animal Health (WOAH) and emphasizing animals’ ability to express innate behaviors and live free from pain, fear, and distress. Cibus frames animal welfare as part of natural capital stewardship and positions improved welfare as a necessary component of sustainable food system transformation.
November 2025
Eurazeo excludes financing for “factory farming"
Eurazeo, a global asset manager headquartered in Paris, updated its public-facing Exclusion Policy to include restrictions on certain practices associated with intensive animal production, animal testing and fur farming.
The policy states, “Eurazeo is committed to the 'do no harm' principle, which also applies to animal welfare. The company recognizes the Five Animal Freedoms, which include the right of animals to be free from hunger and thirst, discomfort, pain, injury or disease, and fear and distress. Therefore, Eurazeo does not invest in factory farming.”
ASEAN Sustainability Taxonomy Version 4 adds animal welfare
In November, the ASEAN Taxonomy Board announced Version 4 of the ASEAN Taxonomy for Sustainable Finance, completing development of ASEAN’s regional reference framework for classifying sustainable economic activities.
The update introduces a clearer distinction between animal health and animal welfare and incorporates welfare considerations within “Do No Significant Harm” criteria.
The Taxonomy states, “Provide livestock with a favourable environment such as sufficient and varied diet, space, ventilation, shade, accessible watering places, vaccination and outdoor space or access to pastures (as feasible)…” It also mentions Global Animal Partnership as a meaningful animal welfare certification program.
This Taxonomy update signals a shift toward recognizing animal welfare as a factor that can influence the sustainability classification of agricultural activities, embedding it more directly into capital allocation and investment eligibility frameworks.
Accountability signals: where policies weakened or faced scrutiny
OECD complaint against Rabobank highlights escalating expectations
In October 2025, World Animal Protection Netherlands filed a “specific instance” complaint with the Dutch National Contact Point (NCP) under the OECD Guidelines, alleging Rabobank failed to adhere to the OECD Guidelines regarding animal welfare and animal welfare due and raising concerns about transparency and responsible lobbying.
The case reflects increasing expectations that financial institutions apply due diligence to animal welfare risks in line with responsible business conduct standards.
Public policy and regulatory signals
EU animal welfare legislation revision: call for evidence and public consultation
The European Commission launched a Call for Evidence on revising EU animal welfare legislation in June 2025, with a stated intention to follow up on commitments including phasing out cages for certain categories of animals.
Later in 2025, a public consultation opened (Sept–Dec 2025) on modernizing on-farm welfare rules, including cage phase-out and alignment considerations for imports.
EU regulatory direction affects exporters, global supply chains, and client capex needs—potentially creating transition finance opportunities for higher-welfare systems and risk for assets tied to confinement production.
Japan introduces subsidies linked to improved poultry slaughter practices
Japan’s FY2025 supplementary budget includes government funding to support the introduction of animal‑welfare‑compliant stunning equipment—specifically Controlled Atmosphere Stunning (CAS)—in poultry slaughter facilities. Reported as part of programmes administered by the Ministry of Agriculture, Forestry and Fisheries, this initiative illustrates how public financing mechanisms may be used to encourage changes in production and processing practices alongside existing regulatory frameworks.
An article released by Animal Rights Center Japan stated:
“A new quota has been established to subsidize ‘animal welfare stanning facilities’ or ‘Controlled Atmosphere Stunning’ (CAS) for poultry in order to upgrade the distribution structure and strengthen the international competitiveness of poultry products.
The ‘Advanced Model Poultry Slaughtering Facility Development Project’ has been newly established as part of the Livestock Products Distribution Structure Upgrading and Export Expansion Project, and will provide support for the development and introduction of stanning equipment and other opportunities for animal welfare. The subsidy will cover half of the equipment to be installed.”
Poland bans fur farming
In December 2025, Poland’s president signed a ban on fur farming into law, positioning Poland among EU countries restricting or ending the practice, with a phase-out timeline for existing farms.
Additional link(s):
Humane World press release (December 2, 2025)
Italy approves first national cage‑free farming fund
At the end of 2025, Italy approved its first dedicated public fund to support farmers transitioning away from cage‑based animal farming systems. The fund allocates €500,000 for 2026, followed by €1 million annually from 2027 onwards. While modest in scale, the fund represents the first permanent national financing mechanism in Italy explicitly designed to support cage‑free production.
For financial institutions, this policy signal is relevant in two ways: it reduces transition risk for producers seeking to upgrade housing systems, and it reinforces the broader direction of travel in European agriculture policy—away from confinement systems and toward higher‑welfare production models that may require blended finance, concessional capital, or transition‑linked lending.
Additional link(s):
Compassion in World Farming press release (December 24, 2025)
Humane World for Animals press release (January 7, 2026)
Shareholder and investor pressure: animal welfare enters FI governance
Shareholder proposals focused on animal welfare filed for Citigroup and Bank of America
In 2025, animal welfare emerged more clearly as a financial institution governance issue, as shareholders used formal resolution filings to ask major banks to explain how boards oversee animal welfare‑related risks stemming from financing animal‑linked industries. The filings framed animal welfare as a source of material financial, operational, and reputational risk, rather than solely a downstream corporate supply chain concern.
At Citigroup, a shareholder proposal filed by Harrington Investments requested enhanced disclosure on how the bank assesses and governs risks associated with animal welfare impacts connected to its lending and investment activities. The proposal received approximately 6.2% shareholder support at the company’s 2025 annual meeting. While not approaching majority support, this level of backing exceeds thresholds commonly interpreted in stewardship contexts as signaling emerging investor concern, particularly for social risk issues that have not yet been widely integrated into financial risk frameworks.
A similar proposal filed at Bank of America requested disclosure on board-level oversight of animal welfare risks associated with financing activities. The resolution received approximately 6.4% shareholder support, again falling short of passage but demonstrating that a non-trivial minority of shareholders are prepared to support enhanced governance and disclosure on this issue.
In both cases, management recommended voting against the proposals, and neither institution issued a standalone public response specific to animal welfare following the votes, beyond standard disclosure of results in annual meeting filings. This reflects the early-stage nature of animal welfare as a formal governance topic within large financial institutions, while also highlighting growing pressure for boards to demonstrate how such risks are identified, assessed, and overseen.
Taken together, the filing and repeat support of these resolutions suggest that animal welfare is beginning to enter the scope of shareholder expectations related to risk oversight and fiduciary responsibility. As with other environmental and social issues, early-stage proposals at large systemically important banks can act as leading indicators of future engagement, escalation, and potential integration into mainstream governance and disclosure practices.
Tools and special announcements: the Protein Shift becomes finance-ready
The FARMS Initiative launches the Protein Shift RMS
In late 2025, the FARMS Initiative launched Responsible Minimum Standards (RMS) for the Protein Shift, a finance‑oriented framework designed to help financial institutions address risks and opportunities associated with protein production through policy commitments, portfolio objectives, financing strategies, and accountability mechanisms.
The Protein Shift RMS do not set dietary targets or product mandates. Instead, they outline minimum expectations for how financial institutions can recognize, manage, and respond to systemic risks linked to animal‑based protein production, while supporting a gradual transition toward more plant‑forward and alternative protein systems.
Evidence base: reports, research and market signals to cite in FI engagement
Business case
Humane World for Animals
This updated analysis examines the economic and operational implications of transitioning sows to group housing before implantation, drawing on production data, cost considerations, and welfare outcomes. It provides analysis relevant to understanding housing‑related transition considerations within pork production systems.
Wageningen Social & Economic Research
This report assesses the impacts of the European Chicken Commitment (ECC) broiler production system across economic performance, environmental indicators, and food safety outcomes.
Humane World for Animals
This overview report outlines links between poor farm animal welfare and a range of potential business and financial risks, including regulatory change, operational disruption, reputational exposure, and long‑term asset risk. It provides a structured overview of how welfare issues can intersect with broader ESG and risk considerations.
Humane World for Animals
This report summarizes evidence connecting higher‑welfare poultry production systems with improved immunity and disease resistance. It highlights implications for antibiotic use, animal health, and production stability.
Animal welfare science
European Food and Safety Authority (EFSA)
This scientific opinion evaluates welfare risks faced by beef cattle across key stages of production, including housing, handling, and transport. It identifies hazards and welfare consequences based on EFSA’s risk‑assessment framework.
European Food and Safety Authority (EFSA)
This EFSA assessment analyzes welfare risks inherent to fur animal production systems, concluding that many identified harms arise from systemic features of production rather than isolated management practices.
Reports
Eurogroup for Animals
This report examines the relationship between animal welfare, economic performance, and sustainability, with a focus on the European context. It frames improved animal welfare as interconnected with productivity, innovation, competitiveness, and long‑term food‑system resilience, drawing on policy analysis and economic evidence.
Planet Tracker
This report analyzes how climate change impacts are affecting the seafood sector and identifies multiple pathways through which environmental pressures can translate into financial risk, illustrated through sector‑specific case studies.
Compassion in World Farming
CIWF’s Food not Feed examines the efficiency implications of feeding human‑edible crops to farmed animals and explores links to food security, land use, and resource pressures within global food systems.
Friends of the Earth, Profundo
This report analyzes financial flows to major meat, dairy, and animal feed companies and assesses associated climate‑related and environmental risks. It provides a sector‑level overview of how industrial animal production can contribute to broader sustainability and financial risk considerations.
Asia Research and Engagement (ARE)
This report explores financing considerations and policy contexts relevant to advancing more responsible and sustainable food and agriculture systems across Asia, with attention to regional market structures and transition challenges.
Foodrise, Friends of the Earth U.S., Greenpeace Nordic, and Institute for Agriculture and Trade Policy (IATP)
This report presents the latest global assessment of the meat and dairy industry’s outsized climate impact, estimating the greenhouse gas (GHG) emissions generated by 45 of the world’s major meat and dairy processing companies in 2023/22.
Taking Stock of Industrial Animal Agriculture: The Macro Trends Shaping the Global Food Supply Chain
The FAIRR Initiative
This report evaluates structural ESG risks in the global industrial animal agriculture sector, including climate change, biodiversity loss, resource use, antibiotic stewardship, and protein diversification. It presents a consolidated view of macro‑level trends influencing the long‑term sustainability of the food supply chain.
Research
Faunalytics
This research examines how international organizations, including development finance actors, can influence the expansion of industrial animal agriculture. It provides analysis relevant to discussions on safeguards, policy alignment, and systemic impacts.
Animal Frontiers
This paper argues that animal welfare is a foundational but under‑integrated component of sustainability frameworks and discusses its relevance within broader environmental and social sustainability debates.
Financial institution accountability
Banks for Animals
An annual benchmark evaluating how banks address animal welfare across policies, sector standards, and exclusions, providing a comparative overview of current practices and gaps within the banking sector.
Fair Finance International, Profundo
The Dutch Fair Finance Guide is an independent assessment of the sustainability policies of Dutch financial institutions, covering topics such as environmental protection, human rights, climate change, and animal welfare. The 2025 edition provides an overview of how banks, pension funds, and insurers address animal welfare risks in their policies and investment practices, based on a transparent, publicly documented methodology.
New Market ESG
This report reviews agricultural projects financed by major multilateral development banks to assess whether and how farm animal welfare considerations are reflected in project objectives, environmental and social risk assessments, and mitigation measures. It provides an overview of the current treatment of animal welfare within development finance decision‑making frameworks.
Corporate accountability
See several corporate accountability resources that were updated in 2025 here.
Resources for companies
Humane World for Animals
A practical guide outlining technical, operational, and planning considerations for companies transitioning to cage‑free and crate‑free procurement.
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Note: This update is intended as a curated overview of selected 2025 developments relevant to financial institutions and is not an exhaustive list. If you are aware of a significant development that has been omitted, please let us know at info@farmsinitiative.org.
